The Ultimate Guide to Equipment Finance for Construction Machinery Hirers

The Ultimate Guide to Equipment Finance for Construction Machinery Hirers with Emu MoneyThe Ultimate Guide to Equipment Finance for Construction Machinery Hirers with Emu Money

Construction Machinery Hirers in Australia understand the significance of having the right equipment to efficiently carry out their operations. However, acquiring new equipment can be a significant financial burden for small and medium-sized businesses. That's where equipment finance comes into play. Equipment finance provides a solution for Construction Machinery Hirers to obtain the equipment they need without having to rely on large upfront capital investments. It allows them to spread the cost of their equipment over time, making it more manageable for their cash flow. Whether you need to purchase construction machinery, excavators, bulldozers, or any other equipment necessary for your business, equipment financing can be a game-changer. It provides you with the flexibility to access modern and advanced machinery, ensuring that you can meet the demands of your clients effectively. By opting for equipment finance, you can preserve your working capital and allocate it to other crucial areas of your business, such as paying employees and managing day-to-day expenses. Additionally, equipment financing can offer tax benefits and help you maintain a competitive edge in the industry. In the following sections, we will delve deeper into the different aspects of equipment finance, including how it works, the benefits it offers, and how you can use an equipment finance calculator to determine the best financing options for your specific needs. So, let's explore the world of equipment finance for Construction Machinery Hirers in Australia and discover how it can propel your business to new heights.

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What is Equipment Finance?

Equipment finance is a financial solution specifically designed for Construction Machinery Hirers in Australia to acquire the necessary machinery and equipment needed for their operations. It is a type of loan or lease that allows businesses to obtain the equipment upfront while spreading the cost over a predetermined period. Equipment finance is commonly offered by financial institutions, such as banks and specialised lenders. These lenders understand the unique needs of Construction Machinery Hirers and provide tailored financing options to suit their requirements. The terms and conditions of equipment finance may vary depending on the lender and specific circumstances. When opting for equipment finance, Construction Machinery Hirers typically enter into an agreement with the lender, outlining the duration of the financing arrangement, monthly repayment amounts, and any other applicable fees or charges. The agreed-upon repayment schedule helps businesses budget and manage their cash flow effectively. The equipment being financed serves as collateral for the loan, which means that if the borrower fails to make the repayments, the lender may have the right to repossess the equipment to recover their funds. However, once all the repayments are made, the ownership of the equipment typically transfers to the Construction Machinery Hirer. Overall, equipment finance provides Construction Machinery Hirers in Australia with a flexible and accessible means to acquire the machinery they need without putting a strain on their immediate cash flow. It allows businesses to modernise their equipment, improve productivity, and stay competitive in the industry without the need for large upfront capital investments.

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Top 10 Types of Equipment Construction Machinery Hirers Can Purchase With Equipment Finance

Construction Machinery Hirers can utilise equipment finance to purchase a range of machinery and equipment for their operations. This includes essential equipment such as excavators, bulldozers, and cranes. With equipment finance, businesses can acquire these necessary assets without the burden of upfront costs, ensuring smooth and efficient construction projects.

Here are some common types of equipment Construction Machinery Hirers can purchase with equipment finance:


Excavators are versatile machines used for digging, trenching, and demolition tasks on construction sites.


Bulldozers are powerful machines equipped with a large metal blade used for pushing soil, rubble, and other materials at construction sites.


Cranes are essential for lifting and moving heavy materials and equipment on construction projects of all sizes. They come in various sizes and types to accommodate different lifting needs.

Concrete Mixers

Concrete mixers are used to blend cement, aggregate, and water to create the concrete needed for construction projects. They ensure consistent and efficient mixing of materials.

Skid Steer Loaders

Skid steer loaders are compact machines with a rigid frame and arms that enable them to perform a wide range of tasks, including lifting, pushing, and digging. They are commonly used in landscaping and construction projects.

Dump Trucks

Dump trucks are heavy-duty vehicles used for transporting bulk materials, such as soil, gravel, or construction debris, on construction sites. They have a hydraulic bed that can be tilted to unload the materials.


Pavers are machines used in road construction to lay asphalt or concrete for creating smooth and durable road surfaces.


Backhoes combine the capabilities of a hydraulic excavator and a loader. They are used for digging, trenching, and loading tasks in construction and excavation projects.


Compactors are used to compress soil, gravel, or asphalt to achieve a solid and stable foundation in construction projects. They come in different sizes and types, such as vibratory and static.


Scaffolding provides a temporary structure to support workers and materials during construction or maintenance projects. It ensures safety and accessibility to elevated areas.

Top 10 Ways Construction Machinery Hirers Use Equipment Finance For Growth

Construction Machinery Hirers can utilise equipment finance to fuel their growth and success. This includes expanding their equipment fleet, upgrading to modern machinery, meeting client demands, accessing the latest technology, and handling large-scale projects. Equipment finance offers the necessary financial support for Construction Machinery Hirers to grow their business and stay competitive in the industry.

Here are some common reasons Construction Machinery Hirers use equipment finance for growth:

Expanding Equipment Fleet

Construction Machinery Hirers can use equipment finance to acquire additional machinery, allowing them to expand their equipment fleet and take on more projects simultaneously.

