Home/Commercial/Truck & equipment finance
Commercial and asset finance
Finance the equipment without shrinking what you can borrow next.
Most brokers do houses. A few do equipment. When the same person does both, the asset finance gets structured around what you want to borrow next — whether that's premises, more equipment, or a home.
In short
The rate is the easy part.
Whatever you're buying — a prime mover, an excavator, a shop fit-out — the process is the same. Tell me the asset and the plan, and I price it across more than twenty-five lenders rather than the one or two a dealership finance desk has on its screen. You get the rate, the term, the balloon, the fees and what each lender will want from you, side by side, before you commit to anything. Asset finance moves considerably faster than a home loan.
What a dealer won't do is look at the rest of your balance sheet. The repayment, the director's guarantee and sometimes the security on an equipment loan all follow you into the next application you make, whatever it's for — which is why the term and the structure usually matter just as much as the rate.
Start to finish
How it works
-
Tell me the asset and the plan
What it is, what it costs, who you're buying it from, and how long you intend to keep it.
-
I price it across the panel
Rate, term, balloon, fees and what each lender will want from you, side by side.
-
Approval and documents
Asset finance is considerably faster than a home loan.
-
Settlement with the supplier
The funder pays the dealer or the private seller directly, and you get the asset.
Assets
What I finance
| Category | Typical assets | Worth knowing |
|---|---|---|
| Prime movers and rigids | New and used, dealer or private sale | The main one. Term and balloon set against the rebuild cycle, not just the lowest repayment. |
| Trailers and bodies | Tautliners, tippers, flat tops, refrigerated | Often financed separately from the truck, and sometimes better priced that way. |
| Earthmoving and yellow goods | Excavators, skid steers, loaders, rollers | The age of the asset matters more here than in any other category. |
| Materials handling | Forklifts, telehandlers, scissor lifts | Commonly rented rather than purchased. Both are worth pricing. |
| Light commercial | Utes, vans, light trucks | Fast approvals, and the category where dealer finance is most often beaten on rate. |
| Plant, fit-out and machinery | CNC, production plant, commercial kitchens, shop fit-outs | A fit-out usually needs a different structure to a truck. |
Structure
How these are structured
Four shapes, and the choice between them usually matters just as much as the rate.
| Structure | How it works | Usually suits |
|---|---|---|
| Chattel mortgage | You own the asset from day one. The lender takes a mortgage over it. | Most GST-registered businesses buying an asset they intend to keep. |
| Finance lease | The lender owns the asset and leases it to you, with a residual at the end. | Businesses that upgrade on a cycle, or want the option to hand it back. |
| Commercial hire purchase | You hire the asset over the term and own it at the end. | Businesses that want to own the asset at the end without using a chattel mortgage. |
| Rental or operating lease | Pure rental. No ownership, and no residual to settle. | Fit-outs, IT and short-life equipment where owning it at the end is worth little. |
Which one is right usually turns on tax treatment and how long you'll keep the asset. That's your accountant's call, not mine, and I'm happy to have the conversation with them directly rather than through you.
A word on balloons
A balloon, sometimes called a residual, is a lump sum left at the end of the term. It lowers the monthly repayment and increases the total interest you pay. It also leaves you a decision at the end — pay it, refinance it, or sell the asset to cover it.
On a five-year prime mover, that decision tends to arrive in the same year as the rebuild. Worth thinking about before you sign rather than in year five.
No surprises
What this costs you
Asset finance works differently from a home loan, and this page should be straight about it. On a residential loan the lender pays the commission and you pay nothing. On equipment and commercial finance a brokerage fee is common across the market, and it's often built into the rate rather than shown as a line item.
No dead ends
Where it gets hard, and what I do about it
None of this is the dealership's problem, which is exactly why none of it comes up at the dealership.
Send me the quote-
A house is on the horizon too
Every home loan assessment from the day this settles counts the repayment against your serviceability. A $2,500 a month truck payment is a meaningful bite out of what a lender will advance you for a home, and on a larger or lower-doc facility some lenders will want the house as additional security on top.
