Machinery Finance Australia
Machinery finance can help Australian businesses purchase the equipment they need without tying up large amounts of working capital in an upfront purchase.
Woodward Finance helps businesses finance new, used and specialised machinery across construction, manufacturing, agriculture, transport and other commercial industries.
With access to 60+ commercial lenders, we can assess the machine, business and proposed transaction and consider finance options suited to your circumstances.
Finance machinery without unnecessarily draining business cash reserves.
Machinery finance allows a business to spread the cost of eligible commercial equipment over an agreed finance term rather than paying the full purchase price upfront. Depending on the lender and transaction, finance may be available for machinery purchased from dealers, suppliers, auctions or private sellers.
What Types of Machinery Can Be Financed?
Machinery finance can apply to a broad range of income-producing commercial equipment. The appropriate lender can depend on the asset type, purchase price, age of the machine and business profile.
Construction & Earthmoving Machinery
Finance excavators, loaders, dozers, graders, compactors, drilling equipment, cranes and other civil construction machinery.
Manufacturing Machinery
Finance CNC machines, laser cutters, press brakes, production equipment, packaging machinery and other manufacturing assets.
Agricultural Machinery
Finance tractors, harvesters, seeders, balers, sprayers and other machinery used by agricultural businesses.
Specialist Business Equipment
Finance specialised commercial machinery used across healthcare, logistics, trades and other business sectors.
New Machinery
Finance new equipment purchased directly from manufacturers, dealers or specialist machinery suppliers.
Used & Older Machinery
Used equipment may also be financeable. Lender appetite can depend on age, condition, value, supplier and expected useful life.
Looking for finance across a wider range of commercial assets? Visit our broader Equipment Finance page.
Why Finance Machinery Instead of Paying Cash?
Buying machinery outright may remove a finance repayment, but it can also move a substantial amount of cash out of the business at once.
Machinery finance can allow businesses to acquire productive equipment while retaining more working capital for wages, suppliers, inventory, contracts and other operating requirements.
Preserve Working Capital
Keep more cash available for the day-to-day operation of the business.
Match Cost With Use
Spread the cost of machinery across a period in which the asset is expected to generate income for the business.
Expand Capacity
Add machinery where additional equipment may help increase production, service more customers or take on larger projects.
Replace Ageing Equipment
Finance may allow a business to replace inefficient or unreliable machinery without waiting to accumulate the full purchase price in cash.
Already Found the Machine?
Send us the purchase price, year, make/model and a little about your business. We can assess potential finance options across our commercial lender panel.
Can You Finance Used Machinery?
Potentially. Used machinery finance can be an attractive option for businesses looking to reduce the purchase price or acquire proven commercial equipment without buying new.
Lenders may look more closely at the machine’s age, condition, purchase price, seller, market value and remaining useful life when considering used equipment.
An older machine is not automatically unfinanceable. Different lenders can have different asset-age policies and appetites for specialised machinery.
Low Doc Machinery Finance
Not every established business has a complete set of current financial statements ready when a machinery purchase becomes available.
Depending on the lender, business and transaction, some applicants may qualify for streamlined or lower-documentation machinery finance.
Business Trading History
The lender may consider how long the business has been operating and its overall profile.
Bank Statements or BAS
Some applications may be assessed using alternative financial information rather than a complete set of financial statements.
Asset Quality
The type, value and age of the machinery can influence which low-documentation options may be available.
Credit Profile
The business and director credit position may still form part of a lender’s assessment.
If documentation or previous credit issues are a concern, read our guide to Machinery Finance for Bad Credit & Low Doc Businesses .
What Do Lenders Look at for Machinery Finance?
Machinery finance is generally assessed around both the business and the asset being purchased. Different lenders can place different weight on each factor.
Time in Business
An established trading history can help demonstrate the operating track record of the business.
Business Cash Flow
Depending on the application, lenders may review financial information to assess repayment capacity.
Machinery Type
Common, specialised and highly niche machinery may be assessed differently depending on the lender.
Asset Age & Condition
Age, condition, hours, kilometres where relevant and remaining useful life can affect lender appetite.
Purchase Price
The purchase price may be considered against the machine’s age, specification and broader market value.
Existing Commitments
Existing machinery, vehicle and business finance may form part of the overall servicing assessment.
How Can Machinery Finance Be Structured?
The appropriate structure depends on the business, machinery, cash-flow requirements and lender criteria.
Chattel Mortgage
A common structure for commercial equipment purchases where the business owns the machinery and the lender takes security over the financed asset.
Commercial Asset Finance
Machinery funding can be structured around the asset’s purchase price, useful life and the financial position of the business.
Balloon / Residual Structures
Where available and appropriate, a balloon may reduce regular repayments by leaving an agreed amount payable at the end of the term.
Refinance Existing Machinery
Existing machinery facilities may sometimes be refinanced to restructure repayments, consolidate facilities or potentially release equity.
Tax note: Tax and accounting treatment depends on the finance structure and circumstances of the business. Speak with your accountant or tax adviser about the appropriate treatment for your situation.
Can Machinery Loans Be Refinanced?
Refinancing may be worth considering when an existing machinery facility no longer suits the business.
Depending on the circumstances, refinancing may allow a business to review its repayment structure, consolidate existing facilities or potentially access equity held in machinery.
