The Ultimate Guide to Equipment Finance for Machinery Wholesalers

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

Equipment finance plays a vital role in the success of Machinery Wholesalers in Australia. As the demand for machinery and equipment continues to grow, it's essential for wholesalers to have access to the necessary funds to purchase or upgrade their inventory. In this article, we will explore the importance of equipment finance and how it can benefit Machinery Wholesalers in Australia. For Machinery Wholesalers, having the latest and most efficient equipment is crucial for their operations. It allows them to stay competitive in the market, meet customer demands, and improve overall productivity. However, purchasing machinery outright can be a significant financial burden, especially for smaller wholesalers. This is where equipment finance comes into play. Equipment financing provides Machinery Wholesalers with the opportunity to acquire the equipment they need without having to deplete their cash reserves. Instead of paying the full amount upfront, wholesalers can spread the cost over a designated period through affordable monthly instalments. This allows them to preserve their capital and allocate it to other critical areas of their business, such as marketing, expansion, or staff development. Another advantage of equipment finance is that it offers flexibility and convenience. Wholesalers can choose from a range of financing options that suit their specific needs and circumstances. Whether it's a lease agreement, hire purchase, or chattel mortgage, there are various ways to structure the finance arrangement to align with the cash flow and profitability of the business. In addition, many equipment finance providers offer tailored solutions for Machinery Wholesalers, understanding the unique requirements of the industry. They can provide financing for a wide range of machinery, from forklifts and cranes to industrial-grade equipment. This ensures that wholesalers can access the equipment they need to meet the demands of their customers and remain competitive. Overall, equipment finance is an essential tool for Machinery Wholesalers in Australia. It provides them with the means to acquire and upgrade their equipment without straining their finances. By leveraging equipment finance options, wholesalers can maintain a competitive edge, improve productivity, and drive business growth. In the following sections, we will delve deeper into different aspects of equipment finance and how it can benefit Machinery Wholesalers.

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What is Equipment Finance?

Equipment finance is a financing option specifically designed for Machinery Wholesalers in Australia. It enables wholesalers to acquire the machinery and equipment they need for their business operations without the need for large upfront payments. Equipment finance works by allowing Machinery Wholesalers to secure the necessary funds to purchase or upgrade their inventory. Instead of paying the full cost of the equipment upfront, wholesalers can enter into a financing agreement with a lender. The lender will then provide the funds needed to acquire the equipment, and the wholesaler will agree to repay the amount borrowed over a set period. The repayment terms and conditions vary depending on the equipment finance option chosen by the wholesaler. Common options include lease agreements, hire purchase, and chattel mortgages. These options offer different structures and repayment methods to cater to the specific needs and circumstances of the wholesaler. Equipment finance is a beneficial solution for Machinery Wholesalers as it allows them to access the equipment they require without depleting their cash reserves. This ensures they can preserve their capital for other essential business activities, such as marketing, expansion, or staff development. Moreover, equipment finance offers flexibility in terms of the financing arrangement, enabling wholesalers to structure the payments in a way that aligns with their cash flow and profitability. By utilising equipment finance, Machinery Wholesalers can acquire the necessary machinery and equipment to meet customer demands, stay competitive, and enhance productivity. It is an invaluable tool that supports the growth and success of wholesalers in the Australian market.

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Top 10 Types of Equipment Machinery Wholesalers Can Purchase With Equipment Finance

Machinery Wholesalers can leverage equipment finance to acquire a range of essential equipment, including forklifts, cranes, and packaging machines. These tools enable efficient material handling, large-scale lifting operations, and streamlined packaging processes, respectively. With equipment finance, wholesalers can access the machinery they need to enhance productivity and meet customer demands.

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


Forklifts are essential for Machinery Wholesalers to efficiently move and handle heavy loads within their warehouses and distribution centres.


Cranes are necessary for lifting and transporting heavy machinery and equipment, making them crucial for Machinery Wholesalers involved in construction or large-scale operations.


