Latitude vs Liberty Asset Finance Compared (2026)

Quick Answer

Choosing between Latitude asset finance and Liberty asset finance in Australia for 2026 depends on your business’s financial profile and specific needs. Latitude typically caters to established businesses with strong credit, offering competitive rates for a wide range of assets through chattel mortgages and hire purchase. Liberty, a specialist non-bank lender, excels in providing flexible solutions for newer businesses, those with complex financials, or less-than-perfect credit, often with broader eligibility criteria but potentially higher indicative rates. Both lenders offer asset finance for equipment, vehicles, and technology, but Liberty is known for its “left-of-centre” approach. Modern comparison platforms like Loan Phone help businesses compare options from both Latitude, Liberty, and 100+ other lenders simultaneously, ensuring a tailored solution, with settlements possible within 24-72 hours for straightforward applications (subject to lender and circumstances).

Rates are indicative examples only as of August 2026. Actual rates and terms depend on individual circumstances and lender assessment.

1. Introduction: Navigating Asset Finance Choices

For Australian businesses looking to acquire essential assets, from commercial vehicles to heavy machinery, the choice of finance provider is critical. Two prominent names in the non-bank lending sector, Latitude and Liberty, often come up in discussions about asset finance. While both offer funding solutions, their approaches, target markets, and flexibility can differ significantly. Understanding these distinctions is key to making an informed decision that aligns with your business’s unique financial situation and growth objectives in 2026.

This guide will delve into what each lender offers, their respective strengths and weaknesses, and how to determine which might be the better fit for your business, particularly when considering factors like interest rates, eligibility, and the types of assets you wish to finance.

2. Understanding Latitude Asset Finance

Latitude Financial Services is a significant player in the Australian and New Zealand financial landscape, known for a broad range of products including personal loans, credit cards, and business finance. When it comes to Latitude asset finance, they typically provide secured loans for businesses to acquire various equipment and vehicles.

What Latitude Offers

Latitude generally offers traditional asset finance products such as:

• Chattel Mortgages: A popular choice for businesses, a chattel mortgage allows the business to own the asset from the start, with the lender holding a security interest until the loan is repaid. This structure often comes with GST input tax credit benefits and depreciation claims, subject to ATO guidelines. You can learn more about this structure in our Chattel Mortgage Guide.
• Commercial Hire Purchase (CHP): Under CHP, the lender purchases the asset and then hires it to the business over a fixed term. At the end of the term, the business typically has the option to purchase the asset for a nominal fee.
• Asset Types: Latitude finances a wide array of assets, including commercial vehicles (utes, vans, trucks), construction equipment, manufacturing machinery, IT hardware, and other business-critical equipment.

Pros and Cons of Latitude

Pros:

• Competitive Rates: For established businesses with strong financial histories, Latitude can offer competitive interest rates, often comparable to some major banks. Indicative rates are typically around 7-11% p.a. (indicative only).
• Streamlined Application: Their processes are often efficient, especially for standard applications, facilitating quicker approval for straightforward cases.
• Established Reputation: As a well-known financial services provider, Latitude offers a degree of familiarity and trust for many Australian businesses.
• Broad Asset Appetite: They finance a wide variety of common business assets, making them a versatile choice for many industries.

Cons:

• Potentially Stricter Criteria: Latitude may have less flexibility for newer businesses, those with adverse credit history, or complex financial structures compared to specialist non-bank lenders.
• Less Tailored for “Left-of-Centre”: Businesses with unique circumstances or non-standard assets might find their offerings less adaptable to their specific needs.

3. Exploring Liberty Asset Finance

Liberty Financial, on the other hand, positions itself as a specialist non-bank lender dedicated to finding solutions for a broader spectrum of borrowers. They are well-regarded for their “free-thinking” approach, which translates to greater flexibility in assessing applications, particularly for those who might not fit traditional bank criteria for equipment finance.

What Liberty Offers

Liberty’s asset finance offerings also include core products like chattel mortgages and hire purchase, but with a distinct emphasis on flexibility:

• Flexible Eligibility: Liberty is often a go-to for businesses that are newer, have limited trading history (e.g., an ABN under 2 years), or have experienced past credit challenges. They consider a wider range of factors beyond just traditional credit scores.
• Tailored Solutions: They are known for their ability to structure loans to meet specific business cash flow needs, potentially offering more customisation in terms, balloon payments, and repayment schedules.
• Diverse Asset Scope: While financing standard machinery finance Australia and vehicles, Liberty may also consider more unique or specialist assets, provided they are for genuine business use.
• Low-Doc Options: For businesses that struggle to provide extensive financial documentation, Liberty may offer low-doc equipment finance or alternative assessment pathways.

Pros and Cons of Liberty

Pros:

• High Flexibility: Their main strength is their willingness to consider a wider range of business profiles and financial situations, making them ideal for scenarios where traditional lenders might decline.
• Solutions for Complex Scenarios: Ideal for new businesses, those with non-traditional income streams, or a less-than-perfect credit history, helping them access vital business loans.
• Broad Eligibility: They often have less stringent minimum trading history requirements compared to traditional lenders, opening doors for startups and growing enterprises.
• Personalised Approach: Known for working closely with brokers to find a workable solution, they aim to understand the unique story behind each application.

