Key highlights
- Banks suit strong, property-backed borrowers but are not always cheapest
- Non-bank lenders often win on speed, flexibility and niche assets
- The best rate depends on your profile, not the lender type
- Comparing 80+ lenders removes the guesswork on who wins
Banks can offer competitive machinery finance rates, but they are not automatically the cheapest, and for many applicants a non-bank lender wins on price, speed or flexibility. Banks tend to reward strong, property-backed borrowers, while non-banks are often keener on newer, specialised or lower-doc deals. At Overdrive, our broker Simon Kendrick compares 80+ banks and non-bank lenders on one application, so instead of guessing which type is cheaper, you see who actually prices your specific deal best.
Where banks tend to be competitive
Banks often price sharply for their preferred customers, typically established businesses with clean credit, property behind them and standard, new machinery. If you fit that profile, a bank rate can be very hard to beat, and an existing banking relationship may add convenience. Banks also tend to favour larger, mainstream equipment purchases where the asset and the borrower are both low risk. The trade-off is that banks apply firmer criteria and can be slower to assess and settle. If your application sits neatly inside their box, you are well placed, but the moment something falls outside it, the picture can change quickly.
Where non-bank lenders often win
Non-bank and specialist lenders built their models around commercial asset finance, and they frequently outprice or outpace banks on the deals banks find awkward. Newer businesses, lower-doc applications, older or specialised machinery, private-sale purchases and time-sensitive settlements are all areas where non-banks tend to shine. Many assess faster and take a more pragmatic view of the asset and the industry. They also compete hard on rate, so the assumption that a bank is always cheaper simply does not hold across the market. For a large share of applicants, the sharpest available rate comes from a non-bank rather than a major bank.
Why the rate depends on your profile
There is no single answer to whether banks are cheaper, because pricing is driven by how each lender views your specific deal. Rates start from around 6.55% p.a. for strong, asset-backed deals; lower-doc, older or cheaper assets and weaker credit are priced higher, and these figures are indicative and subject to lender assessment. The same request can produce noticeably different quotes across banks and non-banks depending on their appetite for your industry, your trading history and the machinery involved. That variation is precisely why shopping a single lender, bank or otherwise, risks leaving money on the table.
How comparing removes the guesswork
Rather than debating bank versus non-bank in the abstract, the practical move is to put your deal in front of both at once. Terms typically run 1-7 years with balloon or residual options, and the ideal structure can differ between a bank and a non-bank offer. A broker submits one application and matches you to the lender pricing your profile most keenly, whether that turns out to be a major bank or a specialist. For eligible applicants, same-day pre-approval and settlement within 24-48 hours may be available, subject to lender criteria and documentation.
So do banks offer better machinery finance rates? Sometimes, for the right profile, but often a non-bank lender is sharper, and the only reliable way to know is to compare. Let Simon run your deal across 80+ banks and non-bank lenders on one application and bring you the genuinely best offer, whatever the source. Contact us for a free, no-obligation quote and let the numbers settle the question. There is no cost to finding out where you stand, and no obligation to proceed.
Frequently Asked Questions
Are non-bank lenders safe to use?
Reputable non-bank lenders are established, regulated commercial financiers used widely across Australian business. They compete strongly on rate and flexibility, particularly for deals banks find awkward. A broker only works with credible lenders, so comparing includes non-banks with confidence rather than limiting you to the major banks alone.
Will using my own bank get me a discount?
It might, and an existing relationship can add convenience, but loyalty does not guarantee the sharpest rate. Your bank may price your deal well or it may be beaten by another bank or a non-bank lender. Comparing your bank's offer against the wider market is the only way to be sure.
Do banks or non-banks settle faster?
Non-bank lenders are often faster, having built their processes around commercial asset finance, and many can move quickly on straightforward deals. Banks can be thorough but slower. For eligible applicants, same-day pre-approval and settlement within 24-48 hours may be available, subject to lender criteria and the documentation you can provide.
Does a broker cost more than going to a bank directly?
Not necessarily. A broker compares many lenders to find sharp pricing you might not reach alone, which can offset any cost and often results in a better overall deal. Any fees or commissions are disclosed up front, so you can weigh the total cost of each option transparently before deciding.
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