Quick answer
Forklift finance is a loan or lease used to buy new or used forklifts, reach trucks, order pickers and other pallet-handling equipment, usually with the machine held as security. Ownright Custom Finance arranges forklift finance Australia-wide for warehouses, manufacturers, retailers, farms and hire businesses, including private sales and tighter credit files.
Key points
- Counterbalance, reach and walkie trucks can all be considered
- New, used and ex-hire units may be financed
- Lease and purchase structures suit different businesses
- Smaller purchases can sometimes move faster than large plant
- Suits
- Warehouses, factories, farms, retailers, hire fleets
- Security
- The forklift being financed
- Structures
- Chattel mortgage, hire purchase, finance or operating lease
- Australia-wide
- Yes
How does forklift finance work?
Forklift finance spreads the cost of a forklift over time instead of paying it all upfront. The lender pays the seller, you make regular repayments, and the forklift is usually the lender’s security. Depending on the structure you either own the machine at the end or return, upgrade or buy it for an agreed amount.
For a warehouse, a forklift is the difference between loading a truck in an hour and loading it in a morning. For a farm or workshop it can replace a lot of lifting and strain. Because it is a working machine, the finance should fit the way the business earns.
Who uses forklift finance?
- Warehouses and distribution centres adding capacity or replacing worn units
- Manufacturers and fabricators moving materials around the floor
- Building suppliers, nurseries and timber yards
- Farms and packing sheds that handle pallets in season
- Retailers and wholesalers with growing stock
- Equipment hire companies building a fleet
What do lenders look at?
The machine. Type (counterbalance, reach, side loader, order picker, walkie stacker), brand, capacity, age, hours and service records. Lenders usually prefer mainstream brands with ready parts and a healthy resale market.
The seller. Dealer invoices are simple. Private sales involve more checking because the lender needs to see proof of ownership and a clean position on the Personal Property Securities Register.
The borrower. Credit history, income, trading record and existing debts. For businesses, tax returns, BAS and bank statements are commonly requested.
The deposit. A deposit or trade-in reduces the amount financed and can broaden the lender pool.
Which structure suits a forklift?
| Structure | Ownership | Typical appeal |
|---|---|---|
| Chattel mortgage | You from day one | Long-term use and ownership |
| Hire purchase | Lender until the final payment | Clear path to owning the machine |
| Finance lease | Lender | Regular upgrades |
| Operating lease | Lender | Shorter-term or fluctuating needs |
Your accountant can confirm how each is treated for tax. Our chattel mortgage guide is a good plain-English starting point.
Buy new, buy used or rent?
A new forklift offers warranty and a long working life, but the price is high and it loses value early. A used unit lowers the entry cost and can be an excellent option for moderate use, as long as hours and service history are sound. Renting suits seasonal peaks or a trial period. Many businesses mix the three. If you are weighing it up, our used equipment finance page shows how lenders treat second-hand machines.
Matching repayments to your business
Warehouses with steady contracts usually have predictable cash flow, while seasonal businesses such as nurseries or fruit packing sheds earn in bursts. Some lenders offer stepped or seasonal repayments, and others allow a residual to lower the regular payment. Deferral usually means more owed at the end, so the plan has to stay affordable across the whole term. Share your income pattern with us and we will talk through what looks workable.
How Ownright arranges forklift finance
Trevor Scott and the team ask about the forklift first, then about the business behind it. A lender approving a machine is also assessing the operation, so we make sure that picture is clear.
A declined application elsewhere is not the end of it, as some asset lenders will take a fresh look at an older unit, a younger company or a credit wrinkle. We explain which documents hold things up and which help them along, since speed depends on the lender, the security and the paperwork. Clients range from city warehouses to regional packing sheds.
An illustration
Illustrative scenario only. A small importer is moving into a bigger warehouse and needs a reach truck and a second counterbalance forklift. Trading history is solid but the business is cash-hungry because of stock levels. A broker could consider an operating lease on one unit to preserve working capital and a chattel mortgage on the other, then sit the repayments alongside the new lease on the premises.
