Equipment Finance in Australia
Get the vehicles, equipment and machinery you need to scale your business without large upfront costs.
- Finance new and used equipment across industries*
- Fast approvals and master limits available*
No age or class restrictions - Seek the best rates that fit your business
Get Equipment Finance with Dark Horse Financial
1
Contact Our Team
Fill out our online form to apply for an equipment loan. We’ll get in touch with you fast to understand your situation and make a recommendation.
2
Submit Application
We’ll expertly handle your application from start to finish. Some lenders can approve equipment loans in under 1 hour.
3
Get Funded
Once approved, documentation is signed electronically, making settlement fast. Once settled, the lender forwards the payment to the dealer or seller, and you can get your equipment.
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Table of Contents
What is Equipment Financing?
Business equipment financing in Australia is a type of business loan specifically designed to help businesses purchase equipment. Instead of paying the full cost upfront, you spread the cost over time through instalments. The equipment being financed usually serves as security for the loan.
You can finance a wide range of assets, including vehicles, yellow goods, machinery, medical equipment, office fitouts, and technology. Both new and used equipment can be financed, depending on the lender and asset type.
Here are the key features and benefits of equipment finance*:
Features
✔ Loans starting from $10,000 up to millions of dollars
✔ Terms ranging from 1 to 7 years (sometimes longer)
✔ Approval times can be as fast as under 1 hour for some options
✔ Rates can generally range from 5% to 15% p.a.
✔ The equipment itself serves as security
Benefits
✔ Preserve cash flow and spread the cost of equipment over time
✔ Upgrade or acquire equipment without large upfront costs
✔ Claim tax benefits like interest deduction and depreciation
✔ Flexible repayment options available
✔ No doc applications up to $300,000
✔ Existing unencumbered equipment can be used to raise capital
What Can You Use Equipment Finance For?
- Vehicles and transport
- Finance trucks, utes, vans, and other commercial vehicles.
- Machinery and plant
- Construction, manufacturing, or agricultural equipment.
- Medical and specialised equipment
- Office equipment and technology
- Computers, software systems, and office fitouts.
- Hospitality and retail equipment
- Industrial kitchen equipment
- Point of sale systems
- …and more
What Can You Use Equipment Finance For?
- Vehicles and transport
- Finance trucks, utes, vans, and other commercial vehicles.
- Machinery and plant
- Construction, manufacturing, or agricultural equipment.
- Medical and specialised equipment
- Office equipment and technology
- Computers, software systems, and office fitouts.
- Hospitality and retail equipment
- Industrial kitchen equipment
- Point of sale systems
- …and more
Equipment Finance Options: Loans, Lines of Credit, and Leasing
Chattel mortgage
Chattel mortgage is a loan to purchase equipment. You own the equipment from the start while the lender holds a security interest over it. Once the loan is repaid, the security is removed. This option is commonly used for vehicles and larger equipment purchases.
Equipment Line
A pre-approved equipment line gives you access to a pre approved limit that you can use to purchase equipment as needed. Instead of applying for a new loan each time, you draw from the facility when required. You only pay interest on the amount used, and the limit becomes available again as its repaid.
Lease Options
Lease options exist for businesses that would rather not own equipment or those who like to upgrade frequently.
Here’s what to choose from:
- Finance lease: The lender owns the equipment and leases it to you for an agreed term. At the end of the term, you can choose to purchase the asset, upgrade it, or return it.
- Hire purchase: You lease and use the equipment while making repayments. Ownership transfers to you once all repayments are completed.
- Operating lease: A short term arrangement where you use the equipment without owning it. This suits businesses that need equipment for a defined period or prefer to upgrade regularly.
- Rent to own: Rent to own allows you to use the equipment immediately while making regular rental payments. A portion of these payments contributes towards ownership. Equipment can be bought out during the rental period or normally ownership is transferred at the end of the rental period for $1.
Equipment Loans Eligibility and Requirements
Full Doc Equipment Finance - Loans above $1,000,000
To qualify for full doc equipment finance, you’ll generally need to provide the following:
- Financial Statements: This includes profit and loss statements, balance sheets, and a 12 month forecast (in some cases).
- ABN and GST Registration: Your business must have an active Australian Business Number (ABN) and be registered for Goods and Services Tax.
- Tax Portals & ATO Payment Plans: A detailed summary of your ICA (GST) and ITA (Income Tax) portals covering at least a 12 month period up to today’s date.
- Bank Statements: Some lenders will ask for at least six months’ worth of business bank statements to assess your cash flow and liquidity.
- Asset Register: A register of all assets including a description that lists the assets’ year, make and model, kms / hours, condition and if there’s any finance against the asset.
- Commitment Schedule: Is a register of any loans and commitments the business has.
