Crusher Finance: Rates & How It Works

Key highlights

• Crusher finance spreads a large capital cost over the machine's earning life
• Chattel mortgage and hire purchase are the most common structures used
• Your rate reflects credit profile, deposit, machine age and asset type
• Low-doc options may suit established ABNs with limited financials
• One application compares 80+ lenders instead of chasing banks yourself

How does crusher finance actually work?

Crusher finance is a commercial equipment loan secured against the machine itself, whether that is a tracked jaw crusher, a cone unit or a mobile impactor. The lender advances the purchase price, you take delivery, and you repay in fixed instalments over an agreed term, usually two to seven years depending on the machine and your profile. Because the crusher acts as security, rates are typically sharper than an unsecured loan. Most operators use a chattel mortgage, which gives you ownership from day one while the lender registers an interest until the balance is cleared. Terms are matched to the expected working life and residual value, so repayments stay manageable across quarry, recycling and civil contracts. Everything remains subject to lender assessment and criteria.

What structures suit crushing and screening plant?

The two structures brokers reach for most often are chattel mortgage and hire purchase. A chattel mortgage suits GST-registered businesses that want the asset on their balance sheet and may claim available deductions, which you should confirm with your accountant. Hire purchase works similarly, with the lender holding title until the final payment. Some operators prefer a rental or operating lease when they want to refresh plant regularly or keep the asset off balance sheet. A balloon or residual payment at the end can lower monthly instalments, freeing cash for wear parts, screens and consumables. The right choice depends on how long you intend to keep the crusher and how your contracts are structured, and Simon can model the options side by side.

What do lenders look at when funding a crusher?

Lenders assess both you and the asset. On the business side they review time trading under your ABN, GST registration, credit history and, for full-doc applications, recent financials or BAS statements to gauge serviceability. On the asset side they consider the crusher's make, age, hours, condition and resale demand, since a well-known unit with a strong secondary market is easier to fund than an obscure or heavily worn machine. A meaningful deposit or trade-in can strengthen a marginal application and may improve the terms offered. Because crushers are high-value, income-producing plant, lenders often view them favourably when the numbers stack up. Presenting a tidy application with the right supporting documents helps eligible applicants secure a quicker decision.

What rates can you expect on crusher finance?

Rates on crushing and screening equipment vary with your credit profile, the age and type of machine, the deposit offered and the term you choose. For eligible applicants, indicative rates start from around 6.55% p.a., though your actual rate is always subject to assessment and lender criteria. Newer machines from recognised manufacturers usually attract the sharpest pricing because they hold value and carry lower risk. Older or higher-hour crushers can still be funded, but the rate may sit higher to reflect the shorter usable life. A larger deposit, a clean credit file and solid trading history all push your rate in the right direction. Comparing a panel of lenders rather than accepting a single bank quote is often the difference between an average deal and a competitive one.

What documents do you need to apply?

For a straightforward, established business, many lenders accept a low-doc application backed by your ABN, GST registration, driver licence and details of the crusher you are buying, such as an invoice or quote from the dealer or private seller. Where the loan amount is larger or your profile is newer, a full-doc application may be requested, which can include recent BAS lodgements, bank statements and financial statements to demonstrate serviceability. Having the supplier invoice, machine specifications and, for used units, the hour reading and inspection details ready will speed things up. The cleaner and more complete your paperwork, the faster an eligible application can move to a decision. Simon will tell you exactly what a given lender needs before you apply, so there are no surprises.

How can you keep repayments manageable?

Crushers earn in bursts tied to project pipelines, so structuring repayments around your cash flow matters. Matching the term to the realistic working life of the machine avoids paying for a crusher long after it has stopped earning. A balloon payment can reduce monthly outgoings, but plan for how you will settle or refinance it at term end. Seasonal or quarterly repayment options may suit contractors whose work is lumpy rather than steady. A larger deposit lowers the amount financed and the total interest paid. It is worth budgeting separately for wear parts, jaws, liners and screens, which are ongoing costs finance does not cover. Getting the structure right at the outset protects margins across the life of the asset.

Why compare lenders through a broker?

Crushing plant is specialised, and not every lender understands or wants to fund it, which is why going straight to your own bank can mean a flat no or a lacklustre rate. A broker who works across 80+ banks and non-bank lenders knows which funders are comfortable with quarry, recycling and civil equipment, and which will consider older machines, private sales or newer ABNs. That knowledge saves you from lodging multiple applications and denting your credit file. Overdrive Machinery Finance runs a single application across the panel, matches your profile to the lenders most likely to say yes, and negotiates on your behalf. For eligible applicants that often means a sharper rate, a better structure and far less legwork than chasing quotes yourself.

If a crusher is on your radar, it is worth seeing what your business could access before you commit to a machine or a dealer. Simon Kendrick can talk through the numbers, compare 80+ banks and non-bank lenders on your behalf, and give you an obligation-free quote, with only a soft credit check to start so your file is not marked. He will explain the structures, the likely rate drivers and the documents you would need, so there are no surprises later. For eligible applicants, decisions can come through in as little as 24 to 48 hours once the paperwork is in. Reach out to Overdrive Machinery Finance today and get a clear, no-pressure view of your crusher finance options.