Quick answer
Heavy machinery finance is a loan or lease for earthmoving and construction plant such as excavators, loaders, skid steers, dozers, graders and cranes, usually secured by the machine itself. Ownright Custom Finance arranges heavy machinery finance Australia-wide for contractors, civil operators and growing plant fleets.
Key points
- Excavators, loaders, skid steers, dozers, graders and cranes
- New and used plant, including private sales
- Work in hand and operator experience carry weight
- Structures can be compared for cash flow and tax
- Suits
- Earthmoving contractors, civil and landscaping operators
- Security
- The machine being financed
- Pricing
- Set on your individual circumstances
- Australia-wide
- Yes
How does excavator and heavy machinery finance work?
Plant is expensive, and most contractors would rather keep their cash for wages, fuel and materials. Machinery finance lets a lender pay for the excavator, loader or dozer while you repay over a set term. The machine normally acts as security, which is why the lender cares about its make, age, hours and resale market.
Ownright Custom Finance arranges heavy machinery finance Australia-wide. Director Trevor Scott has more than 40 years in finance, and our team enjoys the puzzle of fitting finance around uneven contract income, seasonal work or a business that has grown faster than its paperwork.
What machinery can be financed?
- Excavators from mini to large, including attachments and quick hitches
- Skid steers, compact track loaders and backhoes
- Wheel loaders, dozers and graders
- Tippers, water carts and float trucks that move the plant
- Cranes, telehandlers and elevated work platforms
- Compaction, trenching and drilling equipment
Who suits machinery finance?
- Earthmoving and civil contractors adding a machine to win more work
- Landscapers and tradies moving from hire to owning
- New operators who have contracts but limited trading history
- Established businesses replacing older plant
- Operators with an uneven credit history who need a lender that looks at the whole picture
For vehicles that haul the plant, see truck finance. For general business gear, equipment finance covers the rest.
What do lenders look at?
| Area | What lenders often check |
|---|---|
| The machine | Brand, age, hours, condition, resale demand |
| The operator | Years in the industry, licences, tickets |
| Work | Contracts, regular clients, pipeline of jobs |
| Financials | Tax returns, BAS, bank statements, existing debts |
| Credit | Personal and business history, defaults, enquiries |
| Deposit | Equity you are bringing to the purchase |
Many plant lenders are comfortable with older machines when the brand and hours support resale, but policies vary. That is why matching matters.
How does Ownright approach heavy machinery finance?
We start with the job the machine has to do and the work you have lined up. Then we organise the paperwork so a lender can follow the story: contracts, bank statements, a short note on your experience, and a clear description of the machine.
Ownright has access to lenders who understand plant and are comfortable with the lumpy income of contracting. That helps when a mainstream lender says the numbers do not fit. We cannot promise approval, but a considered application often goes further than a rushed one.
Apply online or call 03 7043 7233 to speak with the Knoxfield head office.
Is a chattel mortgage the right structure?
For many contractors the chattel mortgage is the starting point, because ownership sits with the business from the start. Other options include hire purchase and leases. Which one fits depends on how you want to handle GST, depreciation and end-of-term options, which is why accountant input is valuable. Our chattel mortgage guide explains the basics.
An illustrative example
Illustrative only: a landscaper has been hiring a 5-tonne excavator several days a week for a year and wants to buy a used one. His income varies seasonally, and he has one old default from a previous venture. A bank declines because of the default and the seasonal pattern.
Ownright would show twelve months of hire invoices as proof of demand, explain the default, and approach lenders who take a broader view. The machine’s age and hours would be compared against lender policy. Success cannot be promised, but the hire history makes a compelling case.
Mistakes to avoid
- Buying a machine before finance is confirmed
- Ignoring transport, insurance and servicing costs when budgeting
- Overlooking attachments in the finance request, then paying cash for them later
- Skipping a PPSR check on a private sale
- Choosing a term much longer than the machine’s useful working life
- Presenting uneven income with no explanation
Documents to have ready
- Photo ID, ABN and business structure details
- Two years of tax returns and BAS, or recent bank statements
- Contracts, quotes or work orders
- Machine details: make, model, year, hours, serial number
- Seller quote, invoice or listing
- Details of existing finance and deposit
Next steps
Related reading: trade and contractor loans for working capital, and commercial construction loans if your work involves larger projects.