Excavators are versatile machines used for digging, trenching, and earthmoving. They are highly beneficial for Machinery Wholesalers involved in construction, landscaping, or excavation projects.

Packaging Machines

Packaging machines automate the process of packing products and ensure efficient and consistent packaging for Machinery Wholesalers engaged in manufacturing or distribution.

Conveyor Systems

Conveyor systems enable streamlined transport of goods within a facility, enhancing efficiency and reducing manual labour for Machinery Wholesalers involved in logistics and warehousing.

Industrial Mixers

Industrial mixers are essential for Machinery Wholesalers engaged in the production of food, chemicals, or other products that require precise mixing and blending processes.

CNC Machines

CNC machines, such as lathes and milling machines, are vital for Machinery Wholesalers involved in precision manufacturing or metalworking, enabling accurate and automated machining operations.

Packaging Labeling Machines

Packaging labelling machines automate the process of applying labels to products, ensuring accurate and efficient labelling for Machinery Wholesalers in various industries.


Generators provide an alternative power source for Machinery Wholesalers, ensuring uninterrupted operations during power outages or remote locations where electricity supply is limited.

Industrial Freezers

Industrial freezers are essential for Machinery Wholesalers involved in the storage and distribution of perishable goods, maintaining their freshness and quality.

Top 10 Ways Machinery Wholesalers Use Equipment Finance For Growth

Machinery Wholesalers can use equipment finance to fuel their growth by expanding their inventory, upgrading technology, meeting growing demands, and scaling operations. It allows them to enhance productivity, streamline logistics, and improve quality control. Equipment finance also supports market expansion, research and development, and investment in safety measures.

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

Expanding Inventory

Machinery Wholesalers can use equipment finance to acquire new machinery and equipment to expand their inventory and offer a wider range of products to their customers.

Upgrading Technology

With equipment finance, wholesalers can invest in the latest technology and machinery, enhancing their operational efficiency, improving product quality, and staying ahead of competitors.

Meeting Growing Demands

Equipment finance allows wholesalers to purchase additional equipment to meet increasing customer demands, ensuring timely order fulfilment and customer satisfaction.

Scaling Operations

Wholesalers can use equipment finance to ramp up their operations by acquiring more machinery, enabling them to handle larger volumes of products and expand their customer base.

Enhancing Productivity

Investing in specialised equipment through equipment finance can significantly boost productivity, allowing wholesalers to optimise their processes and accomplish tasks more efficiently.

Streamlining Logistics

Machinery Wholesalers can use equipment finance to obtain conveyor systems, forklifts, and other transport equipment to streamline their logistical operations, improving efficiency and reducing labour costs.

Improving Quality Control

Equipment finance enables wholesalers to invest in quality control equipment, such as inspection tools and testing machines, ensuring that products meet industry standards and customer expectations.

Expanding into New Markets

By utilising equipment finance, wholesalers can diversify their product offerings and enter new markets, leveraging the right equipment to cater to the specific needs of different industries.

Supporting Research and Development

Equipment finance can be utilised to fund research and development initiatives, allowing wholesalers to innovate, develop new products, and stay ahead of market trends.

Enhancing Safety Measures

Wholesalers can use equipment finance to invest in safety equipment and systems, creating a safer work environment for employees and reducing the risk of accidents or injuries.

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Advantages of Equipment Finance for Machinery Wholesalers

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

Expanding Business Operations

By utilising equipment finance, Machinery Wholesalers can acquire the necessary machinery and equipment to expand their operations. This allows them to meet the increasing demands of their customers and take advantage of new business opportunities. With access to the latest and advanced equipment, wholesalers can improve their efficiency and productivity, ultimately leading to increased profitability.

Cash Flow Management

Equipment finance offers Machinery Wholesalers the flexibility to preserve their working capital. Instead of paying a large lump sum upfront, they can choose affordable monthly repayments that align with their cash flow. This enables them to allocate their funds to other essential business expenses, such as marketing, inventory management, and hiring skilled staff. By maintaining a healthy cash flow, wholesalers can run their business smoothly and seize growth opportunities.

