The same $150,000 machine over three terms
A $150,000 machine financed at 6.99% p.a. (an illustrative assumption) with no deposit and no balloon, repaid monthly. A longer term lowers the monthly repayment but raises the total interest.
Machinery Finance Calculator Australia
Understand the details of machinery finance and monthly repayments using the machinery finance calculator. Our machinery calculator is general and only designed to give you an estimate. It does not consider all aspects of a loan such as balloon payments, fees, terms, and criteria. Please reach out to our team for a quick and accurate quote.
$1,782 / monthly
Hours, not kilometres
A truck wears by the odometer. A machine wears by the hour meter, and that is the number lenders read. Hours tell a lender how hard the machine has worked, which shapes how it is valued, how long the term can run, and what it will be worth at the end.
| Hours band | How lenders see it | Effect on the deal |
|---|---|---|
| Under 2,000 hours | Low hours, still in its prime | Best rates and longest terms |
| 2,000 to 5,000 hours | Mid life, still strong | Standard rates, normal terms |
| 5,000 to 10,000 hours | High hours, more wear | Shorter terms or a bigger deposit |
| Over 10,000 hours | End of life for many machines | Harder to place, or equity against it |
A 2017 Kubota KX080 excavator we financed had 3,800 hours, which sat it in the middle band. The hours were part of the deal from the start, so the lender priced the machine for what it was rather than what the seller claimed.
Attachments are part of the deal
A machine is rarely just a machine. Buckets, hammers, augers, tilt hitches and GPS systems are often a third of the total value, and they are usually invoiced separately. Finance them with the machine, not against it, so the whole package is secured on day one.
- Buckets and hammers wear out, so lenders value them differently to the machine itself
- Ask the dealer for one invoice for the whole package, or list every attachment separately
- GPS and grade-control systems hold value and are usually easy to include
PPSR and used plant
When you buy used machinery there is no registration certificate to prove who owns it, so a lender checks the Personal Property Securities Register (PPSR) instead. The PPSR records whether another lender still holds a charge over the machine, which is exactly what you want to know before you pay for it.
Proof of ownership matters more than it does with a car. The Kubota KX080 we financed is a good example: it was bought privately, the seller could not produce proof of purchase, and that is usually where a deal like this stalls. We worked through it and got it settled.
Not road-registered
Most plant never touches a public road, so it has no registration. That changes how the machine is identified and insured. A lender identifies the asset by serial number, build plate and condition, and insurance is arranged as plant and equipment cover rather than vehicle cover.
None of this makes the deal harder. It just means the paperwork points at a serial number instead of a number plate.
Scaling a fleet
Once you own the first machine, the second and third get easier. A lender can use the equity you have built in an existing, paid-down machine to help fund the next one, rather than asking you to find a full deposit again.
We have done this with a Land Cruiser worth $120,000, where the lender pulled equity out of it to fund a purchase that would not have stacked up on its own. The same logic works for plant: a paid-off excavator can help you buy the second excavator.
This is a real option, not a promise. Not every lender will do it, and it depends on how much equity is actually in the machine. We will tell you honestly whether it stacks up before you commit.
Worked examples
The same machine, with and without a balloon
A $150,000 machine over 5 years at 6.99% p.a. (illustrative), no deposit, repaid monthly. A 30% balloon of $45,000 lowers the monthly repayment but leaves a lump sum at the end, and the total interest is higher.
The $150,000 no-deposit ceiling
No deposit is available up to $150,000, subject to your profile and the asset. This example finances the full $150,000 with no deposit at 6.99% p.a. (illustrative) over 5 years, repaid monthly.
What affects your machinery finance rate
The rate depends on the machine and the business behind it, not just the market.
Asset type and resale depth
A machine with a deep second-hand market, like an excavator, is easier to value and price than a one-off custom build.
Hours
Hours are the plant equivalent of kilometres, and a high-hour machine costs more to finance.
Age at the end of the term
Lenders look at how old the machine will be when the loan finishes, generally up to 25 years.
New vs used
New machines carry stronger warranties and lower rates than used plant, all else equal.
Business financials
Strong, consistent financials open the door to sharper rates.
Documentation type
A full-doc application generally beats a low-doc or no-doc rate.
Term
A longer term spreads the repayments but usually comes with a higher rate.
Deposit
A larger deposit lowers the amount financed and can unlock a better rate.
Structure
Chattel mortgage, hire purchase and lease are priced differently, and the right one depends on your tax position.
Common machinery finance mistakes
Five mistakes we see buyers make, and how to avoid them.
Reading the monthly repayment and ignoring total interest
A lower monthly repayment over a longer term can cost far more in total interest.
Using a balloon without planning the lump sum
A balloon lowers the monthly amount but leaves a large final payment you have to fund.
Forgetting the gap between delivered and earning
Installation, commissioning and training all have to be paid before the machine starts earning.
Assuming the advertised rate is your rate
The rate you are offered depends on your machine and your business, not the headline.
Comparing a 7 year quote against a 5 year quote
Different terms are not the same deal, so compare on total cost, not just the monthly figure.
