Quick Answer
Finding the best equipment finance lenders in Australia for 2026 involves comparing major banks like CBA, NAB, Westpac, and ANZ with specialist non-bank lenders such as Pepper, Liberty, Prospa, and Macquarie. These lenders offer diverse equipment finance solutions, including chattel mortgages, commercial hire purchase, and finance leases, with indicative rates typically ranging from 6.5% to 14%+ p.a. depending on business age, financial strength, and asset type. Modern comparison platforms like Loan Phone streamline this process, providing access to over 100 lenders to help businesses secure tailored equipment loans quickly, often with settlements possible within days for straightforward applications (subject to lender and circumstances). Tax benefits like depreciation and GST input tax credits may also apply (consult your accountant).
| Business/Borrower Profile | Indicative Rate Range (p.a.) | Typical Term | Common Use/Equipment |
|---|---|---|---|
| Established (2+ years, strong financials, good credit) | 6.5 - 9% | 3-7 years | Prime movers, excavators, medical devices |
| Standard (1-2 years trading, sound financials) | 9 - 12% | 1-5 years | Delivery vans, IT equipment, light machinery |
| Developing/Newer (Less than 1 year, complex scenarios) | 12 - 14%+ | 1-3 years | Start-up assets, niche equipment, smaller loans |
Rates are indicative examples only, current as of 2026. Actual rates, fees, and terms depend on individual circumstances, lender assessment, and current market conditions. Consult with a finance professional for personalised advice.
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By the Loan Phone team · Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking, Director
Understanding Equipment Finance in Australia 2026
For Australian businesses, acquiring essential equipment is often critical for growth, efficiency, and competitiveness. From heavy machinery and commercial vehicles to advanced IT systems and medical devices, the right equipment can transform operations. However, outright purchase can strain cash flow, making equipment finance a vital tool. In 2026, the Australian lending landscape offers a diverse range of options, but navigating them to find the best equipment finance lenders requires a clear understanding of the market and your business needs.
What is Equipment Finance?
Equipment finance refers to various loan products designed specifically for businesses to acquire assets. Instead of purchasing equipment upfront, businesses can secure funding, repaying it over time. The most common structures in Australia include:
- Chattel Mortgage: This is a popular option where the business takes immediate ownership of the asset, and the lender holds a mortgage over it as security. Once the loan is repaid, the security is released. Chattel mortgages often allow businesses to claim the full GST input tax credit upfront and depreciate the asset. Learn more about our Chattel Mortgage Guide.
- Commercial Hire Purchase (CHP): Under a CHP agreement, the lender purchases the equipment and then “hires” it to the business for a fixed period. The business has the option to purchase the equipment at the end of the term for a nominal fee. This structure also typically allows for GST input tax credits. Explore Commercial Hire Purchase options.
- Finance Lease: With a finance lease, the lender retains ownership of the equipment, and the business pays regular lease rentals for its use. At the end of the lease term, the business typically has options to purchase the equipment, return it, or re-lease it.
- Operating Lease: Often used for rapidly depreciating assets or when off-balance sheet financing is preferred. The lender retains ownership, and the business pays for usage, typically returning the asset at the end of the term.
Choosing the right structure depends on your business’s accounting preferences, tax position, and cash flow requirements. It’s crucial to consult with your accountant to understand the specific implications for your business.
Key Factors Influencing Lender Choice
When seeking the best equipment finance lenders, several factors come into play:
- Interest Rates: These are typically advertised as fixed annual percentages (p.a.) and can vary significantly based on the lender, your business’s financial health, and the asset being financed.
- Loan Terms: The repayment period, usually ranging from 1 to 7 years, impacting monthly repayments and total interest paid.
- Eligibility Criteria: Each lender has specific requirements regarding trading history, revenue, credit score, and asset type. If you’re looking to improve your credit score, that can broaden your options.
- Flexibility: Options like balloon payments (a lump sum due at the end of the loan term) can reduce regular repayments, while early repayment options can offer flexibility.
- Application Process: The speed and complexity of securing finance can differ greatly between lenders.
