NAB Equipment Finance Review - Rates Compared | The Loan Phone

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NAB equipment finance offers Australian businesses various options, including chattel mortgages and commercial hire purchase, to acquire essential assets like vehicles, machinery, and technology. As a major bank, NAB typically provides competitive rates ranging from 7-12% p.a. (indicative only) in 2025 for established businesses with strong financials, with loan terms often extending up to 7 years. While NAB’s strong reputation is a draw, eligibility criteria can be stringent, particularly for newer or less traditional businesses. Modern comparison platforms like Loan Phone help businesses access and compare NAB business finance alongside 100+ other lenders, including specialist equipment financiers, ensuring they find the most suitable and competitive solution for their specific needs and circumstances.

Rates are indicative examples only. Actual rates depend on individual circumstances, lender assessment, asset type, and current market conditions. This table provides a general guide and does not constitute a guarantee of rates or approval.

Acquiring new equipment is often a significant investment for Australian businesses, whether it’s a new delivery truck, advanced medical machinery, or updated office technology. Many business owners naturally look to major banks like the National Australia Bank (NAB) for their financing needs, given their established presence and perceived reliability. NAB offers a range of NAB equipment finance solutions designed to help businesses fund these essential assets.

However, navigating the various options, understanding the eligibility requirements, and securing the best possible terms can be complex and time-consuming. While NAB provides robust options, it’s crucial for business owners to understand how their offerings compare to the broader market, including specialist equipment financiers and other financial institutions. This comprehensive review will delve into NAB’s equipment finance products, typical rates, eligibility, and how a comparison platform like Loan Phone can streamline the process, ensuring you find the most suitable NAB business finance or alternative solution.

Understanding NAB Equipment Finance

NAB provides a suite of financial products tailored to help businesses purchase new or used equipment. These solutions are structured to allow businesses to acquire assets without a large upfront capital outlay, spreading the cost over a manageable period. The core idea behind NAB asset finance is to provide the necessary funding for equipment that generates income for your business, ranging from heavy construction machinery to IT infrastructure.

As a major bank, NAB often appeals to businesses seeking stability and a wide branch network. Their offerings typically include secured loans where the equipment itself acts as collateral, which can lead to lower interest rates compared to unsecured lending. Understanding the specific types of equipment finance options NAB offers is the first step in determining if their products align with your business needs.

Types of NAB Equipment Finance

NAB, like most major Australian lenders, provides several common equipment finance structures. Each option has distinct features regarding ownership, tax implications, and balance sheet treatment.

NAB Chattel Mortgage

A chattel mortgage is a popular form of equipment finance where your business takes immediate ownership of the asset, while NAB holds a mortgage (security interest) over the equipment until the loan is fully repaid. This structure is particularly favoured by businesses registered for GST.

Key Features:

• Ownership: Your business owns the asset from day one.
• GST: You can typically claim the full GST on the purchase price of the equipment upfront in your next Business Activity Statement (BAS).
• Depreciation: The asset can be depreciated over its effective life, offering potential tax deductions.
• Flexibility: Options for fixed interest rates, loan terms (typically 1-7 years), and balloon payments (residual value) at the end of the term to reduce monthly repayments.
• Security: The equipment itself serves as security for the loan.

For more detailed information on this structure, refer to our comprehensive Chattel Mortgage Guide.

NAB Commercial Hire Purchase (CHP)

Under a commercial hire purchase agreement, NAB purchases the equipment on behalf of your business, then ‘hires’ it to you over a set period. Ownership transfers to your business only after the final payment (and any residual value) is made.

Key Features:

• Ownership: NAB retains ownership until the final payment; your business has beneficial use.
• GST: GST on the purchase price is typically claimed over the life of the loan, not upfront. GST on interest and fees can be claimed as it’s incurred.
• Depreciation: Your business may be able to claim depreciation, subject to specific accounting treatment.
• Flexibility: Similar to chattel mortgages, with fixed interest rates, various terms, and balloon payment options.

