Equipment Finance Explained

Equipment finance allows Australian businesses to acquire the machinery, vehicles or technology they need without paying the full cost upfront. It preserves cash flow, offers tax advantages and can be structured to match the useful life of the asset. Here is how it works.

Common Structures

Chattel mortgage — you own the asset from day one and claim depreciation and interest. Hire purchase — the lender owns the asset until final payment, then it transfers to you. Finance lease — the lender owns the asset and you lease it, often with an option to buy at the end. Operating lease — similar to renting, with no ownership transfer.

Who Qualifies?

Most Australian businesses can access equipment finance, including sole traders, partnerships, companies and trusts. Lenders look at your trading history, financials, the type and value of the equipment, and your ability to service the debt. Newer businesses may need a larger deposit or a director's guarantee.

Tax & GST Benefits

Depending on the structure, you may be able to claim GST upfront, deduct interest payments and depreciate the asset. The instant asset write-off scheme may also apply. Always confirm the tax treatment with your accountant before committing to a structure.

Benefits for Business Growth

Equipment finance lets you stay competitive by accessing modern technology and machinery without draining your working capital. It turns a large capital expense into manageable monthly repayments, giving you predictable cash flow and the ability to invest elsewhere in your business.

Need equipment finance? Arvion Finance helps Australian businesses fund everything from vehicles to heavy machinery. Book a call to explore your options.