Machinery Finance For Business

Your guide to getting the right machinery finance.

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

A quick guide to machinery finance

Machinery finance offers businesses a convenient solution to acquire essential equipment without a significant upfront investment. It enables businesses to access a wide range of machinery, including vehicles, technology, and specialised equipment. By leveraging machinery finance, businesses can enhance their operational capabilities and productivity. This financing option provides flexible repayment terms and affordable options tailored to individual business needs. With machinery finance, businesses can optimise cash flow, preserve working capital, and stay ahead of the competition by investing in the latest equipment. It empowers businesses across various industries to acquire the machinery necessary for growth and success without straining their financial resources.

Here's what machinery 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 machinery finance for?

Machinery finance can be utilised to procure a variety of equipment crucial to your business operations. It's ideal for acquiring everything from construction machinery, such as cranes and bulldozers, to manufacturing equipment like CNC machines and forklifts. Businesses in the logistics sector could finance delivery trucks, while offices can invest in computer systems or high-end servers. Essentially, if it's a tangible piece of machinery or equipment required for the operation or growth of your business, machinery finance can be a viable solution.

Here are some common reasons people take out machinery finance:

Equipment Purchase

Machinery finance is commonly used to purchase new or used equipment needed for business operations.

Upgrade or Replacement

Businesses often use machinery finance to upgrade or replace existing equipment to improve productivity and efficiency.

Expansion Projects

When businesses are expanding their operations, machinery finance can be utilized to acquire additional machinery and equipment.

Technology Investments

Machinery finance can fund investments in technology, such as advanced software systems or automation equipment.

Construction Equipment

Businesses in the construction industry frequently use machinery finance to acquire heavy machinery like excavators, bulldozers, and cranes.

Manufacturing Equipment

Machinery finance supports the purchase of manufacturing equipment like CNC machines, 3D printers, and assembly lines.

Transportation Vehicles

For businesses in logistics or transportation, machinery finance can be used to acquire vehicles like trucks, vans, or forklifts.

Medical Equipment

Healthcare providers often use machinery finance to acquire medical equipment like diagnostic machines, imaging systems, or surgical instruments.

Agricultural Machinery

Farmers and agricultural businesses utilize machinery finance for acquiring equipment such as tractors, harvesters, and irrigation systems.

Hospitality Equipment

Restaurants, cafes, and hotels use machinery finance to acquire kitchen equipment, refrigeration systems, and commercial appliances.

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How much can I borrow for machinery finance?

When it comes to machinery finance in Australia, the amount you can borrow will depend on various factors, including the type and value of the machinery, the lender's policies, and your business's financial standing. Machinery finance allows businesses to acquire or upgrade machinery and equipment without the need for a substantial upfront investment. The borrowing limits for machinery finance can vary widely, ranging from a few thousand dollars to several million dollars. The specific loan amount you can borrow will be influenced by factors such as the value and condition of the machinery, its expected useful life, and your business's ability to generate income.

Lenders typically assess the machinery's resale value and its potential to generate cash flow when determining the loan amount. They may also consider your business's financial statements, creditworthiness, and repayment capacity. It's important to note that machinery finance is typically secured by the machinery itself, providing the lender with collateral in case of default. This security allows lenders to offer competitive interest rates and flexible repayment terms. Before applying for machinery finance, it's crucial to conduct a thorough assessment of your business needs, budget, and repayment capacity. Consider the expected return on investment and the impact the machinery will have on your business's productivity and profitability.

Machinery 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 machinery 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 machinery 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 machinery finance?

Applying for machinery 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 machinery 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

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How to get the best machinery finance for you?

When searching for machinery 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 machinery 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 machinery 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 machinery finance loan.

Comparison Rate

When comparing machinery 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 machinery 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, machinery 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 machinery 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 Machinery Finance for you with Emu MoneyFind the best Machinery Finance for you with Emu Money

Frequently Asked Questions

Still have questions about machinery 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.

Can I finance more than one piece of machinery?
Can I buy machinery from overseas with a machinery finance loan?
What is the interest rate on machinery finance
Can I finance used equipment?
What is the typical term for machinery finance?
Do I need to provide a down payment?
Can I get machinery finance with bad credit?
Are there any tax benefits to machinery 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 machinery 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?