Imported Machinery Finance (2026): Landed Cost vs Valuation
Imported machinery finance landed cost vs valuation for manufacturers | Switchboard Finance
🌍 imported machinery · landed cost vs valuation ·
Business Owners Finance Hub · 2026
Imported machinery approvals go sideways when your “landed cost” (EXW/FOB/CIF + freight + duty/GST + FX buffers) is higher than what the lender can value and fund. That gap becomes your deposit — unless you structure the deal properly.
If you want the baseline “are you ready to finance equipment?” lens first, read: 11 Signs Your Business Is Ready for Asset Finance in 2025. Then use the import-specific playbook below.
1) The landed-cost trap (why “price” ≠ fundable value)
When you import machinery, the invoice is only the start. By the time the unit is in Australia and ready to run, the total cost often includes freight, insurance, duty, GST, port charges, customs clearance, and FX movement.
The problem: lenders usually lend against the machine’s value (what it’s worth as an asset), not every line item of your logistics bill. If you don’t plan for this, the consequence is a sudden deposit gap or a delayed approval while the lender re-sizes the deal. This is still Asset Finance — the asset has to be traceable and valueable.
- EXW / FOB / CIF: your commercial terms change what’s in the supplier invoice vs shipping docs
- Freight + marine insurance: can be significant on heavy plant
- Duty + import fees: depends on the asset type and classification
- GST on import: often paid at the border even if you can later claim it back
- FX buffers: payment timing + exchange swings can move the final AUD cost
2) What lenders value (and how they set the lendable amount)
Most lenders start with a valuation or valuation logic based on the asset type, condition, and market comparables. Then they size the facility based on risk and your profile — including your trading history and how clean the structure is.
If the lender can’t reconcile the supplier invoice, shipping docs, and the asset identity, the consequence is “pending” loops or a conservative limit. This is where having a clean Facility structure matters — and why import paperwork is an approval lever, not admin.
| Cost line | How it shows up | How lenders usually treat it | Why deposits blow out |
|---|---|---|---|
| Machine invoice | Supplier commercial invoice (EXW/FOB/CIF) | Core valuation anchor | Invoice lacks configuration/ID → valuation uncertainty |
| Freight + insurance | Bill of lading / freight invoice | May be partially fundable or excluded | Big logistics costs increase total cash needed |
| Duty + port fees | Customs/duty statement | Often excluded from “asset value” | Costs are real, but not always lendable |
| GST on import | Paid at border, reclaimed later | Common deposit driver (timing mismatch) | You need cash now even if you claim later |
| FX movement | Rate at payment date | Lenders prefer buffers | Final AUD cost rises after approval sizing |
3) The deposit mechanics (where the gap actually appears)
The “deposit” on imported machinery is rarely just a lender policy. It’s usually the gap between: (1) what you must pay to land the asset, and (2) what the lender can fund against the asset value on settlement.
If you don’t model the gap, the consequence is a scramble mid-shipping: you’re committed to a container and a timeline, but short on cash at the worst moment. That’s when businesses start reaching for a cashflow safety net: Working Capital Loans.
- INCOTERMS mismatch: you thought the invoice included freight/insurance but it didn’t
- GST timing: payable now even if reclaimable later (cashflow gap)
- FX drift: approval sized at one rate, payment occurs at another
4) How to structure imports so approvals stay clean
The clean import approvals look boring on paper — and that’s the point. The lender can trace the asset, the payments, and the shipping milestones without guessing.
If you can’t trace payments and milestones, the consequence is delayed Settlement or staged funding requests that disrupt your delivery timing. If your goal is speed without full financials (when appropriate), anchor the deal under: Low Doc Asset Finance.
- 1) Supplier invoice: exact machine configuration + identifiers + terms (EXW/FOB/CIF stated)
- 2) Shipping proof: bill of lading / freight invoice + delivery timeline
- 3) Border costs: duty + GST estimate (even a simple summary helps)
- 4) FX plan: note the payment dates and that you’re holding a buffer for movement
- 5) Install/commissioning: who installs and when it goes live
5) The quick calculator table: landed cost vs lendable value (simple model)
Use this as a reality check before you sign the supplier order. It’s not about perfection — it’s about avoiding surprises.
If you sign before modelling the gap, the consequence is you fund the shortfall under pressure. For a broader “what else can be financed?” view when you’re bundling upgrades around the machine, see: 7 Business Costs You Can Finance.
| Line item | Example value (AUD) | Usually fundable? | Notes |
|---|---|---|---|
| Machine invoice (converted) | $200,000 | Yes (valuation anchor) | Must match exact configuration/ID |
| Freight + insurance | $28,000 | Sometimes partial | Varies by lender and asset type |
| Duty + port / clearance | $12,000 | Often no | Common deposit driver |
| GST on import | $24,000 | Often no (timing) | Reclaimable later, payable now |
| Estimated landed cost | $264,000 | — | Your “true” cash requirement baseline |
| Valuation / lendable base | $200,000–$220,000 | Yes (asset-led) | Gap becomes deposit unless structured |
Imported machinery deposits blow out when landed cost (freight, duty, GST, FX) exceeds what lenders can value and fund against the asset. The fix is a clean import story: invoice terms (EXW/FOB/CIF), shipping proof, border-cost summary, and an FX buffer plan.
The consequence of not modelling the gap is predictable: last-minute cash scrambles while the container is already moving. If you need a safety net for timing gaps, consider a Working Capital Loan alongside the core Low Doc Asset Finance structure when it fits.
FAQ
Model the gap early: machine invoice vs total landed cost (freight, duty, GST, FX buffer). Then structure the right Facility so the “non-asset” lines don’t surprise you at the border.
GST can create a timing mismatch — payable at import, even if you can later claim it back. If you don’t plan the timing, it becomes a cash deposit under pressure.
FX usually changes your total landed cost, not the machine’s valuation base. The lender may keep the funding amount stable, meaning the FX difference becomes your deposit unless you hold a buffer.
Most import machinery deals are treated as a Secured Loan against the asset, commonly registered via the PPSR. Clean asset identifiers and invoice matching are critical for this.
If the gap is timing (GST at border, freight invoice timing), a short cashflow facility can be cleaner than forcing the machine finance to carry everything. For many businesses, this means pairing the machine finance with Working Capital as a buffer when appropriate.
Disclaimer: This content is general information only and isn’t financial, legal, or tax advice.
