Whether you need a new truck, machinery, fit-out or technology, asset finance lets Australian businesses acquire the equipment they need today — without the upfront cost draining your working capital.
What Is Asset Finance?
Asset finance is a funding solution that allows businesses to spread the cost of purchasing or leasing equipment, vehicles, or machinery over time. Instead of paying the full purchase price upfront, you make regular payments — keeping your cash free for day-to-day operations and growth.
Types of Asset Finance in Australia
Chattel Mortgage
You own the asset from day one while the lender holds a mortgage over it as security. You can claim GST upfront, and depreciation and interest are tax-deductible. Most popular for business vehicles and equipment.
Finance Lease
The lender buys the asset and leases it to your business. You make regular payments and can purchase the asset at the end of the term. Lease payments are fully tax-deductible as a business expense.
Operating Lease
Ideal for equipment with a short useful life or high obsolescence risk. You use the asset for a set period without ownership — great for technology or vehicles that need regular upgrading.
Commercial Hire Purchase
You hire the asset from the lender and take ownership once all repayments are complete. Payments are fixed, making budgeting straightforward.
What Can Asset Finance Fund?
- Trucks, vans and commercial vehicles
- Construction and earthmoving equipment
- Medical and dental equipment
- Restaurant and hospitality fit-outs
- Manufacturing machinery
- IT infrastructure and technology
- Solar panels and green energy equipment
- Agriculture and farming equipment
Key Benefits of Asset Finance
- Preserve cashflow — spread the cost rather than paying upfront
- Tax advantages — interest and depreciation are often deductible
- GST benefits — claim GST upfront on chattel mortgages
- Fixed repayments — easier budgeting with predictable monthly payments
- Access the $20,000 instant asset write-off — for eligible small businesses
- Upgrade regularly — lease structures allow for technology upgrades at end of term
The $20,000 Instant Asset Write-Off
The Australian Government has made the $20,000 instant asset write-off permanent for small businesses with turnover under $10 million. This means eligible businesses can immediately deduct the full cost of assets under $20,000 in the year of purchase — a significant tax saving that effectively reduces the real cost of your equipment.
How Much Can You Borrow?
- Loans from $5,000 to $5,000,000+
- Terms from 12 months to 7 years
- Up to 100% of the asset value financed (no deposit required with some lenders)
- Competitive rates from 5.99% p.a. comparison rate
What Do Lenders Look For?
- ABN active for 12+ months (some lenders accept less)
- Business bank statements (3–6 months)
- Details of the asset being purchased
- Clean or manageable credit history
- For larger amounts: financial statements or tax returns
Asset Finance vs Business Loan
| Feature | Asset Finance | Business Loan |
|---|---|---|
| Security | The asset itself | Often property or personal guarantee |
| Tax | GST + depreciation benefits | Interest only |
| Speed | 24–48 hour approvals | Days to weeks |
| Best for | Specific equipment purchase | General working capital |
Ready to Finance Your Next Asset?
At Co-Pilot Finance and Insurance, we compare over 40 lenders to find the right asset finance solution for your business — fast approvals, competitive rates, and a broker who does the legwork for you.
Apply online in minutes or call our team to discuss your options.