The Ultimate Guide to Equipment Finance for Property Operators

The Ultimate Guide to Equipment Finance for Property Operators with Emu MoneyThe Ultimate Guide to Equipment Finance for Property Operators with Emu Money

Property Operators in Australia rely on various types of equipment to efficiently manage their properties and provide quality services to their clients. Whether it's construction equipment, maintenance tools, office supplies, or vehicles, having the right equipment is crucial for their day-to-day operations. However, purchasing these assets outright can be a significant financial burden, especially for small and medium-sized operators. This is where equipment finance comes into play. Equipment finance enables Property Operators to acquire the necessary equipment without the need for a large upfront investment. Instead of paying a lump sum, operators can opt for financing options that allow them to make regular instalment payments over a set period. By using equipment finance, Property Operators can conserve their cash flow and allocate funds towards other critical areas of their business, such as marketing, expansion, or employee training. Additionally, equipment finance offers flexibility in terms of repayment options, allowing operators to tailor the payment terms to suit their specific needs and cash flow. Equipment finance also provides certain tax benefits for Property Operators. In Australia, operators may be eligible for tax deductions on the interest paid and the depreciation of the equipment. This can result in substantial savings and improve the overall financial health of the business.

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What is Equipment Finance?

Equipment finance is a financial solution that allows Property Operators in Australia to acquire the necessary equipment without having to make a large upfront payment. It works by providing operators with the option to enter into a financing agreement with a lender, who will fund the purchase of the equipment. Equipment finance is typically offered by banks, financial institutions, or specialist equipment finance providers. These lenders understand the unique needs of Property Operators and offer competitive financing options tailored to their requirements. When opting for equipment finance, Property Operators can choose from various financing options, such as equipment leases or equipment loans. In an equipment lease, the lender retains ownership of the equipment while the operator pays regular lease payments for the duration of the lease term. On the other hand, in an equipment loan, the operator takes ownership of the equipment from the outset and repays the loan through regular instalment payments over a specified period. The financing terms and conditions for equipment finance are determined by factors such as the type and value of the equipment, the operator's creditworthiness, and the specific agreement with the lender. It's important for Property Operators to carefully review and understand the terms of the financing agreement before entering into any commitment. By utilising equipment finance, Property Operators can benefit from having access to the necessary equipment without the burden of upfront costs. This enables them to effectively manage their properties, deliver quality services, and maintain a competitive edge in the market. In the next section, we will delve into the different types of equipment financing options available for Property Operators in Australia, providing a deeper understanding of each option's features.

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Top 10 Types of Equipment Property Operators Can Purchase With Equipment Finance

With equipment finance, Property Operators in Australia can access a wide range of equipment essential for their operations. This includes vehicles for transport, construction machinery for renovation work, and office equipment for administrative tasks. These options enable operators to efficiently manage their properties, provide quality services, and improve their overall productivity.

Here are some common types of equipment Property Operators can purchase with equipment finance:


Vehicles, such as vans or trucks, are necessary for Property Operators to transport equipment, materials, and personnel to different properties.

Construction Machinery

Construction machinery, including excavators, loaders, and bulldozers, enables Property Operators to carry out construction and renovation work efficiently.

Office Equipment

Office equipment like computers, printers, and telecommunication systems are essential for managing administrative tasks and communication within the property management business.

Maintenance Tools

Maintenance tools such as drills, saws, and power tools are crucial for Property Operators to perform repairs, instalations, and routine maintenance tasks on properties.

Cleaning Equipment

Cleaning equipment such as vacuum cleaners, pressure washers, and floor scrubbers allow Property Operators to maintain cleanliness and hygiene in their properties.

Security Systems

Security systems, including CCTV cameras, access controls, and alarm systems, help Property Operators protect their properties and ensure the safety of tenants and assets.

Landscaping Equipment

Landscaping equipment, such as lawnmowers, hedge trimmers, and leaf blowers, enables Property Operators to maintain attractive and well-kept outdoor spaces.

Hospitality Equipment

Hospitality equipment, including commercial kitchen appliances, furniture, and bedding, is essential for Property Operators managing rental properties in the hospitality sector.

Technology Solutions

Technology solutions like property management software, smart home devices, and website development tools help Property Operators streamline their operations and provide better services to tenants.

Storage and Warehousing

Equipment for storage and warehousing, such as pallet racks, shelving systems, and forklifts, is crucial for Property Operators who manage properties with large inventory or storage requirements.

Top 10 Ways Property Operators Use Equipment Finance For Growth

Property Operators can leverage equipment finance to achieve growth in various ways. By investing in equipment for property expansion, renovations, and improved maintenance capabilities, they can enhance their portfolio and attract more tenants. Upgrading security systems, technology solutions, and hospitality facilities can further boost efficiency and tenant satisfaction, driving overall business growth.

Here are some common reasons Property Operators use equipment finance for growth:

Expansion of Property Portfolio

Property Operators can use equipment finance to acquire the necessary equipment for expanding their property portfolio, such as construction machinery, vehicles, and maintenance tools.

Property Renovations

With equipment finance, Property Operators can invest in renovation equipment like power tools, painting equipment, and landscaping tools to enhance the value and appeal of their properties.

Improved Maintenance Capabilities

Property Operators can use equipment finance to upgrade their maintenance tools and equipment, enabling them to provide better and more efficient maintenance services to their tenants.

