Equipment Finance For Business

Your guide to getting the right equipment finance.

Lender Score
review star
review star
review star
review star
review star
4.4 out of 5 | 3,849 Reviews | 20 Lenders
Find the best Equipment Finance for you with Emu MoneyFind the best Equipment Finance for you with Emu Money

A quick guide to equipment finance

Equipment finance is a beneficial tool that enables businesses to acquire necessary machinery, technology or vehicles without impacting cash flow. It's an agreement between a lender and a business, where the lender purchases the equipment and leases it back to the business for an agreed period, eventually leading to ownership.

Here's what equipment finance typically looks like:

eligibility orange tickBorrow from $5,000 - $5,000,000
eligibility orange tickLoan terms from 1 - 7 years
eligibility orange tickWeekly, fortnightly or monthly repayments
eligibility orange tickFixed interest rates from 7.44%
eligibility orange tickInterest rate tailored to your situation

What can I use equipment finance for?

Equipment finance can be used to acquire a wide array of assets - from computers, machinery, to vehicles. This form of financing is valuable for businesses that want to stay technologically updated, expand their operational capabilities, or replace worn-out assets without taking a significant hit on their cash reserves.

Here are some common reasons people take out equipment finance:

Business Expansion

A secured business loan can provide the necessary funds to expand your business operations, open new locations, or enter new markets.

Equipment Purchase

Secured business loans are commonly used to finance the purchase of machinery, vehicles, or other equipment necessary for business operations.

Inventory Management

Secured loans can help businesses manage their inventory by providing funds to purchase and stock up on inventory for increased sales.

Working Capital

Secured business loans can be used to cover day-to-day operational expenses, manage cash flow gaps, and support ongoing business activities.

Business Acquisition

Secured loans can facilitate the acquisition of another business, allowing for growth and expansion through strategic mergers or acquisitions.

Debt Consolidation

Businesses can use secured loans to consolidate existing debts into a single loan, simplifying repayment and potentially reducing interest rates.

Real Estate Purchase

Secured business loans can be utilised for purchasing commercial properties or real estate for business purposes, such as office spaces or retail locations.

Marketing and Advertising

Secured loans can help businesses invest in marketing and advertising campaigns to enhance brand awareness and reach a larger customer base.

Renovation or Expansion

Businesses looking to renovate or expand their existing facilities can use secured loans to fund construction, remodeling, or expansion projects.

Technology Upgrades

Secured business loans can be used to invest in technology upgrades, including software, hardware, and infrastructure, to improve business efficiency and competitiveness.

Ready to run the numbers?

Calculate your repayment estimates and more.

How much can I borrow for equipment finance?

When it comes to equipment finance in Australia, the amount you can borrow will depend on various factors, including the value of the equipment you intend to purchase, your business's financial health, and the specific lender's policies. Equipment finance allows businesses to acquire necessary machinery, vehicles, or other equipment without tying up a significant amount of capital upfront. The loan amount for equipment finance can vary widely, ranging from a few thousand dollars to several million dollars. Financial institutions in Australia typically offer equipment finance loans starting from around $5,000, but the upper limit can vary depending on the value of the equipment and your business's needs.

Lenders consider the value and useful life of the equipment when determining the loan amount. Typically, lenders will offer a loan amount based on a percentage of the equipment's purchase price or appraised value. The loan-to-value ratio (LVR) commonly ranges from 80% to 100%, meaning you may be eligible to borrow up to the full value of the equipment. It's important to note that lenders will assess your business's financial stability, creditworthiness, and ability to repay the loan when determining the loan amount. Providing detailed information about the equipment you plan to purchase, including quotes or invoices, can help strengthen your loan application and potentially increase your borrowing capacity.

Equipment Finance Repayment Calculator

To estimate your monthly repayments and the total cost of the loan, input the loan amount, loan term and interest rate into the calculator below. This helps you plan your budget and choose the most suitable loan terms.

Loan Amount
Establishment Fee
Loan Term (Years)
Interest Rate
Total amount to repay
Your repayments

Balance over time

Am I eligible for equipment finance?

Lenders consider several factors when assessing your eligibility, including your credit score, income, debt-to-income ratio, age, residency, and required documentation. While meeting the eligibility criteria doesn't guarantee loan approval, having a good credit score, stable income, and a positive financial profile significantly improve your chances.

You are eligible to apply for equipment finance if you are:

eligibility orange tickOver the age of 18; and
eligibility orange tickAn Australian citizen or permanent resident; and
eligibility orange tickHave a regular source of income, that is enough to meet the repayments

How to apply for equipment finance?

