Equipment finance — Earthmoving

Earthmoving Equipment Finance:
How to Fund Your Next Machine

Excavators, loaders, bobcats, graders, rollers, bulldozers — we finance them daily for civil contractors, landscapers, demolition operators, and owner-operators across Australia. Strong security assets mean competitive rates and flexible terms.

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Last updated: June 2026 | Reviewed by Stephen Harvey, CEO & Head Broker

Key Takeaways

  • Earthmoving equipment holds its value well, which means lenders view it as strong security — rates for established operators with clean credit typically range from 5.5% to 9% p.a. for new machines from major brands. Rates current as of June 2026. Individual circumstances vary.
  • The brand and model of your machine directly affects your rate. A Caterpillar, Komatsu, or Volvo excavator has a liquid resale market. A less common brand attracts higher rates because the lender's recovery position is weaker.
  • Most earthmoving finance is structured as a chattel mortgage — you own the machine from day one with potential GST, depreciation, and interest deductions.
  • New operators, first-time buyers, and civil contractors with credit issues all have pathways to approval through specialist lenders.

What you can finance

Excavators: From 1.7-tonne mini excavators through to 80-tonne track excavators. This is the most commonly financed earthmoving asset in Australia — lenders know the resale markets well across all size classes.

Loaders: Wheel loaders, track loaders, backhoe loaders. Strong resale values from major brands (Cat, Komatsu, Volvo, Case, John Deere).

Bobcats and skid steers: Compact loaders from Bobcat, Cat, Kubota, Case. Popular for landscaping, residential construction, and site prep.

Bulldozers and graders: Higher-value assets with strong demand in civil construction. Lenders familiar with the sector price these competitively.

Rollers and compactors: Smooth drum, padfoot, and pneumatic rollers. Commonly financed as part of a fleet or alongside other earthmoving purchases.

Cranes: Mobile cranes, tower cranes, crawler cranes. Specialist lenders required for larger crane purchases due to the high values involved.

Attachments and ancillaries: Buckets, hammers, augers, tilt hitches, rippers. Some lenders will finance attachments as part of the primary equipment purchase. Standalone attachment finance is available but minimum loan amounts may apply.

New and used: Both are financeable. Used earthmoving equipment from major brands with documented service histories attracts competitive rates. The age guideline is typically that the machine should have a reasonable remaining useful life beyond the loan term.

Current rates for earthmoving equipment (June 2026)

ProfileRate range (chattel mortgage)Context
Established contractor (3+ years), clean credit, new machine (Cat/Komatsu/Volvo)5.5% – 7.5% p.a.Strongest position. Premium brand = strong resale = best rate.
Established contractor, clean credit, used machine (under 10 years)7.0% – 9.0% p.a.Age, brand, and condition drive the rate. Service history matters.
Growing business (1–3 years), clean credit7.5% – 11.0% p.a.Less history but demonstrable income. Low-doc products available.
New operator or startup9.0% – 14.0% p.a.Specialist lenders. Deposit and industry experience help significantly.
Credit issues12.0% – 15%+ p.a.Specialist lenders required. Deposit usually needed.

Rates current as of June 2026. Comparison rates will be higher once fees are included. Individual circumstances vary. Subject to lender criteria and approval. See full rate breakdown.

Why the brand matters

This is worth spelling out because it directly affects what you pay.

A new Caterpillar 320 excavator ($280,000–$320,000) has one of the strongest resale positions in the equipment market. There's always a buyer for a well-maintained Cat — domestically and in export markets (particularly Southeast Asia and the Pacific Islands). Lenders know this, and it translates to their best rates.

A new excavator from a less established brand at a similar price point might attract a 1–2% higher rate — not because the machine is worse, but because the lender's recovery model shows a thinner resale market. That 1.5% difference on $300,000 over five years is approximately $13,000 in extra interest.