Upgraded Technology

In the fast-paced machinery industry, staying up-to-date with the latest technology is crucial for remaining competitive. Through equipment finance, Machinery Wholesalers can regularly upgrade their equipment and machinery to incorporate advanced features and enhance their product quality. By investing in state-of-the-art technology, wholesalers can meet customer demands more efficiently, minimise downtime, and position themselves as industry leaders.

Tax Benefits

Equipment finance often allows for tax benefits for Machinery Wholesalers. With certain finance agreements, wholesalers may be able to claim tax deductions on their monthly repayments and depreciate the equipment's value over time. This can result in substantial tax savings, reducing the overall cost of acquiring new machinery or equipment. By taking advantage of tax benefits, wholesalers can maximise their financial resources and improve their bottom line.

Disadvantages of Equipment Finance for Machinery Wholesalers

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

Commitment to Repayment

When opting for equipment finance, Machinery Wholesalers need to consider the commitment of monthly repayments over a specified period. It is essential to carefully evaluate the cash flow and ensure that the business can consistently meet the repayment obligations. While it provides access to the necessary equipment, wholesalers should be mindful of their financial stability and ability to fulfil the repayment terms.

Interest and Fees

Equipment finance often includes interest charges and fees, which add to the overall cost of acquiring the equipment. Wholesalers should consider these additional expenses when assessing the feasibility of equipment finance. It is advisable to compare rates and terms offered by different lenders to minimise the impact on the business's financial health. Despite these costs, the benefits and opportunities gained from accessing equipment might outweigh the expenses associated with financing.

Potential for Depreciation

Machinery and equipment in certain industries may depreciate rapidly due to technological advancements or market demands. Wholesalers must consider the potential depreciation when financing equipment. While upgrading to newer models improves productivity, it may result in the devaluation of the financed equipment. Careful evaluation of the industry trends and equipment's expected lifespan can help Wholesalers make informed decisions regarding equipment finance.

Limitations on Customization

When opting for equipment finance, Wholesalers may face limitations on customising or modifying the acquired equipment. Some financing agreements may restrict alterations or additions that could enhance the machinery's capabilities or align them with specific business requirements. It is essential to review the terms and conditions of the finance agreement to ensure flexibility and the ability to adapt the equipment to future needs.

Equipment Financing Alternatives for Machinery Wholesalers

Equipment financing alternatives for Machinery Wholesalers include equipment leasing, accessing a line of credit, exploring trade-in or resale options, and utilising vendor financing programmes. These alternatives provide flexibility, cost-effectiveness, and various ways to acquire the necessary machinery and equipment without solely relying on traditional equipment finance.

Here are some common alternatives to equipment finance:

Equipment Leasing

Machinery Wholesalers can opt for equipment leasing as an alternative to equipment finance. With equipment leasing, wholesalers can rent the necessary machinery and equipment for a specified period. This allows them to benefit from using the equipment without the long-term commitment of ownership. Leasing agreements often include maintenance and upgrade options, providing flexibility and cost-effectiveness.

Line of Credit

Another alternative for equipment financing is utilising a line of credit. Machinery Wholesalers can establish a line of credit with a financial institution, which enables them to access funds as needed for equipment purchases. This option offers flexibility in managing cash flow, as wholesalers can draw on the line of credit when the need arises. It eliminates the need for securing specific equipment finance loans and provides more freedom in equipment selection.

Trade-In or Resale

Machinery Wholesalers can explore the option of trade-in or resale when considering equipment financing. This involves selling or trading in their existing equipment to offset the cost of acquiring new machinery. By leveraging the value of their current assets, wholesalers can reduce the financial burden of equipment finance and potentially upgrade to more advanced equipment.

Vendor Financing Programs

Some equipment manufacturers or suppliers offer vendor financing programmes, allowing Machinery Wholesalers to finance their equipment purchases directly through the vendor. These programmes often provide competitive rates and customised financing options. Wholesalers can benefit from the expertise and industry knowledge of the vendor and simplify the equipment acquisition process.

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Frequently Asked Questions

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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?