Quick Answer
Horse float finance in Australia involves securing a loan, typically a chattel mortgage or commercial hire purchase, to acquire new or used horse floats for business use. Indicative rates in 2025 generally range from 7-14% p.a. (indicative only), with established equestrian businesses often securing lower rates (7-10% p.a.) and newer operators paying 10-14%+ p.a. Loan terms commonly span 1-7 years, covering amounts from $10,000 to $150,000+. Businesses require an ABN, minimum trading history (often 6-12 months), and demonstrate capacity to repay. Modern comparison platforms like Loan Phone facilitate access to over 100 lenders, including major banks and specialist equipment financiers, streamlining the application process and providing tailored options. Potential tax benefits, such as depreciation and GST input tax credits, are available (subject to individual circumstances and ATO guidelines).
| Business/Borrower Profile | Indicative Rate | Typical Term | Common Horse Float Use |
|---|---|---|---|
| Established (2+ years, strong) | 7-10% p.a. | 3-7 years | Commercial transport, breeding, training |
| Standard (1-2 years trading) | 10-12.5% p.a. | 3-5 years | Smaller operations, professional riders |
| Developing/Newer (<1 year) | 12.5-14%+ p.a. | 1-3 years | Start-up ventures, specific event transport |
Rates are indicative examples only. Actual rates depend on individual circumstances, lender assessment, and current market conditions.
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By the Loan Phone team · Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking, Director
Why Equestrian Businesses Need Specialised Horse Float Finance
For many equestrian businesses in Australia, a reliable horse float isn’t just a convenience; it’s a critical asset. Whether you run a horse breeding stable, a riding school, provide commercial horse transport, or compete professionally, transporting horses safely and efficiently is paramount. Investing in a quality horse float, which can range from $20,000 for a basic two-horse model to over $100,000 for a luxury gooseneck, often requires dedicated finance.
Traditional bank loans may not always align with the specific needs of the equestrian industry, which can have seasonal income or unique asset requirements. This is where specialist horse float finance comes in, offering tailored solutions that consider the asset’s value, its business use, and the specific financial profile of equestrian operators in 2025. Accessing competitive rates and flexible terms from a broad panel of lenders can make a significant difference to cash flow and operational efficiency.
Understanding Horse Float Finance Options
When financing a horse float for your business, two primary structures are commonly used by Australian lenders:
Chattel Mortgage
A chattel mortgage is a popular choice for businesses that want to own the horse float from the outset. Under this structure, the lender provides funds to purchase the float, and you take immediate ownership. The lender then secures the loan against the float itself (the ‘chattel’).
- Key Feature: Immediate ownership of the asset.
- GST: You can typically claim the full GST input tax credit upfront if registered for GST.
- Depreciation: The horse float can be depreciated over its effective life, providing a tax deduction.
- Flexibility: Options for balloon payments at the end of the term to reduce monthly repayments.
Commercial Hire Purchase (CHP)
With a Commercial Hire Purchase, the lender purchases the horse float on your behalf, and you hire it from them over a set period. You gain full ownership of the float once all repayments and any final balloon payment (often called a ‘purchase option fee’) have been made.
- Key Feature: Ownership transfers at the end of the term.
- GST: GST is usually paid on the purchase price and the interest components of each repayment.
- Depreciation: You can claim depreciation deductions for the asset.
- Balance Sheet: It can be an attractive option for businesses that prefer not to show the asset as a liability on their balance sheet until the final payment.
For a deeper dive into these structures, you can explore our guide on Chattel Mortgage Australia.
Eligibility Criteria for Horse Float Finance in 2025
Eligibility for horse float finance in Australia typically revolves around your business’s stability and ability to repay. While specific requirements vary between lenders, general guidelines in 2025 include:
- Active ABN: Your business must hold a valid Australian Business Number (ABN).
- Trading History: Most traditional lenders prefer a minimum of 12-24 months of trading history, though specialist lenders may consider newer businesses (6 months+).
- Financial Health: Lenders will assess your business’s financial statements (e.g., bank statements, profit and loss statements, balance sheets) to ensure repayment capacity.
- Good Credit History: A clean credit record for the business and its directors is generally preferred. However, if you’re unsure about your credit score, get in touch – a specialist broker can help you explore options.
- Business Use: The horse float must be primarily used for legitimate business purposes (typically 51% or more).
- Asset Type: The horse float itself will be assessed for its age, condition, and market value. Newer floats or those from reputable manufacturers often receive more favourable terms.
- Residency: You must be an Australian resident or permanent resident.
Eligibility criteria may vary by industry and specific loan amount. If you’re unsure if you qualify, speaking with a specialist broker can help clarify your options.
