Asset Finance - Rates from 6.59%

All asset finance falls into one of three structures. They achieve the same outcome (you get the asset, you make repayments) but differ in ownership timing, tax treatment, and end-of-term options.

A chattel mortgage gives you ownership from day one. The lender registers a mortgage over the asset as security. You claim the GST credit immediately, depreciate the asset from settlement, and deduct interest as a business expense. This is the most common structure for GST-registered businesses buying assets they intend to keep.

A hire purchase means you hire the asset with a commitment to buy it after the final payment. Ownership transfers at the end. You can still depreciate the asset and deduct interest during the term. For most businesses the practical difference from a chattel mortgage is minimal, but some industries and accounting structures prefer the hire purchase treatment.

A finance lease means you lease the asset for a fixed term. The entire lease payment is tax-deductible as an operating expense. At term end, you can purchase at residual value, return the asset, or refinance. Leases keep the asset off your balance sheet, which preserves borrowing capacity for other purposes.

For most GST-registered businesses buying a vehicle or piece of equipment they plan to keep, a chattel mortgage is the simplest structure. For businesses that replace assets on a regular cycle (technology, fleet vehicles), a finance lease often makes more financial sense.

Asset finance covers almost any tangible business asset with a serial number, VIN, or other unique identifier and an established resale market. The asset secures the loan, so no additional collateral is needed.

Vehicles: Cars, utes, vans, trucks, trailers, buses. Vehicle finance often settles fastest because lender valuations are automated. See our dedicated pages for truck finance and business car loans.

Construction and earthmoving: Excavators, loaders, cranes, bobcats, concrete pumps, scaffolding. Strong lender appetite due to established resale markets and long useful lives.

Manufacturing and production: CNC machines, production lines, welding equipment, compressors, 3D printers. Lenders assess the asset's useful life and secondhand demand. See our equipment finance page for detailed structure comparisons.

Technology and IT: Servers, networking equipment, commercial software licences, point-of-sale systems. Shorter maximum terms (3-5 years) are common given faster depreciation.

Medical and dental: Diagnostic machines, surgical tools, dental chairs, imaging equipment. Competitive rates due to the stability of healthcare practices.

Agricultural: Tractors, harvesters, irrigation systems, grain storage. Seasonal repayment structures available to match farming cycles. See our farm equipment finance page.

Renewable energy: Commercial solar panels, battery storage, energy management systems. Savings on energy bills can offset or exceed the loan repayments.

Hospitality and retail: Commercial kitchens, refrigeration, coffee machines, shop fit-outs. Fit-out finance may require additional security for items that become fixtures.

Asset finance rates through our panel start from 6.59%. The rate you qualify for depends on five factors that lenders assess together.

1. Asset type and age. Lenders categorise assets as primary (vehicles, standard machinery), secondary (specialised equipment, older assets), or tertiary (niche items with limited resale). Primary assets attract the best rates. A common rule is the asset can't be older than 10 to 15 years at the end of the loan term. A used truck that's 8 years old on a 5-year term (13 years end-of-term) might add 1-2% to the rate. The same truck at 12 years old on a 5-year term (17 years end-of-term) may not be financeable at all.

2. Your business profile. ABN age, annual turnover, and industry. Businesses trading 2+ years with consistent revenue get the best pricing. Start-ups under 12 months face higher rates but can still access finance through specialist lenders.

3. Credit history. Clean personal and business credit gets the sharpest rates. Past defaults or judgements in the last 5 years can push rates 3-5% higher. A buyer with a credit score of 480 could be looking at 12%+ on the same asset that a 700+ score buyer finances at 7%.

4. Loan-to-value ratio. A deposit of 10-20% reduces the lender's exposure and can unlock a lower rate tier. On a $100,000 asset, a $10,000 deposit can save thousands in total interest over the term.

5. Term length. Shorter terms attract lower rates on many products. The difference between 6.59% and 12% on a $100,000 loan over five years is $15,900 in extra interest.

For detailed rate bands and worked examples, see our guide to asset finance interest rates.

The core difference is security. Asset finance is secured against the asset you're buying. Unsecured business loans have no collateral, so the lender charges a higher rate to compensate for the greater risk.

