Skid Steer Loader Finance: Rates & How It Works

Key highlights

• Chattel mortgage lets you own the skid steer while spreading cost over the term
• Indicative rates from around 6.55% p.a., subject to lender assessment
• Terms commonly run three to five years for compact loaders
• Deposit is often optional for eligible applicants with a clean profile
• One application compares 80+ lenders instead of chasing banks yourself

How does skid steer loader finance actually work?

Most skid steer loaders are funded with a chattel mortgage, sometimes called an equipment loan. The lender advances the purchase price, you take ownership from day one and the machine itself acts as security against the loan. You then repay in fixed instalments over an agreed term, usually monthly. Because the loan is secured by the loader, rates tend to sit lower than unsecured business lending. At the end of the term you may have a residual or balloon amount to clear, or the machine is simply yours outright. Other structures such as a finance lease or rent-to-own exist, but for owner-operators who want to keep the asset, a chattel mortgage is the common starting point.

What rate can you expect on a skid steer loader?

Indicative rates start from around 6.55% p.a. for eligible applicants, though the figure that lands on your quote depends on several factors. Lenders weigh the age and type of loader, the loan term, your deposit, your time in business and your credit profile. A newer machine bought from a dealer with a strong ABN behind it generally attracts sharper pricing than an older private-sale unit. Rates are always indicative until a lender assesses your specific application, so treat any number as a starting point. Because Simon compares 80+ lenders in one pass, you see where your profile sits across the market rather than accepting the first offer a single bank puts forward.

What do lenders look at when you apply?

Lenders build a picture of both you and the asset. On the business side they consider how long your ABN has been active, whether you are registered for GST, your repayment history and any existing equipment commitments. On the asset side they look at the make, model, hours and age of the skid steer, since a well-known brand with strong resale is easier to fund. For lower amounts many lenders offer low-doc assessment, leaning on your ABN and a light paperwork trail rather than full financials. Larger or more complex deals may call for tax returns and bank statements. Knowing which bucket you fall into up front saves time and avoids unnecessary credit enquiries.

New or used: does it change the finance?

Both new and used skid steer loaders can be financed, but the terms flex with the machine. New units usually attract the longest terms and the most competitive rates because their value is predictable and warranty-backed. Used loaders are still very fundable, particularly popular brands with full service histories, though a lender may shorten the term on an older machine so the loan does not outlast the asset. Very high-hour or ex-hire units can need a larger deposit. If you are weighing a near-new ex-demo against a brand-new unit, it is worth comparing the total cost of finance across both, not just the sticker price, since the cheaper machine is not always the cheaper deal.

How should you structure the loan?

Structure is where a good broker earns their place. The term sets your monthly repayment against how long you plan to keep the machine; matching the two avoids paying for a loader long after you have moved it on. A balloon or residual at the end lowers monthly repayments but leaves a lump sum to clear or refinance, which suits businesses that upgrade often. A deposit is frequently optional for eligible applicants, though putting money in can reduce the amount financed and the interest you pay overall. Seasonal or contract-driven businesses can sometimes arrange repayments that flex with cash flow. The right mix depends on your work pattern, not a one-size template.

What paperwork speeds up approval?

Having your documents ready shortens the wait considerably. At minimum, keep your ABN and GST details, a driver licence and a clear description of the loader including make, model, year and hours. For a low-doc application that may be close to all a lender needs. If your deal calls for full assessment, recent bank statements and your latest tax returns or financials help a lender move quickly. A signed invoice or quote from the seller confirms the price and lets funds settle without back-and-forth. Simon can tell you which documents your specific lender shortlist will want before you apply, so you are not gathering paperwork twice or triggering multiple credit checks.

Why compare lenders through a broker?

Going straight to your own bank means one credit policy, one appetite and one rate. Skid steer loaders are financed very differently across the market: some lenders love compact earthmoving gear, others are cautious on hours or private sales, and pricing varies widely for the same machine. A broker who compares 80+ banks and non-bank lenders on one application shows you where your profile is genuinely welcome, which lifts your chance of approval and often sharpens the rate. It also means a single soft enquiry rather than several hard hits on your file. For a busy operator, handing the legwork to one dedicated broker frees you to keep the machine working.

If you are ready to see real numbers on a skid steer loader, Simon Kendrick can pull an obligation-free, indicative quote from a panel of 80+ lenders using only a soft credit check to start, so your file stays clean while you compare. For eligible applicants, decisions can come through in as little as 24 to 48 hours once your details are in. Reach out to Overdrive Machinery Finance and get a clear read on your options before you commit to a machine or a lender.