Machinery finance interest rates in Australia currently range from around 6.1% to 15% p.a. Where you sit in that range depends on your ABN age, credit profile, the machine's age and brand, and whether you're applying low doc or full doc.
Machinery differs from vehicles in one important respect: resale value varies enormously by brand and hours, and lenders price that risk directly. This guide sets out what to expect in 2026 and where the levers are. All figures are indicative only and subject to lender assessment.
Indicative machinery finance rates by profile
Established ABN (2+ years), new machine, full doc
Established ABN, used machine, low doc (no financials)
Newer ABN (under 12 months), full doc
Prior credit issues or specialist lending
| Borrower profile | Indicative rate | Typical deposit |
|---|---|---|
| Established ABN (2+ years), new machine, full doc | From 6.1% | $0 – 10% |
| Established ABN, used machine, low doc (no financials) | 7% – 10% | 10% – 20% |
| Newer ABN (under 12 months), full doc | 9% – 12% | 10% – 30% |
| Prior credit issues or specialist lending | 12% – 15% | 20% – 30% |
Why machine age and brand move your rate
The machine is the lender's security. If the loan defaults, they need to sell it — so anything affecting resale affects your rate. Recognised brands with deep secondary markets in Australia (Caterpillar, Komatsu, Hitachi, Volvo, Kobelco, John Deere) are easier to price than obscure ones, because the lender knows what they'd recover.
Age works the same way, and it's often the hard limit rather than a pricing adjustment. Many lenders cap the asset age at end of term — a machine that will be 15 years old when the loan finishes may be declined outright by one lender and funded at a fair rate by another. Hours and service history feed the same assessment.
This has a practical consequence when you're comparing two machines. A cheaper off-brand machine can end up costing more overall than a dearer Cat, once the finance rate and deposit difference are counted. Run the total cost, not the sticker price.
What else moves your rate
- ABN and GST registration length — two years of trading is the common bank threshold
- Credit profile — business and director files are both assessed
- Doc type — low doc (no financials) carries a premium over full doc
- Deposit — more down reduces lender exposure and can sharpen pricing
- Loan term and balloon structure
- Property ownership — homeowners are often priced better even without property security
- Lender appetite — which industries and asset classes a lender wants this quarter
Rate isn't the whole cost
Compare establishment fees, monthly account fees, early payout penalties and any brokerage loaded into the rate. A quote that looks sharp on percentage can lose to a slightly higher rate with no fees. Ask for total cost over the term.
On balloons, be realistic. Machinery depreciates on hours as well as years, and a hard-worked machine can be worth well under a 40% balloon at the end of five years. Set the balloon against honest resale, not against the lowest monthly repayment you can engineer.
How to get to the sharp end of the range
- Get pre-approved before you shop or bid at auction — pre-approvals are typically valid 90 days
- Buy brands with strong Australian resale where the price difference is marginal
- Consider a deposit even where $0 down is available, since it can reduce your rate
- Keep your ATO position clean, or clear it with [tax debt refinancing](/tax-debt-loans) first
- Apply once through one broker — multiple credit enquiries damage your file
- Have the whole market compared rather than accepting the dealer's financier
Where we fit
Looking for the best rate on machinery finance? You're in the right place. We compare 80+ banks and specialist lenders, including those that fund older machines and newer ABNs. Our service is completely free. We're paid by the lender only after a deal settles, so there's no cost to you—even if you choose not to proceed. See our machinery finance options or get a free quote online.