- Asset & Liability Statement: Most lenders will seek to understand a director’s personal asset and liability position; directors who own property will typically be offered higher levels of credit.
Low Doc Equipment Finance - Loans up to $1,000,000
For low doc finance, businesses can secure up to $1,000,000 in lending, with the assessment primarily based on a read only view of bank statements, the director being a property owner and credit scores.
The equipment financing requirements for low doc loans are:
- ABN and GST Registration: Your business must have an active Australian Business Number and a Goods and Services Tax registration.
- Read only View of Bank Statements: Lenders will assess your business’s cash flow based on a read only view of your bank statements.
A property rates notice demonstrating property ownership. - Credit Score: A credit score above 500 is usually required, but bad credit options exist for those with imperfect credit
No Doc Equipment Finance - Loans up to $300,000
No doc equipment finance is popular among SMEs, sole traders, and businesses seeking assets valued at less than $300,000. The requirements for no doc equipment loans are:
- ABN and GST Registration: Your business must have an active Australian Business Number (ABN) that has been registered for at least 24 months. You must also be registered for Goods and Services Tax
- Credit Score: A reasonable credit score of above 500 is still important, though bad credit options exist.
- No Income Assessment: One of the key advantages of low doc equipment finance is that there’s no income assessment required for loans up to $300,000, provided your ABN is over 24 months old.
Interest Rates for Equipment Loans in Australia
Interest rates for equipment loans typically range from 5% to 15% p.a., but can vary based on different factors. Pricing is influenced by:
- Credit profile of the business and directors
- Time in business
- Asset type and age
- Loan amount and term
- Lender policy
Dark Horse Financial can help you access the best possible rates for your equipment loan. Send us a message to learn more.
What is a Balloon Payment in No Doc Equipment Finance?
A balloon payment is a large, lump sum payment due at the end of a loan term. This structure allows businesses to pay smaller monthly instalments throughout the loan period, deferring a large portion of the principal to the final payment. However, businesses must plan carefully to ensure they can manage the final payment.
When Should a Business Consider a Balloon Payment?
- Seasonal Cash Flow: Businesses with fluctuating income streams, such as those in agriculture or retail, may benefit from lower payments during lean periods.
- High Equipment Resale Value: If the equipment is likely to retain significant value, businesses can sell it to cover the balloon payment or refinance into another loan term at the end of the initial period.
- Planned Growth: Companies expecting increased revenue in the future may choose this option to align higher payments with anticipated earnings.
- Short Term Use: For equipment needed only temporarily, a balloon payment can minimise upfront costs.
Financing a balloon rollover
If you reach the end of your loan term and are not ready to pay the balloon amount in full, you may be able to refinance or roll over the balloon into a new loan.
This involves taking out a new finance facility to cover the remaining balloon balance. The lender will reassess your application based on your current financial position.
Rolling over a balloon can help preserve cash flow by avoiding a large lump sum payment. However, it extends the overall loan term. It’s important to plan ahead before the balloon falls due.
Can I Get Equipment Finance With Bad Credit?
If you have bad credit and have been rejected by traditional lenders like banks, there’s still hope. Plenty of non bank or alternative lenders offer bad credit equipment loans all over Australia.
Bad credit equipment financing refers to loans specifically designed for businesses and directors with imperfect credit scores. These financing options are tailored to accommodate businesses with low credit scores, offering flexible terms and better chances of approval than with banks.
While interest rates may be higher compared to traditional loans, bad credit equipment financing provides an opportunity for businesses to access essential equipment.
Can Startups Get Equipment Financing?
Yes, startups can get equipment loans. There are certain requirements for startups specifically. Lenders want to ensure that the startup has the ability to repay the loan, and they’ll typically look for the following:
1. A Deposit
Most lenders will require a deposit, typically ranging from 10% to 20% of the equipment’s total cost. For example, if you’re purchasing $100,000 worth of equipment, you may need to provide a $10,000 to $20,000 deposit.
2. A Cash Flow Forecast
Startups must provide a cash flow forecast that outlines their expected revenue and expenses over a 12 month term. This helps lenders assess the business’s ability to make regular loan payments. The forecast should be realistic and based on solid assumptions.
3. Evidence to Support the Forecast
To strengthen your application as a startup, you should provide evidence to support your cash flow forecast. This could include:
- Purchase Orders: Proof of existing orders from customers.
- Contracts: Signed agreements with clients or suppliers.
- Letters of Intent: Written confirmation from potential customers indicating their intention to purchase your products or services.
4. Reasonable Credit Score
For equipment finance, many lenders will still consider credit scores when approving financing. A reasonable credit score of above 500 can improve the chances of approval and may result in more favourable loan terms.
Can I Finance Older Equipment for my Business?