Top 10 Equipment Finance Lenders Australia 2026
The Australian market for equipment finance is robust, featuring a mix of major banks and specialist non-bank lenders. Each offers distinct advantages depending on your business’s profile and needs. Modern comparison platforms like Loan Phone provide access to a wide array of these providers, allowing businesses to efficiently compare options and find suitable solutions, whether it’s through a broker vs bank approach.
Major Banks: Stability and Competitive Rates
Major banks are often the first port of call for established businesses with strong financial histories. They typically offer competitive rates and a broad range of products.
Commonwealth Bank (CBA)
CBA is one of Australia’s largest financial institutions, offering comprehensive equipment finance solutions for businesses of all sizes. They provide chattel mortgages, commercial hire purchase, and finance leases. CBA typically targets established businesses with solid trading history and financials, often offering some of the lowest indicative rates (e.g., 7-9% p.a. for prime customers in 2026) for strong profiles. Their extensive branch network and digital platforms make them accessible. Typical Profile: Businesses with 2+ years trading, strong revenue, excellent credit history. Strengths: Competitive rates, broad product range, national presence.
National Australia Bank (NAB)
NAB is a significant player in business banking and equipment finance, with a strong focus on supporting SMEs. They offer various asset finance products designed to help businesses acquire everything from vehicles to heavy machinery. NAB is known for its business-centric approach and competitive offerings, particularly for clients with an existing banking relationship. Typical Profile: Established SMEs, businesses with existing NAB relationships. Strengths: Strong SME focus, competitive rates, tailored solutions.
Westpac
As one of Australia’s “big four” banks, Westpac provides a full suite of equipment finance options, including chattel mortgages and commercial hire purchase. They cater to a wide range of industries and business sizes, leveraging their extensive experience in the financial sector. Westpac’s offerings are generally competitive for businesses meeting their traditional lending criteria. Typical Profile: Established businesses, diverse industries, sound financial standing. Strengths: Extensive experience, comprehensive product range, large customer base.
ANZ
ANZ offers flexible equipment finance solutions, aiming to support businesses in acquiring essential assets without impacting working capital. They provide competitive rates and terms for various business equipment, from office technology to industrial machinery. ANZ is often preferred by businesses looking for straightforward finance solutions with a major bank. Typical Profile: Established businesses, good credit, clear asset acquisition needs. Strengths: Competitive rates, straightforward application for qualifying businesses.
Specialist Non-Bank Lenders: Flexibility and Niche Solutions
Non-bank lenders play a crucial role in the Australian equipment finance market, offering greater flexibility, faster approvals, and solutions for businesses that might not fit traditional bank criteria. These lenders are often more willing to consider newer businesses, those with less-than-perfect credit, or unique asset types.
Macquarie Bank
While a bank, Macquarie often operates with the agility and specialisation typically associated with non-bank lenders in the asset finance space. They are renowned for their innovative solutions and ability to finance a broad spectrum of equipment, including complex and high-value assets. Macquarie’s asset finance division is highly regarded for its expertise and flexible structures. Typical Profile: Businesses requiring tailored solutions, high-value assets, diverse industries. Strengths: Specialised expertise, flexible structures, competitive for complex deals.
Pepper Money
Pepper Money is a leading non-bank lender known for its flexible and competitive equipment finance solutions. They cater to a wide range of business profiles, including those who may not meet traditional bank criteria, such as newer businesses or those with limited financials. Pepper offers chattel mortgages and commercial hire purchase with a focus on quick turnarounds. For businesses seeking low-doc solutions, Pepper is a strong contender. Typical Profile: Newer businesses, those with limited financials, seeking flexible options. Strengths: Flexible criteria, fast approvals, strong broker relationships.
Liberty Financial
Liberty Financial is a well-established specialist lender offering a “real-world” approach to equipment finance. They are known for assessing each application on its merits, often approving loans for businesses with non-traditional income streams or credit histories that major banks might decline. Liberty provides chattel mortgages and hire purchase. Typical Profile: Businesses with unique financial situations, non-traditional credit histories. Strengths: Individualised assessment, solutions for complex scenarios.