Applying for equipment finance is easy and only takes a few minutes. Get started by filling out some basic information into our application form. We’ll review your information, and someone will be in contact with you to discuss the best option for you from over 40+ Australian lenders.

If you’re eligible for equipment finance, and you are happy with the initial quote, you will need to prepare documents such as:

eligibility orange tickPassport or drivers licence
eligibility orange tickProof of income and expenses (e.g. payslips, bank statements)
eligibility orange tickDetails of any current debts or other loans

Ready to get started?

Compare over 40+ lenders with one application.

How to get the best equipment finance for you?

When searching for equipment finance, it's essential to understand the different factors to find the best fit for your needs. From interest rates and fees to loan terms and early payout options, each factor can increase or descrease the total amount you will repay.

Interest Rate

When it comes to obtaining an equipment finance loan, one of the most important factors to consider is the interest rate. The interest rate directly impacts the overall cost of borrowing and your monthly repayment amount. It is crucial to compare rates from different lenders to ensure you secure a competitive rate that aligns with your financial goals and helps you save on interest expenses over the loan term. Keep in mind that your creditworthiness, the type of equipment being financed, and the lender's assessment of risk will all influence the interest rate you are offered.


In addition to the interest rate, it is essential to carefully evaluate the fees associated with equipment finance loans. These fees can include application fees, origination fees, documentation fees, and ongoing administrative fees. By understanding the fee structure of different lenders, you can choose a loan with transparent and reasonable fees. It's important to note that while some lenders may have lower interest rates, they may offset it with higher fees. Therefore, a thorough assessment of both interest rates and fees is necessary to ensure you minimise costs and maximise the value of your equipment finance loan.

Comparison Rate

When comparing equipment finance loan options, it is not sufficient to consider the interest rate alone. To gain a comprehensive understanding of the true cost of the loan, it's essential to examine the comparison rate. The comparison rate takes into account both the interest rate and any additional fees associated with the loan. This rate allows you to make a more informed decision by considering the total cost of borrowing. By comparing comparison rates from different lenders, you can better assess the overall affordability of each loan option.

Loan Term

The loan term or repayment period is an important aspect to consider when obtaining equipment finance. The loan term typically determines the duration of your repayments and can range from a few months to several years. A shorter loan term usually means higher monthly repayments but lower overall interest costs, as you'll be repaying the loan in a shorter timeframe. On the other hand, a longer loan term may result in lower monthly repayments but could mean higher interest expenses over the life of the loan. It is essential to evaluate your business's cash flow and equipment usage to determine the loan term that best suits your financial situation.

Balloon Payment

In some cases, equipment finance loans may include the option for balloon payments. A balloon payment is a larger lump-sum payment due at the end of the loan term. While balloon payments can help reduce monthly repayment amounts, they require careful consideration. It's important to assess whether your cash flow and financial resources will allow for the balloon payment when it becomes due. Balloon payments can be a suitable option if you anticipate having significant funds available or if you plan to refinance the balloon payment at the end of the loan term. However, it is crucial to fully understand the implications of balloon payments and their impact on your overall financial strategy before committing to this structure.

Early Payout

Flexibility in loan repayment is a valuable feature to consider when seeking equipment finance. Early payout options allow you to repay the loan before the agreed-upon term without incurring any penalties or additional charges. This flexibility can be advantageous if your business experiences a financial windfall, allowing you to reduce interest expenses and become debt-free sooner. Before finalising an equipment finance loan, it's essential to review the terms and conditions to ensure that early repayment is possible and to understand any potential limitations or conditions that may apply.

Find the best Equipment Finance for you with Emu MoneyFind the best Equipment Finance for you with Emu Money

Frequently Asked Questions

Still have questions about equipment finance?

These helpful FAQs will help you find the answers you need. If you can't find what you're looking for, you can request a callback below.

What is the interest rate on equipment finance
Can I finance used equipment?
What is the typical term for equipment finance?
Do I need to provide a down payment?
Can I get equipment finance with bad credit?
Are there any tax benefits to equipment finance?
Can I pay off my equipment loan early?
Can I lease equipment instead of buying?
What is the difference between a lease and a loan?
What happens if the equipment breaks down?
Can I refinance equipment finance?
Is equipment insurance required?
Do I need a good business credit score for equipment financing?
Can I include installation, maintenance, and other costs in my loan?