Our Commercial Hire Purchase guide offers further insights into this finance type.

NAB Finance Lease

A finance lease is an agreement where NAB purchases the equipment and leases it to your business for a fixed term. Your business pays regular lease rentals, and at the end of the term, you typically have options to purchase the equipment for a residual value, return it, or re-lease it.

Key Features:

• Ownership: NAB retains ownership throughout the lease term.
• GST: GST is typically paid on each lease rental, which can be claimed back in your BAS.
• Tax: Lease rentals are generally treated as tax-deductible operating expenses.
• Balance Sheet: Depending on accounting standards, the asset may or may not appear on your balance sheet.
• No Upfront Capital: Often requires no upfront deposit, preserving working capital.

Who is NAB Equipment Finance Best Suited For?

NAB equipment finance is typically well-suited for:

• Established Businesses: Companies with a solid trading history (generally 2+ years) and consistent revenue.
• Strong Financials: Businesses with good credit scores, healthy cash flow, and clear financial statements.
• Traditional Assets: Financing for common commercial vehicles, construction equipment, manufacturing machinery, or agricultural assets.
• Existing NAB Customers: Businesses with existing banking relationships with NAB may find the application process smoother.

While NAB offers competitive rates for these profiles, businesses with unique needs, shorter trading histories, or those seeking non-traditional assets might find more flexible solutions through specialist lenders. You can explore a broader range of options through our Asset Finance Australia guide.

Eligibility Criteria for NAB Equipment Finance

Like all major banks, NAB has specific criteria that businesses must meet to qualify for NAB asset finance. These guidelines are general only, and specific requirements can vary based on the loan amount, asset type, and industry.

Common Eligibility Requirements (Illustrative Only):

• Trading History: Typically a minimum of 12-24 months of trading history.
• Australian Business Number (ABN): Required for all business finance.
• Financials: Up-to-date financial statements, tax returns, and bank statements (often 6-12 months).
• Credit History: A clean credit history is generally preferred.
• Asset Type: The equipment must be for business use and meet NAB’s asset guidelines (e.g., age limits for used equipment).
• Directors/Guarantors: Personal guarantees may be required from business directors.

If you’re a newer business or have a less robust financial history, don’t be discouraged. Specialist lenders often have more flexible criteria. Learn more about options for businesses with less traditional profiles in our Low-Doc Business Loans article.

The Application Process: Traditional vs. Streamlined Comparison

Securing NAB commercial loans for equipment can follow a traditional bank application path, or it can be streamlined through a comparison platform.

While each lender has different timeframes and your circumstances will vary, our streamlined system allows you to get approved on an apples-for-apples basis much quicker than any other broker or direct bank option. This efficiency is a key differentiator for comparison platforms like Loan Phone, which can help you understand How to Get Business Finance more effectively.

Indicative NAB Equipment Loan Rates & Fees

NAB equipment loan rates are highly competitive for businesses that meet their preferred risk profile. As of 2025, indicative rates for NAB asset finance typically range from 7-12% p.a. for secured equipment. Strong, established businesses may secure rates at the lower end (7-9% p.a.), while newer or higher-risk profiles might face rates in the 10-12%+ p.a. range.

Important Considerations:

• Fixed vs. Variable: Most equipment finance is offered with fixed interest rates, providing payment certainty.
• Fees: Expect standard fees such as application fees, establishment fees, and potentially ongoing account-keeping fees. Early repayment fees may also apply, depending on the loan structure.
• Balloon Payments: Opting for a balloon payment (lump sum at the end of the term) can reduce monthly repayments but increases the total cost of the loan over time due to interest accruing on the higher outstanding principal.
• Rates Not Publicly Published: Actual rates are not published publicly and require individual quoting based on your business’s specific financial circumstances and the asset being financed.

It’s vital to compare not just the interest rate but also the total cost of the loan, including all fees and charges. Our Understanding Interest Rates article provides more context on this.

