Equipment and asset finance for ABN holders and small business
Whether you're buying a ute, truck, trailer, excavator, farm machine or workshop tools, the right finance structure depends on your business and the asset. Even Financial Melbourne helps sole traders, partnerships, companies and trusts compare equipment finance from a panel of lenders and understand the terms before they commit, including when you're buying from a private seller.
Finance structures we can look at
- Chattel mortgage: you purchase the asset and the lender secures the loan with a mortgage over it. Tax treatment depends on your circumstances. Please speak to your accountant. See how a chattel mortgage works.
- Hire purchase: you pay in instalments to purchase equipment or a vehicle, hiring the goods from the seller until the final payment, at which point ownership transfers to you.
- Finance lease: the lender purchases the asset and leases it to you for an agreed term, with an option to acquire it at the end.
- Operating lease: use an asset for an agreed period without owning it, useful where equipment dates quickly or ownership isn't the goal.
- Sale and leaseback: sell an asset you already own to a lender, then lease it back, freeing up capital while keeping use of the asset.
Each structure works differently in terms of ownership, fees, end-of-term payments and tax treatment. The right choice depends on your business and the asset, and your accountant can advise on tax. All finance is subject to lender approval, fees and charges.
Finance by asset type
Tell us what you're buying and we'll look at what may suit. Availability and terms vary by lender, asset age and condition.
New or used, dealer or private seller
Many lenders finance used assets, but their policies on age, condition and seller type vary. Some lenders do finance private sales, usually with additional checks. Tell us about the asset and the seller early, ideally before you pay a deposit.
Buying from a private seller? Read our guide to buying equipment privately, and ask Arron for help with the PPSR checks.
How it works
- Tell us what you need. Send an enquiry with the asset, the approximate price and a few details about your business.
- We compare options. We look at structures and lenders that may suit your business and the asset, and talk you through the differences.
- We help with the paperwork. We help you pull together what lenders ask for, such as ID, ABN details, bank statements and the invoice or contract of sale.
- Settlement. Once the finance is approved and the checks are done, settlement is arranged with the seller.
All finance is subject to lender approval and eligibility criteria.
What you may need to provide
Requirements differ by lender and loan, but commonly include:
- Photo ID for the applicants and guarantors
- Your ABN and details of your business structure
- A quote, invoice or contract of sale for the asset
- Recent business bank statements
- Financial information such as tax returns or financials, or a lender’s alternative documentation, where available
- Details of existing debts and commitments
Lenders may also consider how long you’ve held your ABN and how long you’ve been trading. Some lenders accept newer businesses, subject to their criteria.
Estimate your repayments
Use our chattel mortgage calculator to estimate repayments. Calculator results are estimates only and are not an offer or approval of credit.
Equipment finance FAQs
Can I get finance for used equipment?
Many lenders finance used assets, but their policies on age, condition and seller type vary. Tell us about the asset early so we can check it against lender requirements.
Can I get equipment finance for a private sale?
Some lenders do finance private sales, usually with additional checks. Our Buying Equipment Privately guide explains what to look for.
Which finance structure is right for me?
It depends on your business, the asset and your accountant's advice. Each structure works differently in terms of ownership, fees, end-of-term payments and tax treatment. We can talk through the differences with you.
Can a sole trader or a newer business get equipment finance?
Some lenders consider sole traders and newer businesses, subject to their own criteria. Tell us how long you have held your ABN and how long you have been trading so we can look at suitable options.
Does equipment finance affect my tax?
Tax treatment depends on your business structure and circumstances. This page is general information only. Please speak to your accountant.
How do I get started?
Send an enquiry with the asset you're looking at, the approximate price and a few details about your business. We will come back to you to talk through the options.