Yes, excavators and other earthmoving equipment can be financed. Most buyers use a chattel mortgage, a finance lease or a business loan, and the machine itself usually secures the finance. What changes from one lender to the next is how closely they look at the machine, at your business and at the work you have lined up to pay for it.
loan-o is a Brisbane finance broker based in Milton. We arrange excavator and earthmoving equipment finance for contractors across South East Queensland and beyond, comparing options from a panel of 50+ bank and non-bank lenders. This guide explains how it works so you can ask better questions, whoever you finance with.
What lenders look at: the machine and your business
- The machine: make, model, age, hours, condition and the price against what it is worth. For a used machine, many lenders also care about its age at the end of the term, not just today.
- Your business: how long you have held your ABN and traded, your income or contracts, your credit file and your other commitments.
- The deal: the deposit, the term, any balloon (a lump sum left owing at the end) and whether the price includes attachments or a float.
- The seller: a dealer, an auction or a private seller, since each carries different paperwork and risks.
New or used, dealer or private sale
A used excavator can be financed, but expect more checks. Get an independent inspection, ask for the serial number and hours in writing, and search the PPSR to confirm no finance is owing on the machine. For a private sale, lenders often ask for proof of ownership as well. Our guide to financing a used vehicle or equipment covers these checks in more detail.
Chattel mortgage, finance lease or loan?
- Chattel mortgage: you own the machine from day one and the lender takes security over it until the loan is repaid. It is a common choice for contractors.
- Finance lease: the lender owns the machine during the term and you make lease payments. What happens at the end depends on the agreement.
- Operating lease: a lease where you generally return the machine at the end, which can suit equipment you do not plan to keep.
- Business loan: a loan that is not tied to the machine, sometimes used when the asset is hard to value.
Tax and GST treatment differs between structures, so confirm it with your accountant. See chattel mortgage vs lease, what a balloon payment means and instant asset write-off and equipment finance.
Match repayments to when you get paid
Earthmoving income can be lumpy: a big job, a wet spell, a gap between invoices and payments. Before you commit, work out whether a fixed monthly repayment fits the way your business is paid. Some businesses prefer a smaller regular repayment with a balloon, others a shorter term to own the machine sooner. Neither is automatically better. Read how seasonal cash flow shapes the right finance, and use the finance calculator to test the repayment on your own.
What to have ready
- The machine details: make, model, year, hours and serial number, plus the quote or invoice, itemised if it includes attachments or a float.
- Your ABN, how long you have traded and what kind of work you do.
- Recent business bank statements or BAS, and details of the work you have booked.
- Any deposit and any trade-in.
- Details of other finance you already have.
Our documents checklist for truck and ute finance lists the usual paperwork and applies in much the same way to machinery.
Questions to ask before you sign
- Why this lender and this structure for my situation?
- What will the repayments be, including any balloon, and what is the total I will pay?
- What fees apply, now and at the end of the term?
- What happens if I want to pay it out early or sell the machine?
- What will the lender need from me, and how long will it take?
The takeaway
An excavator is a financeable asset, but the lender judges the machine and your business together. Know the machine, line up your paperwork and compare the total cost, not just the repayment. loan-o can review any offer you already have for free; start a free finance check with no credit check to enquire, or see our equipment finance page.
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Finance is subject to lender approval, lending criteria, terms, conditions, fees and charges. The information in this article is general and does not take into account your personal or business needs. It should not be treated as personal financial, tax, legal or credit advice.
Frequently asked questions.
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Yes, excavators and other earthmoving equipment are commonly financed. The machine usually secures the loan, and lenders look at the machine, your ABN and trading history, your credit file, any deposit and the work you have coming in. Approval is never guaranteed and criteria differ between lenders.
The common structures are a chattel mortgage, a finance lease and an operating lease. A business loan can also be used. Which one suits you depends on how long you plan to keep the machine, how you want to handle tax and GST, and how much you want to owe at the end of the term, so check the treatment with your accountant.
Often, yes, depending on the machine, the seller and the lender. Lenders may look at the machine's age at the end of the term, its hours, its condition and the price against market value. For a private sale they often ask for extra checks, such as proof of ownership and a search of the PPSR to confirm no finance is owing.
Yes, many lenders consider sole traders. They generally look at how long you have held your ABN and traded, your credit file, the machine, any deposit and your work history. Options can be narrower for a newer business.
Sometimes. Some lenders will include attachments, such as buckets and hammers, or a float or trailer in the amount financed, subject to their own rules and an itemised invoice. Ask early, because it can change how the machine is valued.
Not always, but a deposit can widen the options, especially for used machines, newer businesses or larger amounts. It varies by lender and by your situation.
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