Equipment finance for
small businesses

Equipment finance is used to purchase equipment for your business. The lender will give you the cash to purchase the equipment, which then becomes the security for the loan.

Every lender has different requirements, and each application form will have its own set of questions. At the very least, for most business loans, you can expect to provide business registration details, financial, tax and cash flow statements, and balance sheets.

Typical finance terms for equipment loans range between three months and seven years.

A balloon payment is a lump-sum payment that’s due at the end of a loan term—commonly used in equipment finance, business car loans, and chattel mortgages. It lowers your monthly repayments but will increase the amount of interest you pay over the course of your loan.

Yes, equipment finance can cover used and second-hand equipment. Conditions may apply depending on the age, condition, and remaining useful life of the asset, with some lenders setting maximum age limits or requiring an independent valuation for older equipment. Plus, rates and loan terms can vary compared to financing new equipment, since resale value and depreciation are assessed differently.

When you finance equipment, you borrow funds to purchase it and the lender holds it as security until the loan is repaid. Once you complete repayments, the asset becomes yours and you can keep, sell, or trade it. Different structures exist, including chattel mortgages or hire purchase, but the core principle is the same: you’re building equity in the asset.

With leasing, on the other hand, the lender retains ownership of the equipment and you make regular payments to use it, with options to return, upgrade, or buy it at the end of the term.

Generally speaking, financing may better if want to own the asset at the end of the term and are comfortable with higher upfront costs or repayments. Leasing may be more suitable if you want to protect cash flow and prefer predictable, lower repayments.

Learn how lease agreements work →

Yes, if you own eligible business equipment outright, you may be able to refinance it and release equity to free up working capital, fund a new purchase, or restructure existing debt on more favourable terms. When you do so, the equipment is assessed, and funds are secured against its value.

It's worth reviewing with a lending specialist alongside your other refinancing options, since the right structure depends on your broader business finances, not just the one asset.

Read more about when refinancing makes sense →

Yes, office equipment is one of the most common assets financed through equipment finance, including laptops and computers, printers and copiers, office furniture and fit-outs, IT infrastructure and networking equipment, and phone or security systems.

Yes, equipment finance can cover heavy machinery. If you've got your eye on an excavator, bulldozer or crane, our Heavy Machinery Loans page covers financing structures suited to bigger, longer-term assets.

There are a few ways equipment finance can be structured:

• Chattel mortgage: You own the equipment upfront, with the lender holding it as security until it's repaid.
• Hire purchase: You make fixed repayments to hire the equipment, then own it outright at the end of the term.
• Lease agreement: You use the equipment for regular payments, but the lender keeps ownership.

The right structure depends on whether ownership matters to you, how long you'll use the equipment, and how you want to manage tax and cash flow. Our lending specialists can help you compare options based on your situation.