Machinery finance in Australia covers a wide range of assets — from compact excavators and forklifts to large crane and mining plant — and an equally wide range of business types, from sole traders and small contractors to large civil and construction companies. Getting the right deal means understanding the options available and working with lenders who know the machinery market.
Current Machinery Finance Rates (2026)
Machinery finance rates in Australia currently range from 6.1 to 15 percent per annum. The lower end applies to prime applications: 2-plus years GST registration, clean credit, newer machinery, and full documentation. Most mainstream machinery applications land between 7 and 12 percent. Older machinery, newer ABNs or adverse credit push rates toward the higher end.
Finance Structures for Machinery
The main machinery finance structures in Australia are: chattel mortgage — most common for GST-registered businesses, you own the asset from day one; finance lease — lender owns the asset, you lease it with an option to purchase at the end of the term; commercial hire purchase — guaranteed ownership transfer at the end; and equipment loan — secured business loan against the machinery. Sale and leaseback and rent-to-own are also available.
Low Doc Machinery Finance
Low doc machinery finance is the standard pathway for most owner-operators, sole traders and small contractors. No tax returns, financial statements or BAS required — approval is based on ABN history, GST registration date, personal credit and bank statements. Available up to $500,000 per transaction for most specialist lenders. Fast approval — often within 24 to 48 hours.
New vs Used Machinery
New machinery attracts the lowest rates and widest lender selection. Used machinery is widely financeable — most specialist lenders finance equipment up to 10 to 15 years old at competitive rates. Older specialist plant is assessed individually — specialist lenders are significantly more flexible on asset age than banks. Auction purchases, private sales and dealer floor stock are all eligible.
How Much Can You Borrow?
Low doc machinery finance is available up to $500,000 per transaction. Full doc applications can access $10 million or more for larger plant and equipment purchases. Most lenders offer up to 100 percent of the purchase price for prime applicants — no deposit required. Deposit requirements apply to older machinery, newer ABNs or applications with some adverse history.
Overdrive Funding compares 80-plus machinery finance lenders with one application at no cost to you. Contact us for a free 2026 rate comparison.