Equipment Finance Explained

Equipment finance is the funding of all types of equipment used predominantly for business use. By funding the equipment over terms up to 5 years, it allows businesses to finance capital purchases without effecting their working capital.

Why should Brokers offer Equipment Finance?

  • Deal size range from $5,000 to multimillion-dollar transactions
  • Can be used for all business structures
  • Applicable to all industries
  • Can be used for start-up businesses
  • Efficient approval and settlement
  • Funding for 100% of the purchase price, including GST
  • Terms up to 5 years (7 years in certain circumstances)
  • No additional property security or registered mortgage debentures required (in nearly all cases)
  • Fixed repayments for the term
  • Tailored monthly payments

Types of equipment that can be financed

  • Yellow Goods – Earthmoving, Construction, Mining and Machinery
  • Agricultural Equipment – Tractors, Headers, Sprayers, Air Seeders and Hay Balers
  • Medical Equipment – Diagnostic Instruments, Endoscope technology and Imaging Systems
  • Haulage Equipment – Prime Movers, Tray Trucks, Refrigerated Pantechs and Tipper Trailers
  • Marine – Yachts, Pleasure Craft, Commercial Fishing Boats, Charter Boats
  • Specialised Equipment – Gym Equipment, Solar Systems
  • Office Equipment – Computers, Software, Furniture, Printers and Phone Systems
  • Automotive – Cars, Utes, Trucks and Trailers


What products are available?

Equipment Lease

With an asset lease agreement, the customer can lease the equipment from the lender and pay a fixed amount each month for its use. At the conclusion of the contract, they can take ownership of the equipment by paying off the residual on the lease, refinance and extend the lease term, or sell the equipment. A major advantage to the asset lease method is that it does not appear on accounting books as an asset, potentially saving the business some extra cash in tax.


Chattel Mortgage

The lender will give your customer the entire amount for the equipment, allowing them to purchase it outright. However, they will have to pay the loan back in instalments, much like a mortgage on a house. The purchased piece of machinery is security on the loan. Once the loan has been paid off, they retain ownership of the equipment.


Equipment Rental

With an equipment rental, the lender purchases the equipment and rents it back to the customer. At the end of the agreement they may renew the lease agreement, purchase the equipment or hand the equipment back to the lender.

The advantage of renting the equipment is particularly useful when businesses are renting equipment that only has a short lifespan eg. laptops. In addition, all payments are tax deductible.

Always encourage your customers to consult their Financial Advisor or Accountant prior to making any decisions on the most suitable product.

Benefits of Equipment Finance

  • Improves cash flow as the business is making regular, fixed repayments rather than buying outright
  • Improves working capital
  • Avoids the need to invest capital/cash in equipment but still allows the business to operate effectively
  • Maximises business efficiency


There are several different ways to finance equipment purchases. At Platform Finance, our expert team can help untangle the web of different products, terms and structures to provide you with clear options that are suitable for your customer’s needs. Contact our helpful Broker Support Team today.