Prospa
Prospa is a prominent online small business lender offering fast and accessible finance. While primarily known for unsecured business loans, they also provide equipment finance solutions tailored for SMEs. Prospa’s strength lies in its speed and streamlined online application process, making it ideal for businesses needing quick access to funds for essential equipment. Typical Profile: SMEs needing fast finance, streamlined digital application. Strengths: Speed, online process, focus on small business.
Lumi
Lumi provides fast and flexible business loans, including equipment finance, with a strong emphasis on technology-driven solutions. They offer quick decisions and funding, making them a strong contender for businesses that require rapid access to capital for equipment purchases. Lumi prides itself on its transparent and efficient process. Typical Profile: Businesses seeking quick, efficient online finance. Strengths: Fast decisions, transparent process, digital-first approach.
Selfco
Selfco is an established Australian equipment finance provider with a long history of supporting businesses across various industries. They offer a range of asset finance products, including chattel mortgages, hire purchase, and leases, with a focus on personalised service and flexible terms. Selfco often caters to a broad spectrum of business sizes and asset types. Typical Profile: Businesses seeking personalised service, a range of asset types. Strengths: Long-standing experience, flexible options, tailored service.
Comparing Equipment Finance Lenders: What to Look For
Choosing among the best equipment finance lenders involves more than just picking a familiar name. A strategic comparison can yield significant savings and better terms.
Interest Rates and Fees
Interest rates are a primary consideration. In 2026, indicative equipment finance rates in Australia can range from 6.5% p.a. for the strongest profiles to 14%+ p.a. for newer or higher-risk businesses. Remember that advertised rates are often “headline” rates and actual rates are subject to individual quoting. Fees, such as establishment fees, ongoing service fees, and early repayment penalties, can also impact the total cost. Always ask for a full breakdown of all costs.
Loan Terms and Flexibility
Consider the loan term (e.g., 1-7 years) and repayment frequency. Longer terms mean lower monthly repayments but more interest paid overall. Shorter terms increase monthly repayments but reduce total interest. Options like balloon payments can reduce regular outgoings, but ensure you can manage the lump sum at the end. Conversely, check for penalties if you wish to pay off the loan early.
Eligibility Criteria
Lenders assess your business based on factors such as:
- Trading History: Most traditional lenders prefer 12-24 months of trading. Specialist non-bank lenders may consider newer businesses (e.g., 6 months+).
- Financials: Lenders will review your business’s revenue, profitability, and cash flow.
- Credit Score: A strong credit history is advantageous, but specialist lenders may offer solutions for those with impaired credit. If you’re unsure about your credit score, get in touch – we can help you find out.
- Asset Type: The age, condition, and type of equipment being financed can influence lender choice and rates. Eligibility criteria may vary by industry, loan amount, and asset type.
Application Process and Speed
The speed of approval and settlement can be critical, especially when you need equipment urgently. Traditional bank applications can be lengthy, involving extensive paperwork. Many non-bank lenders and comparison platforms, however, offer streamlined online application processes with faster indicative approvals. 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 many other options.
Specialisation and Support
Some lenders specialise in specific industries (e.g., transport, construction, medical) or asset types. A specialist lender may offer more tailored terms or a deeper understanding of your business’s unique needs. Additionally, consider the level of support available – whether it’s direct account managers, dedicated broker support, or comprehensive online resources.
How Loan Phone Simplifies Finding the Best Lender
Navigating the diverse landscape of equipment loan providers in Australia can be complex and time-consuming. This is where a comparison platform like Loan Phone offers significant value. We combine cutting-edge technology with specialist broker expertise to streamline your search for the best equipment finance lenders.
- Access to 100+ Lenders: We partner with a vast network of major banks and specialist non-bank lenders, giving you access to options you might not find by going direct to a single institution. This includes lenders like CBA, NAB, Westpac, Pepper, Liberty, Prospa, and Macquarie.
- Fast Online Comparison: Our intuitive platform allows you to quickly compare personalised equipment finance options from multiple providers. This means you see tailored rates and terms for your specific business and asset needs without impacting your credit score. Compare your options now.
