For Australian businesses looking to acquire equipment, vehicles, or machinery without tying up working capital, asset finance is one of the most powerful tools available. Rather than paying upfront for expensive assets, asset finance lets you spread the cost over time — keeping cash in your business where it belongs.
What Is Asset Finance?
Asset finance is a type of business lending that allows you to acquire physical assets — such as trucks, plant and machinery, office equipment, or technology — using the asset itself as security. This means you can start using the asset immediately while paying for it over an agreed term, typically between 12 months and 7 years.
Common asset finance structures include chattel mortgage, finance lease, operating lease, and hire purchase. Each has different tax, accounting, and ownership implications — so choosing the right structure matters.
Who Uses Asset Finance in Australia?
Asset finance is used across virtually every industry in Australia:
- Construction & trades: Excavators, scaffolding, tools, and utes
- Transport & logistics: Trucks, forklifts, and fleet vehicles
- Healthcare: Medical imaging equipment, dental chairs, and fit-outs
- Agriculture: Tractors, harvesters, and irrigation systems
- Manufacturing: CNC machines, production lines, and robotics
Whether you’re a sole trader buying your first work vehicle or a growing SME upgrading your production line, asset finance is structured to suit businesses of all sizes.
Key Benefits of Asset Finance
Preserve cash flow: Instead of a large upfront payment, you make fixed monthly repayments — making budgeting predictable and protecting your working capital.
Potential tax advantages: Under a chattel mortgage, you may be able to claim the GST upfront on your next BAS, and depreciation on the asset over time. Always confirm with your accountant.
Access the $20,000 instant asset write-off: The Australian Government’s instant asset write-off (now made permanent for assets under $20,000) can significantly reduce your tax liability in the year of purchase when combined with asset finance.
Fast approvals: Asset-backed lending is typically faster to approve than unsecured business loans — some lenders can settle within 24–48 hours for straightforward applications.
How to Apply for Asset Finance
The application process is straightforward. Lenders will generally want to see:
- Your ABN (active for at least 12 months)
- A quote or invoice for the asset you’re purchasing
- Last 2 years of financial statements or tax returns (for larger loans)
- Bank statements (typically 3–6 months)
- Details of your credit history
Low-doc options are available for businesses that are newer or prefer not to provide full financials — these are assessed primarily on the value of the asset and your business cash flow.
Frequently Asked Questions
Can I get asset finance with bad credit?
Yes — because the asset acts as security, some lenders will consider applications with impaired credit history, particularly for lower-value assets. A specialist finance broker can help match you with the right lender for your situation.
Is asset finance the same as a business loan?
Not exactly. A business loan gives you cash to spend however you like, while asset finance is specifically tied to the purchase of a physical asset. Asset finance is often easier to obtain and faster to settle because the lender has security over the asset.
What’s the difference between a finance lease and a chattel mortgage?
With a chattel mortgage, you own the asset from day one and the lender holds a mortgage over it as security. With a finance lease, the lender owns the asset and you lease it — at the end of the term, you typically have the option to purchase it for a residual amount. The right structure depends on your tax position and whether you want ownership.
Get Asset Finance Sorted Today
At Co-Pilot Finance & Insurance, we work with a panel of over 40 lenders to find the most competitive asset finance solution for your business. Whether you need a chattel mortgage, finance lease, or hire purchase, we’ll structure the deal to suit your cash flow and tax position.