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Equipment finance

The asset secures the borrowing, which usually means a better rate than unsecured lending and a lender who cares more about the equipment than your last two years of profit.

Who it suits

  • Buying plant, vehicles, or production equipment
  • You would rather not put property up as security
  • You already own assets outright and want the cash back out
  • The equipment earns while it repays

How it works

  • Usually a chattel mortgage: you own the asset and the lender registers its security on the PPSR.
  • Term is usually matched to the useful life of the equipment.
  • Sale-and-leaseback releases cash from equipment you already own.
  • Used equipment is fundable, though the term is often shorter.

What to check before signing

  • Balloon or residual payments. A low monthly figure can hide a large final one.
  • Chattel mortgage versus finance lease versus rental, because ownership at the end differs.
  • Early settlement terms if you may upgrade before the term ends.
  • Whether a director guarantee is required on top of the asset security.

What we will need

Supplier invoice or quote
Six months of bank statements
Asset schedule
Photo ID