Quick answer
Green equipment finance funds business equipment that cuts energy use or emissions, such as efficient refrigeration, heat pumps, electric machinery, solar, batteries and electric vehicles. It normally uses asset finance structures like a chattel mortgage or lease. Ownright Custom Finance arranges it Australia-wide, including for newer businesses and complex files.
Key points
- Efficient refrigeration, heating, motors and machinery can be financed
- Standard asset finance structures apply
- New and used equipment may both qualify
- Programs and tax settings change, so confirm before relying on them
- Suits
- Manufacturers, hospitality, agriculture, trades, transport
- Security
- The equipment, and sometimes other business assets
- Structures
- Chattel mortgage, hire purchase, lease, equipment loan
- Australia-wide
- Yes
What do we mean by green equipment finance?
It is ordinary equipment finance with a particular kind of equipment on the invoice: gear that uses less energy, burns less fuel or produces fewer emissions than the alternative. The finance behind it works just as it does for a delivery van or a coffee machine. A lender buys the asset, you repay it, and the asset is the security.
What makes the topic worth its own page is that green equipment can be unfamiliar to lenders. A refrigeration retrofit or an electric forklift may sit outside the box that a standard credit policy was written around. Explaining the asset well, and choosing a lender that understands it, makes a real difference.
What kinds of equipment qualify?
- Efficient commercial refrigeration and cool rooms
- Heat pumps and efficient heating, cooling and hot water
- Electric forklifts and warehouse equipment (see forklift finance)
- Variable-speed drives, efficient motors and compressors
- LED lighting and building controls
- Solar and batteries (business solar finance)
- Electric vehicles and chargers (EV charging finance)
- Efficient kitchen and hospitality equipment (hospitality equipment finance)
- Efficient irrigation pumps and farm equipment
Which finance structure fits?
| Structure | Ownership | Common appeal |
|---|---|---|
| Chattel mortgage | Business owns from day one | Flexible, tax treatment to confirm with an accountant |
| Hire purchase | Lender owns until last payment | Clear path to ownership |
| Finance lease | Lender owns, business uses | Options at the end of term |
| Equipment loan | Business owns | Straightforward, may involve other security |
You will find more detail on the chattel mortgage page, under finance lease and in the chattel mortgage guide.
How do lenders view green assets?
Resale value. Lenders want to know what the equipment would fetch if it had to be sold. Mainstream, well-known equipment is easier. Highly specialised or very new technology may require a larger deposit.
Business strength. Trading history, financials, BAS and debt levels. If you trade as a sole trader or via a company or trust, the paperwork differs slightly.
Purpose and savings. A clear explanation of how the equipment cuts costs or boosts output reassures lenders, though they still rely on your capacity to repay rather than projected savings.
New or used. Brand-new equipment is simpler; our page on used equipment finance explains the extra checks needed second-hand.
Is there grant or incentive support?
Governments have funded energy efficiency grants for small and medium businesses, with set funding pools and conditions, and some programs open and close quickly. Details, caps and eligibility change, so we point you to business.gov.au rather than quoting from memory. If a grant covers part of the cost, we can arrange finance for the remainder, and we can help you plan timing so the supplier is paid correctly.
How does Ownright approach green equipment?
Trevor Scott’s approach is practical. A piece of equipment is only a good buy if the business can carry the repayment, so we begin with the cash flow. After that, we look at the asset: what it is, who sells it, how it holds value and which lenders are comfortable with it.
If a bank declined because the equipment looked unusual, or because the business is young, we look for other doors. Some asset lenders specialise in particular industries. Others focus more on the deposit and the story. Ownright arranges finance for businesses in every state and territory, and we will tell you plainly when something does not stack up. When you are ready, send us the quote.
An illustration
Illustrative scenario only. A small manufacturer wants to replace an old compressor and fit variable-speed drives and LED lighting across the factory. Quotes come from two suppliers. A broker could combine the invoices into one facility if the lender allows, choose a chattel mortgage, and set the term to match the expected life of the main items.
