Asset & equipment finance · Last reviewed 2026-07-27

Asset & equipment finance

Asset finance funds a business vehicle, machine or piece of equipment, using the asset itself as security. Because the loan is secured on the asset, rates are usually sharper than an unsecured business loan, and the business keeps its cash free. Ratesniffers helps you compare the structures and lenders and get matched, for free.

Asset-securedsharper than unsecured

Low-docoptions for standard assets

$0to compare, no paid placement

Types of asset finance

The structure decides who owns the asset and how it is treated, so it matters:

Chattel mortgage — the business owns the asset from day one, the lender takes security over it. Common where the business wants ownership.
Finance lease — the financier owns the asset and the business leases it for the term, often with a residual at the end.
Hire purchase — the business hires the asset and takes ownership once the final payment is made.
Rent-to-own / operating lease — use the asset for a period with lower commitment, then buy, return or upgrade.

What it is used for, and why

Asset finance covers cars and commercial vehicles, trucks and trailers, excavators and yellow goods, manufacturing and farm machinery, medical and dental equipment, fit-outs and IT. The reason businesses use it instead of a general business loan is simple: the asset secures the debt, so the rate is usually sharper and the business preserves its cash and borrowing capacity for everything else.

How Ratesniffers helps

Ratesniffers is best known as a free, independent home loan rate desk, and home loans remain our focus. Asset finance is priced on the asset, the term and the business, so rather than a live table, tell us what you are buying and we compare lenders and structures, including the balloon, to fit your cash flow. It is free to ask, with no paid placement. If you are buying premises rather than equipment, see commercial property finance.

Buying a vehicle, machine or equipment?

Get a free, no-obligation asset finance assessment. Chattel mortgage, lease or hire purchase.

Get a free assessment

Asset & equipment finance, FAQs

What is asset finance?

Asset finance is funding used to buy a business asset, such as a vehicle, truck, machine or piece of equipment, where the asset itself secures the loan. Because the lender holds security over the asset, rates are usually sharper than an unsecured business loan, and the business keeps its cash and working capital free for other uses.

What is the difference between a chattel mortgage and a lease?

With a chattel mortgage the business owns the asset from day one and the lender takes security over it, which can suit businesses that want ownership and the related accounting treatment. With a finance lease or hire purchase the financier owns the asset and the business pays to use it, often with a balloon or residual at the end. The best structure depends on cash flow, ownership goals and your accountant's advice.

Can I finance a used or second-hand asset?

Yes. Vehicles, trucks, trailers, yellow goods and many types of machinery can be financed second-hand, though the loan term is usually tied to the age and expected life of the asset. Older assets may attract a shorter term or a higher rate.

Do I need full financials for asset finance?

Not always. Established businesses buying standard assets can often use low-doc or no-doc asset finance up to a lender limit, assessed mainly on the business's history and the asset. Larger or specialised purchases, and newer businesses, usually need financials. A broker can match the right lender to how much documentation you can provide.

What is a balloon or residual payment?

A balloon (on a chattel mortgage) or residual (on a lease) is a lump sum owing at the end of the term. It lowers the regular repayments but leaves an amount to refinance, pay out or trade in at the end. Sizing the balloon is a cash-flow decision, so it is worth modelling before you commit.

What assets can be financed?

Cars and commercial vehicles, trucks and trailers, excavators and yellow goods, manufacturing and farm machinery, medical and dental equipment, fit-outs, IT and office equipment. If it is a tangible business asset with resale value, there is usually a lender for it.

Credit assistance is provided by Xcel Pty Ltd, Credit Representative #568072. Asset and equipment finance for business purposes is generally not regulated under the National Consumer Credit Protection Act. This information is general only and does not take your objectives, financial situation or needs into account.