Four ways to fund equipment — and how to tell which one fits
Equipment finance isn't one product. It's a handful of structures with different ownership, tax and cash-flow outcomes. This section explains each one in plain terms.
Why the structure matters more than the rate
Two businesses can finance the same excavator and end up with completely different outcomes — one owns it outright from day one, the other doesn't own it until the final payment clears. Which one suits a given business depends on how the equipment is used, how long it'll be kept, and how the business wants the purchase to sit on its books.
The four structures below are the common starting points. None of them is universally "better" — each solves a slightly different problem.
The four structures
Chattel Mortgage
Ownership sits with the buyer from day one, with the lender holding a registered interest until the loan is repaid.
Read more →Hire Purchase
The financier owns the asset during the term; ownership transfers to the business at the end.
Read more →Operating Lease & Rental
Pay for use rather than ownership — suited to equipment that's upgraded or replaced regularly.
Read more →Vehicle & Fleet Finance
Finance structures specific to commercial vehicles, utes and fleet acquisition.
Read more →What's generally involved in applying
Lenders typically want to understand three things: the business itself (time trading, financials), the asset being financed (type, age, value), and how the repayments fit the business's cash flow. Newer businesses or higher-value equipment often involve more documentation than an established business financing something modest.
Beyond that, the detail varies a lot by lender and by industry — which is exactly the kind of question a broker is positioned to answer for a specific business and a specific asset, rather than a general guide.