Pros and Cons of Choosing NAB for Equipment Finance

Choosing a major bank like NAB for your equipment finance needs comes with both advantages and potential drawbacks.

Pros:

• Reputation & Stability: NAB is a trusted, well-established Australian financial institution.
• Competitive Rates: For businesses that fit their ideal borrower profile, NAB can offer very competitive interest rates.
• Product Range: A comprehensive suite of equipment finance products (chattel mortgage, CHP, commercial equipment loan, finance lease).
• Relationship Banking: Existing NAB customers may benefit from streamlined processes and potentially integrated banking services.
• Customer Support: Extensive branch network and customer service channels.

Cons:

• Stricter Eligibility: May have more rigid lending criteria, potentially excluding newer businesses, those with complex financials, or certain industries.
• Less Flexibility: Standardised product offerings may not cater to highly niche or “left-of-centre” financing requirements.
• Slower Process (Potentially): Traditional bank processes can sometimes be slower than specialist lenders or streamlined comparison platforms.
• Limited Options: You’re limited to NAB’s products, potentially missing out on better deals or more flexible terms from other lenders.
• No Personalised Comparison: Direct applications don’t provide an easy way to compare NAB’s offer against the broader market.

Tax Implications of NAB Equipment Finance

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.

The tax implications of NAB equipment finance largely depend on the specific finance structure chosen:

• Chattel Mortgage:
  • GST: You can typically claim the full GST on the equipment purchase price upfront (if registered for GST).
  • Depreciation: The business owns the asset, allowing for depreciation claims over its effective life.
  • Interest: Interest charges on the loan are generally tax-deductible.
• Commercial Hire Purchase (CHP):
  • GST: GST on the purchase price is typically claimed progressively over the loan term.
  • Depreciation: Your business may be able to claim depreciation, depending on accounting treatment.
  • Interest: The interest component of repayments is generally tax-deductible.
• Finance Lease:
  • GST: GST on lease rentals is generally claimable as it’s incurred.
  • Tax Deductions: Lease rentals are typically treated as tax-deductible operating expenses.
  • Depreciation: The lessor (NAB) typically claims depreciation, not the lessee (your business).

It’s crucial to consult your accountant to understand how these finance structures will impact your specific tax position and to ensure compliance with ATO guidelines.

Example: Financing a Commercial Vehicle with NAB

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.

In this scenario, the business would own the truck from day one, claim the GST upfront, and depreciate the asset. The balloon payment reduces monthly cash flow impact but requires a larger payment at the end of the term. This is a typical scenario where NAB equipment finance could be a strong option, but comparison is key.

Why Compare NAB with Other Lenders?

While NAB is a strong contender for equipment finance, limiting your search to a single bank can mean missing out on potentially better deals. The Australian lending landscape is diverse, with over 100 lenders, including major banks, specialist equipment financiers, and non-bank lenders, each with different appetites for risk, pricing structures, and product features.

Comparing your options allows you to:

• Secure Better Rates: Specialist lenders or other banks may offer lower rates for your specific business profile or asset type.
• Find More Flexible Terms: Access longer loan terms, different balloon payment options, or more lenient eligibility criteria. You might even explore equipment refinancing options if you have existing loans.
• Access Niche Solutions: For unique equipment or complex scenarios, specialist lenders often provide solutions that traditional banks may decline.
• Save Time & Effort: Instead of applying to multiple banks individually, a comparison platform streamlines the process.
• Get Expert Advice: Specialist brokers can guide you through the options, explain the fine print, and negotiate on your behalf.

Loan Phone combines streamlined online comparison with specialist broker expertise. We provide access to rates and options not available by going direct to banks, helping businesses find “left-of-centre” solutions for complex scenarios. Whether you’re comparing NAB equipment finance or exploring other SME Finance Options, a comprehensive market view is invaluable.

Frequently Asked Questions

Get NAB Equipment Finance for Your Business

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Last updated: 2025-10-14