Asset Finance Australia

Asset finance is a way to fund business assets such as vehicles, machinery and equipment, instead of paying cash upfront. The asset usually acts as security, and you repay the cost over a fixed term. It can help you keep working capital available for wages, stock and projects. PFGA compares lenders and structures to find one that suits your cash flow.

Common assets include work vehicles, utes and vans, trucks and trailers, excavators, tractors, graders, cranes, dozers, and office and commercial equipment. Each asset type has its own lender rules on age, deposit and term. Tell us what you’re buying and we’ll check which lenders may suit it.

It depends on whether you want ownership from the start, how you want to manage cash flow, and what you want to happen at the end of the term. Chattel mortgage gives you ownership from day one, hire purchase transfers ownership after the final payment, and an operating lease means you never own the asset. Tax treatment differs, so speak with your accountant. PFGA explains your options and compares them side by side.

With a finance lease, the lender owns the asset, and you generally have the option to take ownership by making a final balloon payment. With hire purchase, the lender owns the equipment until you make the final payment, and ownership then transfers to you. The right choice depends on what you want to do with the asset at the end of the term.

It depends on your structure. At the end of a hire purchase, ownership transfers to you, while at the end of a finance lease you’ll generally need to deal with a residual or balloon payment. If you can’t pay a balloon, you may need to refinance or sell the equipment. It’s important to plan for this at the start, and PFGA helps you do that.

Terms vary by structure, lender and the age of the asset. Chattel mortgages commonly run over one to seven years, often with a balloon payment at the end to lower monthly costs. A longer term can lower your repayments, but you may pay more interest overall. We’ll show you the trade-offs.

Yes. You can finance several vehicles, either under one arrangement or as separate agreements. Lenders look at your total exposure, so how it’s structured matters. PFGA can help plan your fleet finance around your cash flow and when you expect to replace vehicles.

Not always. Hire purchase may not require a deposit, while a deposit is optional with a chattel mortgage. Requirements vary by lender, asset and your business, and a larger deposit can improve your options. We’ll check what suits your situation before you apply.

PFGA explains how we’re paid, and any fees that may apply, before you proceed, so there are no surprises. You can read more in our fee and commission disclosure. To talk through your situation, call us on 1800 574 055 or book an appointment.