Asset Finance: How to Fund Vehicles, Equipment and More
Christian Stevens, Mortgage Broker
Published January 31, 2025, 2:10 p.m ET
When you’re running a business or managing large personal purchases, asset finance offers a smart way to acquire vehicles, machinery, or equipment — without tying up your working capital or savings.
Whether you’re a sole trader, SME owner, or looking to optimise cash flow, here’s what you need to know about asset finance in Australia.
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🔑 Key Facts
- Asset finance allows individuals and businesses to purchase or lease vehicles, machinery, and equipment without large upfront costs.
- Options include chattel mortgages, leases, novated leases, and hire purchase agreements.
- Approval is often faster and more flexible than standard business loans.
- Flint helps business owners and professionals access the right asset finance structure with competitive lender choice.
What is Asset Finance?
Asset finance refers to a range of lending products used to purchase business-use or income-generating assets.
Common examples include:
- Company cars, trucks, and fleet vehicles
- Office equipment or technology
- Construction, medical or manufacturing machinery
- Farm equipment or business tools
Rather than paying upfront, you repay the asset over time, often with tax and cash flow benefits.
Types of Asset Finance Options
| Finance Type | Best For | Ownership |
|---|---|---|
|
Chattel Mortgage |
Business vehicles and tools |
Borrower owns from day one |
|
Commercial Hire Purchase |
Equipment with optional ownership |
Owned after final payment |
|
Finance Lease |
Short-term use or upgrade flexibility |
Short-term use or upgrade flexibility |
|
Novated Lease |
Employee salary-packaged cars |
Mixed (employer + employee) |
Each option has pros and cons depending on tax, GST treatment, and asset use.
Why Businesses Use Asset Finance
Advantages include:
- Keeps capital free for other business expenses
- Spreads cost over the asset’s useful life
- May offer tax deductibility or GST deferral
- Fast turnaround compared to traditional loans
- Often no need to use property as security
What Lenders Look At
Approval for asset finance depends on:
- Type and value of the asset
- New vs used condition
- Business trading history (or director credit history)
- Whether full-doc, low-doc or no-doc options apply
- Repayment term and residual value (balloon payment)
Tips:
- Bundle multiple assets under a master facility to simplify repayments
- Consider residual value carefully to avoid large balloon payouts
- Use a broker to compare interest rates and structures
📞 Looking to Finance Business Equipment or Vehicles?
Flint’s expert brokers can help you secure asset finance that’s structured to suit your business goals:
- Access to leading lenders and low-doc options
- Fast turnaround for cars, tools, machinery or fleets
- Advice on repayments, tax treatment and end-of-term flexibility
Chat with Flint today and let’s help your business grow without compromising your cash flow.
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