Upgrading to Modern Machinery

Equipment finance enables Construction Machinery Hirers to upgrade their existing equipment to more advanced and efficient models, enhancing productivity and staying competitive in the industry.

Meeting Client Demands

With equipment finance, Construction Machinery Hirers can acquire specialised machinery required by their clients, enabling them to meet specific project demands and expand their service offerings.

Accessing Latest Technology

Equipment finance provides the opportunity to access cutting-edge technology and equipment, allowing Construction Machinery Hirers to leverage advancements in their operations for enhanced efficiency and quality.

Handling Large-Scale Projects

By utilising equipment finance, Construction Machinery Hirers can acquire the necessary heavy machinery and equipment to undertake large-scale construction projects that require specialised machinery and increased capacity.

Seasonal Equipment Requirements

Construction Machinery Hirers can use equipment finance to meet seasonal equipment needs. For example, they can acquire snowploughs for winter projects or generators for remote construction sites.

Avoiding Obsolescence

Equipment finance enables Construction Machinery Hirers to continuously update and replace outdated machinery, ensuring that their equipment remains reliable, safe, and compliant with industry standards.

Enhancing Safety Measures

Construction Machinery Hirers can invest in safety equipment and accessories using equipment finance to provide a safe working environment for their employees and comply with occupational health and safety regulations.

Diversifying Service Offerings

By utilising equipment finance, Construction Machinery Hirers can diversify their service offerings by acquiring equipment for specialised tasks such as demolition, excavation, or concrete pumping.

Renting Out Equipment

Equipment finance allows Construction Machinery Hirers to acquire additional machinery that can be rented out to other contractors, creating an additional revenue stream for their business.

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Advantages of Equipment Finance for Construction Machinery Hirers

Equipment finance for Construction Machinery Hirers in Australia brings several advantages, enabling them to secure the necessary equipment for their operations. Here are some of the advantages:

Increased Cash Flow

Equipment finance allows Construction Machinery Hirers to acquire the necessary machinery without tying up their working capital. By spreading the cost of equipment over time, it helps maintain positive cash flow for other business expenses.

Flexibility and Upgrades

Equipment finance provides the flexibility to upgrade or replace machinery as needed. With advances in technology and evolving industry requirements, Construction Machinery Hirers can stay competitive by accessing the latest equipment through financing options.

Tax Deductible

Equipment finance offers the benefit of potential tax deductions. Construction Machinery Hirers can claim depreciation on the equipment, reducing their taxable income and overall tax liability. This can provide significant savings for the business.

Preservation of Credit Lines

By utilising equipment finance, Construction Machinery Hirers can preserve their credit lines. This allows them to have additional financing options available for other business needs, such as working capital requirements or unexpected expenses.

Disadvantages of Equipment Finance for Construction Machinery Hirers

When considering equipment finance for Construction Machinery Hirers in Australia, it's important to be mindful of a few considerations. Here are a few potential disadvantages to think about:

Interest and Finance Charges

When opting for equipment finance, Construction Machinery Hirers need to consider the additional cost of interest and finance charges. These expenses can increase the overall cost of acquiring the equipment and impact the profitability of the business.

Commitment and Obligation

Equipment finance typically involves entering into a contractual agreement with a lender, which means Construction Machinery Hirers are committing to repay the borrowed amount over a set period. This obligation can limit the business's financial flexibility and may restrict other investment opportunities.


Construction machinery is subject to wear and tear and may depreciate in value over time. When leasing or financing equipment, Construction Machinery Hirers need to consider how the depreciation of the machinery affects its overall value and financial implications.

Resale or Exit Strategy

In some cases, Construction Machinery Hirers may need to consider the future resale or exit strategy of the financed equipment. If the business undergoes significant changes or upgrades, it could be challenging to sell or trade-in the equipment at a satisfactory price.

Equipment Financing Alternatives for Construction Machinery Hirers

Alternative options to equipment finance for Construction Machinery Hirers include bank loans, equipment leasing, peer-to-peer lending, and equipment rental. These alternatives provide flexibility in acquiring necessary machinery while considering factors such as ownership, financial capability, and short-term or long-term needs. It is important for Construction Machinery Hirers to evaluate their individual requirements and consult with financial experts before selecting the most suitable option.

Here are some common alternatives to equipment finance:

Bank Loans

Construction Machinery Hirers can explore traditional bank loans to finance their equipment needs. Banks offer a variety of loan options tailored to businesses, allowing them to acquire equipment while maintaining ownership.

Equipment Leasing

Leasing is a popular alternative to equipment finance. Construction Machinery Hirers can lease the required machinery for a fixed term and regular payments. This option provides flexibility, as equipment can be upgraded or returned at the end of the lease.

Peer-to-Peer Lending

Construction Machinery Hirers can consider peer-to-peer lending platforms that connect borrowers directly with individual investors. This alternative financing method offers competitive interest rates and streamlined application processes.

Equipment Rental

Renting equipment can be a viable solution for short-term or occasional needs. Construction Machinery Hirers can save on upfront costs by renting machinery when required, without the long-term commitment of ownership or financing.

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

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?