Yes, you can finance older equipment for your business. A number of specialist non bank lenders in Australia accept machinery and vehicles with no age limits at all.
Older gear is common in transport, civil construction, trades, agriculture, waste services, mechanical workshops, and small fleet operations. Lenders understand that not every business can buy new. Some even specialise in funding assets that have years of use. What matters is whether the equipment still has useful life and whether the numbers work for your business.
In some cases, a valuation may be required, dependent on lender policy. The lender will seek to establish the value of the asset and assess its condition. However, most of the time, valuations are not needed.
Can you refinance an equipment loan?
Yes, you can refinance an existing equipment loan if your business circumstances have changed or if better lending options are available.
Refinancing allows you to replace your current loan with a new one, usually to access better rates, adjust repayment terms, or improve cash flow. Lenders will reassess your application based on your current financial position, the remaining loan balance, and the value of the assets being refinanced.
Businesses often refinance to reduce repayments, consolidate multiple loans, or release equity from the asset for additional funding. Approval depends on factors such as your repayment history, credit profile, the kind of equipment, its value and its condition.
Before refinancing, it is important to review any exit fees, payout costs, and the total cost of the new loan to ensure it provides a clear financial benefit.
Case Study: $300k Equipment Finance Line Approved with a No Doc application
A retail business approached us to fund a new store fitout and needed to move quickly.
They had already secured the location and were ready to begin works, but could not afford delays waiting on a traditional bank process.
We recommended a non bank equipment finance line of credit designed for speed and flexibility.
The facility provided $300,000 in funding and could be used not only for equipment with a VIN or serial number, but also for commercial fitouts, including soft costs like plumbing and electrical with no restriction.
The application was assessed using a read only view of the business bank statements and a builder’s quote. No financials or ATO portals were required.
Approval was issued within one day, with funds ready to be drawn immediately.
As the fitout progressed, the business simply uploaded builder invoices at each stage. Funds were released within 24 hours of each submission, keeping trades paid and the project moving without interruption.
The result was a fully funded fitout delivered on schedule, without delays or unnecessary documentation.
Calculate Your Equipment Loan Repayments
If you want to know how much you’ll pay in instalments for your equipment loan, you can use our Equipment Finance Calculator.
Our calculator gives you an estimate repayment amount based on the loan total amount, interest, loan term, and balloon payments, if applicable.
Frequently Asked Questions
Yes, many lenders will finance used equipment, provided it meets their criteria around age, condition, and resale value. Some specialist lenders have no age limit at all when it comes to financing older equipment.
Most equipment finance does not need a deposit. The deposit required depends on the lender, your credit profile, and the type of equipment. Some lenders offer 100% financing, while others may require a deposit of 5%-20% in the case of startups seeking finance or if you’re seeking a rent to own option.
Ownership depends on whether you’re going for a loan or a lease. With a chattel mortgage, you own the equipment from the start. With a lease, the lender owns the asset until the end of the term or until a purchase option is exercised.
Approval time depends on the lender and the level of documentation required. Some lenders can provide approvals in under an hour, while others can be approved within 24 hours. Larger loans can take a few days to a week to be approved.
Yes. Some lenders assess applications based on cash flow and capacity to repay rather than relying solely on credit scores. However, lower credit scores may result in higher rates or require a deposit.
Early repayment is usually allowed, but some lenders apply fees or minimum interest terms. The exact conditions vary by lender and are outlined in the loan agreement. If you know you’re looking for a solution that you can payout early this is something you should identify with us to ensure the right lender is selected.
Missing a repayment can result in additional fees, impact your credit profile, and lead to recovery action by the lender. Ongoing missed payments may result in the lender taking possession of and selling the equipment to recover losses.
Whether equipment finance is better than paying cash depends on your situation. Equipment finance allows you to preserve cash flow and spread costs over time. Paying cash removes interest costs but reduces available working capital, which may impact business operations.
Since the equipment will be used for business purposes, you can get deductions on interest, and you can also claim depreciation. Rental or lease payments can normally be expensed on the profit and loss statement, which makes the whole repayment tax deductible and can be a preferred solution for those wanting to offset tax. The exact tax benefits depend on your specific situation and should be confirmed with your accountant or a tax professional.
Startups can qualify, particularly if the equipment has strong resale value or if a deposit is provided. Startups will need to provide a cash flow forecast with proof to help lenders understand how they will be able to manage repayments in the future.
* To approved applicants only
Disclaimer: Loans and the benefits associated with them are only available to those who have been approved. The information provided on this page is general and does not consider your individual circumstances. It is not meant to serve as a substitute for professional advice, and you should not rely on it for any decisions. Always consult with a professional regarding finance, tax, and accounting matters before making any choices or taking action.