Equipment and asset finance is important for both start-ups and established businesses in Australia. It helps businesses to survive and thrive. DFS can arrange equipment and asset finance for you.

What can equipment and asset finance can be used for?

Business equipment and asset finance can be used for a broad range of items. For example:

  • Operational machinery to produce goods or deliver services.
  • Shop fit-outs.
  • Business vehicles.
  • Office equipment.
  • Technology.

Equipment and asset financing options

There are a range of business equipment and asset financing options available in Australia, including:

  • Leasing.
  • Hire purchase agreements.
  • Chattel mortgages.

The most appropriate option will depend on your specific business situation, needs and goals.


Business equipment/asset lease agreements are effectively rental arrangements where you don’t ever assume ownership of the financed item. However, some lease agreements may give you the option to buy the equipment/asset at the end of the agreement.

There are three major types of business equipment/asset leases:

1) Finance leases.
2) Operating leases.

3) Novated leases.

A finance lease is often used for high-value equipment and assets over medium to long terms. You are responsible for repairs and maintenance during the lease term.

An operating lease on the other hand is typically a short-term agreement for equipment or assets that may quickly become obsolete. These leases usually allow you to upgrade your equipment/asset, which is something you can’t do with a finance lease.

A novated lease can be used for a business vehicle as part of a salary packaging arrangement to pay less tax. Lease payments are made from pre-tax salaries to reduce taxable income. Novated leases are usually short-term arrangements (e.g. for three years). At the end of the lease term , you usually have the option to buy the vehicle. Alternatively, you may be able to extend the lease or take out another one on a new vehicle.

Hire purchase agreements

A hire purchase agreement is similar to a lease. However, at the end of the agreement, ownership of the equipment/asset will transfer to your business. You will fully pay for the value of the equipment/asset (plus interest) over the term of the hire purchase agreement.

Chattel mortgages

A chattel mortgage is a secured loan for a business vehicle. The car is collateral security for the loan. This means that the lender can legally repossess the vehicle if you don’t make your repayments. They can then sell it to recoup any amount owing.

How to get equipment and asset financing on the best terms

You can get equipment and asset financing on the best terms by providing your lender with

appropriate collateral security for your loan. This security reduces the lender’s risk and increases your chances of finance approval on the best possible terms.

Interest rates on equipment/asset finance can also depend on a range of other factors, including:

  • The finance option you choose.
  • The type of equipment/asset you need to finance.
  • The type of business you have.

Where you can get equipment and asset financing in Australia?

You can get equipment and asset financing from both traditional lenders (like banks) as well as private lenders in Australia. However, traditional lenders usually have stricter lending criteria for approval. For example, they will be more likely to reject your application if you have a bad credit score. You can have a bad credit score if you’ve missed any credit repayments (or not made them on time) over the past seven years.

On the other hand, if you use a private lender, you may find it easier to:

  • get your equipment/asset finance approved quickly.
  • negotiate flexible repayment terms that suit the cash flow of your business.

This speed and flexibility can allow you to capitalise on opportunities in the highly competitive business environment.

Get in touch with us today and allow us to help your business thrive!

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