Plant and Machinery Finance in Adelaide, South Australia
- Hana Combe
- Oct 9
- 7 min read
Updated: Nov 13
Growing your construction, agriculture, or manufacturing business requires the right equipment. However, purchasing heavy machinery outright can drain your cash flow and capital reserves. Plant and machinery finance is the solution—allowing you to acquire the equipment you need while preserving working capital and maintaining business flexibility.
This guide covers everything Adelaide and South Australian business owners need to know about plant and machinery finance, including loan types, interest rates, tax benefits, and how to get approved.
What Is Plant and Machinery Finance?
Plant and machinery finance is a specialized business loan designed to help you purchase equipment without paying the full amount upfront. You borrow a sum secured against the equipment itself, agree to fixed monthly repayments, and own the asset from day one.
This type of finance is common in industries including:
Construction and civil works
Agriculture and farming
Manufacturing and industrial
Mining and quarrying
Forestry and landscaping
Logistics and transport
Healthcare and medical services
Whether you need an excavator, forklift, tractor, manufacturing plant, or crane, plant and machinery finance makes it accessible.
Types of Plant and Machinery Finance
1. Chattel Mortgage
A chattel mortgage is the most popular option for business equipment. You're the legal owner from day one, while the lender holds a mortgage over the asset as security.
Key features:
Interest rates: 5.80% to 12% p.a. for established businesses
Loan amounts: $20,000 to $20 million+
Loan terms: 2 to 7 years (most common: 3-5 years)
Ownership: You own the equipment immediately
Repayment: Fixed monthly payments
Balloon payment: Optional (can reduce monthly payments)
Tax benefits:
GST credit on purchase price (if GST-registered)
Interest payments are tax-deductible
Depreciation claims available
Instant Asset Write-Off (if eligible)
2. Finance Lease
A finance lease is similar to a rental agreement where you use equipment for a fixed term with an option to purchase at the end.
Key features:
Ownership: Transfers to you after the lease term ends
Monthly cost: Lower than chattel mortgage (you pay for use, not ownership)
Maintenance: Often included in lease payments
Flexibility: Easy to upgrade to newer equipment
Tax treatment: Lease payments may be tax-deductible
3. Operating Lease (Rental)
An operating lease lets you rent equipment for a specific project or duration without ownership or long-term commitment.
Key features:
Best for: Short-term projects or temporary needs
Flexibility: No long-term commitment
Maintenance: Included by lessor
Cost: Lower upfront, but higher per-use cost
No depreciation risk: Return equipment at end of term
4. Hire Purchase
Hire purchase combines elements of renting and purchasing. You hire equipment and own it once the final payment is made.
Key features:
Ownership: Transfers after final payment
Monthly payments: Fixed throughout term
Flexibility: Some agreements allow early purchase
Asset ownership: Yours at the end
Interest Rates and Loan Costs (2025)
Plant and machinery finance interest rates vary based on several factors, but here's what Adelaide businesses can expect:
Standard interest rate ranges:
Established businesses (5+ years trading): 5.80% to 8.50% p.a.
Newer businesses (1-5 years trading): 8.50% to 12.00% p.a.
High-risk or secondary equipment: 12.00% to 15.00%+ p.a.
Factors affecting your rate:
Type of equipment (primary vs. secondary equipment)
Equipment age (new rates lower; max 20 years for heavy equipment)
Business turnover and trading history
Credit score and payment history
Loan amount and term
Whether equipment is new or used
Example cost: $100,000 Excavator
Interest Rate | Loan Term | Monthly Payment | Total Interest |
6.00% p.a. | 5 years | $1,933 | $15,980 |
8.00% p.a. | 5 years | $2,027 | $21,620 |
10.00% p.a. | 5 years | $2,124 | $27,440 |
A 2% difference costs an extra $5,640 over the loan term.
Key Advantages of Plant and Machinery Finance
Preserve Cash FlowInstead of a large upfront payment, spread costs over time. Keep capital available for operations, wages, and growth opportunities.
