Machinery Finance refers to loans or leases used to purchase commercial machinery such as excavators, loaders, backhoes, CNC machines, forklifts, harvesters and industrial production equipment. It is a core component of Equipment Finance, Low Doc Asset Finance, and the Business Owners Finance Hub. Lenders assess machinery based on age, condition, hours, brand, resale value and remaining Useful Life. Related glossary terms: Yellow Goods, Asset Type, Depreciating Asset. Relevant blogs: Are Low Doc Equipment Loans Worth It?, Equipment Finance Application Mistakes.

Why Machinery Finance Matters

Machinery is essential for industries such as construction, manufacturing, agriculture, mining and logistics. These assets are highly financeable due to predictable working life and strong resale markets. Machinery Finance provides:

• Fixed or variable loan structures
• Tax-effective deductions
• Low Doc approval pathways
• Long terms (up to 7 years)
• Cashflow smoothing for seasonal industries

Strong machinery assets significantly improve approval strength.

How Machinery Finance Works

• Select machinery from a dealer or private seller
• Lender reviews age, brand, condition and hours
• PPSR checks are performed for security
• Finance is structured as Chattel Mortgage, Lease or Hire Purchase
• Terms are based on remaining useful life
• Business claims interest and depreciation (where eligible)

Machinery with long lifespans receives stronger lending terms.

Official reference: business.gov.au