Finty

Compare equipment finance

Set your amount and term to see the repayment and total cost of 150 equipment finance loans side by side, so you know what you'd pay before you apply.

Loans and hire purchase for business equipment, machinery and vehicles, usually secured against what you're buying.

Written byDavid Boyd

What will it cost you?

Enter how much you want to borrow and for how long, and we'll show your monthly repayment and total cost on every loan below, at each one's lowest published rate.

130 loans

Showing 20 of 130

Repayments use each loan's lowest published rate and include any monthly fee. The total adds the establishment fee. Business loans don't have to publish a comparison rate, so compare fees as well as the rate. A loan shown as “On application” has its rate set case by case.

Equipment finance at a glance

Worked out from the 150 loans from 82 lenders we compare on this page.

Typical comparison rate

7.99%

Half the loans start between 7.06% and 10.94%.

Typical setup fee

$549

8 of 122 loans charge no setup fee.

No monthly fee

13 of 65

loans that state a monthly fee set it at $0.

Fixed or variable

98 fixed10 variable
How starting comparison rates are spreadNumber of loans in each band. The most common is 7–9%.

The short version

  • Equipment finance pays for machinery, vehicles and tools, secured against the equipment.
  • Options include chattel mortgages, hire purchase and leases, each taxed differently.
  • Ask your accountant which suits your business.

Ways to finance equipment

Equipment finance usually comes as a chattel mortgage, hire purchase or lease. Most are secured against the equipment itself, so you don't need to offer property.

  • Chattel mortgage: you own the equipment from the start.
  • Hire purchase: the lender owns it until the final payment.
  • Lease: you rent it and can upgrade at the end of the term.

Pros

  • Keep cash in the business while the equipment earns its keep.
  • Lower rates, as the equipment secures the loan.
  • Tax benefits, such as claiming depreciation and interest, depending on the type.

Cons

  • The equipment can be repossessed if you fall behind.
  • Balloons and residuals leave a lump sum at the end.
  • You may owe more than the equipment is worth if it loses value quickly.

Alternatives

  • Renting or hiring, for equipment you need only now and then.
  • An unsecured business loan, for second hand items a lender won't finance.
  • Government grants and programs. Federal and state schemes help with some costs, from energy upgrades to exporting, and don't need repaying.

How to apply

Lenders want to see that the business can repay equipment finance from its cash flow.

  • Have your numbers ready. Usually two years of business tax returns and financial statements, recent BAS and business bank statements.
  • Know your ABN details. Most lenders want the business to have traded for at least six to twelve months.
  • Expect a director's guarantee. Many lenders ask the owners to guarantee the loan personally, even when it's secured.
  • Ask about the total cost. Business loans aren't covered by the same credit laws as personal loans, so check every fee and the repayment schedule in writing.

What to compare

Business loans don't have to show a comparison rate, so add up the costs yourself: the interest rate, any establishment and ongoing fees, and what it costs to repay early.

Business lending isn't covered by the responsible lending rules that apply to personal loans and home loans, so a lender won't necessarily check the loan suits you. Work out what you can afford before you apply.

Questions people ask

What is a director's guarantee?

A promise by a business owner to repay the loan personally if the business can't. It means your own assets can be at risk, even on a loan made to a company, so get advice before you sign.

How long does my business need to have traded?

Banks usually want two years of trading and tax returns. Some online lenders accept six to twelve months, and judge the business on its bank statements, usually at a higher rate.

Do consumer credit laws cover business loans?

Mostly not. The National Credit Code covers loans mainly for personal use, so business loans don't have to show a comparison rate and have fewer protections. Small businesses can still complain to AFCA about most lenders.