Updating your business equipment

If you're looking for new equipment, you can consider a lease or other financing options to help upgrade your equipment without the costly upfront purchase price.


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Your equipment often plays a vital role in the success of your business. Whether it's the latest IT software, heavy machinery, office items or other equipment, finding the right financing option can help you eliminate costly funding required for upfront purchasing.

Should I purchase or lease my business equipment?

Consider the following factors when choosing between leasing or purchasing equipment:

  • Equipment life span. Purchasing is usually appropriate for equipment with a long life span, while leasing is better suited to equipment with a shorter life span
  • Cash flow. Having consistent cash flow gives you access to both options, though leasing is generally better suited for businesses in a cash flow squeeze. If you'd like to manage your cash flow effectively, invoice financing could be an option. Compare the products below.
  • Control. Purchasing equipment means it's yours to use as you see fit. On the other hand, if you're leasing, the leasing company keeps ownership, so certain restrictions may be imposed on the equipment's use.

Moula Business Loan

Moula Business Loan

  • Borrow up to $250,000
  • Flexible lending criteria
  • No hidden fees
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100% confidential application

Moula Business Loan

An unsecured business loan with online application and no upfront or early repayment fees.

  • Interest rate type: Fixed
  • Loan security: Unsecured
  • Upfront fee: 2% Establishment fee
  • Minimum loan amount: $5,000
  • Maximum loan amount: $250,000
  • Maximum loan term: 2 years
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Business lenders you can compare

Data indicated here is updated regularly
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Moula Business Loan
1 to 2 years
2% Establishment fee
A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
ebroker Business Loan
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
Max Funding Unsecured Business Loan
1 month to 1 year
$0 application fee
An unsecured business loan from $2,000 that offers convenient pre-approval and no early repayment fees.
Valiant Finance Business Loan Broker
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
OnDeck Business Loans
6 months to 2 years
3% of loan amount
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.
Prospa Business Loan
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $300,000 on terms of up to 3 years. At least twelve months trading history and a monthly turnover from $6,000 is necessary.
ANZ Secured Business Loan
Up to 15 years
Benefit from a low rate when you secure this loan with property and/or business assets. Loans from $10,000 available.
Westpac Business Loan
1 to 30 years
$0 application fee
Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.

Compare up to 4 providers

Data indicated here is updated regularly
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Timelio Invoice Finance
Up to 4 months
Get up to 100% of the value of your invoices without having to wait for customer payments, and with no minimum turnover or operating history required.
ScotPac Invoice Finance
From 1 year
No set amount
Improve your business cash flow by financing your outstanding invoices. No minimum trading history required, but minimum 12 - month term and $10,000 in invoices.
ScotPac Selective Invoice Finance
1 to 3 months
Finance your unpaid invoices on demand with terms of 1 - 3 months. 95% of invoice is paid upfront, with no minimum trading history required.

Compare up to 4 providers

Where can I get finance to update my business equipment?

  • Equipment/commercial loans. These loans can help you finance equipment that's put up as security for your loan. You make monthly repayments based on a pre-agreed interest rate.
  • Lease. Companies selling your equipment may offer to lease it to you, which means little-to-no deposit and flexible monthly repayments. At the end of the term, you can either purchase the equipment outright, forego the equipment or renew the lease.
  • Hire purchase. This involves a financier buying equipment on your behalf, with you then purchasing it from them in installments. Be aware that your lender will own the equipment until you pay off the loan.
  • Chattel mortgage. Here, a lender advances you funds to buy equipment that you claim ownership of at purchase. You then mortgage the equipment to your lender as security and, when the loan is repaid in full, you receive a clear title to your equipment. Chattel mortgages may also offer significant tax deductions.

Insurance considerations

When deciding on insurance, you may choose to deal directly with the insurance companies, an agent on their behalf or a broker. Insurance companies look to maximise premiums while brokers help you look for the best deal.Even though brokers work for a small fee, it still may be worth using one to find the best deal. Although you can shop around on your own, insurance policies can be complex and a broker can help you work through the product intricacies.

Even though brokers work for a small fee, it still may be worth using one to find the best deal. Although you can shop around on your own, insurance policies can be complex and a broker can help you work through the product intricacies.

How much does updating my business equipment cost?

Keep in mind the following factors when comparing the cost of different options:

  • Deposits. Most purchase financing options, and some lease types, require putting a down payment on your equipment. Make sure you're fully aware of any down payments that are required and how this will affect your short-term cash flow.
  • Interest rate. As this has a big influence on what you will be paying, make sure you're looking for the lowest rates possible. Also, consider whether a fixed or a variable rate works better for you. If you can't risk an upwards-spike in the variable rate, then opt for a fixed rate.
  • Fees and charges. Make sure you're aware of all the fees and charges for each option. Read the fine print to uncover any indirect fees, such as early repayment penalties and establishment fees.
  • Tax benefits. Each finance option is assessed differently at tax time and each has its own potential tax benefits. Ask your financial adviser or accountant to find out which option might work best for you.

Is there anything else I should consider before I apply?

With endless equipment financing options available, things can get confusing. You can seek the help of your financial adviser or accountant to make sure you've made the right choice. Also, be cautious about not selecting financing that you simply can't afford over the long term.

If managed properly, leasing or financing your equipment can be a practical option for acquiring the equipment you need even if you don't have the necessary cash upfront.

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