Whether you're a civil contractor purchasing an excavator, a farmer replacing a tractor or a mining operator expanding your fleet, machinery finance is one of the most effective ways to acquire the assets your business needs without depleting working capital.
What Is Machinery Finance?
Machinery finance is a category of commercial asset finance used to fund the purchase or lease of heavy machinery and plant equipment. It covers a broad range of assets across construction, agriculture, mining, landscaping, demolition and civil contracting — from small skid steers to multi-million dollar mining machinery.
Types of Machinery You Can Finance
- Excavators (mini, midi and full-size)
- Bulldozers and graders
- Wheel loaders and skid steers
- Cranes and telehandlers
- Tipper trucks and dump trucks
- Tractors and harvesters
- Pavers and compactors
- Backhoes and trenchers
- Chaser bins and headers
- Scrapers and rollers
Machinery Finance Structures
The most common finance structures for machinery in Australia are chattel mortgage, finance lease, commercial hire purchase and rent-to-own. Each has different tax and ownership implications — your accountant can advise on the best structure for your business.
For most businesses purchasing heavy machinery for long-term use, chattel mortgage is the preferred structure. You own the asset from day one and can claim GST credits upfront and depreciation against your tax obligations. Finance lease can suit businesses that prefer off-balance-sheet treatment or need seasonal repayment flexibility.
Low Doc Machinery Finance
For loans up to $500,000, low doc machinery finance is available to most businesses with an ABN. You typically need only your ABN, driver's licence and 3–6 months of bank statements. No tax returns, no BAS, no full financials required. No real estate or property security is required — the machinery itself serves as the security for the loan.
This makes machinery finance significantly more accessible than bank loans, which often require two years of full financial statements, directors' guarantees and real property security. Private sale and auction purchases are fully supported across our lender panel.
How to Get the Best Rate on Machinery Finance
For well-qualified applicants with a clean credit history and 2+ years GST registration, machinery finance rates typically range from 6.1% to 15% p.a. The exact rate depends on your credit profile, ABN age, the age and condition of the machinery, and the loan term.
The most effective way to secure a competitive rate is to compare multiple lenders. Overdrive Funding gives you access to 80+ lenders with a single application, ensuring we find the lender best suited to your business profile and the machinery you're purchasing.
For the full picture on rates, loan structures and approvals across every machine we fund, see our main machinery finance page.