The Complete Guide to Excavator Finance in Australia

Key highlights

• Compare 80-plus banks and non-bank lenders on one simple application
• Rates from around 6.55% p.a. for strong, asset-backed excavator deals
• Finance mini, medium and large excavators, new or used
• Low-doc and 100% finance options may be available for eligible applicants
• Terms typically 1 to 7 years with balloon or residual options
• Same-day pre-approval and fast settlement may be possible for eligible deals

How excavator finance works

Excavator finance is a form of commercial asset finance where the machine you are buying acts as the primary security for the loan. Because the lender can rely on the excavator itself, this type of borrowing is generally priced more keenly than an unsecured business loan. In practice you choose the machine, we help you structure the funding, and the lender pays the supplier while you repay in regular instalments over an agreed term. The most common structure for a business is a chattel mortgage, where you own the excavator from day one and the lender registers an interest against it until the loan is cleared. Leases and rental-style agreements are also available. Repayments are typically fixed for the life of the loan, which makes budgeting on long civil or earthmoving contracts far more predictable. At Overdrive, Simon compares 80-plus banks and non-bank lenders on one application, matching the structure to your ABN, the machine and your cash flow rather than pushing a single product. Everything here is indicative and subject to lender assessment.

Current excavator-finance rates

Excavator finance rates start from around 6.55% p.a. for strong, asset-backed deals, meaning an established ABN, a good credit profile and a newer, sought-after machine. From that starting point, pricing moves with risk. Older excavators, smaller or cheaper machines, low-doc applications where full financials are not supplied, and weaker or shorter credit histories are all typically priced higher, because the lender is carrying more uncertainty. The size of your deposit, the loan term and whether you include a balloon can also shift the rate. Because we compare 80-plus lenders on one application, we can often find a sharper rate than a single bank would offer, and we can weigh a slightly higher rate against faster settlement or more flexible terms where that suits you. Every figure we quote is indicative and subject to full lender assessment, and no rate is guaranteed until a lender formally approves your deal. It is worth getting a comparison before you commit to a supplier, so you know what the machine truly costs to fund.

Mini, medium and large excavators

Excavators span a wide range, and the size of the machine influences both the amount you borrow and how a lender views the deal. Mini excavators, roughly 1 to 6 tonnes, are popular with landscapers, plumbers and small civil operators; they are lower in value, so finance amounts are modest and some lenders treat them almost like a light commercial purchase. Medium excavators, broadly 7 to 20 tonnes, are the workhorses of drainage, site preparation and general earthmoving, and tend to attract competitive pricing because they hold their value and sell readily second-hand. Large excavators above 20 tonnes, including machines used in bulk earthworks, quarrying and mining support, involve larger loan amounts and closer scrutiny of your contracts and cash flow. Whatever the class, the excavator secures the loan, and we can structure funding for a single machine or a growing fleet. Amounts and terms are indicative and subject to lender criteria, and the right structure often depends as much on your work pipeline as on the machine itself.

New and used excavators

You can finance both new and used excavators, and each has its place. New machines come with full manufacturer warranty, the latest emissions and efficiency features, and generally the sharpest finance rates because lenders see them as lower risk and easy to value. Used excavators can offer excellent value, letting you get more capacity for your money, and are widely financed provided the machine is in sound condition and the price reflects fair market value. For used purchases, a lender will usually look at the make, model, hours and overall condition, and may ask for photos, a serial number or an inspection. Very high-hour or heavily worked machines can attract higher pricing or a shorter term, because they have less working life left as security. Whether you buy new or used, the funding structure is similar, and we compare 80-plus lenders to find one comfortable with the specific machine you have chosen. All assessments are subject to lender criteria, and valuation expectations vary between lenders, which is one reason comparing offers matters.

Maximum asset age

Every lender has a view on how old an excavator can be, both at the start of the loan and at the end of the term, and this is one area where comparing lenders really pays off. As a general guide, many lenders are comfortable financing excavators up to around 10 to 15 years old at the end of the loan, though this varies considerably and some specialist lenders will go older for the right deal. Because a five-year loan on a 10-year-old machine means the excavator is 15 by the time it is paid off, age at end of term is often the real constraint. Well-built excavators tend to have long working lives and hold value better than many other machine types, which helps, and lenders often take hours and condition into account alongside the calendar age. If your machine is older, a shorter term or a larger deposit can open up more options. These are indicative guidelines only and subject to lender criteria, so it is worth checking before you assume an older excavator cannot be funded.

