Forklift Finance: Rates & How It Works

Key highlights

• Forklift finance spreads the cost while the machine works each shift
• Indicative rates from around 6.55% p.a., subject to assessment
• Electric, LPG and diesel forklifts are all financeable
• Chattel mortgage keeps the forklift on your balance sheet
• One application compares 80+ banks and non-bank lenders

How does forklift finance work?

A lender advances the purchase price of the forklift and you repay it over an agreed term, usually one to five years for this type of machine. The forklift itself generally acts as the security, which is why equipment finance is often priced more keenly than an unsecured loan. Depending on the structure, you either own the machine from the start or take title at the end, but either way it stays in your operation throughout. Repayments are typically fixed, giving you a predictable cost to build into your overheads. Because Overdrive compares 80+ lenders, the same forklift can be funded several ways, and the best fit depends on your business and how hard the machine will work.

What rate can you expect on a forklift?

Indicative rates start from around 6.55% p.a. for well-qualified applicants, with the actual figure shaped by a handful of factors. Lenders consider the age and hours of the forklift, whether it is new or used, the size of any deposit, your time in business and your credit profile. A newer electric or LPG unit backed by a solid ABN typically prices better than an older, high-hour machine bought privately. Rates are always indicative and subject to assessment, so use any figure as a guide rather than a promise. The benefit of comparing a wide panel is that a lender who favours materials-handling equipment may price you more sharply than your own bank would.

Does the fuel type affect finance?

Electric, LPG and diesel forklifts are all readily financeable, and the fuel type rarely changes whether you get approved. It can, however, influence resale value, which lenders factor into their thinking. Electric forklifts are increasingly popular for indoor work and can hold value well, while diesel units suit heavier outdoor lifting. From a finance angle, the machine's overall value, age and condition matter more than what powers it. If you are weighing fuel types for running costs, that is a separate operational decision worth discussing with your supplier. On the finance side, Simon can fund whichever type suits your site and match it to a lender comfortable with that class of machine.

Which finance structures suit a forklift?

A chattel mortgage is the most common choice for a forklift you intend to keep, giving you ownership from day one with the lender holding an interest until the loan is repaid. It keeps the asset on your balance sheet and suits GST-registered businesses. A finance lease or rental can suit operations that prefer lower commitment, want to upgrade regularly, or would rather treat the forklift as an operating cost. Each structure handles GST, depreciation and end-of-term differently, so the choice has tax implications worth confirming with your accountant. Simon can explain how each option would look against your usage before you decide which fits your business best.

What documents do lenders need?

For many established businesses, a forklift can be funded on light paperwork: your ABN, driver licence and details of the machine and supplier. Larger amounts or newer businesses may need bank statements, financials or an overview of existing equipment commitments. Having the supplier's quote or tax invoice ready, along with the make, model, year and hours of the forklift, speeds the process. If you are buying used, privately or at auction, mention it early because some lenders handle those sales differently. Preparing these details up front lets Simon present a clean file to the lenders most likely to approve your forklift quickly and on good terms.

Why compare lenders through a broker?

Approaching one bank gives you one credit appetite and one answer. A forklift that a generalist lender treats cautiously might be routine for a funder that specialises in materials-handling equipment. By lodging a single application, Overdrive positions your file with the lenders most comfortable with your machine and industry, rather than you gathering quotes one at a time. That can translate to a sharper indicative rate, a more flexible term or simply a faster decision. For eligible applicants, an answer can often come through within roughly 24 to 48 hours once the file is complete, which matters when a forklift is needed to keep the operation running.

If a forklift is on your list, the easiest first step is an obligation-free quote. Simon Kendrick can run your details across 80+ banks and non-bank lenders using a soft credit check that leaves no mark on your file, then explain the indicative rates and structures that suit your business. For eligible applicants, a decision can often follow within 24 to 48 hours. Contact Overdrive Machinery Finance for a clear, no-pressure view of what your forklift could cost to finance before you commit.