The short answer
Earthmoving equipment finance is a business loan, hire purchase or lease used to buy plant such as excavators, skid steers, wheel loaders, rollers, graders, dozers and cranes, secured by the machine itself. Most deals are written as a chattel mortgage over three to five years, and up to seven for new machines. Lenders weigh the machine's hours, age, service history and resale value alongside your trading history and the work you have lined up, such as subcontracts, hire agreements or a tender win. Attachments, machine control systems and a float trailer can usually be financed in the same deal. Used and private-sale plant is widely financed after an inspection and a PPSR search. Smaller items may qualify for the instant asset write-off, and the ATO's own example is an excavator owner deducting a $19,000 bucket (ATO). FundFox can arrange earthmoving finance through bank, non-bank and specialist asset lenders.
What plant and machinery can be financed?
| Machine | Typical buyers | Lender notes |
|---|---|---|
| Mini and midi excavators (1 to 10 tonnes) | Landscapers, plumbers, pool builders, small civil | Strong resale market, widely financed, including private sales |
| Excavators from 13 to 30 tonnes and up | Civil, demolition and quarry contractors | Hours, undercarriage wear and service records matter |
| Skid steers and compact track loaders | Site preparation, landscaping, rural work | Often packaged with buckets, augers and a trailer |
| Wheel loaders, graders, dozers and rollers | Roads, subdivisions and mining services | Smaller resale market, so expect a valuation |
| Cranes, telehandlers and elevated work platforms | Construction, maintenance and hire businesses | Inspection and compliance records are checked |
How do hours and age affect approval?
Hours tell a lender how hard a machine has worked. A five-year-old excavator with 4,000 hours is a different proposition from one with 12,000. Lenders combine hours, age at the end of the term and service history to set the term and whether a deposit is needed. High-hour machines are still financed, usually over a shorter term or with an inspection report from a mechanic or dealer.
Can attachments and machine control be included?
Yes. Buckets, rock breakers, augers, tilt hitches, GPS machine control and a float or tag trailer can usually go in the same contract as the machine, provided each has a tax invoice. Financing an attachment on its own is harder because of its low resale value, which is why many operators pay cash for smaller add-ons. The ATO's instant asset write-off example describes exactly this: an operator immediately deducting a $19,000 bucket added to an excavator, under the $20,000 limit for businesses with turnover under $10 million.
What if the work is contract-based?
Lenders like to see where the machine's income will come from. Useful evidence includes:
- Subcontract agreements or purchase orders from builders and civil head contractors.
- A tender or panel win that needs extra plant.
- Dry hire or wet hire agreements, with rates and expected utilisation.
- Bank statements showing existing machines earning regularly.
An operator starting out with years of experience but a new ABN can still be financed, usually with a deposit, property or a guarantee behind the deal.
What should you check before buying used plant?
- PPSR search on the serial number to confirm nobody else holds a security interest.
- Inspection of the engine, hydraulics, undercarriage and structure, especially on high-hour machines.
- Service records and any compliance documents for cranes and lifting equipment.
- Auction terms, including whether the buyer's premium and GST can be financed and the settlement deadline.
Example scenario
A landscaping business with three years of trading wins ongoing work with a pool builder. It buys a two-year-old 5-tonne excavator with 900 hours for $95,000, plus a tag trailer. Assuming a rate of 9.5%, a four-year chattel mortgage on the machine works out at about $2,387 a month, and the trailer goes into the same contract. The pool builder's work schedule supports the application.
Example only. It isn't a real client, and the rate is an assumption for illustration. Your rate depends on the lender, the asset and your business. Run your own numbers in the repayment calculator.
