Service
Business Equipment Finance
The equipment usually secures the facility, so the deal turns on the asset and the cash flow behind it. We structure it the way the credit team approving it will read it.
- Founded by two former bankers
- Commercial and business finance specialists
- Perth based, working Australia wide
- MFAA member
What business equipment finance actually is
Business equipment finance is funding used to buy the assets a business operates with, rather than the premises it operates from. It covers plant, machinery, vehicles, trailers, workshop and processing equipment, IT and fit-out. The equipment itself usually forms the security.
The machine is the security; the cash flow is the case. Because the lender holds an asset it can recover, it is not automatically looking for a house to sit behind the loan. The conversation moves to the asset and the cash flow that services it, which is why equipment finance is often available to businesses that would struggle to raise the same money unsecured.
We are based in Perth and work with equipment clients across Australia, from a single machine through to fleet and plant facilities. This page is the guide to how the funding works; for our broking service itself, see equipment and asset finance broker Perth.
What we fund
- Plant and heavy machinery, including excavators and earthmoving equipment
- Trucks, trailers and business vehicles and fleet
- Manufacturing, fabrication and processing machinery
- Materials handling, including forklifts
- Mining and civil plant, covered in detail on our mining and civil equipment finance page
- Drill rigs and drilling support gear, on our drill rig finance page, and crushing and screening plant
- Tractors, headers and farm machinery, on our agricultural equipment finance page
- Workshop, IT, medical and commercial fit-out equipment
- New, used, dealer, auction and private sale purchases
The 3 structures, and why the choice matters
Almost every equipment deal in Australia is written as one of 3 structures. They differ in who holds title to the asset, how it appears on your balance sheet, and how the payments are treated for tax.
| Structure | Who owns the asset | On your balance sheet | Often suits |
|---|---|---|---|
| Chattel mortgage | You, from day one. The lender registers a security interest. | Yes, from settlement | Businesses wanting ownership and the depreciation position that comes with it |
| Finance lease | The lender, for the term | On balance sheet for most businesses under current lease accounting standards; confirm with your accountant | Businesses prioritising predictable payments and an end-of-term option |
| Hire purchase | The lender, until the final payment | Yes, with title passing at the end | Businesses wanting eventual ownership with title deferred |
The tax treatment is usually what decides it, and that is a conversation for your accountant rather than your broker. Rockwall does not provide tax advice. The Australian Taxation Office publishes the current rules on depreciation and capital allowances, and your accountant will apply them to your position. What we do is make sure the structure your accountant recommends is one we can actually get funded, on terms that work, rather than discovering at the last moment that the preferred structure and the available lender do not line up. If you want the detail on how a chattel mortgage works specifically, our chattel mortgage page covers it.
What lenders actually assess
Equipment finance credit turns on a small number of things, and they are not the ones most business owners expect.
- The asset. What it is, how old it is at the start of the term and how old it will be at the end, and whether there is a real resale market for it. A late-model machine with buyers waiting is a different risk from an ageing specialised unit with three possible purchasers in the country.
- Where you are buying it. A dealer purchase is the straightforward case. We arrange finance on private sales regularly, but they add steps: verifying ownership, checking the register for existing security interests, and confirming the price is reasonable.
- How long you have traded, and how the cash flow looks. Trading history carries real weight here. A newer business is not shut out, but it has fewer lenders to choose from, which makes choosing the right one first time more important.
- What the asset is going to earn. An asset attached to a contract or a visible work pipeline reads very differently from one bought speculatively.
- What you already owe. Existing fleet and plant debt shapes what a lender will add. This is the constraint that most often decides the size of the next purchase.
Where the equipment is going onto a job, the timing of progress claims and mobilisation matters as much as the machine, and that is where equipment finance and working capital need to be designed together rather than separately.
How to check equipment before you buy it privately
Buying from another business rather than a dealer is common, and it is where the avoidable problems live. Equipment often carries finance owed by the current owner. The Personal Property Securities Register, administered by the Australian Financial Security Authority, is the national record of security interests in personal property.
If you buy a machine that still has a registered security interest against it, and that interest is not discharged at settlement, the financier can have a claim over the asset even though you paid for it. A register search before money moves is standard practice, and a lender will expect to see it done. The register records security interests, not ownership, so confirming the seller actually owns the asset is a separate step, usually through the sale documents and serial-number checks.
What to have ready before you approach a lender
Not every deal needs every item, and strength in one area can offset a gap in another. But a thin or disorganised application makes approval harder than it needs to be.
- What the asset is, its age, hours or kilometres, and its condition
- The quote, invoice or auction listing, and whether the seller is a dealer or a private party
- Recent business financials, or management accounts where the financials are not current
- Business bank statements covering recent trading
- Your ABN, how long the business has traded, and its GST registration status
- Existing equipment and vehicle commitments, including balances and end dates
- Any contract, purchase order or work pipeline the asset will service
- Your deposit or trade-in, if there is one, and where it is coming from
- Director details and a broad picture of your personal financial position
Common mistakes we see
Committing to the asset before testing the finance. Once a purchase order is signed or a deposit is down at auction, the deal is fixed and the finance has to be built around whatever was agreed. It is workable, and we do it often, but it removes options.
