Business Asset Finance: Funding Equipment & Vehicles for Australian Companies

Business asset finance enables Australian companies to acquire equipment, vehicles, and machinery without large upfront capital outlays. In 2025, options include chattel mortgages, equipment loans, finance leases, and hire purchase agreements, with rates typically ranging from 6-15% p.a. (indicative only, subject to individual circumstances). Loan amounts from $5,000 to $5 million+, terms of 1-7 years depending on asset type. Tax benefits may include depreciation deductions and GST credits, subject to business structure. Fast online comparison platforms can provide multiple options within minutes, with settlements possible within days for established businesses with standard equipment.

Running a business means constantly balancing growth opportunities against available capital. Whether you need a delivery van, manufacturing equipment, or an entire fleet of vehicles, business asset finance provides a way to acquire what you need while preserving cash flow for day-to-day operations.

Asset finance has become the preferred funding method for thousands of Australian businesses, offering tax advantages, flexible structures, and the ability to keep equipment current without tying up working capital.

What is Business Asset Finance?

Business asset finance is a broad term covering various funding structures that help businesses acquire physical assets—equipment, vehicles, machinery, and technology—without paying the full purchase price upfront.

The asset itself typically serves as security for the loan, which means you’re not putting your property or other valuable business assets at unnecessary risk. This makes it an attractive option for businesses of all sizes, from sole traders buying their first ute to large companies upgrading entire fleets.

Types of Business Asset Finance

Chattel Mortgage

The most popular business asset finance structure in Australia. You own the equipment from day one, claim immediate GST credits (if registered), and may deduct depreciation and interest subject to your tax circumstances.

• Best for: Profitable businesses wanting maximum tax benefits and long-term ownership.
• Typical terms: 2-7 years depending on asset
• Indicative rates: Often 6-11% p.a. for established businesses (subject to individual circumstances)

Learn more about chattel mortgage benefits.

Equipment Loan

A straightforward secured loan where you purchase and own the asset, with the lender holding security until it’s paid off.

• Best for: Simple, transparent transactions with standard business equipment.
• Typical terms: 1-7 years
• Indicative rates: Usually 7-12% p.a. (rates vary by circumstances)

Finance Lease

You lease the asset from the lender for a fixed term. At the end, you can return it, upgrade to newer equipment, or purchase at market value.

• Best for: Businesses wanting to keep technology current or preferring consistent operating expenses.
• Typical terms: 2-5 years
• Indicative rates: Generally 8-14% p.a. (subject to assessment)

For detailed equipment finance structures, see our equipment finance Australia guide.

Hire Purchase

Provides immediate use while you pay off the asset, with automatic ownership transfer after the final payment.

• Best for: Businesses wanting eventual ownership with a clear payment path.
• Typical terms: 2-7 years
• Indicative rates: Typically 7-13% p.a. (rates depend on individual circumstances)

Common Business Assets Financed

Commercial Vehicles:

• Utes, vans, and trucks
• Delivery vehicles
• Fleet vehicles
• Passenger vehicles for business use

Construction & Trades:

• Excavators and earthmoving equipment
• Tools and machinery
• Concrete equipment
• Trade vehicles For excavator financing options, explore our excavator finance guide.

Manufacturing & Industrial:

• Production machinery
• Forklifts and material handling
• Manufacturing lines
• Warehouse equipment

Professional Services:

• IT equipment and systems
• Office fitouts
• Medical and dental equipment
• Professional tools

Hospitality & Retail:

• Kitchen and catering equipment
• Point-of-sale systems
• Refrigeration and display units
• Fitout and furniture

Tax Benefits of Business Asset Finance

Business asset finance may offer several tax advantages, though these depend entirely on your individual circumstances:

• Depreciation deductions: Claim the decline in value of owned assets over their effective life (chattel mortgages, equipment loans, hire purchase).
• Interest deductions: Deduct interest portions of repayments, subject to tax rules.
• Lease payment deductions: Finance lease payments may be fully deductible as operating expenses.
• GST input tax credits: Claim GST upfront on chattel mortgages and equipment loans if your business is GST-registered.
• Instant asset write-off: May be available for eligible businesses and assets under current threshold (check ATO for current rules).

Important: Tax treatment varies significantly based on your business structure, income, and how you use the asset. Always consult your accountant before making financing decisions.

Choosing the Right Business Asset Finance

The best structure depends on:

• Your business age: Established businesses typically access better rates and more flexible options than newer operations.
• Tax position: Profitable businesses may prefer chattel mortgages for maximum deductions, while others might prefer lease structures.
• Asset type: Different equipment suits different finance structures based on depreciation and resale value.
• Ownership intentions: Planning to keep equipment long-term? Choose ownership structures. Want to upgrade regularly? Consider leasing.
• Cash flow: Some structures offer lower initial payments through balloon residuals or longer terms.

For comprehensive guidance, see our asset finance Australia overview.

How Business Asset Finance Works

Step 1: Identify the equipment or vehicles you need and obtain detailed quotes from suppliers.
Step 2: Determine which finance structure best suits your tax position and business needs.
Step 3: Compare options across multiple lenders through a comparison platform or broker. Provide business financials, trading history, and asset details.
Step 4: Lenders assess your application based on business strength, credit history, and asset suitability.
Step 5: Upon approval, lender provides funds to supplier or directly to you. Asset is delivered and you begin repayments.
Step 6: Make regular repayments as agreed. At term end, you either own the asset outright or have options to return or upgrade (depending on structure).

What Lenders Assess

When evaluating business asset finance applications, lenders typically consider:

• Business trading history (usually 12-24 months minimum, though some specialists may consider less)
• Business and personal credit history
• Current financial position and cash flow
• Existing debt levels and serviceability
• Asset type, age, and supplier credibility
• Business structure and industry
• How the asset will be used in the business

Getting the Best Business Asset Finance Deal

• Compare multiple lenders: Banks, specialist lenders, and non-bank providers all offer different rates and structures. Shopping around often saves thousands.
• Time your application well: Apply when your business financials look strong, not immediately after a difficult quarter.
• Understand total cost: Look beyond the interest rate to include fees, balloon payments, and total interest over the loan term.
• Get the structure right: The wrong finance type can cost you significantly in unnecessary tax or in flexible terms.
• Use established suppliers: Well-known equipment suppliers often have existing lender relationships that can streamline approvals.
• Maintain clean financials: Keep business and personal finances separate with clear, professional bookkeeping.

Modern comparison platforms allow you to see personalised business asset finance options from multiple lenders quickly, while specialist brokers remain available for complex equipment purchases or unique situations.

For ABN holder financing options, see our ABN loans Australia guide.

Compare Business Asset Finance Options

Ready to finance your business equipment?

Loan Phone provides fast online comparison of business asset finance options from 100+ lenders, with specialist broker support for complex equipment purchases.

• Fast Online Comparison — See personalised rates from multiple lenders in minutes
• Flexible Structures — Chattel mortgage, lease, hire purchase, or loan options
• Specialist Expertise — Brokers who understand business equipment finance across industries
• Efficient Processing — Streamlined applications with digital documentation
• Better Outcomes — Access to specialist lenders often means better rates than going direct to banks

Speak with specialists:

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Last updated: October 9, 2025