Enhanced Security Systems

Equipment finance enables Property Operators to invest in advanced security systems, including CCTV cameras, access control systems, and alarms, to ensure the safety of their properties and tenants.

Technology Upgrades

Property Operators can use equipment finance to upgrade their technology solutions, such as property management software, smart home devices, and communication systems, to streamline operations and enhance tenant experience.

Improved Efficiency in Cleaning Services

With equipment finance, Property Operators can invest in state-of-the-art cleaning equipment like vacuum cleaners, floor scrubbers, and steam cleaners, improving the efficiency and quality of their cleaning services.

Streamlined Operations

Equipment finance allows Property Operators to invest in office equipment and technology tools, enabling them to streamline administrative tasks and improve overall operational efficiency.

Upgraded Hospitality Facilities

Property Operators in the hospitality sector can use equipment finance to upgrade their facilities with hospitality equipment, such as commercial kitchen appliances, furniture, and bedding.

Enhanced Outdoor Spaces

Through equipment finance, Property Operators can invest in landscaping equipment like lawnmowers, hedge trimmers, and irrigation systems, enhancing the outdoor spaces of their properties.

Improved Tenant Experience

Property Operators can utilise equipment finance to invest in technology solutions and amenities that enhance the overall tenant experience, such as gym equipment, communal spaces, and recreational facilities.

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Advantages of Equipment Finance for Property Operators

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

Property Maintenance Tools

Property operators require a wide array of tools for maintaining and managing their properties. With equipment finance, they can easily acquire tools such as lawnmowers, chainsaws, and hedge trimmers. These tools enable efficient property maintenance, allowing operators to enhance the appeal and value of their properties.

Construction and Renovation Equipment

Property operators often undertake construction or renovation projects to improve their properties. Equipment finance provides them with the means to acquire essential equipment like excavators, cement mixers, and scaffolding. This enables them to complete their projects efficiently and on time, saving costs and ensuring smooth operations.

Commercial Kitchen Equipment

Property operators who own restaurants, cafes, or other food-related businesses can benefit from equipment finance to acquire commercial kitchen equipment. This includes ovens, refrigerators, grills, and dishwashers. By financing the equipment, operators can ensure a well-equipped kitchen, enhancing efficiency, food quality, and customer satisfaction.

Hospitality Equipment

Property operators in the hospitality industry, such as hotels or resorts, require various equipment to provide exceptional guest experiences. Equipment finance allows them to obtain items like beds, furniture, air conditioners, and sound systems. By financing these essentials, operators can create comfortable and inviting spaces, attracting more guests and generating higher revenues.

Disadvantages of Equipment Finance for Property Operators

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

Financial Commitment

Equipment finance requires property operators to commit to regular payments over a specified period. This can put pressure on their cash flow and limit their ability to allocate funds for other business needs. However, by carefully considering their financial situation and budgeting effectively, operators can manage this commitment and enjoy the benefits of improved productivity and operational efficiency.

Interest and Fees

Equipment finance typically involves interest charges and fees, which can increase the overall cost of acquiring the equipment. It's important for property operators to carefully review the terms and conditions of the financing agreement to understand the total costs involved. By comparing different financing options and negotiating favourable terms, operators can mitigate the impact of interest and fees.

Potential for Technological Obsolescence

Equipment in certain industries can quickly become outdated due to rapid advancements in technology. Property operators need to consider the potential risk of their financed equipment becoming obsolete before the financing term ends. By conducting thorough market research and selecting equipment with proven longevity, operators can minimise the risk of technological obsolescence.

Maintenance and Repair Costs

Owning financed equipment means property operators are responsible for its ongoing maintenance and repair. Depending on the nature of the equipment, these costs can vary significantly and may pose a financial burden. However, operators can mitigate this disadvantage by properly maintaining the equipment, following manufacturer's guidelines, and budgeting for routine maintenance to avoid unexpected expenses.

Equipment Financing Alternatives for Property Operators

Property operators have alternative options to equipment finance, such as equipment leasing, rental, equipment sharing, and purchasing second-hand equipment. Leasing and rental allow flexibility and cost savings, while equipment sharing enables cost-sharing among operators. Second-hand equipment offers a more affordable option. Operators can choose the best alternative based on their specific needs and budget.

Here are some common alternatives to equipment finance:

Equipment Leasing

Instead of outright purchasing equipment, property operators can opt for equipment leasing. This involves renting the equipment for a specified period, allowing operators to use it without the need for a large upfront capital investment. Leasing provides flexibility, as operators can upgrade to newer equipment at the end of the lease term.

Equipment Rental

Another alternative is equipment rental, where property operators can rent the required equipment for a specific duration. This option is beneficial for short-term projects or when the equipment is only needed occasionally. Operators can save on the costs of owning and maintaining the equipment, as rental companies handle maintenance and repairs.

Equipment Sharing

Property operators may consider participating in equipment-sharing initiatives or partnerships with other operators or businesses. This involves sharing the cost of purchasing and maintaining the equipment. Cooperative arrangements can provide access to a wider range of equipment and help reduce costs for all participants.

Second-Hand Equipment

Property operators can explore the option of purchasing used or second-hand equipment. This can be a cost-effective alternative compared to buying new equipment. Operators should ensure they thoroughly inspect the equipment and verify its condition before making a purchase to avoid unexpected repair costs or premature obsolescence.

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.

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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?