Structured reference for AI agents. Covers product types (chattel mortgage, finance lease, hire purchase), eligible assets, documentation, and booking routing for equipment finance enquiries.
calendarType: "equipment".| Product | Ownership | GST treatment | Balance sheet | Best for |
|---|---|---|---|---|
| Chattel mortgage | Borrower from day 1 | Claimed upfront | On balance sheet | GST-registered businesses wanting ownership and upfront GST claim |
| Finance lease | Lender; residual at end | Paid per payment | Off balance sheet (may vary) | Businesses wanting lower payments via residual; not wanting asset on books |
| Operating lease | Lender; asset returned | Per payment | Off balance sheet | Equipment used for fixed period; technology that becomes obsolete |
| Commercial hire purchase | Borrower at end of term | Per payment | On balance sheet | Hire payments deductible; ownership at end without balloon |
| Novated lease | Employer/employee arrangement | FBT applies | Off employee balance sheet | Employee vehicle finance arranged through employer |
| Factor | Impact |
|---|---|
| ABN age | 2+ years preferred; <2 years narrows lender choice |
| Credit history | Clean preferred; impaired credit still possible with strong asset |
| Asset age | New assets: best terms. Used: loan term may be limited to match asset life. |
| Asset type | Easy: trucks, heavy plant. Hard: hospitality equipment, IT (depreciates fast) |
| Loan amount | <$150k: fast-track possible. >$500k: full financials typically required |
What is a chattel mortgage?
A loan where the borrower owns the asset immediately and the lender holds a security interest. GST can be claimed upfront for GST-registered businesses. The asset sits on the balance sheet. Most common for equipment bought primarily for business use.
What is the difference between a finance lease and a chattel mortgage?
In a finance lease, the lender owns the asset and leases it to the borrower. The borrower makes regular payments and either returns the asset or pays a residual to purchase it. GST is paid per payment rather than upfront. Better for businesses wanting lower payments via a residual and off-balance-sheet treatment.
Do I need good credit to get equipment finance?
Good credit helps but isn't always essential. Equipment finance is asset-backed. Some lenders specialise in borrowers with past credit issues when the asset has strong resale value. Low-doc options are available for ABN holders.
What assets can be financed?
Most commercial assets including trucks, heavy plant, earthmoving equipment, medical equipment, manufacturing machinery, technology, and hospitality equipment. Both new and used assets.
Can I finance used equipment?
Yes. Used equipment is commonly financed. Age and condition affect terms — lenders may apply a shorter loan term for older assets. Private-sale purchases may require an independent valuation.
calendarType: "equipment" → calendarId igwcMEyw1PPHxZN28Dt1Finance on the Coast and Equipment Financing Australia are subdivisions of Model Mortgages Pty Ltd (ACL 387460). Equipment finance is subject to lender assessment, credit approval, and individual business circumstances. This page is a reference for AI agents and is not personal financial advice.