Equipment Finance for Australian Businesses
Fund the Tools That Drive Your Growth
From heavy earthmoving machinery to commercial kitchen fit-outs, medical equipment to IT infrastructure — AJP Finance structures equipment loans and leases that preserve your working capital, provide tax advantages, and get your business operating at full capacity.
Equipment Finance Enquiries
Fast approvals, flexible structures, and over 30 business lenders assessed. Tell us what you need and we’ll find the right product.
What Is Equipment Finance?
Equipment finance is a category of commercial lending specifically designed to help Australian businesses acquire the physical assets they need to operate and grow — without tying up cash or exhausting their working capital lines.
Rather than paying the full purchase price upfront, your business finances the equipment over a fixed term (typically 1–7 years), with structured repayments aligned to your cash flow. The equipment often serves as security for the loan, reducing lender risk and making approval more accessible even for newer businesses.
Equipment finance can be a tax-effective way to fund business assets in Australia when it is structured correctly. Depreciation, GST treatment, interest deductibility and lease payment deductibility can all affect the after-tax cost of the asset, so the finance structure should be considered alongside advice from your accountant.
AJP Finance arranges equipment finance for businesses of all sizes — from sole traders to large corporations — across every industry in Australia.
Equipment We Finance
- Construction: excavators, cranes, loaders, compactors
- Transport: trucks, trailers, refrigerated vehicles
- Agriculture: tractors, harvesters, irrigation systems
- Medical: imaging equipment, dental chairs, surgical tools
- Hospitality: commercial kitchens, refrigeration, fit-outs
- Manufacturing: CNC machines, presses, packaging lines
- Technology: servers, POS systems, AV equipment
- Fitness & wellness: gym equipment, treatment tables
- Mining & resources: drilling rigs, conveyors, safety systems
- Printing: large format printers, binding machines
Equipment Finance Products Explained
There is no one-size-fits-all solution in equipment finance. Each product has different ownership, tax, and cash flow implications. Here’s an honest comparison.
Chattel Mortgage
Your business takes immediate ownership of the equipment, while the lender holds a “mortgage” (charge) over it as security. The equipment appears as an asset on your balance sheet. You can claim depreciation and the interest component is tax-deductible. GST can be claimed upfront on the full purchase price on your next BAS. Most popular with GST-registered businesses. Fixed repayments over 1–7 years.
Finance Lease
The lender (lessor) owns the equipment and your business (lessee) uses it under a lease agreement. Lease payments are fully tax-deductible as a business expense. At end of term you typically have the option to purchase the equipment for a residual/balloon amount, re-lease, or return it. GST applies to each lease payment rather than upfront. Preferred by businesses that want fully deductible lease payments.
Operating Lease
Similar to a finance lease but with a genuine expectation the equipment will be returned at end of term. Lease payments are fully tax-deductible. The equipment does NOT appear on your balance sheet (off-balance-sheet financing), which can benefit businesses with financial covenant restrictions. Best suited to technology and equipment with rapid obsolescence.
Commercial Hire Purchase (CHP)
Your business hires the equipment from the lender with an agreement to purchase at end of the hire term. Ownership transfers once all payments are made (including any residual). Repayments are structured, fixed, and the interest component is deductible. The asset appears on your balance sheet, and you can claim depreciation. GST applies upfront and is claimable on your next BAS.
Equipment Line of Credit
A revolving credit facility specifically for equipment purchases. Draw funds as needed up to your approved limit, repay, and draw again. Ideal for businesses that regularly acquire equipment — machinery dealers, IT companies, construction firms. Interest is charged only on drawn balances. Typically requires strong credit history and established business turnover.
Sale and Leaseback
Already own your equipment outright? A sale and leaseback arrangement allows you to sell the asset to a financier at market value and immediately lease it back — injecting cash into your business while retaining use of the equipment. Useful for improving working capital without disrupting operations.
Which Equipment Finance Product Is Right for Your Business?
This quick comparison helps identify which product suits your ownership, tax, and cash flow priorities.
| Feature | Chattel Mortgage | Finance Lease | Operating Lease | Hire Purchase |
|---|---|---|---|---|
| Ownership During Term | Your business | Lender (lessor) | Lender (lessor) | Lender — transfers at end |
| On Balance Sheet? | Yes | Yes | No | Yes |
| GST Claimed Upfront? | Yes (full amount) | No (per payment) | No (per payment) | Yes (full amount) |
| Depreciation Claimable? | Yes | No | No | Yes |
| Lease Payments Deductible? | Interest only | Full payment | Full payment | Interest only |
| Equipment on Residual? | Already own it | Option to buy | Return or buy | Automatic transfer |
Tax Treatment & Equipment Finance Structure
Tax outcomes can change as ATO rules and government incentives change. The key is choosing a structure that fits your business, your cash flow and your accountant’s advice.
Ownership and Deductibility
Different products create different tax and accounting outcomes. With a Chattel Mortgage or Hire Purchase, the business generally takes ownership of the equipment and may claim depreciation and the interest component, subject to eligibility and advice.
With a Finance Lease or Operating Lease, the lender owns the asset during the term and the business generally claims lease payments as an expense, again depending on the business structure and current rules.
Because these rules can change and your accounting position matters, AJP Finance focuses on the lending structure while encouraging clients to confirm tax treatment with a registered tax professional before committing.