A quick guide to machinery finance
Machinery finance is how Australian businesses pay for heavy plant and production equipment, from an excavator to a crusher. No two deals are the same, and the machine itself shapes the loan. Hours, resale value and how the asset earns all influence the lenders, the structure, the rate and the term.
Typical Loan Details
- Borrow up to $500,000
- No deposit available up to $150,000, subject to your profile and the asset
- 3, 5 and 7 year terms
- Weekly, fortnightly or monthly repayments
- Generally up to 25 years old at the end of the term
- 63+ lenders available
Get in touch with our team of Asset Finance Brokers today.
You can book a free discovery call with our team to learn about your options or simply submit an enquiry and we’ll call you back as soon as possible.
What are the pros and cons of machinery finance?
Cons
- Higher monthly repayments
- You carry the maintenance and repair costs
- Can still tie up working capital
- Requires a good credit history for a sharp rate
- Risk of negative equity if the machine drops in value
- A balloon lowers repayments but leaves a lump sum at the end
Pros
- Own the machine from day one
- No deposit available up to $150,000
- Tax benefits (GST, depreciation, interest)
- Builds business equity
- A balloon can lower your regular repayments
- Grow the business without tying up all your cash
- Fund new, used, imported or privately bought plant
Book a free 20-minute discovery call
Not sure where to start? Feel free to book a call with our team to chat through your objectives. On the call, we’ll talk you through your business goals, asset requirements, processes, expected timelines, and anything else to help you make an informed decision.
Frequently Asked Questions
How should I use the machinery finance calculator?
Use it as an estimator, not a quote. Enter the machine price, your deposit if any, the rate and the term to see roughly what your repayments would be. It does not include fees or balloon payments, so treat the result as a starting point.
For an accurate quote, book a free discovery call and we will match you with the right lender.
What machinery can I finance?
Most machinery that earns your business income and holds a resale value. That covers excavators, dozers, graders, wheel loaders, skid steers, rollers, crushers, screening plants, drill rigs and haul trucks, plus production and processing equipment.
If it earns and can be resold, it usually qualifies. The easier the machine is to resell, the easier it is to finance.
Am I eligible for machinery finance?
Most registered Australian businesses can qualify. Lenders generally look for an active ABN, a clear use for the machine, the ability to make repayments, and a reasonable credit history.
We work with 63+ lenders, each with different criteria, so low-doc, new-business and private-sale situations can still be placed.
Do I need a deposit for machinery finance?
Not always. No deposit is available up to $150,000, subject to your profile and the asset. A larger deposit lowers the amount financed and can unlock a sharper rate, but it is not always required.
What is a balloon payment on machinery finance?
A balloon is a lump sum due at the end of the term. It lowers your regular repayments because part of the machine value is deferred to the end. You then pay it, refinance it, or sell the machine to cover it.
Plan for the lump sum before you choose one.
Is new or used machinery easier to finance?
New machinery is generally easier, because a warranty and a known history make it easier for a lender to value. Used machinery is still very financeable, especially a machine with a deep second-hand market like an excavator. On used plant, hours and a clean PPSR check matter most.
Can I finance machinery bought privately or at auction?
Yes. Private sales are financeable, but the lender will want proof of what the machine is, its hours and condition, and a clean PPSR check. Auction purchases move fast, so arrange pre-approval before you bid so you can settle within the auction deadline.
What documents do I need for machinery finance?
It depends on the deal. A full-doc application uses financials and tax returns. A low-doc application uses bank statements, ABN and ID. For the machine itself, you will need an invoice or purchase agreement, and for used plant the serial number, hours and a PPSR check.
How can I lower my machinery repayments?
Extend the term to reduce the monthly figure, leave a deposit, or add a balloon. Each lowers the monthly repayment but raises the total interest or leaves a lump sum, so weigh the trade-off.
Choosing a machine with strong resale value also helps, because lenders price it better.
How fast can I get approved for machinery finance?
Straightforward deals can be approved within 24 to 48 hours once we have the machine details and your documents. Pre-approval before you buy is the fastest path, because it means the only thing left to check is the machine itself.
Which loan structure suits machinery finance?
Chattel mortgage, commercial hire purchase and finance lease are the common ones, and each is treated differently for tax. Chattel mortgage suits most businesses that use the machine for business, while a lease can suit equipment that is replaced often. We match the structure to your tax position and cash flow.
Is machinery finance tax deductible?
Usually the interest, and in many cases the machine itself, can be claimed through depreciation and GST, but the exact treatment depends on the structure and your circumstances. We always suggest confirming with your accountant before you commit.
What should I look for in a machinery finance broker?
A broker who works with many lenders rather than one, understands how hours and resale value shape plant deals, and explains the structure in plain English. They should also be upfront about rates and fees, and match the finance to your tax position rather than pushing a single product.
What other services do you offer?
Machinery finance sits inside our wider commercial lending. We also arrange truck finance, asset finance, agricultural finance, working capital and other business funding. If the asset earns your business income, we can usually place it.
Need help with finance?
Send Emmanuel a message and he’ll get back to you shortly.
Or call Emmanuel directly on 0417 209 702