How do lenders value used excavators and plant?
Used plant is valued by looking at the brand, model, year, hours and condition, and by checking what similar machines are selling for. Well-known brands with strong resale markets tend to be easier to finance, while niche or very old machines can be harder. Some lenders will ask for an independent inspection or valuation, particularly for larger purchases, and a pre-purchase inspection protects you as well as the lender.
Hours matter more than age on many machines. A five-year-old excavator with low hours may be a better asset than a three-year-old one that has worked hard. Service records add confidence, and a PPSR search helps confirm that the machine is free of undisclosed security interests.
Is it better to buy or hire plant?
Hiring suits occasional or one-off jobs. Owning makes sense when the machine is in regular demand, when hire costs are climbing, or when availability affects your ability to quote for work. Many contractors move from hire to ownership after noticing how much they have spent over a year or two.
A fair check is to add up what you spent on hire over the last twelve months and compare it with the repayments, running costs and insurance of owning. Lenders also find hire history useful evidence, because it shows real demand for the machine.
What about insurance and servicing?
Lenders generally require plant to be insured, usually with comprehensive cover that names the lender as an interested party. Premiums depend on the machine, where it works and your claims history, so it pays to get a quote early.
Servicing is part of the real cost of ownership: oil, filters, tracks or tyres, hydraulic repairs and downtime. Budgeting for these avoids the shock of an unexpected repair eating into the repayment budget.
What if your work comes in waves?
Earthmoving and civil work often arrive in lumps: a busy stretch followed by a quiet one. Lenders who understand contracting will look at the pattern across a year or more, rather than reacting to one slow month. Some structures allow for flexibility, such as a modest balloon or a term that matches the machine’s productive life.
It helps to bring:
- Invoices or contracts for recent jobs
- Bank statements that show regular receipts across a full year
- A short summary of how you manage slower periods
- Any council, civil or private clients who provide repeat work
If your business needs working capital during quiet patches, our trade and contractor loans page covers that need separately.
Talk to Ownright about your machine
If you have the work and need the plant, send us your details. We will look at structures that suit contractors and go from there.
How it works, step by step
- 1
Step 1
Tell us the machine, its age and hours, and the work it will do.
- 2
Step 2
We review your trading history, contracts, financials and credit.
- 3
Step 3
We approach lenders familiar with plant and the type of machine you are buying.
- 4
Step 4
We coordinate inspections, invoices, insurance and settlement.
Frequently asked questions
Can I finance a used excavator?
Yes, many lenders finance used excavators and other plant. Age, hours and condition influence terms, and some lenders may ask for an inspection or independent valuation. A PPSR search is a sensible step on a private sale to see whether the machine is free from other security interests.
Can a new earthmoving business get machinery finance?
It can be possible, especially with a deposit, relevant operator experience and some work lined up. Lenders vary in how much trading history they want, so a new business is worth discussing rather than assuming no.
What is a chattel mortgage for machinery?
A chattel mortgage lets you own the machine from the start while the lender takes security over it. It is widely used for business assets. Tax and GST treatment depends on your circumstances, so ask your accountant. Our guide to the chattel mortgage covers it step by step.
Do I need a deposit?
Not always, but a deposit often helps, particularly for older machines, newer businesses or files with credit issues. Whether it is needed depends on the lender and the overall picture.
Can I finance attachments, trailers and a float truck together?
Often, yes. Bundling the machine with buckets, attachments and a trailer can simplify the paperwork, although lender policy varies. We can look at whether one facility or several makes more sense.
Does the instant asset write-off apply to machinery?
It may apply to eligible small businesses, though most excavators cost more than the $20,000 threshold the ATO lists for assets first used from 1 July 2023. Other depreciation rules may be relevant. Check with the ATO or your accountant for the current year.