Yes, plant and machinery 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 or orders it will support.
loan-o is a Brisbane finance broker based in Milton. We arrange plant and machinery finance for businesses across South East Queensland and beyond, from workshop and manufacturing equipment to earthmoving plant, 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 counts as plant and machinery
The term is broad. It usually covers machines a business uses to produce, build or move things: CNC machines, lathes, welders, compressors, hoists and lifts, forklifts, printing and packaging lines, and construction and earthmoving plant. Vehicles such as trucks and utes are often handled separately, so see our guides on truck finance and cash flow and equipment finance.
What lenders look at: the machine and your business
- The machine: make, model, year, hours, condition and the price against what it is worth. For used machinery, 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 orders, your credit file and your other commitments.
- The deal: the deposit, the term and any balloon (a lump sum left owing at the end).
- The seller: a dealer, an auction or a private seller, since each carries different paperwork and risks.
Delivery, installation and attachments
Machinery often comes with extras: freight, installation, tooling or attachments. Lenders may want each item listed, and some will finance the whole package together while others finance only the machine. Ask early what can be included, and keep the invoices itemised.
New or used, dealer, auction or private sale
Used machinery can be financed, but expect more checks. Get an independent inspection, ask for the service history and hours in writing, and search the PPSR to confirm no finance is owing on the machine. For an auction or 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 balloon?
- 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 business machinery.
- Finance lease: the lender owns the machine during the term and you make lease payments. What happens at the end depends on the agreement.
- Balloon: a lump sum left owing at the end of the term. It lowers regular repayments, but you still have to pay or refinance it. See what a balloon payment means.
Tax and GST treatment differs between structures, so confirm it with your accountant. See chattel mortgage vs lease for the comparison, and instant asset write-off and equipment finance for how write-off rules can interact with a purchase.
Match repayments to what the machine earns
A machine should pay for itself, but not always on a flat monthly schedule. Work out when the income or savings it creates actually arrive, and whether a fixed repayment fits. Test the numbers with the finance calculator. Our guide on how seasonal cash flow shapes the right finance goes further.
What to have ready
- The machine and any extras: make, model, year, hours, plus the quote or itemised invoices.
- Your ABN, how long you have traded and what the machine will be used for.
- Recent business bank statements or BAS, and any orders or contracts it will support.
- Any deposit and any trade-in.
- Details of other finance you already have.
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
Plant and machinery is a financeable asset, but the lender judges the machine and your business together. Know what you are buying, 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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It is finance used to buy or refinance business machinery, such as workshop and manufacturing equipment, earthmoving and construction plant, forklifts, compressors, printing and packaging machines. The machine usually secures the finance. The term is a label rather than a single product, so the actual structure is usually a chattel mortgage, a finance lease or a business loan.
Banks, non-bank lenders and brokers all do. loan-o is a Brisbane finance broker based in Milton and compares options from a panel of 50+ bank and non-bank lenders. Whoever you use, compare the total cost and ask why that lender and structure were chosen for your situation.
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 and condition and the price against market value. For an auction or 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.
Sometimes. Some lenders will include delivery, installation and attachments when they are itemised on the invoice, while others finance only the machine. Ask early, because it can change how the asset is valued and what you need to pay upfront.
Many lenders consider newer businesses, sole traders and small operators, but options can be narrower. They generally look at how long you have held your ABN and traded, your credit file, the machine, any deposit and the income or orders it will support.
A balloon lowers your regular repayments, but you still owe the lump sum at the end of the term and need to pay it, refinance it or sell the machine to cover it. Whether it makes sense depends on what the machine may be worth then and how long you plan to keep it. A broker can show how it changes the total cost.
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