An asset finance broker finds funding for the equipment your business needs without you having to approach lenders one by one.
They work across commercial vehicles, construction machinery, medical equipment, office fit-outs, and anything else that counts as a business asset. The difference between handling this yourself and using a broker comes down to access and structure. A broker can present your application to dozens of lenders at once, compare terms across chattel mortgages, finance leases, and hire purchase agreements, and match the repayment structure to your cashflow and tax position. You still make the decision, but you do it with more options in front of you.
If you're buying a $120,000 excavator or fitting out a medical practice, an asset finance broker structures the deal so you keep capital available for other parts of the business.
What does an asset finance broker actually do?
An asset finance broker assesses your business needs, compares lenders, and arranges funding for equipment purchases or leases.
Consider a landscaping business upgrading to a bobcat and trailer. The owner could approach their bank, get one quote, and either accept it or walk away. A broker takes the same application and presents it to commercial lenders, specialist equipment financiers, and manufacturers offering vendor finance. Within a few days, the owner has five or six options showing different interest rates, balloon payments, and lease structures. The broker explains which one suits their tax position, whether they should structure it as a chattel mortgage or lease, and what the monthly commitment looks like.
Brokers also handle the paperwork. Asset finance involves equipment valuations, ABN verification, financial statements, and sometimes personal guarantees. The broker coordinates that process, submits everything correctly, and keeps the timeline moving. In our experience, this cuts the approval time by a week or more compared to a direct application.
How asset finance preserves working capital
Asset finance lets you acquire equipment without paying the full purchase price upfront, leaving cash available for wages, stock, and operating expenses.
A hospitality business fitting out a commercial kitchen might need $80,000 in equipment. Paying that in cash would drain most of their reserves. Instead, they finance the equipment with a deposit of $8,000 and fixed monthly repayments over five years. The kitchen generates income from day one, and the business still has cash to cover suppliers, staff, and unexpected costs. The equipment itself acts as collateral, so the loan amount doesn't require additional security.
This applies across construction equipment finance, medical fitouts, and tech upgrades. The pattern holds whether you're buying excavators, ultrasound machines, or a fleet of work vehicles. The equipment pays for itself over time while your working capital stays intact.
Chattel mortgage vs finance lease
A chattel mortgage involves borrowing to buy the equipment outright, while a finance lease means the lender owns it until the lease ends.
Under a chattel mortgage, you own the asset from day one. You claim depreciation, deduct the interest portion of repayments, and if the equipment includes GST, you claim that back in your next BAS. At the end of the loan term, the asset is yours with no further payment unless you included a balloon payment to lower the monthly cost. This structure suits businesses that want ownership and plan to use the equipment long-term.
A finance lease keeps ownership with the lender until the final payment. You still use the equipment, claim the lease payments as a tax deduction, and choose whether to buy it at the end, refinance the residual, or hand it back. This works when you want to upgrade regularly or keep the asset off your balance sheet. The tax treatment differs depending on the lease type, so the broker walks through how each one affects your circumstances.
When vendor finance makes sense
Vendor finance is arranged through the equipment supplier and can move faster than a traditional loan, but the interest rate is often higher.
A building company buying a crane might get an offer from the dealer: finance through their in-house lender and take delivery within 48 hours. The rate sits around 8%, compared to 6.5% from a commercial lender. If the job starts next week and delays cost more than the extra interest, vendor finance works. If there's time to compare, a broker will source a lower rate from another lender and still meet the delivery deadline.
Vendor finance suits urgent purchases, but it's worth comparing. A broker checks whether the dealer's offer is competitive or whether another lender can match the timeline and save you money.
Structuring repayments around income cycles
Asset finance repayments can be structured to match seasonal income, irregular contracts, or staged project payments.
A farming business buying a tractor might arrange repayments that pause during winter and increase after harvest. A civil contractor financing multiple pieces of equipment might align the balloon payment with the end of a major contract. Some lenders allow interest-only periods, stepped repayments, or deferred start dates. The broker works out what fits your income pattern and finds a lender willing to structure it that way.
This flexibility matters when cashflow is uneven. Fixed monthly repayments assume consistent income, and that doesn't reflect how many businesses operate. Brokers access lenders who understand this and adjust terms accordingly.
Tax benefits and depreciation
Asset finance creates deductions through interest payments, lease costs, and depreciation, depending on the structure you choose.
Under a chattel mortgage, you deduct the interest portion of each repayment and depreciate the equipment according to ATO guidelines. For most commercial vehicles and machinery, that means claiming the decline in value each year. If you're using a finance lease, the entire lease payment is deductible as an operating expense. The structure you pick changes what you claim, and a broker explains which one delivers more value based on your turnover and profit.
Some equipment qualifies for instant asset write-off provisions, which let you claim the full value in the year you buy it. The threshold changes, so it's worth confirming what applies at the time. Your broker coordinates with your accountant to make sure the finance structure aligns with your tax strategy.
What you need to apply
Lenders assess your ABN history, recent financials, and details about the equipment being financed.
Most applications require two years of financials, recent BAS statements, and proof of ABN registration. If the business is newer, lenders may accept tax returns, bank statements, or a letter from your accountant. The equipment itself gets valued, and lenders check that it's recent enough to hold resale value. For heavy vehicles and machinery, they also verify that the seller is legitimate and the equipment isn't already encumbered.
A broker knows what each lender requires and submits everything in one batch. That reduces the back-and-forth and speeds up the process. If your financials are borderline, the broker identifies which lenders are more flexible and which ones will decline upfront.
How Loan Pantry structures asset finance
We compare lenders across banks, specialist equipment financiers, and vendor panels to find the right fit for your business.
You tell us what equipment you need, how you want to structure repayments, and what your cashflow looks like. We submit your application to lenders who fund that asset type, compare interest rates and terms, and present the options in plain language. Once you choose, we handle the paperwork, coordinate with the supplier, and make sure settlement happens on time. Whether you're financing construction machinery, medical equipment, or a vehicle fleet, the process stays the same.
We also work with your accountant to confirm the tax structure makes sense and flag any issues before they become problems. Asset finance isn't one-size-fits-all, and we don't treat it that way.
Call one of our team or book an appointment at a time that works for you. We'll walk through your options and get the funding sorted so you can focus on running the business.
Frequently Asked Questions
What does an asset finance broker do?
An asset finance broker compares lenders and arranges funding for equipment purchases or leases. They submit your application to multiple lenders, explain the terms, and coordinate the paperwork to get the equipment funded.
How does asset finance preserve working capital?
Asset finance lets you acquire equipment without paying the full amount upfront. You make fixed monthly repayments instead, leaving cash available for wages, stock, and operating expenses while the equipment generates income.
What's the difference between a chattel mortgage and a finance lease?
A chattel mortgage means you own the equipment from day one and claim depreciation. A finance lease means the lender owns it until the lease ends, and you claim lease payments as a deduction instead.
When should I use vendor finance?
Vendor finance works when you need equipment fast and can't wait for a traditional loan. The rate is usually higher, so compare it against other lenders if you have time.
What do I need to apply for asset finance?
Lenders typically want two years of financials, recent BAS statements, and proof of ABN registration. The equipment gets valued, and lenders verify the seller is legitimate and the asset isn't already secured.
