Best Equipment Loans & Finance in Australia 2021

If your small business needs to financing heavy machinery, large pieces of equipment, medical devices, or even private cars, then you have come to the right place. We have listed the best equipment financing options for small businesses in Australia right below this paragraph! Equipment loans are extremely popular in Australia because a relative high amount of businesses are in the construction industry, and also because of the high costs of machines in comparison to the moderate cash-flow small businesses normally have.

View our top choices for business equipment financing in all of Australia below. Businesses accepted from ACT, NSW, NT, QLD, WS, Tasmania and Victoria.

Equipment Loans: The Base Figures

Loan TypeSecuritiesTermsAvg Loan SizeEstimated Interest Rate
Equipment Loan / FinanceEquipment1-7 years$100,0001.6%-15%

Best Equipment Finance Companies

As Rated by our Editors

#1 Best Rated on Small Business Loans Australia

Est. 2011

Loans size & Terms

$5,000 to $300,000

All Purpose Business Loans

Prospa Business Loans Review
Pros
  • No Security Required for Equipment Finance under $100,000
  • Finance Farm Equipment
  • Heavy Equipment Finance up to $300,000
  • No Age Restriction on Equipment Purchases
  • Unsecured Business Loans Available
Cons
  • Had low approval rate between May-Aug 2020 due to COVID
#2 The Industry Veteran

Est. 2002

Loans size & Terms

$5,000 to $300,000

All Purpose Business Loans

Capify Business Funding Review
Pros
  • Funding: $5,000 to $300,000 Suitable for Small Business Equipment Financing
  • Fewest Documents Required
  • Access a Great Equipment Finance Option Today
  • Industry veteran for 17 years
  • Commercial Equipment Loans
  • 99% Positive Client Reviews
Cons
  • Min monthly turnover $10,000
  • Smaller scale than Prospa
  • 3% origination fee
#3 Diverse Solutions for Established Businesses

Est. 2013

Loans size & Terms

$5,000 to $500,000

Equipment Financing Plans

GetCapital Review
Pros
  • Equipment Finance up to $750,000
  • Office Equipment Finance
  • No Restriction on the Age of the Asset
  • IT Equipment Finance
  • Equipment Loans Available for up to 5 years
  • Established Businesses (2 years + in existence)
Cons
  • Min 9 months in business
  • Min $100,000 annual turnover
#4 The Global Mega-Brand

Est. 2015

Loans size & Terms

$5,000 to $250,000

All Purpose Business Loans

OnDeck Review
Pros
  • Equipment Finance Loan up to $100,000
  • Pristine Global Reputation
  • Promotes Ethical Lending
  • Own Your Asset Upfront
  • Clear Payment Schedule
  • Equipment Finance Loan Available in 5 Days
  • Traded in the NYSE
  • Application in 10 minutes
Cons
  • Not headquartered in Australia
  • Min $100,000 annual turnover

What Kind of Equipment Loans do These Companies Provide?

The nature of the lenders on this page is that they are happy to finance small businesses meeting their criteria for any purpose. It may be for working capital, equipment, paying taxes or any other purpose. That means that all of the following forms of financing are readily available to the business owner.

Popular Sectors for Equipment Loan Applications

  • Medical and Dental equipment financing
  • Heavy and mining equipment financing
  • Commercial equipment finance
  • Used equipment financing
  • IT equipment financing
  • Dental equipment finance
  • Fitness equipment financing
  • Business vehicle financing
  • Construction equipment loan
  • Forestry equipment financing
  • Church equipment financing
  • Brewery equipment leasing
  • Mining equipment financing
  • …any business asset financing

What Makes These Lenders Particularly Apt for Small Business?

When it comes to the best equipment loans, whether it may be church equipment, brewery equipment or medical equipment, you normally need that equipment promptly. Our survey has shown that in many of the cases that small business in Australia are in need of financing, they need to replace an item that has been put out of use. If you are a small business in Australia and your salesman’s vehicle has totaled, you need a quick replacement and it is likely you won’t have enough free cash to afford it without some sort of financing. Banks are slow, and online lenders are quick.

What does quick actually mean in this context?

a) Apply online within minutes (you can even send a multiple application to several lenders via Become.co)

b) Get a response typically within 24h. Some lenders even go above and beyond and get back to you within an hour if this is in business hours.

c) After agreeing to the terms of the loans, money is in the bank instantly.

Your construction equipment can be purchased within a week!

Equipment Loans or Equipment Leasing?

Leasing equipment is another form of financing. In the same fashion that you’ll get a lump of cash from a lender destined to purchase equipment through that funding, you could also lease your equipment and pay for it in instalments.

Business finance  come in three main ways:

  • Debt financing – one-off borrowing, repaying a fixed amount over time.
  • Equity financing – sell a portion of your equity for financing.
  • Combination financing – a combination of the above.

Leasing is something completely different – when you stop making payments you don’t owe the money but lose possession of the equipment you purchased.

There are pros and cons for traditional equipment loans and equipment leasing. Equipment loans may end up being cheaper in the sense that you will own the machinery and could resell it while equipment leasing can be more hassle-free, but they are riskier in a sense of losing a key equipment in your business if you miss out on a payment.

If you want to read more about this subject this is a pretty good and straightforward comparison.

Is Equipment Refinancing Available Too?

Australia’s online lenders are also keen on refinancing and consolidating debt. As long as a business is financially solid and these lenders’ algorithms point out that that business could handle repayments and not default, there should be no issue with refinancing an existing equipment loan.

In the same fashion a business could refinance any debt that was incurred by his business, it could refinance this type of debt too. It would be done for the same reason a business owner would refinance any debt – credit card, bank loan or a small business loan – to consolidate multiple loans into one AND/OR reduce payments by obtaining a lower interest loans AND/OR free up some cash for working capital.

Equipment Finance Calculator

One of the most common issues relating to business equipment loans is the repayment schedule. We have created a small nifty tool for your enjoyment to see how much you’ll be expected to repay your financing:



Invoice Financing for Equipment?

One plausible solution for your need for financing for equipment could be against unpaid invoices using invoice financing companies.

Equipment Financing: Final Words of Caution

Although the best – quick and easy – equipment financing lenders as the one we recommend can come in handy for your equipment loan needs – you MUST to pay good attention to the equipment repayment calculator we have positioned above to make sure you are indeed able to make all your payments on time. It’s simple – if you miss out on payments, the percentage of interest accrued over the lifetime of the equipment loan will increase. If more than just a few payments are missed, you might be interested in knowing how to refinance your loan. You can always check this small business loans provider comparison.