Commercial vehicles and transport equipment
Vehicle finance is generally written against the vehicle itself, which keeps working capital free. For fleets, staggering settlement dates and aligning terms to the replacement cycle avoids a cluster of balloon payments in the same year.
- Utes, vans and light commercial vehicles
- Trucks, trailers and prime movers
- Fleet replacement programs
- Specialised transport and logistics equipment
Machinery and heavy equipment
Heavy equipment attracts more detailed lender assessment of age, condition and resale value. Where the asset is highly specialised, a valuation and a clear replacement market make a material difference to the terms available.
- Earthmoving and construction machinery
- Agricultural machinery and implements
- Manufacturing and processing equipment
- Material handling and warehouse equipment
Medical and professional equipment
Practices and clinics frequently fund equipment against the asset, preserving working capital for staffing, fit-out and growth. Terms are usually aligned to the expected clinical life of the equipment.
- Imaging, diagnostic and treatment equipment
- Dental and allied health equipment
- Practice technology and software
Business equipment purchases
- IT hardware and point-of-sale systems
- Fit-out and office equipment
- Hospitality and retail equipment
- Solar, refrigeration and energy efficiency upgrades
New and used asset finance
Used assets can be financed, although lender policy typically considers age, condition and the availability of a valuation. Certain asset classes have stricter limits than others, and some lenders apply maximum age thresholds at the end of the term.
Equipment refinancing
Where an asset is owned outright or financed elsewhere, refinancing can release equity or restructure repayments. Availability depends on the asset's age, its current value and the lender's appetite for that class of equipment. Any early termination costs on the existing facility should be confirmed before proceeding.
Structures and how they differ
The structure determines who owns the asset, how repayments are treated and what happens at the end of the term.
Chattel mortgage
The business owns the asset from settlement and the lender takes security over it. Interest and depreciation treatment is generally discussed with your accountant.
Hire purchase
Repayments are made over a fixed term, with ownership transferring once the final payment is made. Budgeting is straightforward because the residual is known from the outset.
Finance lease and operating lease
The financier retains ownership during the term. These structures suit assets with predictable replacement cycles and can support particular balance sheet treatments.
Rental
Short-term rental arrangements provide flexibility where the requirement may change, at a higher cost than a fixed-term facility.
Insight
The cheapest quoted rate is not always the cheapest facility. Terms, residual values, fees and the flexibility to upgrade at the end of the term often matter more than a small difference in the headline rate.