Commercial equipment finance for the big-ticket gear

A laptop or a set of power tools is one thing. A walk-in cool room, a six-burner range with a matching combi, a production line or a commercial printing press is another. These are the purchases that change what a small business can do — more covers, bigger runs, new contracts — and they come with price tags that would empty most bank accounts. Commercial equipment finance is built for them.

How is commercial equipment different from everyday equipment?

Three things set it apart, and each affects how a lender looks at your application.

It’s often installed. A cool room is built into the premises. A commercial exhaust canopy is ducted through the ceiling. Once installed, some of the value sits in the installation rather than the item, and that part can’t be recovered if the gear is ever removed.

It’s often specialised. A machine built for one type of production may have a small resale market. Lenders weigh how easily they could sell it if needed.

It’s often ordered in advance. Suppliers may want deposits or progress payments weeks or months before delivery, which doesn’t always line up with when finance is released.

None of this rules the equipment out. It just means the paperwork needs to be clearer and the structure a little more considered than for a standard purchase. The basics of business equipment finance still apply.

What kinds of businesses use it?

• Restaurants, cafés and caterers fitting out a commercial kitchen
• Bakeries and food producers adding ovens, mixers, provers and packaging lines
• Manufacturers and fabricators buying CNC machines, presses, folders and welders
• Printers and sign makers upgrading wide-format printers and finishing equipment
• Clinics and studios installing imaging or treatment equipment
• Butchers, delis and grocers putting in cool rooms and refrigerated display

For hospitality in particular, see our page on hospitality business loans, which covers how equipment fits with the rest of a venue’s funding.

How do lenders assess big equipment purchases?

Expect them to look at the asset and the business together.

What they look at	Why it matters
Itemised supplier quote	Separates equipment from installation and works
Supplier’s track record	Confirms the gear will actually be delivered
Age and condition (if used)	Drives resale value and the term offered
Your bank statements and financials	Shows the business can carry repayments
How the equipment earns revenue	New capacity, contracts, efficiencies
Any deposit or trade-in	Reduces the amount at risk

For larger amounts, lenders may also want a brief explanation of the project, especially if the equipment opens up a new line of work. A paragraph is usually enough.

Splitting the package: what equipment finance covers and what it doesn’t

The neatest structure for a large purchase often uses two facilities:

1. Equipment finance for the identifiable assets — the oven, the press, the refrigeration units.
2. A business loan for everything around them — electrical upgrades, plumbing, ducting, building works, approvals and commissioning.

The second part can be an unsecured business loan if the business is trading well, or a property-secured loan if you own property and the amount is larger. Getting your supplier and tradespeople to quote these parts separately makes the split straightforward.

If you’d like a second pair of eyes on how to structure your package, send us the outline — a specialist will suggest the cleanest split, and there’s no credit check to enquire.

Planning around deposits and lead times

Big equipment rarely arrives the day you order it. A few ways to keep the timing under control:

• Ask the supplier for a payment schedule in writing — deposit, progress payment, balance on delivery.
• Check when finance can be drawn. Some lenders pay only on delivery and installation; others can fund progress payments.
• Keep a buffer for currency movements on imported gear and for installation surprises.
• Don’t pay the full balance yourself expecting to be reimbursed. Refinancing equipment you’ve already paid for in full can be harder than financing it upfront.

Illustrative example: A small bakery orders a new deck oven and spiral mixer from an importer that wants 30% upfront and the balance on arrival in twelve weeks. The owner pays the deposit from cash reserves, and equipment finance pays the 70% balance directly to the importer on delivery. Separately, a modest unsecured loan covers the three-phase power upgrade the oven needs.

Tax and depreciation basics

Most commercial equipment will cost more than the ATO’s $20,000 instant asset write-off threshold, so for small businesses using simplified depreciation it typically goes into the small business pool. The ATO describes a 15% deduction in the first year and 30% each year after for pooled assets. GST-registered businesses can generally claim the GST on the purchase with a valid tax invoice. The way your finance is structured can affect these claims, so run the plan past your accountant before you order.

Questions to ask before you commit

• Will the equipment fit the space, the power supply and the gas or water connections you have?
• Does the landlord need to approve installation, and what happens to the equipment at the end of the lease?
• What warranty and service support does the supplier offer?
• How will the equipment pay for itself — and how long before it does?

Our guide on getting a finance-ready equipment quote has a checklist you can send your supplier.

Talk through your equipment package

Big gear deserves a proper plan, not a rushed form with a dozen lenders on the other end. Tell us what you’re buying, the supplier, the rough cost and your timing. A real person will map out how to fund the equipment and the work around it. Enquiring involves no credit check, your enquiry isn’t sprayed around the market, and the more precise your answers, the faster we can land on the right option. Get your commercial equipment options.