Machinery finance covers earthmoving and construction plant, agricultural equipment and heavy fixed or mobile machinery — assets that are often expensive, long-lived and central to how a business earns. Like most commercial asset finance, it's typically structured as a chattel mortgage: the lender funds the purchase, you own the machine from settlement, and the lender's security is registered against the asset until the loan is repaid.
Machinery holds its value differently to a car or even a truck — a well-maintained excavator or tractor can keep working productively for decades, which is part of why balloon structures and longer terms are common here: lenders are comfortable lending against an asset that depreciates more slowly than a road vehicle, provided it's been looked after and comes with clear service history.
New, used, dealer-sourced or privately purchased machinery can all be financed. Private and auction purchases typically go through an inspection or valuation step before settlement so the lender has an independent view of the machine's condition.
Interest on machinery finance is generally deductible where the machine is used in the business, and the machinery is typically depreciable as a business asset. This is general information, not advice for your specific circumstances — confirm with your accountant.
Machinery finance skews heavily toward regional and rural businesses — construction contractors, earthmoving operators and farmers replacing or expanding equipment ahead of a season or a project. Seasonal cash flow is a real factor for a lot of these buyers, which is one reason working with a broker who compares the whole panel matters: not every lender structures repayments the same way around harvest cycles or project milestones, and finding one that does can make a material difference to how the finance actually feels day to day.
There's no fixed limit. It depends on the machine, your business and how the loan is set up. Lenders typically look at:
Worked example (example only, not a quote): Using the calculator's starting figures — $90,000 of machinery, no deposit, a five-year term and a 15% balloon — the loan amount is $90,000. Your regular repayments pay off $76,500 of it plus interest, and the $13,500 balloon is due at the end. Use the calculator above for your figures.
Five steps, from first enquiry to the machine working.
Budget Finance is a credit representative (Credit Representative 565565) of Connective Credit Services Pty Ltd, Australian Credit Licence 389328. All applications are subject to the lender's assessment and approval.
Equipment finance is a loan or lease that lets a business buy machinery or equipment and pay for it over time, instead of paying the full price upfront. The equipment is usually the lender's security. The most common type for Australian businesses is a chattel mortgage, where you own the machine from day one. It covers almost any working asset, from tractors and loaders to forklifts and workshop gear.
Send an enquiry with the machine and price, have a short call with a broker, then send your ID, ABN details and bank statements or financials. Your broker picks a lender from the panel whose rules suit the machine and your business, and manages the application to settlement. Buying at auction or from a private seller? Tell your broker early, as the lender may want an inspection or valuation first.
Most lenders want an active ABN, photo ID, recent business bank statements or financials, and details of the equipment. They'll also check your credit history and how long you've traded. Newer businesses, larger amounts or unusual machines may need more, such as tax returns or evidence of work lined up. Your broker gives you the exact list before you apply.
The lender sets the term, mostly based on the equipment's expected working life, and the calculator above lets you test one to seven years. Long-lived, well-kept machinery can usually go longer than equipment that wears out or dates quickly. A longer term lowers repayments but adds interest. A common approach is to match the term to how long you'll keep the machine before upgrading.
If you want to own the machine and keep it for years, buying with a chattel mortgage is usually the simpler option. With a lease, the financier owns the equipment and you pay to use it, often with an option to buy at the end. Leasing can suit gear that dates quickly or that you swap out often. GST and tax work differently for each, so check with your accountant before you choose.
Mostly, yes — in Australia, a business equipment loan is usually set up as a chattel mortgage. You own the equipment from settlement, and the lender takes security over it until the loan is paid. If the business is GST-registered, it can generally claim the GST on the purchase in its next BAS. Leases and hire purchase also exist, but a chattel mortgage is the most common structure for business equipment.
Yes — excavators, skid steers, loaders, dozers and other earthmoving machinery are among the most commonly financed asset classes on our panel, new or used, through a dealer or privately.
The finance structure and maths are the same, but lenders sometimes offer seasonal repayment options for tractors and harvesters to match a farm's cash flow — for example, larger repayments after harvest and smaller ones in the off-season. Ask your broker if that's relevant to your business.
Older machinery generally attracts shorter loan terms and smaller (or no) balloon options, since the lender is weighing the asset's remaining useful life and resale value against the loan term. Late-model machinery in good condition gets the most flexible terms.
For machinery used in the business, the interest portion of chattel mortgage repayments is generally deductible and the machinery itself typically depreciable. Confirm with your accountant.
No dealer requirement at all — a dealer sale, private sale, auction, buying from a friend or relative, even a Facebook Marketplace listing, are all fine. Private and auction purchases just involve a couple of extra verification steps that we handle for you before settlement, since there's no dealer warranty backing the asset's condition.