Financing an Imported Machine

Key highlights

• Imported machines can be financed with the right lender
• Landed cost includes freight, duties and taxes, not just price
• Delivery timing affects how the finance is structured
• Already-landed imports are simpler than machines still overseas

Imports are financeable with planning

Financing an imported machine is entirely possible, and many businesses do it to access equipment not readily available locally. The finance works on the familiar basis of the lender advancing funds and taking security over the machine. What adds complexity is that an import involves more than a simple purchase price: freight, insurance, customs duties and taxes all form part of the true cost, and the machine may take time to arrive. Lenders factor these realities in. A machine that has already landed and cleared customs is generally simpler to finance than one still overseas, but both can be arranged with a lender that understands imports.

Landed cost and how it is funded

When you import, the amount you actually need is the landed cost, not just the overseas price. That means freight, insurance, any customs duties and applicable taxes on top of the machine itself. Lenders will want a clear picture of these figures, and it is worth getting your accountant involved early on the GST and duty treatment. Some lenders fund the full landed cost once the machine arrives and is invoiced locally, while the timing of deposits or progress payments to an overseas supplier can be trickier. Understanding exactly what needs funding, and when, is central to structuring an import deal that works.

Timing and deposit considerations

Imports often involve paying a deposit to the supplier before the machine ships, then a period of transit before it arrives. This timing gap matters, because equipment finance typically settles when there is a machine in the country to secure. As a result, some importers fund the upfront supplier deposit themselves and finance the balance on arrival, while other structures may suit particular situations. A larger deposit and a mainstream, resaleable machine both help. As a general guide, rates start from around 6.55% p.a. for strong, asset-backed deals, with more complex or higher-risk profiles priced above that, indicative and subject to lender assessment.

Why the right lender is essential

Not every lender is comfortable with imports, and those that are take different approaches to landed cost, timing and documentation. Matching your deal to the right one is what makes an import straightforward rather than frustrating. A broker knows which lenders finance imported equipment and how each structures it. Simon can compare more than 80 lenders on a single application, present the landed cost and timing clearly, and steer your import to a lender with genuine appetite. That guidance is especially valuable given the extra moving parts, helping you avoid lenders that shy away from imports and lock in a workable structure.

An imported machine is financeable when the deal is structured well. If you are bringing equipment in, Simon can compare the market and help arrange it around your timing. Request a free quote to discuss your import.