Tax BenefitsChattel mortgages offer substantial tax deductions:
Claim GST on purchase (significant upfront cash recovery)
Deduct interest payments annually
Claim depreciation on the asset
Potential instant asset write-off (if eligible)
Stay CompetitiveAccess cutting-edge equipment without the burden of full ownership costs. Upgrade to newer, more efficient machinery as needed.
Flexible Repayments
Choose loan terms (2-7 years) that match your cash flow
Optional balloon payments reduce monthly costs
Fixed repayments make budgeting predictable
Equipment SelectionFinance new equipment from dealerships or used machinery from auctions and private sales. Many lenders accept equipment up to 20 years old.
What Equipment Can You Finance?
Commonly financed items in Adelaide:
Excavators, dozers, graders, loaders
Forklifts, telehandlers, scissor lifts
Cranes (mobile and tower)
Dump trucks, prime movers
Agricultural tractors, harvesters
Manufacturing equipment, production lines
Compressors, welding equipment
Buses, waste collection vehicles
Medical and healthcare equipment
Most plant and equipment can be financed. Lenders assess assets case-by-case based on resale value, condition, and business use.
Eligibility and Application Requirements
Who Qualifies?
To qualify for plant and machinery finance in Adelaide, you typically need:
Active ABN (registered business)
Minimum 1 year trading history (some lenders work with newer businesses)
Tax resident in Australia
Equipment for business use (primarily 50%+)
Demonstrate ability to repay
Established businesses with 5+ years trading and higher turnover (above $1 million annually) typically get the best rates.
Documents Required
Business tax returns (last 2 years)
Business bank statements (6-12 months)
BAS statements (if applicable)
ABN and business registration
Equipment quotes or details (make, model, value)
Director/owner identification
For loans above $150,000, lenders may require accountant-prepared financials.
Application Process
Step 1: Get a QuoteProvide equipment details and business information. Most lenders give indicative rates within 24 hours without impacting your credit score.
Step 2: Pre-ApprovalGet conditional approval for a set amount before selecting specific equipment.
Step 3: Equipment SelectionOnce you've chosen equipment, provide details and quotes to the lender.
Step 4: Credit Check and AssessmentLender verifies your credit, business financials, and conducts responsible lending assessment.
Step 5: Approval and Settlement
Full approval typically within 48 hours
Funds transferred to seller
Equipment registered in your name
Lender holds security over asset
Tax Benefits: A Closer Look
If your business is registered for GST and uses equipment more than 50% for business purposes, you can claim substantial tax deductions.
1. GST Credit on Purchase
Claim the full GST on equipment purchase upfront
Example: $100,000 equipment = $10,000 GST credit
Provides immediate cash flow boost
Claimed via your Business Activity Statement (BAS)
2. Interest Deductions
Loan interest is fully tax-deductible annually
Reduces your taxable income each year
On $100,000 at 8% over 5 years: approximately $21,620 total interest deductible
3. Depreciation Claims
Claim depreciation on the asset value annually
Follow ATO effective life guidelines for your equipment type
Reduces taxable income over the asset's life
4. Instant Asset Write-Off (If Eligible)
Eligible businesses can claim full depreciation in the year of purchase
Subject to asset cost limits and business turnover thresholds
Check current ATO thresholds—they change annually
Important: Asset must be used more than 50% for business purposes. Mixed-use equipment requires proportional claims. Always consult your accountant on tax implications specific to your situation.