Indicative Horse Float Finance Rates and Costs
Horse float finance rates in Australia in 2025 are indicative only and depend heavily on your business’s financial profile, the loan amount, the term, and the asset itself.
| Borrower Profile | Indicative Rate Range | Loan Amount | Term |
|---|---|---|---|
| Strong (2+ years, good financials) | 7-10% p.a. | $10K-$150K+ | 3-7 years |
| Standard (1-2 years trading) | 10-12.5% p.a. | $10K-$100K | 3-5 years |
| Developing or specialist assets | 12.5-14%+ p.a. | $10K-$50K | 1-3 years |
Rates are indicative examples only. Actual rates depend on individual circumstances and lender assessment.
Beyond the interest rate, consider other potential costs:
- Application Fees: Some lenders may charge an upfront fee.
- Broker Fees: While Loan Phone doesn’t charge direct broker fees, some independent brokers might.
- Establishment Fees: A fee charged by the lender to set up the loan.
- Account Keeping Fees: Ongoing monthly or annual fees.
- Early Repayment Fees: Penalties if you repay the loan sooner than agreed.
Comparing options from multiple lenders is crucial to understand the full cost of finance. You can start your comparison for various Equipment Finance Australia options.
Tax Benefits of Financing a Horse Float
Important: Tax benefits depend entirely on your individual business structure, circumstances, and how you use the asset. The information below is general in nature only. Always seek independent advice from a qualified tax professional or accountant before making any financing decisions.
Financing a horse float for your equestrian business can offer several tax advantages:
- Depreciation: As the asset owner (under a chattel mortgage or after a CHP), you can typically claim depreciation deductions over the effective life of the horse float, reducing your taxable income. The effective life for commercial vehicles like horse floats is often 5-8 years, depending on usage. For example, similar principles apply to truck finance.
- GST Input Tax Credits: If your business is registered for GST, you can usually claim the GST component of the horse float purchase price upfront (with a chattel mortgage) or on the interest portion of repayments (with a CHP).
- Interest Deductions: The interest paid on your horse float loan is generally tax-deductible as a business expense.
- Instant Asset Write-Off: While specific thresholds and eligibility vary by year, the Instant Asset Write-Off scheme (when available) allows eligible businesses to immediately deduct the full cost of eligible assets. Always check current ATO guidelines for the applicable year.
Example: Financing a Two-Horse Angle Load Float
Example: Two-Horse Angle Load Float Finance
| Purchase price (incl. GST) | $48,000 |
| Deposit | $0 |
| Amount financed | $48,000 |
| Interest rate (indicative) | 9.5% p.a. |
| Term | 5 years (60 months) |
| Balloon Payment (20% of financed amount) | $9,600 |
| Indicative Monthly Repayment | ~$800 |
This example is for illustrative purposes only. Actual rates, terms, and repayments depend on lender assessment, your individual circumstances, and current market conditions. Consult your accountant regarding tax implications.
The Streamlined Finance Process with Loan Phone
Acquiring horse float finance doesn’t have to be a complex, time-consuming process. While traditional banks can involve extensive paperwork and lengthy approval times, modern comparison platforms offer a more efficient path.
Traditional Process:
- Contact individual banks, fill out multiple forms.
- Wait for each bank to assess your application independently.
- Compare offers manually, often without a clear understanding of all fees.
- Potentially face delays and multiple requests for additional documentation.
Streamlined with Loan Phone: 1. Online Comparison Use our platform to enter your business details and horse float requirements.
2. Access Multiple Lenders We present you with personalised options from over 100 lenders, including major banks and specialist equipment financiers, allowing you to compare chattel mortgage, commercial hire purchase, and lease options simultaneously.
3. Specialist Support Our expert brokers are available to guide you through complex scenarios or unique circumstances, helping you secure the best deal.
4. Efficient Processing Our technology-driven approach streamlines documentation and communication, aiming for quicker credit decisions and settlements for straightforward applications.
This approach means you can get approved on an apples-for-apples basis much quicker than direct bank options, giving you more time to focus on your equestrian business. Learn more about Commercial Vehicle Finance options.
Frequently Asked Questions
Can I finance a used horse float? +
Yes, businesses can finance both new and used horse floats through chattel mortgages or commercial hire purchase. Lenders will assess the age, condition, and valuation of used floats, with some applying age restrictions (typically 10-15 years maximum age at the end of the loan term).
What documentation is needed for horse float finance? +
Typically, you'll need your ABN, recent bank statements (3-12 months), financial statements (for established businesses), and a quote or invoice for the horse float. For newer businesses or smaller loan amounts, low-doc options may be available.
How quickly can I get approved for horse float finance? +
Initial credit decisions for straightforward applications may be provided within 24-48 hours. Complete settlement timeframes vary based on documentation execution speed, lender processing, and vendor coordination, but streamlined platforms can accelerate the process significantly compared to traditional applications.
Are balloon payments a good idea for horse float finance? +
Balloon payments (a lump sum due at the end of the loan term) can reduce your regular monthly repayments, improving cash flow. They are often suitable for businesses that plan to upgrade the float or refinance the balloon at the end of the term. Consult your accountant to assess if this structure aligns with your business's financial strategy.
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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.
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Last updated: 2025-11-20