Quick Answer
Mining equipment finance provides Australian businesses with essential capital to acquire heavy machinery like excavators, haul trucks, and drills through structures such as chattel mortgages or hire purchase. In 2025, indicative rates typically range from 7-14% p.a. (indicative only), influenced by factors like business age, financial strength, and the asset type. Loan terms often extend from 1-7 years, with amounts from $10,000 to $5M+. Businesses can access options from major banks (CBA, NAB, Westpac) and specialist equipment financiers via comparison platforms, streamlining the process and offering potential tax benefits like depreciation and GST credits (subject to individual circumstances and ATO guidelines).
| Business/Borrower Profile | Indicative Rate (p.a.) | Typical Term | Common Use/Equipment |
|---|---|---|---|
| Established (2+ years, strong financials) | 7-10% | 3-7 years | Large excavators, haul trucks, drills |
| Standard (1-2 years trading) | 10-12.5% | 1-5 years | Smaller excavators, loaders, support vehicles |
| Developing/Newer (<1 year, specialist assets) | 12.5-14%+ | 1-3 years | Used machinery, specific drilling rigs |
Rates are indicative examples only. Actual rates depend on individual circumstances, lender assessment, and current market conditions. This table is for illustrative purposes only.
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By the Loan Phone team · Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking, Director
The Challenge of Financing Mining Equipment
For Australian mining businesses, acquiring high-value machinery is often a significant capital outlay. From massive excavators to specialised drilling rigs and heavy-duty haul trucks, the equipment essential for operations can cost hundreds of thousands, if not millions, of dollars. Relying solely on cash reserves can strain working capital, limiting growth and operational flexibility. This is where mining equipment finance becomes crucial, offering a structured way to acquire assets without depleting vital funds. Finding the right finance solution for these specialist assets requires understanding the unique lending landscape and the specific needs of the mining sector.
What is Mining Equipment Finance?
Mining equipment finance refers to specific loan products designed to help businesses in the mining sector acquire the machinery and vehicles they need. These finance structures typically involve a lender providing funds to purchase equipment, with the equipment itself often serving as security for the loan. The most common forms include:
- Chattel Mortgage: A popular option where the business takes immediate ownership of the equipment, and the lender holds a ‘mortgage’ over it as security until the loan is fully repaid. This structure often allows for claiming the full GST input tax credit upfront and depreciation deductions (subject to ATO guidelines).
- Commercial Hire Purchase (CHP): Under CHP, the lender purchases the equipment, and the business hires it over a set term. At the end of the term, once all payments are made, the business takes ownership.
- Finance Lease: The lender buys the equipment and leases it to the business for an agreed period. The business pays regular lease rentals, and at the end of the term, typically has options to purchase the equipment for a residual value, re-lease it, or return it.
These options are designed to align repayment schedules with the operational lifespan and income generation of the mining equipment. For a detailed comparison of options, consider our guide on asset finance.
Types of Mining Equipment You Can Finance
The scope of mining equipment finance is broad, covering a wide array of machinery critical to exploration, extraction, and processing. Businesses can typically finance:
- Earthmoving Equipment: Large excavators (e.g., Cat 395, Komatsu PC4000), bulldozers, wheel loaders, graders, and articulated dump trucks. For more, see our earthmoving equipment finance guide.
- Haulage Vehicles: Heavy-duty mining trucks (e.g., Caterpillar 797, Komatsu 930E) designed for transporting vast quantities of ore. Specific truck finance options are available.
- Drilling Equipment: Rotary drills, blast hole drills, and exploration drilling rigs.
- Processing Machinery: Crushers, screens, conveyors, and beneficiation plants. Find out about machinery finance options.
- Support Vehicles: Service trucks, water carts, and light commercial vehicles used on mine sites.
Lenders assess the type, age, and condition of the equipment, along with its expected useful life, when evaluating finance applications.
Indicative Rates and Terms for Mining Equipment Finance (2025)
In 2025, indicative rates for mining equipment finance in Australia typically range from 7% p.a. for well-established businesses with strong financials to 14%+ p.a. (indicative only) for newer operators or those with more complex scenarios. These rates are influenced by several factors:
- Business Profile: Established businesses with 2+ years of trading history and strong financial performance often secure more competitive rates (7-10% p.a. indicative only). Newer businesses or sole traders may face higher rates (12-14%+ p.a. indicative only) due to perceived higher risk.
- Asset Type and Age: New, high-value, and easily re-sellable equipment generally attracts lower rates. Older or highly specialised machinery may command higher rates or require larger deposits.
- Loan Amount and Term: Larger loan amounts may sometimes achieve slightly lower percentage rates, while terms typically range from 1 to 7 years, aligning with the expected economic life of the equipment.