- Specialist Broker Support: For complex scenarios, “left-of-centre” solutions, or when you simply prefer human guidance, our team of expert brokers is available. They understand the nuances of the Australian lending market and can help structure deals that traditional banks might decline. If anybody can get a deal over the line on something tricky, they can.
- Efficient Processing: We simplify the application process, helping you gather the necessary documentation and submit it efficiently to the most suitable lenders, accelerating your path to approval and settlement.
- Free, No Credit Impact: Using our comparison tool is free and has no effect on your credit score, allowing you to explore your options with confidence.
By leveraging Loan Phone, businesses can quickly cut through the noise, identify suitable equipment finance options, and secure competitive terms, saving time and money. Learn more about Asset Finance Australia through our platform.
Example: Financing a Commercial Excavator
Excavator Chattel Mortgage Example
| Purchase Price | $180,000 |
| Deposit | $0 (100% Finance) |
| Amount Financed | $180,000 |
| Interest Rate | 7.85% p.a. |
| Term | 5 years (60 months) |
| Balloon Payment | $36,000 (20%) |
| Indicative Monthly Repayment | ~$3,000 |
This example is for illustrative purposes only, current as of 2026. Actual rates, terms, and repayments depend on lender assessment, your individual circumstances, the specific asset, and current market conditions. Consult your accountant regarding tax implications, including GST input tax credits and depreciation. Eligibility criteria for Equipment Finance Guide will also apply.
Frequently Asked Questions
What are the key differences between bank and non-bank equipment finance lenders? +
Major banks typically offer lower indicative rates for established businesses with strong financials but may have stricter eligibility criteria and longer approval processes. Non-bank lenders, like Pepper or Liberty, are often more flexible, consider a wider range of business profiles (including newer businesses or those with complex credit), and offer faster approvals, though indicative rates may be slightly higher for some profiles.
How do I compare equipment finance lenders effectively? +
To compare effectively, focus on the total cost (including interest and all fees), loan terms, eligibility requirements, and the lender's flexibility. Utilising a comparison platform like Loan Phone allows you to see personalised offers from multiple lenders side-by-side, streamlining the comparison process significantly.
What interest rates can I expect for equipment finance in 2026? +
In 2026, indicative equipment finance rates in Australia typically range from 6.5% p.a. for established businesses with strong financials to 14%+ p.a. for newer operators or those with higher perceived risk. Actual rates depend on factors like your business's trading history, credit score, asset type, and the specific lender's assessment.
Do non-bank lenders offer better equipment finance for new businesses? +
Yes, non-bank lenders often provide more accessible equipment finance for new businesses (e.g., less than 2 years trading history) compared to major banks. They tend to have more flexible lending criteria and a greater willingness to consider applications based on factors beyond just extensive trading history, such as future cash flow projections or specific industry experience.
What documents do I typically need for equipment finance? +
Commonly required documents include your ABN, recent bank statements (typically 3-12 months), financial statements (profit & loss, balance sheet) for established businesses, and the invoice or quote for the equipment you wish to finance. Specialist lenders may have simplified requirements for smaller loan amounts or specific business profiles.
Can I get equipment finance with a low credit score? +
While a strong credit score is advantageous, it's often still possible to secure equipment finance with a low credit score, particularly through specialist non-bank lenders. These lenders assess applications more broadly and may offer solutions, though indicative rates could be higher to reflect the increased risk. Speaking with a specialist broker can help explore these options.
What is the difference between a chattel mortgage and a commercial hire purchase? +
With a chattel mortgage, the business takes immediate ownership of the equipment, and the lender holds a security interest. For commercial hire purchase, the lender owns the equipment during the term, and the business has an option to purchase it at the end. Both can offer similar tax benefits, but accounting treatment may differ. Learn more through our Chattel Mortgage Guide and Commercial Hire Purchase guides.
How quickly can I get equipment finance approved through Loan Phone? +
Initial credit decisions for straightforward equipment finance applications can often be provided within 24-48 hours through Loan Phone's streamlined process. Full settlement timeframes vary based on the lender, documentation execution speed, and vendor coordination, but our efficient system aims to accelerate the entire journey compared to traditional methods.
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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: 2026-05-16