Choosing the structure on instinct rather than with an accountant. The tax treatment is usually the deciding factor and it is the part a broker should not be deciding for you.
Matching the term to the payment rather than to the asset. Stretching a term to reach a comfortable monthly number can leave you paying for equipment you have already replaced.
Taking each purchase in isolation. Every facility affects what you can borrow next. A business planning a property purchase or an acquisition in the next two years should sequence the deals deliberately.
Assuming your own bank is the benchmark. It is one credit policy among many, and equipment appetite varies more by lender than almost anywhere else in commercial finance.
Equipment finance by sector
Lender appetite is not uniform across asset types, and the sector you operate in changes which lenders are realistic before anything else is considered.
Mining and civil. Heavy plant working in remote conditions, bought by businesses paid on progress claims and retention rather than steady monthly invoices. Covered in full on our mining and civil equipment finance page, and the wider funding picture for those contractors, mobilisation, claims and working capital, on our mining services finance page.
Agriculture. Tractors, headers, seeders and farm machinery, where income arrives seasonally and the repayment profile should follow the season rather than a monthly default. See agricultural equipment finance.
Manufacturing and processing. Often imported, frequently paid in stages, with installation and commissioning forming a real part of the cost. See plant and machinery finance.
Transport and logistics. Prime movers, trailers and rigid units, where age limits and resale markets drive the assessment. See truck finance.
Trades and services. Utes, vans, workshop equipment and fit-out, usually smaller facilities where speed and simplicity matter more than structure. See business vehicle finance.
Refinancing and releasing equity from equipment you already own
Equipment finance is not only for buying. Where a business owns plant outright, or holds substantial equity in financed assets, that value can sometimes be released through a refinance or a sale and leaseback, freeing working capital without selling the equipment.
It is not right for every business, because it converts an owned asset back into a commitment. But for a business that is asset rich and cash tight, it is often the cleanest funding available, because there is a real asset behind the facility. The assessment turns on the age and resale value of the equipment and on the cash flow that will service the new facility.
Why businesses put us in the deal
Bankers first, brokers second. Rockwall was founded by two former commercial bankers, and years of working with bank credit teams taught us how they assess a deal. We structure yours the way the person approving it will read it.
Access to more than 40 lenders. Through our Finsure accreditation we can take your deal to the major banks and to the non-bank and specialist lenders that write most of the equipment book, and appetite in this market varies more by lender than almost anywhere else in commercial finance.
Financing the machine is only one part of funding the job. Where mobilisation, progress claims or working capital sit alongside the asset, they get structured together rather than solved one at a time.
Licensed and accountable. We are MFAA members and Credit Representatives (579184, 579182 and 580433) of Finsure Finance & Insurance Pty Ltd.
When to talk to us
Before you commit to the asset, if you can. Coming to us first means we can tell you which lenders are comfortable with that specific asset, at that age, from that seller, for a business at your stage. It is a short conversation and it changes what you buy surprisingly often.
If the purchase is tied to end of financial year timing, our EOFY equipment finance page covers how to work backwards from a settlement deadline. If the equipment sits alongside a business purchase, our acquisition finance page covers how the two are assessed together. Talk to us before you commit to the asset.
Your equipment finance specialist
Rowan Edwards, co-founder. Rowan is a former commercial banker and Credit Representative 579182, and he runs Rockwall's equipment finance work personally. Years of working with bank credit teams taught him how they assess an equipment deal: the asset, its age at the end of the term, the resale market and the cash flow behind it. Bring him the machine and the job it is going on, and he will tell you which lenders fit before you commit. More on the team.
Frequently asked questions
What is business equipment finance?
Business equipment finance is funding used to buy the assets a business operates with, rather than the premises it operates from. That covers plant, machinery, vehicles, trailers, workshop and processing equipment, IT and fit-out. The equipment itself usually forms the security, which is what separates it from an unsecured business loan. Because the lender holds an asset it can recover, the credit assessment tends to focus on the asset and the cash flow that services it, rather than requiring property security by default.
What are the 3 main structures for equipment finance?
There are 3 structures in common use. A chattel mortgage means you own the asset from day one and the lender registers a security interest over it. A finance lease means the lender owns the asset and you lease it for a fixed term, usually with an option at the end. A hire purchase means you hire the asset and take ownership once the final payment is made. They differ in who holds title, how the asset appears on your balance sheet, and how the payments are treated for tax. Which one suits you is a decision to make with your accountant, because the tax treatment is the part that usually decides it.
Do I need a deposit for business equipment finance?
Not always. Because the equipment secures the facility, some deals are structured without a cash deposit, while others need one. What moves the answer is the asset itself, how old it is, how readily it could be resold, how long your business has traded, and the strength of your cash flow. A late-model asset from a dealer with a clear resale market is a different conversation from an ageing specialised machine bought privately. We work out where you sit before an application goes anywhere near a lender.
