How equipment finance
actually works.
Plain English. No jargon hoops. A straight explainer of the structures, the terms, and what matters for your business.
What equipment finance is.
Equipment finance lets you acquire income-producing assets without paying the full purchase price upfront. You make regular repayments over an agreed term (typically 3 to 7 years) while the equipment earns income from day one. The main structures are chattel mortgage, equipment lease, and hire purchase — each with different tax and ownership implications.
Chattel, lease, or hire purchase.
Chattel Mortgage
You own the asset. Lender holds a security interest. Interest and depreciation are tax-deductible. The most common structure.
Equipment Lease
Lender owns the asset. You lease it and deduct payments as operating expense. Suits regular upgrade cycles.
Hire Purchase
Similar to chattel mortgage but GST spreads across repayments. Ownership transfers at end of term.
From conversation to settlement.
Conversation
Tell us the asset, the work, and the timeline.
Structure
We shape the deal: term, balloon, lender fit.
Application
Clean paperwork, compelling story, right lender.
Approval
24 hours for Fast segment, 2–5 days for complex.
Settlement
Funds cleared, equipment released, you earn.
Straight answers to common questions.
What is a chattel mortgage?+
A chattel mortgage is a loan secured against the equipment. You own the asset from day one, the lender holds the mortgage, and interest + depreciation are typically tax-deductible for ABN holders. It is the most common structure for equipment finance in Australia.
What is an equipment lease?+
A lease means the lender owns the equipment and you lease it from them. Lease payments are typically a fully deductible operating expense. Leases suit businesses that prefer to upgrade regularly rather than hold assets long-term.
What is hire purchase?+
Hire purchase is similar to chattel mortgage, but GST is spread across the repayments rather than claimed upfront. Ownership transfers at the end of the term. It is less common now but can suit specific tax positions.
What is a balloon payment?+
A balloon is a deferred lump sum due at the end of the loan term. Adding a balloon reduces monthly repayments but leaves a larger final amount. Balloons are common on equipment finance and can often be refinanced or paid from asset sale proceeds.
How long can I finance equipment for?+
Typical terms run 3 to 7 years. New or near-new assets can often stretch longer; older used assets are capped shorter. The term should match the expected earning life of the asset, not just minimise the monthly cost.