Equipment Finance Australia

Equipment finance is funding secured by a business asset, such as machinery or plant, where the asset itself serves as security for the loan. Repayments are structured to match the useful life of the equipment, and ownership typically transfers to the business at the end of the term.

For most Australian businesses, equipment is the backbone of day to day operations. Whether you are upgrading a single machine or outfitting a new workshop, the right finance structure keeps cash flow healthy while putting the tools you need in place. Gateway Asset Loans works across a panel of over 70 lenders to find an equipment finance solution suited to your circumstances.

How Does Equipment Finance Work?

Equipment finance uses the asset you are purchasing as security for the facility. Because the lender holds an interest in the equipment, the risk position is generally stronger than an unsecured loan, which can mean a more competitive structure for the borrower.

Repayments are typically scheduled over a term that aligns with the expected useful life of the asset. A machine expected to last seven years might be financed over a similar period, so the repayments are met from the income the equipment helps generate.

Depending on the structure you choose, ownership of the asset may sit with you from day one, or transfer to you at the end of the term. Your broker will explain how each option affects your balance sheet, GST and end of term position before you commit.

What Assets Can You Finance?

Excavators, loaders and earthmoving plant

CNC machines and workshop equipment

Commercial ovens, refrigeration and kitchen fitouts

Dental chairs and medical practice equipment

Printing presses and finishing equipment

Trucks, trailers and heavy commercial vehicles

Agricultural machinery, tractors and harvesters

Construction tools, scaffolding and site plant

Key Terms Explained

What is equipment finance?

Equipment finance is funding used to acquire business machinery or plant, where the equipment itself generally acts as security for the facility. Repayments are structured over a term aligned to the asset's useful life, and ownership depends on whether you choose a chattel mortgage, lease or rental structure.

What is a chattel mortgage?

A chattel mortgage is a finance structure where the borrower owns the movable asset from the start and the lender holds a mortgage over it until the facility is repaid. It is commonly used for business equipment and vehicles, and GST and tax treatment depends on your individual circumstances.

What is a finance lease?

A finance lease is an arrangement where the lender owns the asset and the business leases it for an agreed term in return for regular payments. At the end of the term there is often an option to purchase the asset, return it or refinance. Tax treatment depends on your circumstances.

What is an operating lease?

An operating lease is a rental arrangement where the lender owns the asset and the business uses it for a set period without taking on ownership. It is typically treated as an operating expense and the asset often stays off the balance sheet. Tax treatment depends on your circumstances.

What is a balloon payment?

A balloon payment is a larger lump sum due at the end of a finance term, reducing the size of the regular repayments during the term. It can be paid in full, refinanced into a new facility, or settled by selling or trading the asset. Whether it suits you depends on your cash flow.

Finance Structures Compared

The four most common equipment finance structures in Australia are compared below. Each has different implications for ownership, accounting and GST.

Structure	Who owns the asset	Balance sheet treatment	GST treatment	Best suited to
Chattel Mortgage	You own the asset from the start	Asset and loan appear on the balance sheet	GST may be claimed upfront on the purchase price	Businesses wanting ownership and GST flexibility
Finance Lease	Lender owns the asset, you lease it	Generally recorded as a lease liability	GST charged on the monthly rental payments	Businesses wanting to preserve working capital
Operating Lease	Lender owns the asset, you use it	Typically off balance sheet	GST charged on the rental payments	Businesses wanting asset use without ownership
Rental	Lender owns the asset, you rent it	Treated as an operating expense	GST charged on the rental payments	Businesses wanting flexibility to upgrade equipment

Tax treatment depends on your individual circumstances and should be confirmed with your accountant or tax adviser.

Who Can Apply for Equipment Finance Australia?

Sole traders with an ABN looking to finance business equipment.

Companies seeking to acquire plant, machinery or vehicles for operations.

Trusts purchasing assets used in the trust's business activities.

Partnerships financing equipment shared across the partnership.

GST registration is a consideration, as it affects which structure suits you and how GST is claimed.

Why Use a Broker for Equipment Finance Australia?

We compare options across a panel of over 70 lenders, rather than a single bank's product range.

A broker explains each structure in plain English so you understand ownership, GST and end of term outcomes before you commit.

We handle the paperwork and lender communication, freeing you to focus on running your business.

Different lenders specialise in different asset types, so we match your equipment to the right lender.

Frequently Asked Questions

Can I finance used equipment, or only new?

Yes, many lenders finance used equipment as well as new. The asset's age, condition and remaining useful life are usually considered when assessing the facility. A broker can identify lenders that actively support used equipment finance for your asset type.

Do I need a deposit for equipment finance?

A deposit is not always required. Some lenders offer 100 percent finance for the asset, while others ask for a contribution depending on the asset type, your trading history and the structure chosen. Your broker will outline the deposit position for each option.

Can I apply for equipment finance without an ABN?

Equipment finance is generally a business product, so an ABN is usually required. If you are in the process of starting a business, some lenders may still assist depending on your circumstances. Speak with a broker about your situation before applying.

Can I finance equipment I already own?

Yes, this is often called a sale and leaseback. You sell the asset to a lender and lease it back, releasing equity tied up in equipment you already own. It can free up working capital while letting you keep using the asset.

What happens at the end of the finance term?

The end of term outcome depends on your structure. With a chattel mortgage you already own the asset. With a lease or rental there may be an option to purchase the asset, return it, or refinance the residual. Your broker explains the end of term position for each structure up front.

How is the asset used as security?

The equipment you purchase generally secures the facility. The lender registers their interest, often on the Personal Property Securities Register, which means the asset can be used as security without you needing to provide other property. This keeps the finance tied to the equipment itself.

Ready to explore your equipment finance australia options?

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For further reading, see business.gov.au finance and capital guidance.