- Lender Type: Major banks (CBA, NAB, Westpac) usually offer prime rates to their strongest clients, while specialist equipment financiers and non-bank lenders provide more flexible options for a broader range of business profiles, albeit often at slightly higher rates.
| Factor Affecting Rates | Impact on Rate |
|---|---|
| Business Age (2+ years) | Lower |
| Strong Financials | Lower |
| New Equipment | Lower |
| Long-term (up to 7 years) | Potentially lower monthly, but more interest overall |
| Specialist Lender | Potentially higher, but more flexible criteria |
Rates are indicative examples only. Actual rates depend on individual circumstances, lender assessment, and current market conditions. This table is for illustrative purposes only.
Eligibility Criteria for Mining Equipment Finance
While specific eligibility criteria for mining equipment finance can vary significantly between lenders, general guidelines often include:
- Australian Business Registration: An active ABN or ACN is required.
- Trading History: Most traditional lenders prefer businesses with a minimum of 12-24 months of trading history. Specialist lenders may consider newer businesses or start-ups with a strong business plan and relevant industry experience. For options for newer businesses, explore low doc equipment finance.
- Financial Health: Lenders will assess your business’s revenue, profitability, and cash flow to ensure repayment capacity. Recent financial statements (P&L, balance sheet) and bank statements are typically required.
- Credit History: A reasonable credit score is generally expected. However, specialist brokers can assist businesses with less-than-perfect credit by connecting them with alternative lenders.
- Equipment Details: Information about the specific mining equipment being financed, including its age, condition, and supplier, will be needed.
Eligibility criteria are guidelines only, and specialist brokers can often find solutions even if your business doesn’t fit a traditional mould.
The Streamlined Application Process
Securing mining equipment finance can often be a complex and time-consuming process when approaching individual banks directly. However, modern comparison platforms and specialist brokers streamline this significantly.
Traditional Process:
- Research and contact individual banks.
- Complete separate application forms for each.
- Submit extensive documentation repeatedly.
- Await individual assessments, often leading to delays.
- Negotiate terms and rates with limited options.
Streamlined Process with a Comparison Platform:
1. Online Comparison Use a platform like Loan Phone to submit a single application.
2. Access Multiple Lenders The platform connects you with 100+ lenders, including major banks and specialist equipment financiers.
3. Personalised Options Receive tailored finance options quickly, allowing for an apples-for-apples comparison of rates, terms, and fees.
4. Expert Support Specialist brokers are available to guide you, especially for complex mining scenarios or “left-of-centre” solutions.
5. Efficient Processing Digital document handling and streamlined communication aim to accelerate credit decisions and settlement, with initial approvals possible within 24-48 hours for straightforward applications.
This approach significantly reduces the time and effort involved, helping mining businesses get the equipment they need faster. Explore more about general equipment finance options.
Tax Benefits of Financing Mining Equipment
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 mining equipment can offer several potential tax advantages for Australian businesses:
- Depreciation: Under a chattel mortgage or hire purchase, businesses can typically claim depreciation on the equipment over its effective life, reducing taxable income. The specific depreciation method and rate depend on ATO guidelines and the asset type. Learn more about equipment finance tax deductions.
- GST Input Tax Credits: For a chattel mortgage, businesses registered for GST can usually claim the full GST component of the equipment purchase upfront in their next Business Activity Statement (BAS).
- Interest Deductions: The interest portion of loan repayments is generally tax-deductible as a business expense.
- Instant Asset Write-Off (if applicable): While subject to legislative changes and eligibility criteria, past government incentives like the Instant Asset Write-Off have allowed eligible businesses to immediately deduct the full cost of new or second-hand assets. Always check current ATO rules for the relevant financial year.
These benefits can significantly reduce the overall cost of acquiring mining machinery, but their applicability depends entirely on individual circumstances.
Frequently Asked Questions
What types of mining equipment can I finance? +
You can finance a wide range of new and used mining equipment, including excavators, haul trucks, drills, loaders, dozers, and processing machinery. Lenders typically assess the asset's age, condition, and expected useful life. For specific types, refer to our equipment finance options guide.
How long are typical loan terms for mining equipment? +
Loan terms for mining equipment finance in Australia typically range from 1 to 7 years, depending on the asset type, its expected lifespan, and your business's financial profile. Longer terms can reduce monthly repayments but may result in more interest paid overall.
Can I get mining equipment finance with a new business? +
While most traditional lenders prefer businesses with at least 1-2 years of trading history, specialist equipment financiers and non-bank lenders may consider newer businesses or start-ups. A strong business plan, relevant industry experience, and a clear understanding of your cash flow can strengthen your application. For such cases, low doc equipment finance might be an option.
What is the difference between a chattel mortgage and hire purchase for mining equipment? +
With a chattel mortgage, your business owns the equipment from the outset, with the lender holding a charge over it. With a commercial hire purchase, the lender owns the equipment during the term, and your business takes ownership once all payments, including any residual, are made. Both offer different tax implications, so consult your accountant.
Why use a comparison platform for mining equipment finance? +
A comparison platform like Loan Phone provides access to over 100 lenders, allowing you to quickly compare personalised finance options for your mining equipment. This streamlines the application process, offers competitive rates, and provides specialist broker support for complex scenarios, saving you time and effort compared to approaching individual banks. This is part of why many businesses consider using a finance broker.
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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: 2026-01-27