By the Loan Phone team Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking
Quick Answer
Forklift finance in Australia allows businesses to acquire material handling equipment through chattel mortgages, equipment leases, or hire purchase arrangements. Finance amounts typically range from $10,000 to $150,000+ depending on forklift type and capacity, with terms of 2-5 years. Rates generally range from 7-12% p.a. in 2025 depending on business profile (indicative only). Both new and used forklifts qualify for financing, including counterbalance forklifts, reach trucks, and pallet jacks. Modern comparison platforms can provide fast access to multiple lender options suited to your warehouse and materials handling requirements (subject to lender assessment).
Navigation Guide
Forklift Finance Options for Australian Businesses
When your warehouse, manufacturing facility, or distribution centre needs materials handling equipment, forklift finance provides flexible acquisition options without depleting working capital.
Australian businesses commonly finance various forklift types including:
- Counterbalance forklifts (electric and LPG)
- Reach trucks for narrow aisle operations
- Pallet jacks and walkie stackers
- Order pickers and telehandlers
- Rough terrain forklifts
Finance Structure Options:
- Chattel Mortgage: You own the forklift from day one, with the lender holding security over the asset. Businesses registered for GST on a cash basis may claim input tax credits upfront, and can claim depreciation plus interest deductions. Suited for long-term warehouse operations requiring reliable materials handling equipment.
- Equipment Lease: The finance provider owns the forklift during the lease term. You make regular lease payments with options to purchase, extend, or upgrade at term end. Lease payments are generally tax-deductible as operational expenses. Suited for businesses wanting flexibility or planning equipment upgrades.
- Commercial Hire Purchase: You use the forklift and make installment payments, gaining ownership after the final payment. Similar tax benefits to chattel mortgages with GST input tax credits and depreciation claims available.
Compare equipment finance structures.
New vs Used Forklift Financing
Finance providers support both new and used forklift acquisitions, though terms and rates may vary based on equipment age and condition.
New Forklift Finance: New equipment typically qualifies for maximum finance amounts (often 100% of purchase price) with the most competitive rates. Lenders view new forklifts as lower risk given known condition, full manufacturer warranties, and predictable resale values.
Terms commonly extend to 5-7 years matching the equipment’s expected useful life.
Used Forklift Finance: Used forklifts remain eligible for financing, though lenders may:
- Apply age restrictions (commonly 10 years maximum age)
- Require equipment inspections or valuations
- Offer shorter maximum terms (3-5 years)
- Apply slightly higher rates reflecting residual value uncertainty
Used forklift finance prices in Australia typically range from $10,000 to $45,000 depending on brand, capacity, hours, and condition.
Explore machinery finance options.
Forklift Finance Eligibility Requirements
Standard eligibility criteria for forklift finance typically includes:
Business Requirements:
- Active ABN or ACN registration
- Minimum trading history (often 12 months for traditional lenders, though specialist lenders may consider 6+ months)
- Demonstrated cash flow supporting finance commitments
- Satisfactory business credit profile
Equipment Requirements:
- Clear equipment specifications and quotes
- For used forklifts: equipment details including make, model, year, hours, serial number
- For private sales: vendor details and asset verification
Specific requirements vary by loan amount, forklift type, and industry. Eligibility criteria may vary by industry.
Application Process
Securing forklift finance through modern platforms typically involves:
1. Equipment Selection: Identify the forklift specifications required for your operations—capacity, lift height, power source, and features. Obtain quotes from dealers or private sellers.
2. Finance Comparison: Modern comparison platforms allow you to see personalised options from multiple lenders quickly, comparing rates, terms, and structures suited to your business circumstances.
3. Documentation Submission: Provide standard business documentation:
- ABN/ACN registration details
- Recent financial statements or bank statements
- Equipment quotes or invoices
- Business Activity Statements (if applicable)
4. Assessment and Approval: Lenders assess your application based on business strength, credit history, and equipment suitability. Straightforward applications may receive decisions within 24-48 hours (timeframes vary by lender and circumstances).
5. Settlement and Delivery: Upon approval and documentation execution, funds settle and you can take delivery of your forklift.
Compare forklift finance options.
Frequently Asked Questions
Can I finance used forklifts from private sellers? Yes, most lenders finance forklifts from both dealers and private sellers. Private sales may require additional verification including equipment valuations and inspection reports to confirm condition and value.
What’s the typical finance term for forklifts? Forklift finance terms typically range from 2-5 years, with new equipment potentially qualifying for longer terms (up to 7 years) depending on expected useful life and lender policies.
Can I include forklift attachments in the finance? Yes, forklift attachments and accessories can typically be included in the finance amount when purchased with the base forklift. This allows you to finance the complete materials handling solution.
Speak with Specialists
Need expert guidance on your forklift finance application? Email: loans@loanphone.com.au Website: www.loanphone.com.au
Related Resources
Explore these related guides for business owners and ABN holders:
Disclaimer: This article provides general information only and should not be relied upon as financial or tax advice. Rates, terms, and eligibility vary by lender and individual circumstances. Tax benefits are subject to your specific business structure and circumstances. Always seek independent professional advice from a qualified accountant and financial adviser before making financing decisions.
Loan Phone www.loanphone.com.au | loans@loanphone.com.au
Compare Loans Now - No impact to your credit score
Last updated: 2025-10-29