Vehicles, machinery and equipment are the engine room of most WA businesses — but paying for them outright ties up cash you could be using to grow. Business asset finance in Perth lets you acquire the gear you need now and spread the cost over time, while keeping your working capital free. Here is how it works and how to make it work for you.
What is asset finance?
Asset finance is funding used to buy business assets — anything from a work ute to a fleet of excavators — where the asset itself usually secures the loan. Because the lender has the asset as security, asset finance is often quicker and more competitive than an unsecured business loan, and it keeps your cash and overdraft available for day-to-day operations.
What can you fund?
Almost any asset that helps your business earn can be financed, including:
- Vehicles — utes, vans, cars and commercial vehicles.
- Trucks and transport — from light trucks to prime movers and heavy vehicles.
- Earthmoving and construction plant — excavators, bobcats and loaders.
- Warehouse and materials handling — forklifts and warehouse equipment.
- Machinery, tools, IT and fit-out — the equipment that keeps your operation running.
The main finance structures
Choosing the right structure is where a lot of the value lies. The most common options are:
Chattel mortgage
You own the asset from day one and borrow against it. Popular with businesses registered for GST, it lets you claim depreciation and interest, and you can often claim the GST on the purchase price up front. A balloon payment can be used to lower monthly repayments.
Finance lease
The financier owns the asset and leases it to you for an agreed term. Repayments are generally treated as an operating expense, which can suit businesses that want predictable costs and prefer not to hold the asset on their balance sheet.
Rent-to-own / hire purchase
A middle path where you hire the asset and take ownership at the end of the term. It can be a good fit where a chattel mortgage or lease is not ideal.
Each structure has different tax, GST and cash-flow effects, so it pays to talk them through with a broker and confirm the detail with your accountant. Our asset finance division arranges all of these across a panel of lenders.
The tax angle
Used for business purposes, the interest and depreciation on a financed asset are generally deductible, and structures like a chattel mortgage can let you claim the GST on the purchase. Government incentives for business asset purchases also change from year to year. We will point you in the right direction, but your accountant should confirm exactly what your business can claim.
New or used, one asset or a fleet
Asset finance suits both new and used equipment, and everything from a single purchase to a full fleet upgrade. Used gear is well suited to finance because it holds its value as security — the age, hours and type simply influence the term and rate a lender will offer.
Getting approved quickly
For established businesses with a clean credit profile, asset finance can move fast — often same-day pre-approval and settlement within a couple of business days. To keep things moving, have these ready:
- Your ABN and business details.
- Details of the asset — a quote, invoice or listing.
- Recent business bank statements (for larger or low-doc deals).
- Basic financials or tax returns for full-doc applications.
Newer businesses are not shut out, either. Low-doc asset finance options rely on the asset as security rather than full financials, which makes them a practical choice for a new ABN buying its first major piece of equipment.
How a broker makes it easier
A broker compares many lenders at once, structures your application the way each lender wants to see it, and matches you with the ones most comfortable funding your specific asset and industry. That usually means a sharper rate, the right structure, and far less legwork than chasing banks yourself. With decades of banking and equipment finance experience, PTR Finance Group knows which lenders say yes to what.
Ready to fund your next vehicle, machine or piece of equipment? Request a quote from PTR Finance Group and we will find the structure and lender that fit your business.
Frequently Asked Questions
What is the difference between a chattel mortgage and a lease?
With a chattel mortgage you own the asset from day one and borrow against it, claiming depreciation and interest, and it is popular with businesses registered for GST on a cash basis. With a lease, the financier owns the asset and you pay to use it over a term, treating the payments as an operating expense. The best fit depends on your accounting method, cash flow and how long you will keep the asset — always worth confirming with your accountant.
Is business asset finance tax-deductible?
Generally the interest and depreciation on an asset used for business purposes are tax-deductible, and the exact treatment depends on the finance structure you choose. GST treatment also varies between a chattel mortgage and a lease. We will explain the differences, but your accountant should confirm what applies to your business.
Can I finance used vehicles and equipment?
Yes. Asset finance works well for both new and used equipment because these assets hold value as security. For used items, the age, hours and type influence the term and rate, and we match you with lenders comfortable funding the specific asset you are buying.
Do I need a deposit for asset finance?
Often not. Many established businesses access no-deposit asset finance secured against the asset itself. A deposit or trade-in can help you secure a sharper rate or is sometimes required for older equipment or newer businesses. We will outline your options before you commit.
Can I get asset finance with a new ABN or limited financials?
Yes. We have low-doc and streamlined options for newer businesses and ABNs that do not yet have full financials, which typically rely on the asset as security rather than full tax returns. We will match you with the lenders most comfortable with your situation.
What is a balloon or residual payment?
A balloon (or residual) is a lump sum left owing at the end of the finance term, which lowers your regular repayments along the way. It suits businesses that want to manage cash flow now and either pay out, refinance or trade in the asset at the end. The right balloon amount depends on how long you plan to keep the asset.
Talk to PTR Finance Group
Every business is different. Speak with our brokers for finance tailored to your situation across Perth and WA.
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