Key Takeaways
- Equipment finance rates in Australia range from 6.1% to 15%+ depending on the asset type, applicant and lender.
- Low doc equipment finance up to $500k — no financial statements required for eligible ABN holders.
- No deposit equipment finance available for established businesses with clean credit.
- Finance structure — chattel mortgage, finance lease, hire purchase and equipment rental all available.
- Specialist lenders finance equipment that mainstream banks decline — including medical, hospitality and niche industrial.
- Free broker service — we compare 80+ lenders and manage everything from application to settlement.
Equipment finance covers a wide range of assets: forklifts, CNC machines, commercial kitchen equipment, printing presses, fitness equipment, medical devices, woodworking machinery, spray booths and more. The asset type, brand, condition and lender all affect what rate you are offered — and there is a wide gap between the best and worst deals available in the market.
This guide explains how equipment finance deals are structured in Australia, what to compare, and how to get the most competitive outcome for your business.
What Are Current Equipment Finance Rates in Australia?
Equipment finance rates in Australia typically range from 6.1% to 15%+ per annum. The rate depends on the type of equipment, the brand, the age and condition, your ABN trading history and your credit profile. Well-known brands with established resale markets attract lower rates. Niche or specialist equipment — where resale is limited — carries more lender risk and usually commands a higher rate.
Established business, new equipment, major brand, clean credit
Established business, used equipment
New ABN or short trading history
Niche or specialist equipment, impaired credit
| Applicant Profile | Typical Rate Range | Notes |
|---|---|---|
| Established business, new equipment, major brand, clean credit | 6.1% – 8.5% | Best market pricing |
| Established business, used equipment | 7.5% – 11% | Depends on type and condition |
| New ABN or short trading history | 9% – 13% | Specialist low doc lenders |
| Niche or specialist equipment, impaired credit | 11% – 15%+ | Specialist lenders required |
Finance Structures: Which One Is Right for You?
Equipment finance can be structured in several ways, each with different ownership, tax and cash flow implications:
- Chattel mortgage — you own the equipment from settlement, claim GST on the purchase price in your next BAS, and depreciate the asset. Most common structure for ABN holders buying equipment.
- Finance lease — the lender owns the equipment during the term and leases it to you. Payments are generally fully deductible as a business expense. No GST claim on the purchase, but no balloon to manage at the end.
- Hire purchase — similar to a chattel mortgage but ownership formally transfers at the end of the term once all payments are made.
- Operating lease / equipment rental — suitable when you need the equipment for a defined period and do not want to own or manage the residual. Common in hospitality and events.
Most equipment buyers use a chattel mortgage. The right structure depends on your tax position and cash flow requirements — your accountant is best placed to advise for your specific circumstances. We can explain how each structure works so you can have an informed conversation.
Low Doc Equipment Finance
Low doc equipment finance lets eligible ABN holders borrow up to $500,000 without providing financial statements or tax returns. Lenders assess your ABN registration date, GST history and bank statements. This is ideal for fast-growing businesses, recently self-employed applicants, or operators who are between accountants.
Low doc rates are typically 1–2% higher than full doc rates for the equivalent borrower. For many businesses, the speed of approval and the simplicity of the process is worth that premium — particularly when the equipment is available now and waiting means losing the deal or delaying a project.
What Makes Equipment Finance Different From Other Asset Finance?
Equipment has a wider range of resale liquidity than trucks or heavy machinery. A forklift or CNC machine from a major brand has an active secondary market; a specialist custom machine may have almost none. Lenders consider resale value heavily when pricing the risk — if they need to recover the asset, they want to know they can sell it.
This means that for niche or specialist equipment, mainstream banks sometimes decline or apply unfavourable loan-to-value ratios. Specialist equipment lenders understand these asset classes better and price accordingly. A broker who works across 80+ lenders — including specialist funders — can identify who will approve your asset and at the best rate.
Comparing Equipment Finance Deals: What to Look For
- Interest rate — get the annual rate, not just a monthly repayment figure
- Fees — establishment and monthly admin fees can add $1,000–$2,000+ to the total cost over a five-year term
- Loan term — 2 to 7 years is typical; match the term to the useful life of the equipment
- Balloon or residual — useful for managing cash flow, but set it to match realistic end-of-term value
- GST treatment — chattel mortgage lets you claim GST on the purchase price upfront (confirm with your accountant)
- Asset type restrictions — some lenders have restricted lists for certain equipment categories
- Approval speed — if the asset is time-sensitive, same-day conditional approval may be available
Industries We Finance Equipment For
Overdrive Funding arranges equipment finance across a broad range of industries:
- Manufacturing and industrial — CNC machines, laser cutters, press brakes, production lines
- Food and hospitality — commercial kitchen equipment, refrigeration, food processing lines
- Construction and trades — compressors, generators, scaffold, site equipment
- Healthcare and medical — dental equipment, diagnostic machines, surgical equipment
- Printing and signage — large format printers, laminators, cutting plotters
- Fitness and leisure — gym equipment, commercial cardio, functional training rigs
- Retail and logistics — forklifts, pallet jacks, warehouse racking, conveyor systems
- Automotive — hoists, spray booths, alignment equipment, diagnostic tools
How to Get the Best Equipment Finance Deal
Never rely on a verbal quote — always get the rate, fees and total cost in writing before you commit. The gap between the best and worst equipment finance deal can be thousands of dollars over the term. Using a broker who compares 80+ lenders in a single application is the most efficient way to find the most competitive deal for your equipment type and credit profile.
At Overdrive Funding, we arrange equipment finance across all industries and asset types. Our service is free — paid by the lender after settlement. Compare equipment finance now or call Simon for a free assessment and same-day approval.