Equipment & Asset Finance

Equipment finance, matched to the right lender — not the lowest headline rate

Vehicles, machinery, plant, fit-outs and medical equipment — via chattel mortgage, lease or rental. The outcome comes from borrowing where your circumstances match what the lender offers, structured alongside your accountant.

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Commercial plant and equipment in an industrial yard

What a lender actually looks at

A clean trading history does most of the work

For a business with a clear, good credit history — and an owner who is a homeowner — financing equipment up to around $200,000 is generally a stronger proposition, provided the business isn’t significantly loss-making. Every lender differs, and any finance is subject to assessment.

Where the financials are less straightforward, there are still legitimate, sound ways to structure the deal — particularly where there are good assets behind it.

Vehicles, trucks and trailers
Plant, machinery and equipment
Fit-outs and medical equipment
Chattel mortgage, lease and rental structures
Low-doc options for established businesses
Structured with your accountant for tax treatment

How a lender reads it

Trading history, the asset, and your support position

Trading history & credit

A well-established business with a clean credit history sits in a far stronger position than a brand-new ABN.

The asset & its age

Equipment is valued and needs to be in good condition — generally up to around five years old, with specialised gear sometimes older.

Security & support

Home ownership and the broader asset position behind the business shape both appetite and structure.

Phil on equipment and asset finance

The questions clients ask first

What does a lender actually look at for equipment finance? +

Mostly your trading history and credit conduct. A business with a clear, good credit history and an owner who is a homeowner is generally in a strong position to finance equipment up to around $200,000 — as long as the business isn’t losing a lot of money. It’s general information only and every lender differs.

How new can an ABN be and still get approved? +

It depends on the lender. Some will fund an ABN that’s only six months old, but usually at a much higher rate that reflects the risk — which generally isn’t where you want to be. A well-established trading history puts you in a much stronger position.

Chattel mortgage or finance lease — which makes more sense? +

That’s largely a tax-treatment question, and one to work through with your accountant. We structure the facility to suit the answer.

What’s the balloon-payment trap? +

A balloon that’s too large. As a rule of thumb, a big balloon — say around 40% — on a depreciating asset over a five-year term can leave you over-capitalised and stretching just to meet the monthly payments. Worth modelling with your accountant before you commit.

Used equipment versus new — how different is lender appetite? +

The equipment is valued and needs to be in good condition, and generally up to around five years old is fine. For specialised gear — a particular machine, for example — older can be acceptable, provided it’s been inspected and well maintained.

How does equipment finance affect my home loan? +

With most lenders, your business and personal lending is aggregated into one pot — so a large vehicle or equipment facility can reduce your borrowing capacity when you next buy a home or investment property. A small number of major lenders can set aside business lines of credit, business loans and asset finance, which is exactly where lender choice matters.

What do business owners get wrong about equipment finance? +

Going to the wrong lender — usually because they’re shopping on rate. The better approach is matching your circumstances to a lender whose policy fits. That match matters more than the headline number.

“Most people shop on rate. That’s the wrong approach — the right outcome comes from borrowing where your circumstances match what the lender offers.”

— Phil Riches, Commercial Finance Broker (a division of Model Mortgages)

Ready to talk?

Talk through your equipment purchase

Understand how your situation is likely to be assessed — and what that may mean for your next step. Every conversation is strictly confidential.

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