Machinery finance is often cheaper through a broker, because comparing many lenders on one application tends to surface a keener rate than approaching a single bank. It is not guaranteed on every deal, but the odds favour comparison. Overdrive runs your application across 80+ banks and non-bank lenders through one dedicated broker, so competition works for you. The real saving comes from both the rate and the structure. Here is how a broker can lower the true cost of your equipment finance.
Competition tends to lower the rate
The core reason a broker can be cheaper is competition. When one application is measured against 80+ banks and non-bank lenders, the funders that most want your asset tend to price it keenest. Rates start from around 7.20% p.a. for strong, asset-backed deals, while lower-doc, older or cheaper assets and weaker credit are priced higher; these figures are indicative and subject to lender assessment. Approaching a single bank gives you one number with no reference point. A broker gives you the market's answer, so you either secure a sharper rate or confirm that your existing offer is already competitive.
Structure and fees, not just the headline rate
The advertised rate is only part of the cost. Establishment fees, the comparison rate, balloon size and term all shape what you actually pay over the life of the loan. A poorly structured deal at a low rate can cost more than a well-structured one slightly higher. A broker looks at the whole picture, choosing a term and residual that fit how your machine earns and flagging fees that inflate the true cost. This structural work often saves more than shaving a few points off the rate, and it is easy to overlook when you only see one lender's paperwork.
Who pays the broker
A frequent worry is that a broker adds cost. In many machinery deals the broker is paid a commission by the lender, so you pay nothing extra, and where a fee applies for complex or low-doc work it should be disclosed clearly up front. That means the comparison and structuring often come at no direct cost to you, while the rate benefit flows straight to your bottom line. Always ask for the fee position in writing so you can weigh any fee against the saving, but for most straightforward deals the broker's service is effectively lender-funded.
Why the saving varies
Honesty matters here: a broker cannot promise a lower rate on every deal. If you already have a strong bank offer on near-new equipment, the market may only match it. The saving is largest where your profile or asset is a poor fit for your own bank, because a broker can reach a lender that prices it properly. Deal size, credit strength, asset age and industry all move the number. The consistent benefit is not a guaranteed discount but knowing, from one application, that you are not overpaying, subject to lender assessment.
The only way to know if a broker is cheaper for your deal is to compare. Overdrive runs your application across 80+ banks and non-bank lenders at little or no cost to you, then shows where you stand. Ask for a free, no-obligation quote and see what the wider market offers on your machinery.
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