Direct answer
Asset and equipment finance funds the purchase of vehicles, plant and machinery for business use, structured as a chattel mortgage, lease or hire purchase, with the asset itself standing as security. In Australia it can be funded in as little as one to five business days, runs one to seven years to match the asset's useful life, and is arranged through banks and private lenders across full-doc, low-doc and no-doc documentation.
Who uses it and why
Equipment finance exists because businesses that need vehicles, plant or machinery to operate would rather deploy their cash into trading and growth than tie it up in outright asset ownership. A transport operator needs a truck to fulfil a new contract and needs it funded fast, without the capital outlay of an outright purchase. A builder needs an excavator to start a job on schedule. A medical practice needs specialised equipment to expand its services, and a hospitality business needs kitchen equipment or fit-out plant to open a new site.
Because the asset itself is the security, this product sits apart from property-secured lending in the category: approval and settlement can be very fast, pricing is heavily driven by the asset's type and residual value, and the facility is generally structured to align with how long the business expects to use the asset. Typical borrowers span trades, transport and logistics, agriculture, medical and hospitality operators, and any business acquiring vehicles, plant or machinery for its own operations.
For many of these businesses, equipment finance is simply how growth is funded — a contractor scaling from one truck to a small fleet, a clinic adding a second treatment room, a hospitality operator opening a second site, all typically stage that growth through equipment finance rather than outright cash purchases, keeping working capital free for the rest of the business.
What lenders look at
The asset is the primary consideration: its type, age, condition, and — critically — its residual value over the term, since the lender's security is the asset itself rather than a separate mortgage. A late-model truck or a well-supported piece of standard plant retains resale value predictably and supports strong terms; a highly specialised or rapidly depreciating asset is assessed more conservatively, and financing can typically extend to 100% of the asset's cost plus associated costs, reflecting how directly the asset itself secures the facility.
Beyond the asset, the borrower's ability to service the repayments is assessed against the business's trading performance, though the strength of the asset security means this product is markedly more flexible on documentation than most in the category — full-doc, low-doc and no-doc options are all available depending on the lender and the asset. Banks generally offer the sharpest pricing for straightforward assets and clean-credit borrowers with full financials; private lenders fill the space for less standard assets, tighter timeframes, or borrowers whose credit history or documentation doesn't fit a bank's checklist.
Credit history carries real, wide-ranging tolerance in this category — lenders will consider applicants with major defaults on file, since the strength of the asset security materially offsets that risk compared with an unsecured or property-based facility. Industry and asset type both shape which lenders are the best fit: transport, construction, agricultural and medical equipment each have specialist lenders who understand that asset class specifically and price accordingly.
Typical terms
|
|
| Size |
$10,000 to $10m, subject to lender assessment |
| LVR |
Financing typically available up to 100% of the asset's cost plus costs |
| Term |
One to seven years, matched to the asset's useful life |
| Speed |
Indicative funding in 1–5 business days from a complete application |
| Security |
The financed asset itself |
| Pricing |
Priced on risk and security; indicative range on enquiry |
Structures we see most
Chattel mortgage. The business owns the asset from settlement, with the lender taking a registered security interest over it, generally the most common and straightforward structure for a business intending to keep the asset long term.
Finance lease. The lender owns the asset and leases it to the business for an agreed term, at the end of which the business generally has an option to acquire it, used where the flexibility of a lease structure suits the business's plans for the asset.
Hire purchase. The business hires the asset with an agreed path to ownership at the end of the term, historically common for vehicles and plant and still used by lenders who prefer this structure over a chattel mortgage.
Sale and leaseback. Where a business already owns an asset outright, it can be sold to a financier and leased back, releasing the capital tied up in the asset for use elsewhere in the business.
Multi-asset or fleet facility. A single facility structured across several vehicles or pieces of equipment at once, used by businesses regularly acquiring or upgrading assets, simplifying administration compared with financing each asset separately.
Specialist industry equipment finance. Structured for asset types with a narrower resale market — specific medical devices, custom agricultural equipment — typically placed with lenders who specialise in that industry and understand the asset's genuine residual value.
Costs and how we're paid
Pricing on asset and equipment finance reflects the asset type, its age and residual value, the term and the borrower's documentation level, and is quoted on enquiry once a lender has reviewed the file — no flat rate applies across the product. Facilities may carry an establishment fee and, depending on structure, a balloon or residual payment at the end of the term; all costs are set out in the finance offer before a borrower commits.
Solara is remunerated by the lender, the borrower, or both, depending on structure, which may include a commission from the lender and/or a broker fee agreed with the borrower. Any commission or fee is disclosed in writing before an application proceeds.
Process and timing
- Initial scoping call — typically same day. We confirm the asset, its cost, the business's intended use and preferred structure.
- Document collection — typically same day to 1 business day. Asset details and invoice or purchase agreement, plus financials appropriate to the doc level.
- Lender matching and submission — typically same day. We place the file with the banks and private lenders whose appetite matches the asset type and the borrower's documentation.
- Approval and offer — typically 1–3 business days.
- Settlement and asset delivery — typically 1–2 business days once terms are accepted, coordinated with the asset's supplier or vendor.
Frequently asked
What is asset and equipment finance?
It is business finance for vehicles, plant or machinery, structured as a chattel mortgage, lease or hire purchase, with the asset itself standing as security rather than requiring a separate mortgage or unsecured guarantee.
How fast can equipment finance be arranged?
Indicative funding runs from one to five business days from a complete application, among the fastest facilities in the category given how directly the asset itself secures the loan.
Can I get equipment finance with bad credit?
Often, yes. The strength of the asset security gives this product wide credit tolerance, and lenders will consider applicants with major defaults on file provided the asset and the business's current trading position support the application.
What's the difference between a chattel mortgage and a lease?
A chattel mortgage gives the business ownership from settlement with the lender holding a security interest; a lease has the lender retain ownership through the term, generally with an option for the business to acquire the asset at the end.
Can I finance a used or specialised asset?
Yes, though the age, condition and expected residual value of the asset shape both the loan-to-cost ratio and pricing, with highly specialised or rapidly depreciating assets generally assessed more conservatively than standard, widely supported equipment.
Do I need full financials to qualify?
Not necessarily — low-doc and no-doc options are available given the strength of the asset security, though full-doc evidence generally supports the sharpest pricing and the largest facilities.
Can I release equity from an asset I already own?
Yes, through a sale and leaseback structure, where an owned asset is sold to a financier and leased back, releasing the capital tied up in it for use elsewhere in the business.
What happens at the end of the finance term?
Depending on the structure, the business may already own the asset outright, have an option to acquire it for an agreed residual amount, or return it, with the specifics set out in the finance agreement from the outset.
Can I finance an asset bought privately rather than from a dealer?
Yes, in many cases — private sale purchases are financeable, though lenders will typically want a clear invoice or sale agreement and, for higher-value assets, may request an independent valuation to confirm the asset's condition and value.
Is GST treated differently on equipment finance?
GST is generally payable on the asset purchase and can, depending on structure, be financed as part of the facility rather than needing to be funded separately upfront — the specifics vary by structure and are confirmed as part of the finance offer.
Related products
Unsecured business loans — worth considering directly where the funds are needed for general working capital rather than a specific, identifiable asset.
Trade finance — the better fit where the requirement is funding imported goods or inventory rather than owned vehicles, plant or machinery.
Rural & agribusiness loans — the closer match where equipment finance sits alongside a broader rural property or agribusiness lending need.