Every term,
in plain English.
Equipment finance is riddled with jargon. This is the straight-talking version — what each term actually means and why it matters.
18 terms operators run into.
ABN
Australian Business Number. Required for most commercial equipment finance. Some pathways accept new ABNs.
Balloon Payment
A lump sum due at the end of a finance term, after regular repayments. Reduces monthly payments but leaves a larger final amount.
Chattel Mortgage
A loan secured against equipment you own from day one. Interest and depreciation are typically tax-deductible. The most common structure.
Contract-Aligned Finance
A structure where the repayment schedule matches a specific contract’s revenue profile (e.g. milestone payments, seasonal uplift).
Deposit
Upfront payment reducing the financed amount. Not always required but can improve approval and terms.
Depreciation
The accounting decline in asset value over time. Tax-deductible in chattel mortgages and hire purchase structures.
Equipment Lease
A structure where the lender owns the equipment and you lease it. Payments are typically a fully deductible operating expense.
Fast Segment
TMF’s pathway for express-track deals under $100K with standardised structures and 24-hour target approvals.
Grow Segment
TMF’s pathway for deals between $100K and $350K with consultant-led assessment and structured option modelling.
Hire Purchase
A finance structure where you hire the asset with an option to own it at the end of the term. Similar to chattel mortgage but GST is spread across repayments.
Master Facility
A pre-approved finance facility that lets you draw down for multiple assets without re-qualifying each time.
PPSR
Personal Property Securities Register. Where security interests on movable assets are registered in Australia. Checked before any used or private sale purchase.
Progress Payments
Staged finance drawdowns for staged equipment builds (typical for specialty trucks and fit-outs).
Residual
Another term for balloon payment. The amount due at end of lease or loan term.
Scale Segment
TMF’s pathway for deals $350K+ with bespoke structuring, multi-lender syndication, and executive-level relationship management.
Seasonal Repayments
A repayment schedule that steps up and down to match seasonal income (common for agriculture, tipper haulage).
Settlement
The moment funds clear from the lender to the seller and the asset legally changes hands.
Subcontract
Work won through a tier-1 head contractor. Many infrastructure projects flow to operators via subcontract packages.