CNC machines, lathes, printing presses, food processing lines, industrial automation — Novara compares 60+ lenders including specialist machinery financiers. The right lender for your equipment type can save you thousands.
The lender provides funds to purchase the machinery, the machinery is registered as security on the PPSR, and you repay over a fixed term with interest.
The most common structure is a chattel mortgage: you own the machinery from day one, the lender holds a security interest, and once the loan is fully repaid, the security is released. This structure typically offers the best combination of competitive rates, straightforward GST treatment, and tax-deductible interest and depreciation. Compare chattel mortgage vs hire purchase.
While the finance structure is the same, machinery has characteristics that affect how lenders assess and price the deal:
The general rule: if the machinery has a definable resale value and a useful life beyond the loan term, it can be financed. For highly specialised or custom-built equipment, lenders may require a larger deposit or independent valuation.
| Business profile | Rate range (chattel mortgage) | Key factors |
|---|---|---|
| Established (3+ years), clean credit, new machinery from major brand | 5.5% – 8.0% p.a. | Strong resale market, established business, low risk |
| Established, clean credit, used machinery | 7.0% – 10.0% p.a. | Age, condition, and brand reputation affect the rate |
| Established, clean credit, niche/custom machinery | 7.5% – 11.0% p.a. | Thinner resale market = higher lender risk |
| Newer business (1–3 years), clean credit | 8.0% – 12.0% p.a. | Less trading history. Low-doc products available. |
| Business with credit issues | 11.0% – 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.
Two pieces of machinery worth the same dollar amount can attract very different rates.
Well-established resale market. Lenders know they can recover their money — there's always a buyer for quality second-hand CNC equipment. Competitive rates and flexible terms.
Built specifically for your product, your factory, your process. Limited resale appeal. Lender sees higher recovery risk — higher rate, larger deposit, or both.
This is exactly why a broker adds value in machinery finance. A broker who knows the lender landscape can route a CNC application to a lender who specialises in manufacturing equipment (and prices aggressively for it) while routing a food processing application to a different lender who's comfortable with that asset class.
Imagine you're financing a $200,000 printing press. You go to your bank — they don't finance printing presses often, their credit team needs to research the asset class, and they quote you 10.5%. A specialist printing and packaging finance lender who understands the resale market might quote 7.5% for the same deal.
That 3% difference on $200,000 over five years is approximately $17,000 in extra interest. And you'd never know the specialist lender existed if you didn't use a broker. Read how broker matching works in our equipment finance guide.
For the most common structure (chattel mortgage), the potential benefits include:
GST credit: If you're GST-registered, you can typically claim back the GST on the purchase price in your next BAS. On $200,000 of machinery, that's approximately $18,180 back in your hands.
Interest deductions: The interest component of your repayments is generally tax-deductible as a business expense.
Depreciation: Because you own the machinery (under a chattel mortgage), you can claim depreciation as a tax deduction. The ATO publishes effective life tables for different asset categories — for example, metalworking machinery is typically depreciated over 10–15 years, while computer-controlled machinery may have a shorter effective life.
Instant asset write-off: For eligible small businesses (turnover under $10 million), the $20,000 instant asset write-off threshold applies until 30 June 2026. Assets costing less than $20,000 each can be immediately deducted. For assets above this threshold, standard depreciation schedules apply.
Important: consult your accountant for tax advice specific to your situation. The right finance structure has significant implications for your tax position. A broker recommends the finance product; your accountant advises on the tax structure. Compare chattel mortgage vs hire purchase for tax implications.
Many machinery purchases are replacements — you're upgrading from an older machine to a newer, faster, more capable model. Your existing machine may have trade-in value that can serve as a deposit or reduce the financed amount. Some lenders will factor trade-in value into the deal structure.
If you're purchasing multiple pieces of machinery as part of a production line or factory fit-out, some lenders offer package deals with volume-based pricing. Financing $500,000+ of machinery in a single deal can unlock better rates than financing each piece separately. Ask your broker about consolidated equipment finance.
Machinery finance is available for newer businesses, but lender options are more limited. Most lenders want your ABN to be active for at least 6–12 months. Industry experience counts — if you've been a machinist for 15 years and you're now starting your own workshop, that experience strengthens your application. A deposit of 20%+ and a business plan demonstrating how the machinery will generate income improve your chances significantly.
Financing used machinery is common and available from most lenders. Key considerations: the machinery should have a reasonable remaining useful life beyond the loan term, the brand and model should have an identifiable resale market, and an independent valuation may be required for older or specialised equipment. Well-maintained used machinery from reputable brands can attract competitive rates.
Most machinery with a definable resale value and a useful life beyond the loan term can be financed. Standard industrial machinery (CNC, metalworking, printing, food processing) is readily financed by most lenders. Highly specialised, custom-built, or niche equipment may require a specialist lender, a valuation, or a larger deposit. A broker can assess whether your specific machinery is financeable and which lender suits it best.
For established businesses with clean credit and standard documentation, 24–48 hours is typical. Specialist or high-value machinery (above $250,000) may take 3–5 business days due to additional assessment requirements such as independent valuations. Low-doc applications typically take 2–5 business days.
Some lenders will finance installation, commissioning, training, and delivery as part of the equipment finance package. Others only finance the machinery itself. If ancillary costs are significant (common with large industrial machinery), ask your broker to identify lenders who offer all-inclusive financing.
For a standard application: last two years of tax returns and financial statements, last two BAS statements, last 3–6 months of business bank statements, a supplier quote or invoice for the machinery, and details of existing debts. For low-doc applications: ABN registration (6–12 months minimum), last two BAS statements, last 3–6 months of bank statements, and the machinery quote.
Under a chattel mortgage, interest payments, depreciation, and (for GST-registered businesses) the GST on the purchase price are generally tax-deductible or claimable. The instant asset write-off may apply for eligible assets under $20,000. Consult your accountant for advice specific to your situation.
Yes, through specialist lenders. Rates will be higher (typically 11–15%+ p.a.) and a deposit is usually required. A broker can assess your situation and identify which lenders will consider your application.
The right lender for your machinery isn't the same as the right lender for a truck or a car. Machinery finance requires specialist lender matching — and that's where a broker delivers the most value. No cost, no obligation, no credit check to get started.
This article provides general information only and does not constitute financial or tax advice. Tax treatment described is general in nature — consult your accountant for 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.