Low-doc and no-financials options

Not every business wants to, or can easily, hand over two years of full financial statements, and low-doc excavator finance exists for exactly that situation. Rather than relying on complete tax returns and financials, low-doc and no-financials options may use your bank statements, BAS lodgements or a simple declaration of income to support the application, for eligible applicants. These are particularly useful for newer businesses, sole traders, or operators whose latest financials do not yet reflect a strong recent run of work. Because the lender has less documentation to rely on, low-doc deals are typically priced higher than full-doc equivalents, and a lender may look more closely at your deposit, the machine and your ABN and GST history. Strong asset security, such as a newer, in-demand excavator, can help offset the lighter paperwork. We compare 80-plus lenders, including those that specialise in low-doc asset finance, to find a fit for your situation. Eligibility, pricing and the documents required are all subject to lender criteria and assessed case by case.

New ABN applicants

Starting out does not rule you out of excavator finance. New ABN holders can absolutely be considered, and some lenders actively support new businesses in the earthmoving and civil space, though the assessment tends to be closer than for a long-established operator. A lender will often look for evidence you can service the repayments, which might include a work pipeline, prior industry experience, supporting bank statements, or a larger deposit to reduce their exposure. Property ownership can also strengthen a new-ABN application, though it is not always required. Because the excavator secures the loan, asset finance is generally more accessible to newer businesses than unsecured lending would be. Pricing for new ABNs is typically a little higher to reflect the shorter track record, and terms may be slightly more conservative until you build history. We compare 80-plus banks and non-bank lenders, so we can steer a new-ABN application towards lenders comfortable with your profile rather than wasting a knock-back on the wrong one. All applications are subject to lender criteria and assessed on their merits.

Deposits and 100% finance

How much deposit you need on an excavator depends on your profile and the lender, and in many cases you may not need one at all. For strong, asset-backed deals with an established ABN and good credit, 100% finance, sometimes called no-deposit finance, may be available, letting you keep your cash working in the business. In other cases, particularly with older machines, low-doc applications, new ABNs or private-sale purchases, a lender may ask for a deposit of, say, 10% to 20% to reduce their risk and improve pricing. A deposit can also be a useful lever even when it is not required, since putting money down often lowers the rate and the repayments. Trade-ins can serve as part or all of a deposit. It is worth remembering that some lenders will also fund on-road costs, delivery or attachments within the loan for eligible deals. Whether 100% finance suits you is a cash-flow decision as much as a finance one. All deposit requirements are indicative and subject to lender criteria.

Dealer, private and auction purchases

Where you buy your excavator affects how the finance is handled, and all three main channels can be funded. Dealer purchases are the most straightforward, since the dealer issues a tax invoice and the lender pays them directly on settlement. Private-sale purchases, where you buy from another business or operator, are also widely financed, though the lender will typically verify the seller, confirm the machine is free of existing finance, and may require a valuation to confirm the price is fair. Auction purchases, common for used earthmoving equipment, can be financed too, but they move quickly, so having pre-approval in place before you bid is strongly recommended and lets you buy with confidence up to a known limit. Auctions and private sales sometimes attract slightly higher pricing or extra checks because there is no dealer warranty and condition can vary. We compare 80-plus lenders and can arrange pre-approval so you are ready to move. All purchases are subject to lender verification and criteria, whatever the channel.

Excavators with attachments

An excavator is often only as useful as the attachments on the end of it, and the good news is that attachments can usually be financed alongside the base machine. Buckets of various sizes, augers, rippers, grapples, compaction plates, hydraulic hammers or breakers, tilt hitches, thumbs and quick couplers can all typically be bundled into the one finance agreement when bought at the same time, which simplifies your paperwork and often improves the overall deal. Because attachments add genuine working value and resale value to the machine, lenders generally view them favourably as part of the asset. If you are buying attachments separately or later, they can sometimes be financed on their own or added to an existing facility, though smaller-value items may suit a different structure. Including attachments in the original loan tends to be the cleanest approach, as it spreads the full cost of a job-ready machine across the term. We can structure funding for the excavator and its attachments together. Amounts and eligibility are indicative and subject to lender criteria.

