New machinery can transform what a business can produce, take on and win — but it's also one of the biggest purchases most WA businesses make. Getting the finance right matters as much as choosing the right machine. Here's what to understand about equipment finance in WA before you commit to financing new plant or machinery.
What equipment finance actually is
Equipment finance is funding used to acquire business machinery — from CNC machines and manufacturing plant to earthmoving equipment, forklifts and mining plant — where the equipment itself secures the loan. Because it's secured, it's usually faster and more competitive than unsecured lending, and it keeps your working capital free for running the business.
New vs used: what changes
Both can be financed, but the terms differ. New machinery typically attracts the sharpest rates and the longest terms, and may qualify for manufacturer or dealer finance offers. Used machinery is still very financeable — it holds value as security — but the age, hours and type of the machine will shape the term and rate a lender will offer. Knowing this before you shop helps you compare the true cost of new versus used.
Choose the right structure
The structure you pick affects your tax, cash flow and ownership:
- Chattel mortgage — you own the machine from day one and finance it against the asset; popular with GST-registered businesses.
- Finance lease — the lender owns it and you lease it, treating repayments as an operating expense.
- Rent-to-own / hire purchase — hire the machine and take ownership at the end of the term.
Each has different GST and tax effects, so it's worth talking through with a broker and confirming with your accountant. Our asset finance team arranges all of these.
Understand the tax position
Interest and depreciation on machinery used for business are generally tax-deductible, and governments periodically offer accelerated or instant asset write-off incentives with specific thresholds and dates. These change from year to year, so check what's current — the right timing on a purchase can make a real difference to your tax outcome.
What lenders assess before they approve
When you apply, expect a lender to weigh up:
- The machine — its type, age, hours and how well it holds value.
- Your business — trading history, credit conduct and existing commitments.
- Serviceability — whether the income the machine helps generate covers the repayments.
Newer businesses aren't shut out: low-doc equipment finance relies mainly on the asset as security rather than full financials, which suits a new ABN buying its first major machine.
Match the term to the machine's working life
A good rule of thumb is to align the finance term with how long the machine will earn for you. Financing a machine over far longer than its useful life can leave you paying for equipment you've already replaced; too short and the repayments strain cash flow. A broker can help you strike the right balance.
Look at the total cost, not just the rate
The headline interest rate is only part of the picture. Fees, the balloon or residual, and the term all affect what you actually pay. Comparing lenders on total cost — which is exactly what a broker does — often reveals a better deal than going straight to your own bank.
Plan for delivery and timing
Machinery often involves lead times, supplier deposits or progress payments, especially for imported or made-to-order equipment. Arranging finance — ideally pre-approval — before you order means funding is ready when the machine is, and your cash flow isn't caught short in the meantime.
Get it right before you sign
The best outcomes come from sorting finance early, comparing the market and matching the structure to your business and the machine. Talk to PTR Finance Group and we'll help you finance new machinery the smart way, across Perth and WA.
Frequently Asked Questions
Can I finance both new and used machinery in WA?
Yes. Equipment finance works for both. New machinery often attracts the sharpest rates and longest terms, while used machinery is well suited to finance because it holds value as security. For used gear, the age, hours and type influence the term and rate, and we match you with a lender comfortable funding that specific machine.
Is there a tax benefit or instant write-off for buying machinery?
Interest and depreciation on machinery used for business are generally deductible, and from time to time the government offers accelerated or instant asset write-off measures with their own thresholds and dates. These change year to year, so we'll flag what may apply and recommend you confirm the current rules with your accountant.
How much deposit do I need to finance machinery?
Many established businesses can finance machinery with no deposit, secured against the equipment itself. A deposit or trade-in can improve your rate, and newer businesses or older machines may need one. We'll set out your options up front.
How long does equipment finance take to approve?
For established businesses with a clean credit profile, straightforward applications can be approved the same day and settled within a couple of business days. Larger or low-doc deals take a little longer, and we'll give you a realistic timeframe so it lines up with your delivery date.
Can I finance imported or made-to-order machinery?
Often, yes, though imported and made-to-order equipment can involve progress payments, deposits to the supplier and timing considerations. We work with lenders experienced in these purchases and can structure finance around the delivery and commissioning schedule.
What documents do I need to apply for equipment finance?
For established businesses it's usually your ABN, details of the machine (a quote or invoice) and recent business bank statements; full-doc applications may add financials or tax returns. Low-doc options rely mainly on the asset as security, which suits newer ABNs. Having these ready speeds approval considerably.
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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