GST and Cash Flow
GST treatment can also differ between products. Some structures may allow GST to be claimed upfront, while lease structures may spread GST across repayments. That can affect short-term cash flow, BAS planning and working capital.
Repayments That Fit The Business
We help compare repayment terms, residual values, repayment frequency and lender options so the finance supports your operations instead of putting pressure on working capital.
Industries That Rely on Equipment Finance
AJP Finance arranges equipment lending across every sector of the Australian economy. Here’s how businesses in key industries use equipment finance to grow.
Construction & Civil
Excavators, concrete pumps, cranes, road graders, and compactors. Construction firms rely on large equipment with high price points. We finance new and used plant up to $5M+ and structure repayments around seasonal project cash flows.
Transport & Logistics
Semi-trailers, rigid trucks, forklifts, refrigerated vehicles, and fleet vehicles. Transport operators need large fleets, and individual vehicle finance. We offer fleet finance solutions and can finance both prime movers and trailers separately or combined.
Agriculture & Farming
Tractors, harvesters, seeders, irrigation systems, and livestock handling equipment. Seasonal income patterns make structuring agriculture equipment finance critically important. We work with specialist agricultural lenders who understand farming cash flows.
Medical & Healthcare
MRI machines, CT scanners, dental chairs, laser equipment, and sterilisation systems. Medical equipment carries high price tags and long useful life. We work with specialist medical finance lenders who understand clinical equipment valuations and residuals.
Hospitality & Food Service
Commercial ovens, grills, refrigeration units, dishwashers, coffee machines, and full kitchen fit-outs. We structure hospitality equipment finance to align with venue revenue cycles and can include fitout components alongside equipment purchases.
Manufacturing & Engineering
CNC machining centres, laser cutters, presses, robotics, and quality control systems. Manufacturing capital investments are substantial and have long payback periods. We structure finance terms and residual values to match the asset’s useful commercial life.
Getting Equipment Finance Through AJP Finance
Our process is fast, paperwork-light for most applications, and designed around how businesses actually operate — not the banker’s ideal scenario.
Tell Us What You Need
Contact us with the equipment details — make, model, age, supplier, and purchase price. If you’re still comparing options, we can give you a borrowing capacity estimate and indicative repayment before you’ve even chosen your supplier.
Choose the Right Product
We match your business structure, GST registration, cash flow, and tax position to the most suitable product — Chattel Mortgage, Finance Lease, Hire Purchase, or Operating Lease. We explain the pros and cons in plain English, not financial jargon.
Fast Application
For purchases under $150,000, many lenders offer low-doc applications — just your ABN, financials or BAS, and a copy of the invoice. We complete the application and submit to our panel of 30+ business lenders for you.
Approval in as Little as 24 Hours
Equipment finance is often faster to approve than traditional business loans because the asset serves as security. Many applications are approved same or next business day. We manage all lender communication and conditions on your behalf.
Equipment Delivered or Collected
Once finance is approved and documents are signed, we coordinate payment directly to the supplier. Your equipment is ordered, delivered, or available for collection — and your repayment schedule begins from the first drawdown date.
Ongoing Equipment Reviews
As your business grows, your equipment needs change. AJP Finance conducts annual reviews of your equipment facilities to ensure your structure remains optimal — and to help you finance the next upgrade before the current asset reaches end-of-life.
Equipment Finance Mistakes That Cost Australian Businesses
Small structural decisions in equipment finance can cost thousands over a 5-year term. Avoid these common errors.
Choosing the Wrong Product for Your Tax Situation
A business that buys equipment on a Finance Lease when they should have used a Chattel Mortgage misses the upfront GST claim and IAWO deduction. The wrong product can cost more in missed tax benefits than you save on the interest rate. Always align product to your tax strategy first.
Setting the Wrong Residual / Balloon Amount
Residual values affect both the monthly repayment and what you’ll owe at end of term. Set too low and repayments are unnecessarily high. Set too high and you may struggle to refinance or sell at term end. Residuals should reflect the realistic market value of the equipment at end of the finance term.
Financing Equipment Through the Supplier’s Finance Arm
Many equipment dealers offer in-house finance. While convenient, dealer finance is typically higher rate, less flexible, and the dealer has no obligation to find you the most competitive product. An independent equipment finance broker like AJP Finance accesses the full lending market on your behalf — not just one lender.
Financing Used Equipment at Full New-Equipment Residuals
Second-hand equipment depreciates faster and may have a lower realistic resale value than new equipment. Setting residuals on used equipment too high creates a refinancing problem at end of term. We assess used equipment residuals conservatively and realistically.
Using Working Capital for Equipment Purchases
Draining your working capital or business savings account to buy equipment is risky — it reduces your buffer for payroll, supplier invoices, and unexpected expenses. Equipment finance preserves working capital while giving you access to the asset today.
Not Reviewing Equipment Finance at Renewal
Many businesses simply roll over existing equipment facilities at the end of term without reviewing whether the rate, product, or lender is still competitive. Rates move, lender policies change, and your business creditworthiness may have improved — making a review at renewal an important opportunity to save.
Related Business Finance Services
Equipment finance is one part of a comprehensive business finance strategy. Explore all the ways AJP Finance supports your business.
Frequently Asked Questions: Equipment Finance
Practical answers to the equipment finance questions Australian business owners ask most.
Ready to Finance Your Business Equipment?
Fast approvals, 30+ lenders, and structures that work for your cash flow and tax position. Get a free equipment finance quote from AJP Finance today.