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Asset Finance Australia
Explore asset finance options for Australian businesses purchasing equipment, vehicles, machinery or other income-producing assets.
Asset finance Australia
Asset finance for Australian businesses
Asset finance allows a business to obtain eligible assets while spreading the cost over time. It is commonly used for equipment, vehicles, machinery, technology, tools and other assets used to operate or grow the business.
Australian businesses may use asset finance to preserve working capital, replace ageing equipment, improve productivity or secure assets needed for new contracts.
Lender requirements can include ABN details, asset description, supplier information, invoices or quotes, bank statements and financial information. Approval and available terms vary.
Asset finance is a business finance option used to fund eligible assets in Australia, including vehicles, equipment, machinery and tools.
How it works
Compare the details before you apply
Use these points to understand the loan purpose, likely documents, lender criteria and repayment fit before moving ahead.
Useful asset life
Repayments may be structured around the asset and business need.
Cash flow conscious
Keep more working capital available for operating expenses.
Asset finance vs general business loans
Asset finance is usually linked to a specific asset, while a general business loan may be used for broader working capital or operating purposes.
Because the asset and purpose are clear, lenders can assess the application differently to unsecured working capital. The age, value and business use of the asset may affect the outcome.
The most suitable option depends on whether the business is buying an asset, covering operating expenses or funding a mixture of needs.
What lenders may assess
Lenders may review the business trading profile, bank statements, credit history, repayment capacity and asset details. The supplier and purchase structure can also matter.
For vehicles and machinery, lenders may ask for registration details, invoices, tax invoices, serial numbers or valuation information.
Loanster helps organise the enquiry so the business can understand which documents may be relevant before moving further.
Asset finance explained: the main ways to pay for equipment
Asset finance is a broad label for paying off equipment or vehicles over time. Most businesses meet it when a supplier says "we can arrange finance for that". But the finance a supplier offers is only one of several structures, and the best one for a forklift isn't necessarily the best one for a coffee machine or a fit-out. This page lays them out side by side.
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What are the main ways to finance equipment?
Chattel mortgage: Who owns the asset You, from day one; Security Registered over the asset on the PPSR; Suits Vehicles and resaleable equipment you'll keep
Finance lease: Who owns the asset The financier; Security The financier's ownership; Suits Equipment you may upgrade regularly
Rental or operating lease: Who owns the asset The financier; Security The financier's ownership; Suits Tech that dates quickly
Unsecured business loan: Who owns the asset You; Security None over property or the asset (guarantee usual); Suits Used, specialised or smaller purchases
Property-backed business loan: Who owns the asset You; Security Mortgage or caveat over property; Suits Large or multiple purchases, older assets
Each has its own tax and GST treatment. As a general guide, owning the asset (chattel mortgage or a loan) usually means you claim depreciation and interest, while leasing usually means the payments themselves are the deduction. Your accountant should confirm what suits your situation.
How does a chattel mortgage work?
You buy the equipment, the lender pays the supplier, and a security interest is registered on the Personal Property Securities Register. You make regular repayments, sometimes with a balloon at the end. Once it's paid off, the registration comes off and the asset is yours outright.
It's popular because it's simple and the asset itself is the security. The catch is that financiers prefer assets with a clear resale market. A late-model ute is easy; a custom-built conveyor line or a twelve-year-old machine is harder.
When does a business loan beat asset finance?
Plenty of situations, especially for the kinds of purchases we see at Loanster:
- The equipment is old, second-hand or specialised. It may not qualify as security, or only for a short term.
- You're buying several things at once. A kitchen, a coffee machine and a fit-out wrapped into one unsecured loan is simpler than three separate contracts.
- You're buying privately. Some asset financiers won't fund private sales.
- You want the asset unencumbered. No registration on it means you can sell or swap it freely.
- There's equity in property. A secured business loan can offer a longer term and lower overall cost for big purchases.
How should you choose the term?
Match it to how long the asset earns money for you. A rough guide:
If repayments only work over a term longer than the asset's life, the purchase may be too big for now, or a cheaper or used option might be the smarter buy. Our guide on buying outright or financing walks through that decision.
Illustrative example. A Townsville freight yard needs a new forklift ($65,000) and a used pallet wrapper from an auction ($9,000). The forklift is a textbook chattel mortgage: new, resaleable, five-year working life. The auction wrapper is easier to pay for from cash flow or a small unsecured loan, because few asset financiers will touch a private auction sale. Splitting the purchase this way keeps both deals simple.
- Computers and tech: two to three years. Don't still be paying for a laptop you've replaced.
- Vehicles and general equipment: three to five years.
