What is asset finance?
Asset finance helps business owners purchase essential assets such as vehicles, yellow goods, machinery or equipment without paying the full amount upfront. Instead of using large amounts of working capital, the asset is funded over an agreed term while it's used to support operations.
In most cases, the asset itself is used as the primary security for the loan. This means additional collateral is usually not required, which makes asset finance a practical and accessible option for upgrading, replacing or expanding the equipment you rely on.
Chattel Mortgage
A chattel mortgage is the most common type of vehicle and equipment finance used by Australian businesses. Ownership of the asset is taken from the day it's purchased, while the lender registers a mortgage over it as security for the loan.
It is a straightforward and tax‑effective way to fund vehicles, machinery or equipment while keeping cashflow free for day‑to‑day operations.
When to choose
A chattel mortgage is suitable when your business wants to own the asset immediately and prefers a simple, tax‑effective finance structure.
It works well for businesses that want predictable repayments, the ability to claim GST upfront, and full control over the asset from the start.
It is commonly chosen for vehicles, machinery and equipment that will be used for income‑producing purposes.Benefits
Ownership from day oneYour business owns the asset immediately, giving you full control from the start.
Tax benefitsEligible businesses can claim GST on the purchase and may claim interest and depreciation, depending on their structure and accountant’s advice.
Flexible repayment optionsLoan terms can be tailored to your cashflow, including the option to use a balloon to reduce repayments.
Simple security structureThe asset is used as the security for the loan, so additional collateral is usually not required.
Commercial Hire Purchase
A commercial hire purchase allows a business to acquire an asset by hiring it from the lender while making regular repayments toward eventual ownership. The lender purchases the asset on your behalf and hires it to your business for the term of the agreement, before ownership transfers to your business.
It can be a practical option for businesses that may not qualify for a chattel mortgage or do not have a deposit available.
When to choose
A hire purchase is suitable when your business wants to work toward ownership but prefers a structure that is more flexible than a chattel mortgage.
It is commonly chosen when a deposit is not available, when cashflow needs to be managed carefully, or when a business does not meet the requirements for other asset finance products.Benefits
Path to ownershipRepayments contribute toward owning the asset at the end of the term.
Tax benefitsEligible businesses may claim interest and depreciation over time, depending on their structure and accountant’s advice.
No deposit requiredMany hire purchase agreements allow the asset to be funded without an upfront deposit.
Flexible repayment optionsRepayments can be structured to suit your cashflow, including the option to use a balloon to reduce ongoing costs.
Finance Lease
A finance lease allows your business to use an asset while making regular lease payments over an agreed term. The lender purchases the asset and leases it to your business, and at the end of the term you have the option to pay a residual amount to take ownership.
It is commonly used for vehicles, machinery and equipment where predictable payments and flexibility at the end of the term are important.
When to choose
A finance lease is suitable when your business wants access to an asset without an immediate ownership commitment.
It works well for businesses that prefer lower monthly payments, want flexibility at the end of the term, or plan to upgrade equipment regularly.Benefits
No deposit requiredMany lease agreements allow the asset to be funded without an upfront deposit.
Tax benefits
Eligible businesses may claim lease payments and operating costs, depending on their structure and accountant’s advice.
Lower ongoing payments
Lease payments are often lower than loan repayments because a residual amount remains at the end of the term.
Flexible end‑of‑term options
You can pay the residual to purchase the asset, refinance the residual and continue leasing, or trade the asset in and start a new lease.
The first step
Getting your asset funded, starts here