Book a Free Consultation

—

What Is Asset Finance?

Asset finance is a range of lending products that allow businesses to acquire assets (equipment, vehicles, machinery, technology) by borrowing against the asset itself rather than using cash or general working capital.

Unlike a business overdraft or unsecured loan, asset finance is secured by the asset being acquired. This typically results in lower interest rates and access to finance for businesses that might not qualify for unsecured lending.

The Finance Agency arranges asset finance for Perth businesses across multiple structures:

• Chattel mortgage — most common for business assets; you own the asset from day one, GST claimed upfront, interest and depreciation tax deductible
• Finance lease — lender owns the asset during the lease period; you make lease payments and purchase at end of term (or return/refinance)
• Operating lease — off-balance-sheet structure; lender retains ownership; suited to assets that become obsolete quickly (technology, fleet)
• Commercial hire purchase (CHP) — you hire the asset and take ownership at end of term; structured for older tax treatment preferences
• Equipment line of credit — revolving facility for businesses with ongoing equipment acquisition needs; draw as required, replenish as assets are retired

—

What Can Be Financed

Asset finance works across almost any business asset. Common asset classes The Finance Agency arranges finance for:

Transport and vehicles:

• Commercial vehicles, trucks, and trailers
• Passenger vehicles (company fleet)
• Forklifts and materials handling
• FIFO camp vehicles and light fleet

Construction and civil:

• Earthmoving equipment (excavators, graders, dozers)
• Cranes and lifting equipment
• Concrete equipment and pumps
• Scaffolding and access equipment

Manufacturing and industrial:

• CNC machinery and precision manufacturing equipment
• Welding and fabrication equipment
• Food processing and packaging equipment
• Printing and signage equipment

Healthcare:

• Medical imaging equipment (X-ray, MRI, ultrasound)
• Dental chairs, CBCT, and practice equipment
• Allied health equipment

Agriculture:

• Tractors, harvesters, and cropping equipment
• Irrigation systems
• Livestock and grain handling equipment

Technology:

• Server hardware and IT infrastructure
• AV and security systems
• Solar and battery storage for commercial properties

If you need to acquire it for your business, there’s likely an asset finance product for it.

—

Chattel Mortgage vs Finance Lease — Which Is Right for Your Business?

For most Perth businesses buying commercial vehicles or heavy equipment, a chattel mortgage is the standard structure. We’ll confirm what’s optimal for your situation and GST position.

—

How The Finance Agency Sources Asset Finance

We access specialist asset lenders. The major banks have asset finance divisions, but specialist asset lenders (Macquarie, Pepper Money, Liberty, Metro Finance, Grenke, Angle Finance, and others) often provide better rates, faster approval, and acceptance of assets the banks won’t touch.

We know asset categories. Not all lenders accept all asset types. Construction equipment is treated differently from medical imaging; mining support vehicles are treated differently from passenger cars. We match the asset to the lender whose risk appetite fits.

We move fast. Most asset finance applications for straightforward assets are approved in 24–48 hours. For larger transactions or specialty assets, 2–5 business days. When your equipment dealer has a delivery window, we match it.

We understand your tax position. GST treatment, depreciation schedules, and the tax deductibility of different structures matter to your accountant. We work alongside your accountant to ensure the financing structure is optimal for your tax year.

—

Step by Step

Step 1: Asset and Business Assessment — You tell us what you’re acquiring, the purchase price, your preferred term (24–60 months typically), and any constraints (required delivery date, vendor terms). We review your business financials to confirm the right structure.

Step 2: Lender Selection and Pricing — We approach the lenders whose risk appetite and pricing match your asset class and business profile. You receive 2–3 indicative approvals with comparison pricing.

Step 3: Formal Application — We manage the documentation and submit for formal approval. Standard requirements: business financials (last 2 years), asset quote/invoice, ABN confirmation, and property ownership evidence if security is offered.

Step 4: Settlement — Once approved, funds are disbursed directly to the vendor. You take delivery of the asset and commence repayments.

—

Frequently Asked Questions

Does my business need to own property to get asset finance?

No. Most asset finance products are secured against the asset itself — the lender takes a security interest in the equipment, not real estate. This is one of the key advantages of asset finance over a general business loan for equipment acquisition.

Can I finance second-hand equipment?

Yes, with conditions. Most lenders finance second-hand assets up to a certain age (typically 10–15 years old at end of term for most equipment). The security position (resale value) is assessed differently for aged assets. Some lenders won’t finance equipment over 10 years old. We identify the lenders who will.

What deposit do I need for asset finance?

Most asset finance products require zero deposit — you finance 100% of the asset value. Some lenders require a 10–20% deposit for assets with rapid depreciation or limited resale market. We’ll confirm upfront whether a deposit is required for your specific asset class.

How does asset finance affect my business borrowing capacity?

Asset finance typically appears on your balance sheet (chattel mortgage) or as an operating commitment (finance lease). Lenders who assess your business for additional borrowing (such as a business loan or commercial property purchase) will include your asset finance repayments in their serviceability calculation. We can help you understand the sequencing of finance if you’re planning multiple facilities.

Is there a minimum or maximum amount for asset finance?

Most lenders start at $5,000–$10,000 for asset finance. Maximum amounts vary — standard asset lenders typically go to $500,000–$2M per asset. Larger transactions (cranes, medical imaging systems, aircraft) are handled by specialist lenders with higher limits. We access both ends of the market.

—

Ready to Acquire Your Next Asset?

Talk to us before you talk to your bank. We’ll find you the right structure and the best rate from our panel of asset finance lenders — faster than going to one institution directly.

Book a Free Consultation

The Finance Agency — Perth’s specialist finance brokers for business owners, professionals, and complex deals.

—

*The Finance Agency