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Tools & Equipment

Tools & Equipment refers to the physical assets businesses use to complete work — from power tools and workshop equipment to small machinery, diagnostic units, construction gear and specialised instruments. These assets are commonly financed under Equipment Finance, Low Doc Asset Finance, and for many industries through the Tradie Hub. Lenders classify tools by Asset Type, remaining Useful Life, and whether they qualify as a Depreciating Asset. Relevant articles include: Top Tools Tradies Finance First and Low-Doc Equipment Loans – Easiest Way.

Why Tools & Equipment Matter

Tools and equipment determine business productivity, safety and revenue capacity. For lenders, these assets are valuable because they:

  • Are essential income-producing assets
  • Have predictable depreciation rates
  • Hold resale value depending on brand & condition
  • Can be bundled into Low Doc lending structures
  • Fit into various finance structures (Lease, Chattel Mortgage, Hire Purchase)

Strong brands (Milwaukee, Makita, Kubota, Bobcat) often improve approval strength.

How Tools & Equipment Finance Works

  • Business selects tools or equipment from a dealer or private seller
  • Lender assesses age, condition and asset classification
  • A PPSR Check may be performed to confirm security interests
  • Finance structure is chosen based on tax and cash flow needs
  • Terms are often aligned to remaining Useful Life of the assets

Tools with longer usable life typically receive stronger lending terms.

Official reference: business.gov.au

What counts as Tools & Equipment?
Power tools, jobsite tools, small machinery, diagnostic devices and commercial work equipment used to generate income.
Can tools be financed?
Yes — through Equipment Finance, Low Doc loans and bundled asset purchases.
Do tools qualify for instant write-off?
Eligible businesses may be able to claim deductions for qualifying tools and equipment, depending on current ATO rules and thresholds.
Do lenders check tool condition?
Yes — they assess brand, age, wear, and projected lifespan, especially for high-use tradie tools.
Can I finance used equipment?
Yes, if the equipment has acceptable condition, age and resale value and fits lender policy for Low Doc Asset Finance or standard asset finance.