What I do about itTell me now rather than in two years. The term, the balloon and the choice of lender can all be set with the mortgage in mind instead of against it, and I'll tell you which lenders are asking for property security and what the alternatives cost.
I write the home loan as well, so this isn't a hand-off to someone who has never seen your equipment file.
-
The guarantee follows you home
Commercial asset finance is usually written with a director's guarantee. Whatever the company structure says, you are personally behind the debt — and that is rarely the part of the contract anyone walks you through.
What I do about itI'll tell you plainly what each lender on the shortlist requires, before you sign rather than after, and where a structure avoids or limits it I'll put that option in front of you with what it costs.
-
You have already been shopping it around
Each formal application is a credit enquiry. A cluster of them across three dealership finance desks in a fortnight makes the fourth lender nervous, and the dealer's desk has one or two funders and a margin built into the rate it quotes you.
What I do about itOne conversation, one set of numbers, priced across the panel without an application going anywhere until you've chosen. Send me the quote you already have — the rate, the term, the balloon and the fees — and I'll tell you honestly whether I can beat it. Sometimes I can't, and on those occasions I'll say so.
-
You don't have last year's books
A good part of this market is written without full financials. The usual shape is an established ABN, GST registration, a clean credit file, and property ownership somewhere in the picture.
What I do about itOn that profile, several lenders on my panel will approve asset finance on a declaration rather than a full set of books. If you're a newer ABN it's harder but not closed — what helps most is driving experience, a deposit, and property ownership if you have it.
Tell me the asset, the deposit and how long you've been trading and I'll give you honest odds before you spend anything.
Get it priced properly before you sign at the dealership.
Send me the quote. I'll price the same asset across the panel and tell you what it does to your borrowing capacity before you commit to anything.
Asked on the phone
Questions people are too polite to ask
If yours isn't here, call and ask it. Ten minutes on the phone beats a fortnight of guessing.
Ask Alen directlyCan I finance a truck I'm buying privately or at auction?
Not every lender will fund a private sale, and fewer again will fund an auction purchase where you need the money before you bid. The ones that do want a roadworthy, a clear title check and sometimes an inspection.
Will this stop me buying a house later?
Not by itself, but it changes the number. The repayment counts as a commitment in every home loan assessment from the day it settles, so a $2,500 a month truck payment reduces what a lender will advance you for a home.
If a house is on the horizon in the next couple of years, tell me now. The term, the balloon and the choice of lender can all be set with that in mind instead of against it.
The dealer has already quoted me finance. Why would I use you?
Because the dealer has one or two funders and a margin in the rate. I have more than twenty-five lenders and no reason to prefer one.
Send me their quote — the rate, the term, the balloon and the fees — and I'll tell you honestly whether I can beat it. Sometimes I can't, and on those occasions I'll say so rather than waste a fortnight of your time.
I'm a new ABN with one truck. Am I wasting your time?
No. Newer ABNs are harder and the deposit requirement is usually larger, but the market for them exists. What helps most is driving experience, a deposit, and property ownership if you have it.
Tell me the asset, the deposit and how long you've been trading and I'll give you honest odds before you spend anything.
Can I claim the repayments?
The tax treatment differs between a chattel mortgage, a lease and a rental, and it depends on your structure and your GST position. That's a question for your accountant, and I won't pretend otherwise.
What I will do is give you the structure options in writing so your accountant can tell you which one suits, and speak to them directly if that's easier.
Can I borrow against equipment I already own?
Often, yes. If you own plant or vehicles outright, a sale and leaseback releases cash against them while you keep using them. It's a useful cash-flow tool and a slightly expensive one, so it suits a specific situation rather than a general shortage of money.
Also on the site
One broker for all your financing needs
Residential
Home loans
Buying your first or your next, including on twelve months of ABN income — and how the business debt gets structured so it doesn't cost you the house.
Let's talk
Request a call back
Send me the quote or just tell me what you're looking at. No calendar to wrestle with — I'll call you.
Twenty-one years in lending. More than twenty-five lenders.
Tell me what you're buying and I'll price it properly, structure it so it doesn't cost you elsewhere, and handle it myself from the quote to the keys.