This doesn't mean you should only buy Cat or Komatsu. It means you should factor the financing cost into your purchase decision. Sometimes the cheaper purchase price from a lesser-known brand is offset by the higher finance rate. A broker can model both scenarios for you.

Common earthmoving finance scenarios

The owner-operator upgrading

You've been running a 5-tonne excavator and your work demands something bigger. A 13-tonne or 20-tonne machine opens up larger civil and commercial contracts. Your existing machine has trade-in or sale value that can serve as a deposit — and your repayment history on the current machine strengthens the new application.

The civil contractor adding to the fleet

Adding a second or third machine means lenders assess your fleet's overall financial performance. Multiple machines with clean repayment histories demonstrate reliability. Some lenders offer fleet pricing for multi-unit purchases — ask your broker about consolidated deals. See fleet finance options.

The landscaper buying their first excavator

Moving from manual work or hired equipment to owning a mini excavator changes your business economics. A $50,000–$80,000 mini excavator financed over 4–5 years costs roughly $1,000–$1,700/month. If the machine lets you take on an extra two or three jobs per week, the repayments pay for themselves within the first month.

The startup with industry experience

You've been operating earthmoving equipment for someone else and you're going out on your own. Your ABN might be new, but your skills aren't. Specialist lenders have products designed for "new to business, experienced in industry" — and a confirmed contract or subcontracting arrangement significantly strengthens the case. See equipment finance for new businesses.

Real example

D.T., Narangba, QLD. Civil contractor, 8 years trading. Fleet of three machines — all with clean finance histories. Purchased a new Komatsu PC210-11 excavator ($310,000) plus a new tilt hitch and GP bucket package ($18,000). We structured both as a single chattel mortgage — the lender financed the attachments as part of the package. Approved at 6.1% p.a. over 5 years with a 25% balloon. Claimed ~$29,800 GST credit on his next BAS. The balloon aligns with the expected trade-in value at year 5 when he plans to upgrade to a PC300. Individual circumstances vary. Consult your accountant for tax advice specific to your situation.

Frequently asked questions

Can I finance a used excavator?

Yes. Most lenders finance used earthmoving equipment from major brands with documented service histories. The machine should have a reasonable remaining useful life beyond the loan term. Well-maintained used excavators from Cat, Komatsu, Volvo, Hitachi, and Kobelco attract competitive rates. Very old machines (15+ years) or those without service records may have limited lender options.

Do I need a deposit for earthmoving finance?

Not always for established operators with clean credit — 100% finance is available for new machines from major brands. For used machines, newer operators, or borrowers with credit issues, a deposit of 10–20% is usually expected and improves both approval chances and rates.

Can I finance attachments with the machine?

Yes. Many lenders will include attachments (buckets, hammers, augers, tilt hitches) in the same finance package as the primary machine. This is simpler and often cheaper than financing attachments separately. Your broker can structure the deal to include ancillaries.

How long can I finance earthmoving equipment for?

Typical terms are 3–7 years. The right term depends on the machine's expected working life, your cash flow needs, and your replacement cycle. Shorter terms cost more per month but less in total interest. Longer terms ease cash flow but cost more overall. A balloon payment can reduce monthly repayments regardless of term length.

What if I'm buying from a private seller?

Private sale earthmoving finance is available but requires additional steps — typically an independent valuation and a PPSR check to confirm the machine is free of existing finance or encumbrances. Your broker can arrange both. Rates for private sale purchases are generally the same as dealer purchases, though some lenders add a small premium.

Get an earthmoving finance quote

From mini excavators to large-scale civil plant — talk to a Novara broker about your next machine. No cost, no obligation, no credit check to get started.

1800 855 516  ·  info@novarafinance.com.au

This article provides general information only and does not constitute financial or tax advice. Consult your accountant for tax advice specific to your situation. All finance applications are subject to lender criteria and approval. Rates mentioned are indicative and current as of June 2026 — individual circumstances vary. Novara Finance Pty Ltd | AFSL 517192 | ABN 99 687 789 144.