How Equipment Finance Works

How Equipment Finance Works for Small Business

Equipment finance lets your business buy the vehicles, machinery and gear it needs without paying the full cost upfront, spreading it over the asset’s working life instead.

That keeps cash in your business for day-to-day operations, while the equipment starts earning straight away. Eligible assets may also qualify for the instant asset write-off and GST claims.

As your Perth broker, The Finance Yogi arranges equipment finance that protects your cash flow and suits your tax position.

Why finance instead of buying outright

Rather than draining your cash or overdraft to buy equipment, finance lets you pay it off while the asset generates income. The repayments are structured to match the equipment’s useful life.

Most businesses use a chattel mortgage, lease or hire purchase, each with different ownership and tax outcomes. The repayments, interest and depreciation can usually be claimed as deductions, improving your after-tax cost.

For eligible assets, the instant asset write-off – now a permanent $20,000 per asset from July 2026 for small businesses – can let you deduct the cost immediately.

Buying equipment outright ties up cash you could use to grow.

Financing it, with the right structure, keeps your business liquid and your tax efficient – and we compare the whole market to find the sharpest deal.

The Benefits of Equipment Finance

The combination of cash-flow protection and tax benefits is why most growing businesses finance equipment rather than buying outright.

Not sure which structure suits you? Our chattel mortgage vs lease guide compares the options.

After 10 years inside the Big Four banks, I saw how many Perth families missed out or borrowed with the wrong lender. The Finance Yogi exists to change that - we compare the whole market and explain every number in plain English.

What Are the Tax Benefits?

Depending on the structure, you can claim the GST on the purchase, the depreciation of the asset, and the interest portion of your repayments as business deductions.

Eligible small businesses can also use the instant asset write-off to immediately deduct the cost of assets under the threshold, rather than depreciating them over years – a meaningful cash-flow and tax benefit.

The tax advantages

Important: tax outcomes depend on your business and structure, so confirm with your accountant. We explain the options on our equipment finance broker Perth page.

What Equipment Can You Finance?

Almost any business asset can be financed – commercial vehicles and trucks, manufacturing and trade machinery, medical and office equipment, technology, and shop or office fit-outs.

Both new and quality used assets qualify, with the lender and term matched to the asset’s age, type and value so the finance makes commercial sense.

What you can finance

If it helps your business earn, we can usually finance it. See the full service on our equipment finance broker Perth page.

How to Arrange Equipment Finance

Arranging finance is straightforward. We confirm what you want to buy, review your business cash flow and tax position, and recommend the right structure – chattel mortgage, lease or hire purchase.

Then we compare lenders on rate and term, lodge the application, and coordinate settlement with your supplier so the asset is ready when you need it.

Once approved, the funds go to your supplier and the asset is yours to use. For the full picture, read our complete equipment and asset finance guide, or explore our finance services.

Equipment Finance: Frequently Asked Questions

Equipment finance lets your business buy vehicles, machinery or gear without paying the full cost upfront, spreading it over the asset's working life instead. You keep cash in the business while the equipment earns, and can usually claim GST, depreciation and interest as deductions depending on the structure.
Yes. Almost any business asset can be financed - vehicles, trucks, machinery, tools, technology and fit-outs - whether new or quality used. The lender and term are matched to the asset's age and value, and we compare the market to find the sharpest rate and the right structure for your tax position.
It lets eligible small businesses immediately deduct the cost of qualifying assets under the threshold, rather than depreciating them over years. From July 2026 it is a permanent $20,000 per asset for businesses with turnover under $10 million. Assets above that go into a depreciation pool. Confirm eligibility with your accountant.
Yes. Equipment finance covers new and quality used assets. The lender and term are matched to the age, type and value of the equipment, so the repayments line up with its remaining working life. Comparing lenders still matters on used assets, which is where a broker helps you get the best deal.
It can, because lenders count business debts when assessing your personal borrowing capacity. We structure business finance to limit the impact on your personal borrowing power, so your future home loan or refinance plans stay on track. Keeping business and personal finance well-structured is part of what we do.

Need Equipment Without Draining Your Cash?

Book a free, no-obligation chat and we will arrange finance that keeps your business liquid.

Source: business finance guidance from business.gov.au, and instant asset write-off details from the ATO. Tax is specific – confirm with your accountant.

Get A Free Consultation!