Equipment finance: matching the machinery to the job and cash flow
Specify the asset and the work it will do
Describe the machine, supplier, purchase price and whether it is new or used. Explain whether it replaces an existing asset, improves a process or adds capacity. A clear use case helps you compare the purchase with hiring, outsourcing or delaying.
Include implementation costs
Separate delivery, installation, commissioning, training and initial consumables from the equipment price. Ask which costs can be included in the finance and which need a separate cash allocation. Do not assume every part of a project receives the same treatment.
Match the term to a realistic service life
Consider expected use, maintenance, replacement timing and technology changes. A low repayment is less useful if the equipment needs replacing while a substantial balance remains. Ask the supplier practical questions about parts, servicing and support.
Test the operating budget
Estimate the revenue or savings the equipment could produce, using conservative assumptions. Include maintenance, insurance, downtime and other operating costs. Ask whether repayments remain manageable if work is slower than expected.
What to discuss with the provider
Have the supplier quote, asset age or hours, intended use, purchase timing and deposit ready. Ask about security, ownership, fees, the final payment and early repayment conditions before deciding on an agreement.
Explore the next step
Equipment finance information · Repayment calculator
Enquire About This PurchaseFurther reading: ASIC Moneysmart: comparing car loans and personal loans. For business purchases, see business vehicle and equipment finance. Provider examples do not indicate a lender-panel relationship.