Equipment Finance

Compare low-rate and structured equipment financing solutions tailored to your business' needs with Savvy.

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, updated on July 3rd, 2024       

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Easy, fair and competitive

Savvy knows that heavy plant and industrial equipment are investments in your business over the long term. That’s why we offer a range of equipment financing options that are easy to understand, fair and make the best of your current and future plans for equipment and mechanical resources. Whether you're buying new or used equipment or after a chattel mortgage, hire purchase or lease, we're here to help.

Structured equipment finance

If you only require short-term leases of equipment for a specialised product run or service contract, we can arrange operating leases to improve your cashflow. Talk to one of our expert financial professionals to see how equipment finance can work for you.

If you need to arrange finance for yourself or on behalf of your company, you can rest assured we're reaching for the best loans across Australia’s reputable lenders. We make sure all our loans are the most competitive you’ll find on the market.

Get started with us today with a free, no-obligation quote!

Why choose Savvy for equipment finance?

Calculate your equipment finance repayments

Common questions about equipment finance, answered

Is a chattel mortgage the same as equipment finance?

A chattel mortgage is just one of the options a business can take to finance their equipment. A mortgage is levied on the “chattel”, i.e. the equipment you buy. This also allows you to borrow more than the value of the equipment. The alternative is a hire purchase, which means the bank or lender retains ownership (not possession) of the equipment until the loan is settled.

What are the advantages to business equipment finance?

Taking out a chattel mortgage or hire purchase means you can claim GST, depreciation, and interest payments on your BAS, or as an instant write-off. You can also apply for seasonal repayments, more than 100% finance, and balloon payments if required.

What kind of equipment can I finance?

Business can finance machinery such as heavy plant, industrial machines, forklifts, or prime movers; vehicles such as trucks, cranes, frannas, and other heavy equipment; information technology equipment such as POS systems and servers; agribusiness equipment such as tractors, harvesters, and planters; you may finance anything a business needs to make profit.

My business is a startup. Can I apply for finance?

Yes! We can assist eligible startups in finding the equipment finance. Your consultant can help you through the process and find packages to suit your circumstances.

I’d like to lease my equipment; what if I decide I want to keep it?

A finance lease gives you the option to buy the equipment outright once your lease term is up. Ask your consultant for more options.

What is a balloon payment?

A balloon payment, or residual value payment, is a lump sum that’s due at the end of a lease or loan term. In return, your monthly or periodic repayments are lower.

Can seasonal businesses apply for finance?

Yes – many of our lenders understand the needs of seasonal businesses, offering flexible repayment terms.

I need a loan that is cash-flow neutral. Is this possible?

Yes – with many chattel mortgages or hire purchases, you may purchase equipment using 100% finance. You may also apply for amounts exceeding the value of the equipment to cover insurance, training, and other costs.

My business has bad credit. Can I still apply?

Yes – businesses with bad or impaired credit can apply for business equipment finance.

Can I take out a non-standard loan term?

Yes – we can help you find loans and leases that extend beyond the usual five-year terms, or are much shorter. Ask your consultant for more information.

More about commercial equipment finance

Chattel mortgage or hire purchase?

A chattel mortgage and a hire purchase are two sides of a business finance coin, so to speak: both are loan products that allow businesses to take possession of their equipment, write-off GST, depreciation, and interest, and even borrow more than the equipment’s value, to pay for insurance and other items. However a chattel mortgage means your business “owns” the purchases, meaning they're on the books as your own assets. You then pay off the loan as you go. A hire purchase means the lender “owns” the asset, and you pay off this “lease” as time goes on. It depends on what kind of accounting method is best for your business, and what your goals are.

Is it better to pay more for a new truck?

For a new business, saving money on startup costs can be counter-intuitive. Those who want to start “lean” may find their decision will cost them down the road. Buying a new truck means a longer life span, high reliability, more fuel economy, better safety features, less maintenance, and most important, higher resale value. A new truck could last a business years, even decades, if well maintained. Buying new does cost more up front, but with all businesses, it pays to think long-term. Though you may pay more for insurance, you might get a better deal on truck finance thanks to the lower risk involved with buying new.

A guide to forklift finance

When a business is expanding into a warehouse or larger premises, the need for a forklift or lift truck arises. However you should figure out if you need a smaller, electric powered forklift or one with an internal combustion engine, like a car. This might be restricted if it makes emissions and you're transporting foodstuffs. You need to know if your business will use it within a warehouse or loading trucks, and find a model that satisfies these needs. Also, buying new may be tempting; but market trends can change. You should figure out if leasing or hiring is a good option. At any rate, you should factor in the lifetime value of your forklift; how much insurance, special training, fuel/electricity, and maintenance will cost over its lifespan.

The special case of IT equipment finance

Moore’s Law, coined by computer scientist Gordon Moore, says that computer power roughly doubles every 18 months. With that in mind, how can one long-term lease or finance IT equipment without running into massive depreciation? Luckily, Moore’s Law has slowed somewhat, thanks to cloud-based computing and modest requirements for productivity software. When it comes to IT financing, you may require leases that allow flexibility for innovations in your industry. A rolling lease might give you new equipment on a fixed term, so you aren’t spending capital on acquiring essential technology and losing out on massive depreciation.

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