Cons:

• Higher Indicative Rates: Due to their higher risk appetite, Liberty’s indicative interest rates may be higher than those offered by lenders like Latitude for strong, established businesses. Their rates typically range from 9-14%+ p.a. (indicative only).
• Fees: May have slightly higher fees associated with their more specialised and flexible services compared to more traditional lenders.
• Documentation: While flexible, they still require comprehensive information to assess risk, which might include alternative financial statements, to ensure responsible lending.

4. Key Differences: Latitude vs Liberty

While both Latitude and Liberty are non-bank lenders offering asset finance in Australia, their core philosophies and target markets create distinct differences. Understanding how broker vs bank equipment finance works helps highlight these differences.

This comparison table is for illustrative purposes only. Specific terms, rates, and eligibility criteria are subject to change and individual lender assessment.

5. Choosing the Right Lender for Your Business

Deciding between Latitude and Liberty requires an honest assessment of your business’s current financial health and future needs. This decision is crucial for securing the right equipment finance Australia solution.

When Latitude Might Be Right

• Your business has a strong credit history and a solid trading record (typically 2+ years).
• You are looking for competitive interest rates and standard finance terms for your asset.
• The asset you are financing is a common commercial vehicle or piece of equipment.
• You prefer dealing with a larger, more established non-bank brand with a clear track record.

When Liberty Might Be Right

• Your business is relatively new (less than 2 years trading) or is a startup.
• You have a complex financial situation, such as fluctuating income or alternative revenue streams.
• Your credit history has some blemishes, but you can demonstrate current serviceability and a viable business plan.
• You need highly flexible loan terms, including customised repayment schedules or unique balloon payment options to match your cash flow.
• You are financing a specialist or non-standard asset that requires a more bespoke assessment process.

The Loan Phone Advantage: Comparing Your Options

Navigating the landscape of asset finance Australia can be complex, especially with so many lenders offering different products and eligibility criteria. This is where a modern comparison platform like Loan Phone becomes invaluable.

Loan Phone combines streamlined online comparison with specialist broker expertise, allowing you to:

• Access 100+ Lenders: We provide access to a vast network of lenders, including major banks, non-bank lenders like Latitude and Liberty, and specialist equipment financiers. This means you don’t have to approach each lender individually.
• See Personalised Options: Our platform helps you compare tailored finance options based on your specific business profile and the asset you wish to acquire.
• Get Specialist Support: For complex scenarios or when you need expert guidance, our team of specialist brokers is available to assist, helping you secure “left-of-centre” solutions that traditional banks might decline.
• Efficient Processing: Our technology-driven process streamlines documentation and applications, aiming for efficient processing and faster outcomes (subject to lender and circumstances).

Compare Options Now and see how Latitude, Liberty, and other top lenders stack up for your business.

6. Common Asset Finance Structures

Regardless of whether you choose Latitude or Liberty, the underlying finance structures typically remain the same. The most common options for Australian businesses include:

• Chattel Mortgage: As mentioned, this is a secured loan where you own the asset from the outset. It’s popular for its tax benefits, including immediate GST input tax credits and depreciation claims (subject to ATO guidelines). Learn more about the chattel mortgage tax benefits.
• Commercial Hire Purchase (CHP): The lender owns the asset during the loan term, and you purchase it at the end. This can offer different GST and depreciation treatments, which should be discussed with your accountant. Consider hire purchase vs chattel mortgage for your needs.
• Finance Lease: The lender owns the asset and leases it to you. At the end of the lease, you may have options to purchase the asset, re-lease it, or return it. This is often treated as an off-balance sheet item for accounting purposes. For more details, explore operating lease vs finance lease.

Each structure has different implications for your balance sheet, tax position, and cash flow. It’s crucial to consult with your accountant to determine the most advantageous structure for your specific business.

7. Application Process: Streamlined vs. Traditional

The application process for how equipment finance works can vary significantly between lenders and the method you choose to apply.

Traditional Application (Direct to Lender):

• Time-Consuming: Requires approaching each lender individually, filling out separate forms, and providing duplicate documentation.
• Limited Options: You only see the products offered by that specific lender, potentially missing out on better rates or more flexible terms elsewhere.
• Credit Impact: Multiple hard credit inquiries can potentially impact your credit score.

Streamlined Application (Via Comparison Platform like Loan Phone):

• Efficient Comparison: Submit your details once to compare options from 100+ lenders simultaneously.
• Personalised Matching: Our platform quickly identifies lenders like Latitude and Liberty that are best suited to your business profile and asset.
• Expert Guidance: Specialist brokers can package your application to highlight your strengths and negotiate terms on your behalf, especially for complex cases.
• Minimal Credit Impact: Initial comparisons typically involve soft credit checks, preserving your credit score until you choose a specific lender to proceed with.

Although 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 is particularly true for commercial vehicle finance or when speed can be critical for business operations.

8. Frequently Asked Questions

9. Get Asset Finance for Your Business

Speak with Specialists

Need expert guidance on your asset finance application? Email: loans@loanphone.com.au Website: www.loanphone.com.au

Related Resources

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Last updated: 2026-08-06