Financing equipment and vehicles: how lenders treat each asset type

Lenders do not treat all assets the same. They price and structure to one thing above all: how easily they could sell the asset if they had to. An asset with a deep second-hand market and a long working life gets longer terms and sharper rates. A niche or fast-depreciating one gets shorter terms, a deposit, or a tighter policy.

This guide runs through how the main asset classes are financed in Australia and what to expect for each. For any specific asset, you can also browse our finance pages by type and location.

The principle behind it all

Three things drive how an asset is financed: its resale value, its useful life, and how active the second-hand market is. Age limits almost always apply at the end of the term, not the start. So a five-year loan on equipment that lenders cap at twenty years old means the machine can be up to fifteen years old at purchase. New assets attract longer terms and better rates because they have a longer working life and clearer resale.

Trucks and heavy transport

Mainstream prime movers, rigid trucks and trailers have a strong secondary market and are well supported. Older trucks are financeable, but expect age caps at the end of term, shorter terms, or a deposit. Specialised or single-purpose bodies are harder. Lenders who know the transport sector will structure repayments around freight income. Browse truck finance, prime mover finance and trailer finance.

Construction and earthmoving plant

Excavators, loaders and earthmoving plant are widely financed, including used machines. Many low-doc policies cap the machine at around twenty years old at the end of term, with older units case by case. New machinery attracts longer terms and sharper rates. See excavator finance, earthmoving finance and crane finance.

Vehicles, utes and vans

The most liquid and easily financed category. Standard commercial vehicles get the best terms. For passenger vehicles, watch the car cost limit, which caps the depreciation and GST credit you can claim. Utes and vans built to carry load may sit outside the car-limit rules, so check with your accountant. Browse vehicle finance, ute finance and van finance.

Forklifts and warehouse equipment

Counterbalance forklifts, reach trucks and order pickers are common, well-supported assets with an active resale market, so they finance cleanly for warehouses and distributors. See forklift finance.

Agricultural machinery

Tractors, headers and harvesters are well supported, with active resale markets and sometimes seasonal repayment structures that line up with harvest income. Age and brand affect appetite. See tractor finance and agricultural finance.

Medical, dental and hospitality

Medical and dental equipment is specialised but well supported by lenders with health-sector appetite, helped by strong borrower profiles and equipment that holds value. Hospitality is trickier: fit-outs, joinery and cool-rooms have weak resale value, so lenders are more cautious and may want a deposit or asset-backing. Standalone equipment such as ovens and fridges is easier than a custom fit-out. See medical equipment finance, dental equipment finance and hospitality finance.

Technology and IT

Fast obsolescence and low resale value push lenders toward rental or operating lease structures rather than ownership, usually over shorter terms. This is often vendor-financed. A lease can suit here precisely because you want to upgrade rather than own.

The common thread

Whatever the asset, the right lender is the one whose policy fits it. A standard ute and a fifteen-year-old specialised machine are very different deals, and the lender that is sharp on one may decline the other. A broker with a panel of more than 40 lenders matches the asset to the right policy first time. For the bigger picture, start with our complete guide to asset finance in Australia.

Authoritative sources

• ATO: Changes to car thresholds

This is general information only and not financial, credit, or tax advice. Lender appetite and asset policies vary and change. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.

This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.