Mistakes to avoid
- Paying a supplier deposit before approval is confirmed
- Counting on projected savings to cover repayments
- Overlooking installation and commissioning costs
- Forgetting that grants may have timing or purchase-order rules
- Choosing a term that runs well beyond the equipment’s useful life
Documents to have ready
- Supplier quote or invoice
- Recent BAS and tax returns, or financial statements
- Business bank statements
- A list of existing debts and assets
- ID for owners and directors
See our guide on business loan documents and the loan-readiness checklist for more.
Where does this connect?
If you need something broader, equipment finance covers general gear, business expansion loans supports bigger growth projects, and the green finance hub maps out the wider category.
How is green equipment different from a normal asset?
In many cases it is not, and that is the good news. A lender sees an asset with a price, a supplier and a likely resale value. Where green equipment differs is in newness: some technology changes quickly, so older models can lose value faster, and a lender may ask for a bigger deposit or shorter term. Established products with a local service network and a clear second-hand market are easier. Newer technology is not unfundable, it simply needs a better explanation.
What should the supplier quote show?
Lenders respond well to a quote that names the make and model, serial numbers when known, installation costs and delivery terms. For efficiency gear, a short note on what the equipment replaces and how it is expected to reduce energy use helps the story. If the supplier is also arranging a grant or rebate, the quote should show the amount payable after that is applied. A missing detail often slows an approval more than a weak credit file does.
What if the business is seasonal or lumpy?
Many businesses earn unevenly, and equipment finance can reflect that. Some lenders allow step-up or seasonal repayments, others offer a balloon. These suit a business whose income swings but they usually raise the total cost. We discuss your income pattern honestly and recommend a structure that works across a bad quarter as well as a good one. The guide on balloon payment loans covers the trade-off.
Ready to fund the greener gear?
Sounds like you’re looking for green equipment finance. We’re the lending experts when equipment is a little out of the ordinary, so click the button and see if you qualify.
How it works, step by step
- 1
Step 1
Send the supplier quote and tell us how the equipment saves energy or reduces emissions.
- 2
Step 2
We select the structure that fits your tax position, cash flow and end-of-term plans.
- 3
Step 3
We approach lenders that understand the equipment and the industry.
- 4
Step 4
Paperwork is signed, the supplier is paid and the equipment is delivered.
Frequently asked questions
What counts as green equipment?
There is no single legal definition for finance. Lenders generally accept equipment that is more energy-efficient or lower-emission than what it replaces, for example efficient refrigeration, heat pumps, electric forklifts, low-energy lighting, variable-speed motors, solar, batteries and electric vehicles. A clear supplier quote that explains the benefit helps.
Does green equipment cost less to finance?
Not automatically. Some lenders have special offers or features for particular green assets, but pricing generally follows the borrower, the asset and the market. We do not publish or promise rate advantages. We check what is currently available and let you know honestly whether a green angle helps.
Can I finance used green equipment?
Yes, in many cases. Age, condition and the strength of the second-hand market are the main factors. Older or very specialised equipment can mean shorter terms or larger deposits. Private sales need extra checks on ownership. Our used equipment page explains these points in more detail.
Can a new business get green equipment finance?
It is possible, though lenders will ask more questions. A younger business may need a deposit, personal guarantees or additional security. A clear plan showing how the equipment supports revenue or saves costs helps. We look for lenders with experience of newer businesses rather than sending one application and hoping.
Are there grants that can be combined with finance?
Sometimes. Governments have run energy efficiency grants for small and medium businesses, but programs open and close, and some are first come, first served. Check business.gov.au for what is open now. If a grant is available, the finance can often be arranged around the remaining cost.
What tax treatment applies to green equipment?
It depends on the asset, the structure and current depreciation settings, which have changed several times in recent years. We do not give tax advice. Your accountant and the ATO can confirm how deductions and write-offs apply, and we arrange the finance in the structure they recommend.