Loan terms and balloons

Excavator finance terms are flexible, typically ranging from 1 to 7 years, and the right term is a balance between the size of your repayments and the total cost of the loan. A shorter term means higher monthly repayments but less interest paid overall and quicker ownership; a longer term eases cash flow with lower repayments but costs more across the life of the loan. Many operators match the term roughly to how long they expect to keep the machine working. You can also include a balloon, sometimes called a residual, which is a lump sum deferred to the end of the term. A balloon lowers your regular repayments by leaving part of the machine's value to be paid, refinanced or cleared through a trade-in at the end. This suits businesses wanting to protect monthly cash flow, though it does mean a larger final payment to plan for. We help you model different term and balloon combinations across 80-plus lenders. All terms, balloons and structures are indicative and subject to lender criteria.

Chattel mortgage versus lease

The two most common ways to finance an excavator are a chattel mortgage and a lease, and the better choice depends on how your business is set up and how your accountant treats the machine. With a chattel mortgage, you own the excavator from the outset and the lender simply registers a security interest until the loan is repaid; the asset sits on your balance sheet, and this structure is popular with businesses registered for GST on a cash basis. With a lease, the lender retains ownership and you effectively rent the machine over the term, often with an option relating to the residual at the end. Each has different implications for GST timing, depreciation and how repayments are treated, and these effects vary with your circumstances. We can explain how each structure works in plain terms and compare pricing across 80-plus lenders, but the tax treatment is something you should confirm with your accountant. The right answer is the one that fits both your cash flow and your accounting position, and all structures are subject to lender criteria.

Approval requirements

Getting an excavator finance approval is usually quicker and simpler than many operators expect, especially with the paperwork organised up front. At a minimum, a lender will want an active Australian ABN, and often GST registration, along with identification and details of the machine you are buying, such as a quote or tax invoice. For full-doc deals, financial statements and tax returns help secure the sharpest pricing, while low-doc applications may rely on bank statements or BAS instead, for eligible applicants. The lender will assess your credit history, the age and condition of the excavator, your deposit if any, and your capacity to service the repayments. Property ownership can strengthen an application but is not essential. Same-day pre-approval and settlement within 24 to 48 hours may be available for eligible, well-presented deals, though timing depends on the lender and how complete your information is. Because we compare 80-plus banks and non-bank lenders on one application, we can match your profile to a lender likely to say yes. All approvals are subject to lender criteria and formal assessment.

Popular excavator brands

We finance popular excavator brands across every size class, and lenders are generally comfortable with well-known makes because they hold their value and sell readily on the second-hand market, which makes them strong security. Machines from manufacturers such as Caterpillar, Komatsu, Hitachi, Volvo, Kubota, Yanmar, Sany, Hyundai, Case, JCB, Bobcat, Takeuchi and Doosan are all commonly funded, whether you are after a compact mini excavator or a large machine for bulk earthworks. The brand and model can influence a lender's valuation and how far they will stretch on age or term, since sought-after makes tend to command reliable resale prices. That said, we can arrange finance for lesser-known and imported brands too, provided the machine can be valued and verified. We do not favour any one manufacturer; our job is to fund the excavator you have chosen on the best available terms by comparing 80-plus lenders. Whatever badge is on the machine, eligibility and pricing remain indicative and subject to lender assessment of the specific unit.

Repayment examples

The following examples are purely illustrative estimates to show how repayments might look, not quotes, and every figure is indicative only and subject to lender assessment. As a first example, an $85,000 used medium excavator financed over 5 years at an indicative 6.99% p.a., with no balloon, works out at roughly $1,683 per month, an estimate only. As a second example, a $150,000 machine over 5 years at the same indicative 6.99% p.a. but structured with a $30,000 balloon at the end reduces the regular repayment to around $2,550 per month, again an estimate only, with that balloon to be paid, refinanced or covered by a trade-in at the end of the term. As a third example, a $45,000 mini excavator financed over 4 years at an indicative 7.49% p.a. comes to approximately $1,088 per month, an estimate only. Your actual rate, term and repayments depend on your profile, the machine and the lender, so treat these as a rough guide rather than a guaranteed quote and ask us for a tailored comparison.

If you are weighing up an excavator purchase, the simplest next step is a quick, obligation-free comparison. Simon Kendrick compares 80-plus banks and non-bank lenders on one application, so you can see competitive, indicative structures for your machine without chasing quotes across town. Whether it is a mini excavator for a growing landscaping business or a large machine for your next civil contract, we will talk through terms, deposits and balloons in plain English and help you buy job-ready. Get in touch when you are ready, and remember to confirm any tax or accounting questions with your accountant.