Mistakes to avoid
- Buying a used forklift without checking hours, mast condition and service history
- Skipping the ownership and encumbrance check on a private sale
- Forgetting insurance, servicing, batteries or gas, and operator training
- Signing a longer term than the machine’s useful life
- Applying with several lenders in a short window
Documents to have ready
- Quote, invoice or private listing with serial number
- Recent tax returns, BAS and bank statements
- Schedule of debts and assets
- Photo ID
- Details of any trade-in
Work through the loan ready guide if you would like a tidy starting point.
What about licences and safety?
Forklift operation in Australia generally needs a high risk work licence issued under state work safety rules, and workplaces are expected to manage traffic, pedestrians and maintenance. Lenders do not assess your safety systems directly, but a well-run site supports a stronger application and fewer insurance headaches. The state regulators publish the licence classes and requirements.
Can I finance forklifts alongside other equipment?
Yes, often. A new site might need forklifts, racking, a fitout and a delivery vehicle. Lenders can consider combined purchases, though each asset is assessed on its own. See equipment finance and manufacturing equipment finance for related options.
What if my credit is less than perfect?
An old default or a thin trading record need not stop a forklift purchase. Some lenders look at the machine and the deposit first and the file second. Say what happened, since the lender will see it anyway. Read bad credit asset finance and the guide on building a better credit score for more.
How long does forklift finance take?
Time frames vary, and we will not invent one. Smaller dealer deals with a tidy file are generally brisk, whereas private sales and older machines drag. What usually delays things: absent statements, unsigned returns and a quote vague on model or serial number. If you need the machine by a set date, say so at the outset.
What running costs should you budget for?
A forklift costs more than its repayments. Plan for servicing, tyres, batteries or gas, charging infrastructure, attachments, operator training and insurance. Electric units need chargers and sometimes electrical upgrades, while gas and diesel units have fuel and ventilation considerations. Used machines often need more maintenance, so a cheaper purchase price can be offset by higher running costs. We include these in the conversation so the repayment you choose still works once the real costs are counted.
Ready to move pallets faster?
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How it works, step by step
- 1
Step 1
Tell us the forklift type, age and where it will be used.
- 2
Step 2
We compare buying and leasing against your cash flow and tax position.
- 3
Step 3
We approach lenders that fit the machine, the seller and your file.
- 4
Step 4
Paperwork is signed, the seller is paid and the forklift is delivered.
Frequently asked questions
Can I finance a used forklift?
Yes, often. Lenders look at age, hours, brand and service history, and mainstream brands with strong parts support are generally easier. Very old or heavily used units may mean shorter terms or a larger deposit. Send the details and we can tell you how the lender pool looks.
Should I buy or lease a forklift?
It depends on how long you keep machines, your tax position and how you like to manage cash flow. Buying through a chattel mortgage or hire purchase builds ownership. Leasing can suit businesses that swap units regularly. Your accountant can confirm tax treatment, and we explain the practical differences.
Can I finance a forklift from a private seller?
Yes, though lenders will want extra proof. They look for confirmation of ownership, a serial number and a check that nobody else has a claim on the machine. Searching the Personal Property Securities Register helps. We can talk through which lenders handle private deals and what timing is realistic.
Do lenders care about forklift licences?
Operators generally need a high risk work licence for forklift trucks, set by state work safety regulators. Lenders do not usually assess the licence itself, but a safe, compliant operation supports the overall picture. We can talk through how your set-up looks to a lender.
Can I finance a forklift with a new business?
Sometimes. A newer business may be considered with a deposit, strong personal credit and evidence of work or contracts. A longer trading history widens the choice. Tell us how the business started and what the forklift will do, and we will explain what is realistic.
Can several forklifts be financed in one go?
Often yes. Businesses adding to a fleet can sometimes finance several units under one facility, which simplifies repayments and paperwork. Lenders assess the combined amount against your income. We can discuss whether a single facility or separate ones suits you better.