Key highlights
- Rates from around 6.55% p.a. for strong, asset-backed deals
- Older assets, low-doc and weaker credit are priced higher
- Pricing varies widely between 80+ banks and non-bank lenders
- One application compares the market without repeated credit hits
Equipment finance rates in Australia currently start from around 6.55% p.a. for strong, asset-backed deals, though your actual rate depends on the asset, your credit profile, the term and how much documentation you provide. Lower-doc, older or cheaper assets and weaker credit are priced higher. Because pricing shifts constantly and every lender assesses differently, Overdrive compares 80+ banks and non-bank lenders on a single application so you see where your deal sits, not a headline number.
What rate can you expect right now?
For a well-presented deal on a newer, sought-after asset with an established ABN and clean credit, indicative pricing currently starts from around 6.55% p.a. That figure is the sharp end of the market, not a promise. Move away from those ideal conditions and the rate rises: an older machine, a start-up ABN, a low-doc application or a smaller loan size all push pricing up. Rates are indicative only and subject to each lender's assessment. Rather than fixating on one number, it helps to understand the range your specific circumstances fall into, which is exactly what a whole-of-market comparison reveals.
Why rates move so much
Equipment finance is priced against wholesale funding costs, which shift with the broader interest rate environment, plus a margin for risk. When funding costs rise, so do rates, and vice versa. On top of that, each of the 80+ lenders Overdrive works with sets its own appetite: some chase new-equipment deals hard, others specialise in used gear, low-doc or particular industries. The same application can attract materially different quotes depending on which lenders are hungry that month. This is why a rate you were quoted last year, or that a mate got, tells you little about today.
What lifts your rate above the headline
Several factors commonly add to pricing. Asset age and type matter: a lender takes more risk on an older or specialised machine that is harder to resell. A shorter trading history, a limited or impaired credit file, or a low-doc structure where you provide less financial evidence all attract a premium. Smaller loan amounts sometimes carry higher rates because fixed costs are spread over less money. Longer terms and larger balloons can also shift the numbers. None of these are dealbreakers, but knowing which apply to you helps set realistic expectations before you apply.
Fees and the true cost
The advertised rate is only part of the picture. Establishment fees, monthly account fees, and any origination or brokerage costs all feed into what you actually pay over the term. A slightly higher rate with no fees can work out cheaper than a headline-low rate loaded with charges. That is why comparing the total cost, and ideally a comparison rate that bundles standard fees, matters more than chasing the lowest advertised percentage. A good broker will lay these out clearly so you are comparing like with like across lenders, rather than being drawn in by a low headline number that quietly costs you more once every charge is counted.
How to get a current rate for your deal
The only reliable way to know your rate is to have your specific scenario assessed. Overdrive takes one application and compares 80+ banks and non-bank lenders, matching your asset, ABN age, credit profile and preferred structure to the lenders most likely to price it sharply. For eligible applicants, same-day pre-approval and settlement within 24 to 48 hours may be available. You get a genuine, current quote for your circumstances rather than a generic advertised figure that may not apply to you at all, and you can weigh the real numbers before committing to anything or affecting your credit file.
If you want to know what equipment finance actually costs for your business today, the fastest route is a quick, no-obligation quote. Share your asset, your ABN details and what you are trying to fund, and Overdrive will compare the market and come back with indicative pricing tailored to your situation. There is no cost to look and no pressure to proceed, just a clear picture of where your deal sits right now.
Frequently Asked Questions
Are equipment finance rates fixed or variable?
Most equipment finance in Australia is offered at a fixed rate, so your repayment stays the same for the whole term, which makes budgeting easier. Variable-rate options exist with some lenders and structures. Which suits you depends on your cash flow and how you view interest rate movements, and it is worth comparing both.
Does the type of asset change my rate?
Yes. Newer, mainstream assets that hold value and are easy to resell are seen as lower risk and tend to attract sharper rates. Older, specialised or fast-depreciating equipment carries more risk for the lender and is usually priced higher. The asset is one of the biggest single factors in your final rate.
Will comparing lenders hurt my credit score?
Working through a broker like Overdrive means your details are matched to suitable lenders before any formal credit enquiry, so you avoid firing off multiple applications and multiple hits to your file. One considered application to the right lender protects your credit profile far better than shopping yourself around.
How quickly can equipment finance settle?
For straightforward, well-documented deals, same-day pre-approval and settlement within 24 to 48 hours may be available for eligible applicants. More complex scenarios, low-doc applications or unusual assets can take longer. Having your ABN, financials and asset details ready upfront is the single best way to speed things along.
Ready to compare cheap rates?
Free quote in minutes, decisions in 24–48 hours. No credit-score impact to enquire.