Equipment Finance Calculator Australia

First and foremost our equipment finance calculator should only be used as an estimator. To use it simply plug in the estimated purchase price (considering your deposit if you want to leave one), the rate, and the term. This will give you a basic idea of what your repayments will look like. Please keep in mind that it does not include fees or balloon payments. For an accurate quote feel free to schedule a call with one of our lending experts today.

When it comes to equipment finance (or asset finance in general) there are many terms to learn. Each of them is important in its own way and to some degree is essential if you plan on getting equipment finance for your business. Here are the top terms we suggest getting your head around:

• Chattel mortgage – A loan that is secured by the asset you purchase.
• Operating lease – An arrangement where you rent the equipment but don’t own it.
• Finance lease – Where you can lease the asset with the option to purchase at the end of the term.
• Commercial hire purchase – Pay for the asset in installments and own it later.
• No doc loan – Close to zero financial documentation is required for this loan.
• Low doc loan – Minimal paperwork for getting a loan.
• Full doc loan – Detailed financials are required by lenders to access better terms.
• Residual value – The estimated worth of your asset after it has fully depreciated.
• Balloon payment – A large payment at the end of the loan term.
• Depreciation benefits – Tax deductions for the asset use.
• Loan Principal – The original amount borrowed.
• Credit Score – Your rating of financial trustworthiness by credit companies.
• Lender Criteria – The lender rules to qualify for finance.
• GST – 10% tax applied to the purchase price.
• Tax deductibility – Your claimable expenses for financing.
• Asset turnover ratio – The measure of revenue from assets.
• Credit assessment – The lender’s evaluation of your borrowing capacity.
• Fixed interest rate – The fixed interest rate that does not fluctuate with the market.
• Variable interest rate – The interest rate that fluctuates with the market.
• Broker fee – Our fee for arranging the finance deal.
• Early termination fee – A penalty for paying off your loan early.
• Bank statements – your bank transactions to confirm you can afford the repayments.

But don’t worry! There’s no need to remember all of this. Our team of asset finance brokers is here to make this process quick, simple, and easy for you.

Even though lenders have minimum eligibility criteria, most Australian businesses can qualify for equipment finance pretty quickly.

However, approval depends on a few key factors. Here’s what lenders typically look at:

Basic requirements:

• Active ABN registered for over 2yrs (we can still help for ABNs >6months)
• Good credit score & credit history (we help with bad credit issues though)
• Over 18 years old
• Australian resident
• Total loan amount

Business situation:

• Regular income or consistent contracts
• GST registered for over 2yrs
• Basic financial records (not always required though)

Don’t have all these? Don’t worry. We work with 60+ lenders, each with different lending criteria. For example, some offer:

• Low-doc loans up to $500,000
• Solutions for new businesses
• Options if you’re not a homeowner
• Various Visas are accepted (you’re not required to have Australian Citizenship)
• Alternatives for sole traders
• Options for those who don’t want to leave a deposit
• Alternatives if you have some credit history issues

The best way to check your eligibility is to first use our equipment finance calculator above to see if you can afford repayments. From here, reach out to our then chat with our team. We’ll look at your specific situation and match you with the right lender – often finding solutions where others can’t.

Remember: Every business is unique, and there’s usually more than one way to structure a deal. Let us help find the right fit for your situation.

Reducing the repayments for your equipment loan comes down to a few core factors.

Here’s what we recommend to our clients to keep costs low:

Smart loan structuring

• Extend the loan term (more months = smaller repayments)
• Balance term length against total interest paid
• Consider 5-7 year terms for optimal flexibility

Deposit & upfront payment

• A larger initial deposit will always reduce the principal & result in less interest
• Lower borrowing amount means smaller monthly repayments
• Aim for 20-30% deposit if possible since you’ll also access lower rates (lenders like deposits)

Additional tips

• Choose assets with a strong resale value (Category A or Primary Assets have better rates)
• Negotiate equipment pricing before financing
• Consider residual payment structures (i.e. balloon payments)
• Compare multiple lender options (the lending criteria changes)
• Consider a full-documentation loan to access a better rate

Pro Tip: We don’t recommend chasing the lowest repayment. The cheapest option isn’t always the most cost-effective long-term. A slightly higher repayment might save you thousands in total interest, reducing the overall finance costs.

Our brokers have the network and experience to crunch the numbers and find a sweet spot between repayment size and overall loan cost.

A balloon payment is a larger lump sum payment due at the end of your equipment finance loan term. Lenders allow the borrowers to include a balloon payment to help reduce their monthly repayments.

For example, if you have a $100,000 loan for a Ford Ranger Raptor with a 30% balloon payment, you’ll pay reduced monthly repayments but will need to pay $30,000 at the end of the loan.

While the balloon payment will definitely lower your repayments, planning for the final lump sum payment is important. You can pay it in full, refinance the balloon amount, or sell the equipment to cover the cost.

Stacked Finance specialises in business equipment loans.

This means we help all sorts of Australian businesses finance commercial equipment used to generate income. These include:

• Machinery: All types of manufacturing equipment, construction equipment, agricultural machinery, and other production hardware.
• Vehicles and transport assets: Cars, utes, trucks, vans, forklifts, and heavy machinery used in logistics and transportation.
• Technology and IT hardware: Computers, servers, POS systems, networking equipment, telecommunications hardware, and other related infrastructure.
• Medical equipment: Special medical devices, beauty devices, laser devices, diagnostic tools, dental and clinical equipment.
• Hospitality and retail assets: Coffee machines, commercial kitchen equipment, POS systems, refrigeration units, hospitality machinery, and most things involved in a retail fit-out.
• Agricultural and farming equipment: All types of tractors, harvesters, irrigation systems, farm machinery, and other farm equipment.

Keep in mind that the more obscure the asset the higher the interest rate will be since it’s more risky for the lender.

When choosing an equipment loan broker in Australia there are some things to be aware of.

Firstly, all brokers should be FBAA or MFAA-accredited brokers. This means they have an Australian Credit Licence / AFSL or work with an Aggregator that provides this.

Secondly, they should also have the relevant qualifications and industry experience.

On top of this, a good broker should:

• Have close relationships with multiple lenders, not just their preferred lenders
• Take time to understand your business, goals, and the asset specifications
• Be upfront about all rates, fees, processes, and charges
• Know the ins and outs of different finance structures (e.g. chattel mortgage vs commercial lease)
• Understand the tax implications for your business of each loan structure
• Fights to get you the best deal possible and conditional approval ASAP
• Understand the current ATO position on tax deductions and other related initiatives

Most importantly, they should speak your language – if the broker can’t explain how the loan works without using fancy jargon, keep looking.

We don’t just specialise in equipment financing.

Stacked Finance is focused on the commercial market as a whole.

This means we help all Australian businesses obtain equipment loans or business loans.

Whether you need a new asset like a vehicle, trailer, or digger, we can help. Our team is also skilled at providing working capital loans, cash flow finance, unsecured loans, startup loans, or any other specific type of business-related funding.