Key highlights
- Chattel mortgage keeps the feller buncher on your balance sheet
- Indicative rates from around 6.55% p.a., subject to your profile
- Terms often run three to five years on high-value units
- A balloon payment can ease monthly cash flow
- One application compared across 80+ lenders finds the best fit
A feller buncher is a high-value, high-productivity machine, and financing it well protects your working capital for the rest of the operation. Rates and structures depend on your business profile, the machine's value and how you plan to use it. Overdrive Machinery Finance compares 80+ banks and non-bank lenders on a single application, so forestry operators can find terms that match serious equipment without shopping lender by lender.
How does feller buncher finance work?
Feller buncher finance is a commercial loan secured by the machine. The lender pays the supplier, you take delivery and repay in regular instalments over an agreed term, using the machine's output to fund the repayments. Because these are substantial assets, the security they provide generally supports sharper rates than unsecured borrowing. Most operators choose a chattel mortgage, owning the machine from day one while the lender holds an interest until the loan clears. Given the value involved, lenders assess both your business and the specific unit carefully, but for eligible applicants the process is well established and can move quickly with the right paperwork in place.
What drives your feller buncher rate?
Your indicative rate reflects a blend of factors. Business strength comes first: ABN age, turnover, credit history and existing commitments all feed in, as does your deposit. The machine matters too, since a newer unit from a major brand with a healthy resale market is lower risk than an older or heavily specced build. Loan size and term also influence the rate. Because a feller buncher is a large borrow, even a small rate difference has a meaningful dollar impact over the term, which is why comparing 80+ banks and non-bank lenders is worthwhile. Rates are indicative from around 6.55% p.a. and always subject to assessment.
Which structure suits a high-value forestry machine?
A chattel mortgage is the usual choice, giving you ownership and the machine on your balance sheet with the option of a balloon to reduce monthly repayments. This suits operators who intend to keep the buncher for its full working life. A finance lease or rental can keep the asset off the balance sheet and suit those who upgrade regularly, though ownership isn't automatic. On a machine of this value, the balloon decision carries real weight: it lowers monthly outgoings but leaves a lump sum at term's end. Your accountant and cash-flow plan should guide the structure, since the numbers involved are significant.
How does a balloon or residual help cash flow?
A balloon, sometimes called a residual, is a portion of the purchase price deferred to the end of the term. It lowers each monthly repayment, freeing cash for fuel, maintenance, wages and other machines. At term's end you pay it out, refinance it or sell the buncher to cover it. For high-value forestry equipment this can smooth cash flow considerably, especially through quieter seasons. The trade-off is that you pay interest on the deferred amount and face a lump sum later, so it works best when you have a clear plan for that final payment. A broker can model balloon options so you see the real effect before committing.
New or used feller buncher: what changes?
Both are financeable, but the machine's age influences terms. New units attract the longest terms and sharpest rates because their value and reliability are predictable, and manufacturer support is strong. Quality used bunchers remain very financeable, particularly from major brands, though lenders may shorten the term to keep the machine's end-of-loan age within policy and may take a closer look at hours and condition. A well-maintained second-hand unit can be an efficient way to add capacity at a lower entry price. A clear invoice, service history and, where needed, a valuation help a lender assess a used machine and support stronger terms.
Why compare lenders for a large asset?
On a borrow this size, the difference between lenders can be substantial. Some banks are cautious on forestry equipment, while certain non-bank lenders specialise in it and offer keener terms or more flexible structures. Sending one application to one lender risks a decline or an average rate simply because it wasn't the right match. By comparing 80+ banks and non-bank lenders in one soft-checked application, Overdrive finds the lender most comfortable with a feller buncher and your profile, without stacking up credit enquiries. On a high-value machine, that breadth of choice can translate into real savings over the life of the loan.
If you're planning to add a feller buncher, Overdrive Machinery Finance can show you where you stand. One application is compared across 80+ banks and non-bank lenders using a soft credit check that won't mark your file, and for eligible applicants decisions often arrive within 24 to 48 hours. Contact Simon Kendrick for an obligation-free quote and straight-talking guidance on the rate, term and structure that suit a machine of this scale.
Ready to compare cheap rates?
Free quote in minutes, decisions in 24–48 hours. No credit-score impact to enquire.