Business Asset Finance - Compare Top Lenders

Business asset finance enables Australian companies to acquire equipment, vehicles, and machinery without large upfront capital outlays. In 2026, options include chattel mortgages, equipment loans, finance leases, and hire purchase agreements. Following significant market shifts and the introduction of new APRA lending rules in early 2026, lending conditions have tightened, affecting approval criteria and interest rates. Rates now typically range from 7.49%-23.45% p.a. (indicative only, reflecting a wider range of lender and borrower profiles, and subject to individual circumstances). Loan amounts from $5,000 to $5 million+, with terms available from 6 months to 7 years depending on asset type. Tax benefits may include depreciation deductions and GST credits, subject to business structure. Fast online comparison platforms, now comparing 70-80+ lenders, can provide multiple options within minutes, with settlements possible within hours to days for established businesses with standard equipment, with some asset-based lenders offering funding within 2-24 hours for approved applications.

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: From 7.49% p.a. (e.g., Angle Finance) to 18% p.a. for established businesses (subject to individual circumstances and lender profile)

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: 6 months to 7 years
• Indicative rates: From 8.49% p.a. (e.g., Multipli) to 20% 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 9%-22% p.a. (subject to assessment and market conditions)

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 8.49%-20% 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

Navigating the 2026 Lending Landscape: APRA's New DTI Rules

In early 2026, the Australian Prudential Regulation Authority (APRA) introduced new Debt-to-Income (DTI) lending rules. These regulations have a significant impact on how financial institutions assess a business’s capacity to service new debt, including asset finance.

Key implications for businesses seeking asset finance include:

• Tighter Approval Criteria: Lenders are now required to conduct more stringent assessments of a borrower’s existing debt obligations relative to their income. This may lead to more conservative lending decisions.
• Impact on Borrowing Capacity: Businesses, especially those with higher existing debt levels, may find their borrowing capacity for new assets is reduced compared to previous years.
• Increased Documentation: Applicants might be asked to provide more comprehensive financial documentation to demonstrate their debt servicing ability under the new guidelines.

It’s crucial for businesses to understand these changes as they can affect the terms and approval of their asset finance applications. Consulting with a finance broker who understands the nuances of the new regulatory environment can be highly beneficial.

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 is highly complex and varies significantly based on your specific business structure, income, and how you use the asset. It is imperative to always consult your accountant or a qualified tax advisor before making any financing decisions to understand the precise implications for your business.

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