Adelaide-Specific Lenders and Options
Adelaide has access to numerous equipment finance specialists:
National Lenders:
Commonwealth Bank, Westpac, NAB (major banks)
Finlease (35+ years experience, 1,500+ 5-star reviews)
Vestone Capital (25+ years, construction and equipment specialists)
Jade Equipment Finance (80+ lenders access)
AGM Finance (truck and equipment specialists, 80+ years combined experience)
Adelaide-Based or Local Specialists:
Chase Finance Adelaide (commercial and equipment specialists)
Adelaide Lending Services (machinery and forklifts)
Woodward Finance Adelaide
CK Finance and Advisory (equipment and asset finance)
Finance@Work (industry-specific equipment)
Key advantages of local brokers:
Access to 40-80+ lenders (compare rates without multiple applications)
Understanding of Adelaide market and industries
Fast approvals (often same-day quotes, 24-48 hour approvals)
Personalized service and relationship support
Red Flags and Tips
Avoid These Mistakes:
Not comparing lenders – Use a broker to access multiple lenders without credit hits
Focusing only on interest rate – Compare total cost (interest + fees + conditions)
Overlooking balloon payments – Understand end-of-term obligations
Not factoring in maintenance – Budget for repairs and servicing
Ignoring resale value – Secondary equipment attracts higher rates for good reason
Mixing personal and business use – Track business use percentage for tax claims
Smart Shopping Tips:
Get pre-approval before equipment shopping
Compare at least 3 lenders' quotes
Check lender's experience with your equipment type
Ask about early repayment without penalties
Confirm all fees upfront
Use equipment finance calculators to model repayments
Consult your accountant on tax structure before committing
New vs. Used Equipment Financing
New Equipment:
Lower interest rates (more predictable lifespan)
Full warranty coverage
Latest technology and efficiency
Higher upfront cost
Steeper initial depreciation
Used Equipment:
Lower purchase price
Interest rates typically 1-3% higher
Full mechanical inspections recommended
Shorter expected lifespan affects financing terms
May require higher deposit
Lenders typically finance equipment up to 20 years old
Both new and used equipment can be financed from dealerships or private sellers.
Approval Speed and Timelines
One of the key advantages of plant and machinery finance is fast approval:
Quick quote: 2-24 hours (no credit impact)
Pre-approval: Often same day
Full approval: 24-48 hours (some lenders offer same-day for eligible applicants)
Settlement: 3-5 business days
This speed means you can acquire equipment quickly and capitalize on business opportunities without delays.
Special Considerations for Adelaide Industries
Construction Companies:
Seasonal cash flow variations require flexible repayment structures
Finance rental equipment for projects
Upgrade fleet as project demands change
Agricultural Businesses:
Chattel mortgage tax benefits maximize profitability
Finance seasonal equipment purchases
Depreciation claims support farm profitability modeling
Manufacturing:
Production line equipment financing preserves capital
Upgrade to more efficient machinery to stay competitive
Tax deductions reduce operational costs
Mining and Quarrying:
Heavy equipment specialists available in Adelaide market
Flexible terms for project-based acquisitions
Tax planning integration for capital-intensive operations
Key Takeaways
Plant and machinery finance is a strategic tool that allows Adelaide businesses to grow without depleting cash reserves. By understanding loan types, interest rates, tax benefits, and the application process, you can:
Acquire equipment when you need it
Preserve working capital for operations
Claim substantial tax deductions
Stay competitive with up-to-date machinery
Access fast, flexible financing tailored to your industry
Whether you're a small contractor, established manufacturer, or agricultural operation, plant and machinery finance options exist designed for your situation.
Finance Your Plant and Machinery in Adelaide
Ready to invest in the equipment your Adelaide business needs to grow? Fintell Finance helps South Australian businesses secure flexible plant and machinery financing.
Why choose Fintell Finance?
30+ lender network: Access competitive rates tailored to your business profile and equipment type
Fast approvals: Most plant and machinery finance approvals within 24 hours
Quick funding: Funds typically available within 3–5 business days
Flexible options: Chattel mortgages, finance leases, hire purchase, and operating leases available
Tax expertise: Our team understands GST credits, depreciation claims, and instant asset write-off eligibility
Expert guidance: Personalized support from equipment finance specialists
Transparent process: No hidden fees—you understand the full cost upfront
No-obligation assessment: Free quote with no credit score impact
From earthmoving equipment and forklifts to construction machinery and manufacturing plants, Fintell Finance helps you acquire the assets your business needs while optimizing your tax position and cash flow.
Explore our
page to learn more, or call us on
to speak with a plant and machinery finance specialist today.
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