Skid Steer & Attachments Finance: Rates & How It Works

Key highlights

• Finance can cover the skid steer and its attachments in one facility
• Chattel mortgage and hire purchase are the common structures
• Rate depends on credit, deposit, machine age and asset type
• Bundling attachments avoids arranging several separate equipment loans
• One application compares 80+ lenders in a single step

How does skid steer and attachments finance work?

Skid steer finance is a commercial equipment loan secured against the machine, and often the attachments too. The lender advances the purchase price, you take delivery, and you repay in fixed instalments over a term typically ranging from two to five years for this class of machine. Because the equipment secures the loan, rates are sharper than unsecured borrowing. Attachments such as buckets, augers, four-in-one buckets, grapples, trenchers and mulchers can frequently be bundled into the same facility, so your versatile setup is funded under one agreement with a single repayment. Most operators use a chattel mortgage, giving ownership from day one with the lender registering an interest until the balance clears. Structuring the machine and tools together keeps the paperwork simple and your working capital intact, subject to lender assessment.

Can you finance attachments with the machine?

In most cases, yes, and it is one of the real advantages of this asset class. Rather than buying attachments outright and draining cash, or arranging a separate loan for each, you can often bundle the skid steer and its attachments into one finance facility. That means a single application, one repayment, and the whole working setup funded together. Whether a lender includes attachments depends on their policy and the overall loan-to-value picture, but many are comfortable doing so because attachments add genuine earning capacity to the machine. Even specialist tools like cold planers, rock breakers and stump grinders can often be included. Financing the complete package rather than piecemeal keeps your setup coherent and your cash free for fuel, wages and consumables. A broker can confirm which lenders bundle attachments most readily.

What structures suit skid steers?

The common structures are chattel mortgage and hire purchase. A chattel mortgage suits GST-registered businesses that want the asset on their balance sheet and may claim available deductions, which your accountant can confirm. Hire purchase is similar, with the lender holding title until the final instalment. A rental or operating lease can suit operators who prefer to refresh equipment regularly or keep it off balance sheet, which appeals to hire companies and businesses that upgrade often. A balloon or residual payment at the end of a chattel mortgage lowers monthly repayments, though you will need to plan for settling or refinancing it. Because skid steers are relatively affordable and widely used, most structures are readily available. The best fit depends on how long you will keep the machine and how you manage tax and cash flow.

What do lenders look at?

Lenders assess your business and the asset together. On the business side they consider time trading under your ABN, GST registration, credit history and serviceability, with full-doc applications reviewing BAS or financials. On the asset side they weigh the skid steer's make, age, hours and condition, plus the attachments included, since mainstream machines with strong resale value are easier to fund. Skid steers from recognised manufacturers hold value well and are viewed favourably. A deposit or trade-in can strengthen a marginal application and improve terms. Because skid steers are common, versatile and in steady demand secondhand, lenders generally see them as sound security. Presenting a tidy application with clear asset details and supporting documents helps eligible applicants secure a faster decision on competitive terms.

What rates apply to skid steer finance?

Your rate depends on your credit profile, the machine's age and type, the deposit and the term. For eligible applicants, indicative rates start from around 6.55% p.a., always subject to assessment and lender criteria. Newer skid steers from mainstream brands attract the sharpest pricing because they hold value and carry low risk. Older or high-hour machines can still be financed, though the rate may be higher to reflect the shorter remaining life. Including attachments generally does not push the rate up materially, since they add earning capacity. A larger deposit, clean credit and solid trading history all help your pricing. Because lenders price skid steers differently, comparing a panel rather than accepting one bank's quote is often the difference between an ordinary rate and a competitive one for the same setup.

What documents do you need?

For an established business, many lenders accept a low-doc application supported by your ABN, GST registration, driver licence and details of the skid steer and attachments, such as a dealer quote or invoice. Where the amount is larger or your profile newer, a full-doc application may be needed, including BAS lodgements, bank statements or financial statements to show serviceability. For used machines, include the make, model, year, hours and, if relevant, an inspection report. Listing the attachments and their values helps the lender assess the full package. Having this ready before applying lets an eligible application move quickly to a decision. Simon will confirm exactly what a given lender needs, so you gather the right documents once rather than chasing paperwork mid-application.

Why compare lenders through a broker?

Skid steers are common, but lender appetite still varies, especially when attachments, used machines or newer ABNs are involved. Going straight to your own bank means one view and possibly a mediocre rate. A broker comparing 80+ banks and non-bank lenders knows which funders bundle attachments readily, which price keenly on this asset class, and which will consider your particular profile. Overdrive Machinery Finance runs a single application across the panel, matches you to the lenders most likely to approve and price well, and negotiates on your behalf. That approach keeps your credit file clean and saves you chasing quotes. For eligible operators, it frequently means a sharper rate and a better-structured facility covering the whole setup than you would find approaching lenders one at a time.

Ready to fund a skid steer and the attachments that turn it into a whole fleet of tools? Simon Kendrick can compare 80+ banks and non-bank lenders, bundle the machine and tools into one facility, and give you an obligation-free quote using only a soft credit check, so your file stays clean. He will point you to the funders that bundle attachments most readily and price this asset class keenly, so your complete setup is funded on competitive terms. For eligible applicants, decisions can come through in 24 to 48 hours once the paperwork is in. Contact Overdrive Machinery Finance today and get a clear view of your options.