An equipment finance broker is a specialist who finds and arranges finance for the assets a business needs - trucks, utes, machinery, farm equipment, medical gear or fit-outs. Instead of you applying to one lender at a time, the broker compares a panel of banks and non-bank lenders, recommends the structure that suits the asset and your cash flow, and manages the application through to settlement. Most are paid a commission by the lender, not by you.
What an equipment finance broker actually does
The job starts well before any application is lodged. A good broker works through five things with you:
- Understands the asset and the business. What you are buying, new or used, dealer or private sale, how long it will earn for you, and how your business is structured and paid.
- Matches you to suitable lenders. Lenders have very different appetites - some favour transport, some agriculture, some newer businesses or low doc applications. The broker shortlists the ones most likely to approve you on good terms.
- Recommends a structure. Chattel mortgage, finance lease, hire purchase or operating lease, with or without a balloon, over a term that fits the life of the asset.
- Prepares and submits the application. Gathers financials or low doc alternatives, the supplier invoice and asset details, and presents your business in the way that lender assesses it.
- Manages it to settlement. Handles lender questions, documents and the payment to the dealer or seller so you can take delivery.
Equipment finance broker vs commercial finance broker
The terms overlap. An equipment finance broker focuses on asset finance - loans secured against the thing being bought. A commercial finance broker covers the wider business lending picture as well: business loans, lines of credit, invoice finance, trade finance and commercial property. Many brokers, loan-o included, do both. That matters when an equipment purchase is really part of a bigger cash-flow question - for example, whether to fund a new truck with an asset loan or a broader facility.
Broker, bank or dealer finance?
You have three common routes to equipment finance, and each has a place:
- Your own bank. Simple if you already have a strong relationship, but you only see one lender's products and appetite.
- Dealer or manufacturer finance. Convenient at the point of sale and sometimes subsidised, but tied to that dealer and not always the cheapest once fees, term and balloon are compared.
- A broker. Compares many lenders - often including your bank and the dealer's financier - and can structure the deal around your cash flow rather than a standard template.
Our guide to using a broker vs going direct to your bank covers this comparison in more detail.
How equipment finance brokers get paid
Most brokers are paid a commission by the lender after the loan settles. At loan-o, commission from credit providers typically ranges from 0% to 8% of the loan amount. Some brokers also charge a brokerage fee in certain cases - if so, it must be disclosed to you in a Credit Quote before you apply, and it is only payable if your loan settles. You are entitled to ask exactly how much your broker will be paid. Our breakdown of how much a finance broker costs explains it line by line.
When a broker is worth it - and when it isn't
A broker usually adds the most value when:
- The asset is specialised, older, or bought through a private sale or auction
- Your business is newer, seasonal, or needs a low doc option
- You want repayments structured around harvest, contracts or cash flow
- You are financing several assets and want them managed together
- You simply do not have the time to approach lenders one by one
You may not need one when:
- Your bank has already offered a competitive, well-structured deal
- A manufacturer is offering a genuinely subsidised rate you have compared
- The purchase is small enough to pay from cash flow without strain
How to choose an equipment finance broker
Before you hand over your financials, check:
- Credentials. Their Australian Credit Licence or credit representative number on ASIC's professional register, and industry membership such as the FBAA or MFAA.
- Panel size. How many lenders they actually use for equipment finance, not just how many they are accredited with.
- Asset experience. Whether they regularly finance your type of asset and industry.
- Transparency. Whether they tell you, in writing, how they are paid.
Our list of three questions to ask your broker is a good place to start that conversation.
The takeaway
An equipment finance broker is your comparison and paperwork partner for business assets. They do not lend the money - they find the lender and structure most likely to suit your asset and cash flow, and manage the process to settlement, usually at no direct cost to you. The best ones also tell you when going direct is the better call.
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.
Last reviewed: 24 September 2026. This article was prepared using information available from the Australian Securities and Investments Commission and Moneysmart. This content provides general information only. It should not be treated as personal financial, tax, legal or credit advice.
Frequently asked questions.
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No. A lender - a bank, non-bank lender or manufacturer's finance arm - provides the money and makes the credit decision. A broker does not lend. They compare lenders for you, help prepare and submit the application, and manage it through to settlement.
Brokers who arrange consumer credit must hold an Australian Credit Licence or be an authorised credit representative of a licensee. Finance used mainly for business purposes sits largely outside the National Credit Code, so some commercial-only brokers are not licensed. It is worth checking ASIC's professional register and asking whether the broker belongs to an industry body such as the FBAA or MFAA. loan-o is Credit Representative 550800 of COG Compliance Services Pty Ltd (Australian Credit Licence 384428) and an FBAA member.
Each formal application to a lender can be recorded as an enquiry on your credit file. A good broker narrows the field before applying, so your application goes to the lender most likely to approve it rather than several at once.
Sometimes, but not always. A broker can compare your bank against other lenders on rate, fees, term, balloon and repayment structure, and some lenders only take business through brokers. If your own bank already offers the best overall deal, a good broker should tell you that.
It depends on the lender, the loan size and how complete your documents are. Straightforward applications for established businesses can sometimes be approved within a few business days; larger, older-asset or low doc deals usually take longer.
In most cases, no. Brokers are typically paid a commission by the lender once the loan settles. If a brokerage fee applies in your situation, it must be disclosed to you in a Credit Quote before you apply, and it is only payable if your loan settles.
Not sure whether a broker or your bank is the better route? Ask loan-o.
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