Equipment loan finance for business

Last updated: 6 September 2022

Equipment loan is a contract where a financier loans a business money to buy renewable or energy efficient equipment.

The financier takes out a ‘mortgage’ on the equipment which forms which part of the collateral should the business fail to pay off the loan. Equipment loan is also known as chattel mortgage.

Suitable for businesses that:

  • want to invest in high-value equipment which has a medium or long lifespan, that isn’t going to become outdated quickly.


Project size: More than $2000

You own the equipment

You’re responsible for maintenance

Contract length

  • Typically, 1–5-year contract
  • 1–3-month agreement period

On the balance sheet, so you can claim tax on:

  • Loan interest
  • Equipment depreciation

Additional benefits

  • No upfront capital or security is possible
  • You can structure your loan term and repayments to suit your cash flow

How to apply: Most major banks and financiers offer capital lease financing. Contact your bank to find out more.

Compare finance options

How it works

  1. Find a financier who offers equipment loans. Your bank is a good place to start.
  2. The financier gives you funding to buy the equipment.
  3. You purchase the equipment.
  4. You pay off the loan through monthly repayments to the financier. This loan works like a car loan or a home loan.
  5. Once the loan has been paid back, the financier transfers the title of the equipment to you.

To secure the loan, in some cases you may need to use your existing business assets as security. Your business’ creditworthiness may have an impact on finance availability and rates.

We advise you to always seek advice from your accountant and legal representative when entering financial agreements.

Get a discount for your energy saving project

The Victorian Government offers businesses a discount on energy saving products that are installed by accredited Victorian Energy Upgrade providers. Check which energy saving products are registered for a discount.

The Clean Energy Finance Corporation is currently facilitating discounted financing for energy efficiency and renewable energy equipment upgrades through some of the major banks and financiers.

We advise you to always seek advice from your accountant and legal representative when entering financial agreements.

Visit the Victorian Energy Saver for a list of simple tips to save energy in your business.

Want to know more? Get in touch with:

Sustainability Victoria's finance team who can help you through this process.

Correct as at November 2019

Disclaimer: The information provided in this document is general advice only. It does not take into account your particular needs or objectives and does not constitute legal or accounting advice. Accordingly, any comments or statements made are not a recommendation that a particular course of action is suitable for you and you need to seek your own legal, tax and accounting advice in relation to your specific circumstances.