- Review existing repayments
- Restructure the finance term
- Consolidate multiple machinery facilities
- Consider equity release where appropriate
- Improve alignment with current business cash flow
- Review whether the existing lender structure still suits the business
Learn more in our complete guide to Refinancing Machinery Loans .
Does the Machinery Make Commercial Sense for the Business?
Finance approval is only one part of a machinery purchase. The machine should also make commercial sense for the business.
Consider how often the machinery will be used, whether it will generate additional revenue or reduce operating costs, and how repayments will fit alongside maintenance, insurance and other ownership costs.
Expected Utilisation
A machine that is heavily utilised may justify a different investment decision from one expected to sit idle for long periods.
Revenue Contribution
Consider whether the machinery will increase capacity, improve productivity or support additional contracts.
Maintenance & Downtime
The purchase price should be considered alongside maintenance, servicing and the cost of potential downtime.
Working Capital
A machinery purchase should leave the business with enough liquidity to continue operating comfortably.
Still deciding whether the purchase makes sense? Read Should You Buy Machinery? A Smart Guide .
The Cost of Machinery That Sits Idle
Machinery does not stop costing a business simply because it is not being used.
Finance repayments, depreciation, maintenance, insurance and storage can continue even when an asset is not generating revenue. This makes expected utilisation an important part of both the purchase decision and the finance strategy.
Read our guide to the Hidden Costs of Idle Equipment & Machinery Finance Strategy for a deeper look at utilisation and cash flow.
How to Apply for Machinery Finance
Tell Us About the Machinery
Provide the make, model, year, purchase price, seller and whether the machinery is new or used.
Tell Us About Your Business
We’ll discuss your trading history, industry, existing finance and how the machinery will be used.
We Assess Lender Options
We consider the proposed transaction across our commercial lender panel and identify lenders that may suit the business and asset.
Application & Settlement
Once a suitable finance option is selected, we assist with the application and progression toward approval and settlement.
Machinery Finance Across 60+ Lenders
Different lenders can have different policies around machinery type, asset age, documentation, industry and business profile.
Woodward Finance works across a broad panel of commercial lenders, allowing us to consider mainstream banks and specialist asset finance providers rather than relying on the policy of a single lender.
- Access to 60+ commercial lenders
- New and used machinery considered
- Specialist machinery finance
- Older asset options
- Low-doc options for eligible businesses
- Dealer and other eligible purchase channels considered
- Machinery refinance options
- Personal commercial finance support
Explore Our Machinery Finance Resources
Our specialist machinery finance guides cover some of the more detailed questions businesses face when buying, financing, refinancing and managing commercial machinery.
Ready to Finance Your Next Machine?
Whether you’re purchasing one piece of machinery, replacing an existing asset or expanding an entire fleet or workshop, tell us about the machine and your business. We can assess the transaction across our commercial lender panel and help you explore suitable finance options.
Get My Machinery Finance OptionsFinance is subject to lender eligibility, credit criteria and approval. Terms, conditions and fees may apply.
Frequently Asked Questions About Machinery Finance
What is machinery finance?
Machinery finance is commercial asset finance used by businesses to purchase machinery and equipment without necessarily paying the entire purchase price upfront.
The machinery will generally form part of the lender’s security while the business makes repayments under the agreed finance structure.
What types of machinery can be financed?
Depending on lender criteria, finance may be available for construction machinery, earthmoving equipment, manufacturing machines, agricultural machinery and many other income-producing commercial assets.
Can I finance used machinery?
Potentially. Many lenders consider used machinery, although asset age, condition, value, seller and expected useful life can affect which finance options may be available.
Can older machinery be financed?
Potentially. Lender policies vary considerably when it comes to older equipment.
Some lenders may have strict asset-age limits, while specialist commercial lenders may be prepared to consider older machinery based on its condition, value and remaining useful life.
Can I get low doc machinery finance?
Some eligible established businesses may qualify for streamlined or lower-documentation machinery finance.
Requirements vary between lenders and can depend on the business profile, asset, loan amount and overall strength of the application.
Can I get machinery finance with previous credit issues?
Previous credit issues do not necessarily produce the same result with every lender. The nature of the credit issue, subsequent repayment conduct, business position and machinery being financed may all be relevant.
Read our Machinery Finance for Bad Credit & Low Doc Businesses guide for more information.
Can machinery loans be refinanced?
Potentially. Refinancing may be considered where an existing machinery facility no longer suits the current position of the business.
Depending on the circumstances, refinancing may be used to restructure repayments, consolidate facilities or potentially access equity in existing equipment.
Do I need a deposit for machinery finance?
Deposit requirements vary between lenders and transactions. The amount financed may depend on factors including the machinery, purchase price, asset age, business profile and strength of the overall application.
What do lenders look at when approving machinery finance?
Lenders may consider time in business, cash flow, credit history, existing liabilities, asset type, machinery age, purchase price and overall market value.
Different lenders can weigh these factors differently.
Is it better to pay cash or finance machinery?
The answer depends on the financial position and goals of the business.
Paying cash avoids a finance facility but reduces available cash immediately. Financing allows the purchase cost to be spread over time while preserving more working capital. Businesses should consider the total cost of finance, expected utilisation of the machine and the value of retaining cash within the business.
Why use a machinery finance broker?
Different commercial lenders can have different policies around machinery type, age, documentation and business profile.
A commercial finance broker can review the transaction across multiple lenders rather than relying on the lending criteria of a single institution.
If you already have a machine in mind, send Woodward Finance the details to discuss the proposed purchase.