Can I finance used equipment or a private sale?
Yes, and this is one of the areas where lender appetite varies most. Many lenders will fund used equipment, but they apply limits based on the age of the asset at the start of the term and at the end of it. Private sales, where you are buying from another business rather than a dealer, are financed regularly but carry extra steps around verifying ownership, checking the Personal Property Securities Register for existing security interests, and confirming the price is reasonable. Knowing which lenders are comfortable with a used or private purchase before you commit to one saves a great deal of time.
Can a new business get equipment finance?
It is harder, but it is not a closed door. A business with limited trading history has fewer options and will usually face a tighter assessment, so the strength of the rest of the picture matters more. Relevant industry experience, a strong personal financial position, a contract or clear work pipeline the asset will service, and a well-chosen asset all help the case. Some lenders are meaningfully more comfortable with newer businesses than others, and knowing which ones before you apply is most of the work.
Is equipment finance tax deductible?
The tax treatment depends on the structure you choose and on your circumstances, and it is genuinely one of the reasons the structure decision matters. Chattel mortgage, finance lease and hire purchase are each treated differently for depreciation, interest and GST. Rockwall does not provide tax advice, and this is a conversation to have with your accountant before the facility is settled rather than after. The Australian Taxation Office publishes the current rules on depreciation and capital allowances, and your accountant will apply them to your circumstances. What we can do is make sure the structure your accountant recommends is one we can actually get funded on sensible terms.
How long are equipment finance terms?
Terms are generally set against the working life of the asset, so a long-life piece of plant supports a longer term than a light vehicle or IT equipment. Lenders will not usually write a term that runs materially past the point where the asset still holds resale value. Matching the term to how long the asset will earn is the useful principle: a facility that finishes well before the asset stops working leaves you with a paid-off earner, and one that runs past its useful life leaves you paying for something you have replaced.
Should I use a broker or go direct to my bank for equipment finance?
Your own bank is one lender with one credit policy and one appetite. Equipment finance is a market where appetite varies sharply by asset type, asset age, industry and how long you have traded, so the same deal can get very different answers in different places. A broker takes the deal to the lenders whose policy actually fits it. Rockwall was founded by two former commercial bankers, and through our Finsure accreditation we can place deals with more than 40 lenders, which is the practical reason a broker tends to be worth the conversation.
What is the difference between a chattel mortgage and a finance lease?
The difference is who owns the asset. Under a chattel mortgage you take ownership immediately and the lender registers a security interest against the asset, so it sits on your balance sheet from day one and you carry the depreciation. Under a finance lease the lender owns the asset and you pay to use it for a fixed term, usually with an option at the end. That difference flows through to your balance sheet, your depreciation position and the GST treatment, which is why the choice is normally made with an accountant rather than on preference.
Does equipment finance affect my borrowing capacity?
Yes, and this is the part most business owners find out too late. An equipment facility is a commitment that appears in any future credit assessment, so it affects what you can borrow next, whether that is another machine, a commercial property or a business purchase. The size of the effect depends on the structure, the term and how the facility is reported. If you expect to borrow again within a couple of years, it is worth sequencing the deals deliberately rather than taking each one in isolation.
What is the PPSR and why does it matter when buying equipment?
The Personal Property Securities Register is the national register of security interests in personal property, administered by the Australian Financial Security Authority. It matters because equipment often carries finance owed by the current owner. If you buy a machine that still has a registered security interest against it and that interest is not discharged at settlement, the financier can have a claim over the asset even though you paid for it. Checking the register before money moves is standard practice on any private sale, and it is one of the steps a lender will expect to see completed. The register records security interests rather than ownership, so verifying that the seller owns the asset is its own separate check.
Can I finance equipment bought at auction?
Yes, though auctions compress the timeline in a way that catches people out. Auction terms usually require settlement within a short window, and the asset is generally bought as it stands, with no cooling-off period in most auction conditions. That means the finance needs to be arranged before you bid, not after you win, and the lender needs to be comfortable with the asset type and age in advance. Going into an auction with a pre-agreed position on what a lender will support turns a risky purchase into a straightforward one.
Can I refinance existing equipment to release cash?
In many cases yes. Where a business owns plant outright, or has substantial equity in financed assets, that value can sometimes be released through a refinance or a sale and leaseback, freeing working capital without selling the equipment. It is not right for every business, because it converts an owned asset back into a commitment, but it can be the cleanest source of funding for a business that is asset rich and cash tight. The assessment turns on the age and resale value of the equipment and on the cash flow that will service the new facility.
Get started
Want to talk it through?
Send us a short enquiry. We'll tell you whether it's fundable, how we'd structure it, and which lender we'd take it to. No obligation, and no meeting required to get an answer.
Prefer to talk? Call Rowan on 0483 292 005 or Ari on 0434 929 370.