- Heavy machinery and long-life plant: five years or more, often with a residual.
- Fit-outs: the length of your lease, or less. A fit-out stays behind when you move.
What about tax time?
From 1 July 2026, small businesses with aggregated turnover under $10 million can permanently write off eligible assets costing less than $20,000 each in the year they're first used or installed ready for use. That can apply whether you pay cash or finance the asset, provided you own it. Our guide to the instant asset write-off and finance explains the timing.
What questions should you ask a supplier's finance offer?
Supplier and dealer finance is convenient, and sometimes it's genuinely competitive. Before accepting it, ask:
There's nothing wrong with taking the supplier's offer if it stacks up. The point is to compare it on the same footing as any other option, using total dollars. Our guide to comparing business loan offers shows the method step by step.
- Is the price the same if I pay another way? Some "low repayment" deals are funded by a higher sticker price.
- What's the total I'll pay over the term, including every fee and any balloon?
- Who is the actual financier? The supplier is often just introducing you to a third party.
- What happens if I want to sell or upgrade early? Payout and break costs vary a lot.
- Are insurances or extended warranties bundled in? They may be optional and cheaper elsewhere.
Not sure which structure fits your purchase?
Tell us what you're buying and we'll work through it with you. Enquiring costs nothing and doesn't put a mark on your credit file; a check only comes up when you're ready to proceed. We don't circulate your details to a long list of financiers. One person at Loanster looks at the purchase, the business and any property, and calls you with a clear recommendation.
Accurate form answers, especially the item, its cost and whether it's new or used, mean that first recommendation is the right one. Talk to us about your equipment.
Trust and process
Clear, secure finance enquiries
Loanster keeps the enquiry process straightforward: no credit check to enquire, a real person looks at your situation, and your details are not sprayed out to a pile of lenders.
Secure online enquiry
Personal details are submitted through a secure form and are not sent through URL query strings.
Australian business context
Enquiries can include ABN, BAS, ATO, bank statement and asset details where relevant.
Lender criteria apply
Approval, pricing, loan amounts and funding times depend on lender assessment.
Clear next steps
Loanster helps identify what information may be needed before a lender can make a decision.
Common questions
Asset Finance Australia FAQs
What is asset finance in Australia?
Asset finance is funding used by a business to acquire eligible assets such as equipment, machinery, vehicles or tools.
Is asset finance secured?
Asset finance is often connected to the asset being funded, but security structure depends on the lender and product.
Can asset finance help cash flow?
It may help preserve cash flow by spreading asset costs over time, subject to approval and suitable repayment terms.
What is a chattel mortgage?
A chattel mortgage is a loan to buy equipment or a vehicle where you own the asset from the start and the lender registers a security interest over it on the PPSR. When the loan is repaid, the security is removed. It's the most common way Australian businesses finance vehicles and movable equipment.
What's the difference between a lease and a chattel mortgage?
With a lease, the financier owns the asset and you pay to use it, often with a residual or option to buy at the end. With a chattel mortgage, you own it and the lender holds security. The tax and GST treatment differ too, which is why your accountant should weigh in.
What is a balloon or residual payment?
A lump sum left owing at the end of the term. It lowers the regular repayments but means a big payment later, which you'll need to fund by cash, refinance or selling the asset. Set it at a level the asset will realistically be worth by then.
Can I finance used equipment?
Yes, though some asset financiers limit the age of equipment or vehicles they'll take as security. For older or specialised gear, an unsecured loan or property-backed loan can be simpler because it doesn't rely on the asset's resale value.
Which structure does Loanster use?
Our own lending is business loans: unsecured and cash-flow options typically from $5,000 to $500,000 and property-backed loans from $20,000 to $5,000,000. Where an equipment-secured structure would clearly suit you better, we'll say so on the call.
Related finance options
Explore connected Loanster pages
Equipment Finance for Australian Businesses
Finance eligible equipment for your business while preserving cash flow for wages, suppliers and day-to-day operations.
Commercial Vehicle Loans
Finance eligible business vehicles such as cars, utes, vans and trucks with options suited to Australian business use.
Fit Out Loans for Australian Businesses
Explore finance for shop, office, clinic, hospitality or commercial fit outs, subject to lender approval and project details.
All equipment loan options
See every equipment loan page on Loanster in one place.
Start your enquiry
See what you may qualify for
Tell Loanster what kind of finance you are looking for and the team will guide you through the next step. Please fill in the form accurately so we can match you first time. Finance is subject to lender approval, eligibility criteria, terms and conditions.
Prefer to talk? Call 03 9999 7370.
Last reviewed: 10 November 2026
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