top of page
Loading Semitrucks
Equipment Loans

Equipment Loans

Also known as asset finance or chattel mortgage, a business equipment loan can help you own equipment without needing to pay the purchase price upfront. This type of business finance could help smooth out your cash flow via monthly repayments over an agreed period.

What Can I Purchase With Equipment Loans?

  • Vehicles: Cars, trucks, buses, and utilities

  • Heavy Equipment: Forklifts, cranes, and similar machinery

  • Office Equipment: Computers, office furniture, and technology

  • Specialised Equipment: Printing, medical, and manufacturing equipment

  • Industrial Equipment: Machinery for mining, forestry, and other industries

  • Civil Equipment: Concrete pumping and quarry machinery

  • Earthmoving Equipment: Trenchers, excavators, and related tools

  • Other Equipment: Gaming equipment, arboricultural tools, and more

​

Note: Not all lenders finance every type of equipment, so it’s important to apply with a lender who specialises in your specific needs.​

How Much Can I Borrow?

The amount you can borrow with an equipment loan typically varies depending on the lender, the specific loan product, and their assessment of your application.

​

  • Low Doc Loan: Borrow from $10,000 up to $250,000

  • Full Doc Loan: For amounts over $250,000

​

Our expert mortgage brokers understand which banks assess equipment loans more favourably.​ You can call us on (03) 9566 7247 to find out if you qualify and how much you can borrow.​

What Sort Of Financing Options Are Available?

There are many financing options available, therefore, it is recommended that you consult with your accountant or an independent tax advisor before making an informed choice. But here are the most common types of equipment financing:

​

  • Finance Lease: The lender purchases the equipment and leases it to you for a set period.

  • Commercial Hire Purchase (Asset Purchase): Similar to a finance lease, but your business immediately owns the equipment once the final payment is made.

  • Novated Lease: Allows employees to lease a vehicle of their choice, with you making lease payments via pre-tax income deductions, while they retain ultimate responsibility for the vehicle.

  • Chattel Mortgage: Your business owns the equipment but uses it as the primary security for the mortgage.

  • Sale and Hireback / Sale and Leaseback: Available for equipment purchased in the last three months, allowing you to sell the equipment and lease it back from the buyer.

​

Our expert mortgage brokers understand which banks assess equipment loans more favourably.​ To find out if you qualify, call us on (03) 9566 7247.

How To Qualify For Low Doc?

To qualify for a Low Doc Equipment Loan, you'll generally need to meet the following criteria:

​

  • ABN: At least 2 years of business operation.

  • Credit Score: A minimum of 500 for both corporate and individual applicants.

  • Property Status: You or your spouse must be a property owner. If neither of you owns property, some lenders may accept a 20% deposit but will limit the borrowing amount to $100,000.

  • Age Of Equipment: The eligibility for equipment age may vary, so it's best to consult with an experienced mortgage broker for advice.​​

​

Our expert mortgage brokers can guide you through the process and help you determine your eligibility for a Low Doc Equipment Loan.

What If I Want To Borrow More Than $250,000?

To borrow more than $250,000, lenders will typically require a deeper understanding of your business. This may include:

​

  • Detailed background information on the director(s) and guarantor(s), including their experience and qualifications

  • A list of current work in progress

  • Information on business contracts that have been won but not yet commenced

  • Details of contracts currently being tendered for

  • Current ATO portal statements showing 12 months of good payment history

  • Latest year financial statements of the borrowing entity and/or related entities, capturing the group’s cash flow as well as information on directors and guarantors

  • 6 months bank statements from the Business Trading Account

  • Year-to-date management accounts, supported by BAS

​

Providing this information will help lenders assess the financial stability and potential of your business when considering larger loan amounts. Our mortgage brokers can assist you in gathering the necessary documentation and navigating the process.​

Should I Use A Mortgage Broker For Equipment Loans?

Mortgage brokers are not tied to any specific lender, giving them the freedom to help you compare a wide range of lenders and loan products. This flexibility allows them to find the best options that suit your business needs.

​

With the market constantly evolving and new products regularly being introduced, a specialist mortgage broker can provide invaluable advice, ensuring you select the right financing solution for your business.

​

Call us on (03) 9566 7247 or click on the button below to book a obligation-free consultation with one of our expert mortgage brokers today.

Years Experience

20+

in Residential & Commercial Banking

WHAT OUR CUSTOMERS ARE SAYING

Selena Nguyen

"Michael is extremely helpful, offering clear advice and explanations, and always choosing the best options for me. I’m fortunate to have come across a broker like him."
bottom of page