On a $100,000 loan over 5 years, the gap between asset finance at 7% and an unsecured loan at 14% is roughly $19,000 in total interest. That's $317 per month in additional cost for the unsecured option.

Asset finance wins when you're buying a clearly identifiable asset, purchased from a known dealer or supplier, under 10 years old, with an established resale market. The lender can value and resell the asset if needed, so they price accordingly.

An unsecured business loan makes more sense when the purchase doesn't qualify for asset finance (older assets, fit-outs that become fixtures, working capital wrapped into the purchase), when you need funds faster than asset finance allows (some unsecured lenders fund same-day), or when the amount is small enough that the rate difference is negligible.

A common strategy is to finance the primary asset (vehicle, machine) with asset-secured lending at the lower rate, then use a smaller unsecured facility for the ancillary costs (installation, training, accessories) that don't qualify as separate financeable assets.

For a detailed side-by-side comparison with worked numbers, see our guide to asset finance vs a business loan.

Asset finance offers up to four separate tax benefits. The exact benefits depend on your finance structure and business size.

GST credits. If your business is GST-registered, you can claim the GST component of the purchase price on your next BAS. On a $110,000 asset (GST-inclusive), that's $10,000 back within weeks of purchase. For passenger vehicles, the credit is capped at $6,334 (based on the ATO car depreciation limit of $69,674 for 2025-26).

Depreciation. You can depreciate the asset's cost base over its effective life. Small businesses with turnover under $10 million can use the instant asset write-off for assets costing less than $20,000, deducting the full cost in the year you first use it. The $20,000 threshold is now permanent from 1 July 2026. Assets over $20,000 go into the small business pool at 15% in the first year and 30% each year after.

Interest deductions. Interest paid on a chattel mortgage or hire purchase is fully tax-deductible as a business expense. On a $100,000 loan at 8% over five years, total interest is roughly $21,700. At the 25% small business tax rate, that saves around $5,425.

Lease payment deductions. Under a finance lease, the entire lease payment (not just interest) is deductible as an operating expense, simplifying your tax treatment.

The combination of GST credits, depreciation, and interest deductions on a $100,000 chattel mortgage can return more than $31,000 in tax benefits over five years. Always consult your accountant for advice specific to your situation.

Most mainstream lenders require 12 to 24 months of ABN history for asset finance. If your business is newer than that, your options narrow but don't disappear.

Specialist lenders on our panel will consider ABNs as young as 3 months if the director has strong personal credit and relevant industry experience. A tradesperson with 15 years of experience starting their own business faces less scrutiny than a first-time business owner in an unfamiliar industry.

For businesses under 12 months, lenders typically want to see:

• 3 to 6 months of business bank statements showing consistent deposits
• Clean personal credit (no defaults in the last 5 years)
• A deposit of 10-20% of the asset value
• The asset purchased from a dealer (not private sale)

Startup rates are typically 2-4% higher than established business rates. On a $60,000 vehicle, that premium costs roughly $3,600 to $7,200 in additional interest over five years. Many startups take their first asset finance at the higher rate, prove their repayment track record, then refinance 12 to 24 months later at a significantly better rate.

For the full approval process and common mistakes to avoid, see our guide to asset finance for startups.

A single-lender application gives you one rate from one credit policy. If your profile doesn't fit their criteria perfectly, you either get declined or pay a premium. You won't know whether a better offer existed elsewhere.

An asset finance broker compares your application against multiple lenders simultaneously. Different lenders have different appetites: one might specialise in construction equipment, another in medical assets, another in startup lending. A broker matches your specific situation to the lender most likely to offer the best terms.

Through Emu Money, one application reaches 50+ lenders. You see matched rates, terms and structures side by side. The lender that offers the best rate on a $200,000 excavator may not be the same lender that's sharpest on a $40,000 van, and a broker knows which panel members have appetite for which asset types.

The broker service costs you nothing. Lenders pay the broker a commission from their margin. Your rate is typically the same (or better) than going direct, because brokers have volume-based pricing arrangements that individual applicants can't access.

Using a broker also means one credit inquiry instead of multiple applications. Each separate lender application creates a credit check on your file. Multiple inquiries in a short period can lower your credit score and signal desperation to subsequent lenders.