Sector — Construction
Fund the gear that builds the job. Excavators, loaders, cranes, trucks & site equipment — specialist lenders, no upfront broker fee.
60+
Lender Panel
24hr
Fast-Track Approvals
$0
Upfront Broker Fee
5.5%
Rates From
Australia’s construction pipeline in 2026 is the largest it’s been in a generation. Major infrastructure projects across Queensland, New South Wales, Victoria, and Western Australia are driving sustained demand for civil contractors, builders, and specialist trades — and every one of them needs equipment to deliver.
Whether you’re a civil contractor gearing up for an infrastructure project, a builder adding to your fleet, or a specialist operator financing your first crane or piling rig — construction equipment finance is how most businesses fund these purchases without draining cash reserves.
This guide covers how construction equipment finance works, what you’ll pay, and how to get the best deal for your operation.
The backbone of any construction site. Lender appetite is strong for major brands with established resale markets.
Construction generates constant transport needs — moving materials, equipment, and waste.
Construction businesses often operate on a project-by-project basis. Revenue comes in progress claims — staged payments tied to milestones — not as a steady weekly salary. Good equipment finance for construction is structured around this reality.
Unlike a truck that runs daily or a manufacturing machine that operates continuously, construction equipment can sit idle between projects. Lenders who understand construction know this — they assess your overall business capacity and project pipeline, not just last month’s bank statements.
A generalist lender might see two months of lower revenue between projects and get nervous. A specialist construction lender recognises this as normal business rhythm.
A mining operation might finance four or five types of equipment. A construction business might finance fifteen: excavators, trucks, cranes, concrete equipment, generators, site sheds, piling rigs, and more. Each asset type has a different resale market, a different depreciation curve, and a different set of specialist lenders who price it competitively.
This is where a broker delivers the most value. Rather than sending every application to the same lender (who will be competitive on some assets and expensive on others), a broker routes each asset to the lender best positioned for that specific equipment type.
Construction equipment finance is typically structured as commercial credit. The assessment is commercial in nature — focused on your business capacity, project pipeline, equipment value, and revenue history.
| Profile | Rate range (chattel mortgage) | Context |
|---|---|---|
| Established contractor (3+ years), clean credit, new equipment from major brand | 5.5% – 8.0% p.a. | Best rates. Strong trading history, quality equipment, proven project capacity. |
| Established contractor, clean credit, used equipment (under 10 years, good condition) | 7.0% – 9.5% p.a. | Brand, age, condition, and service history all factor in. |
| Growing contractor (1–3 years), clean credit | 8.0% – 11.0% p.a. | Less history but demonstrable revenue and project pipeline. |
| New contractor or startup (under 12 months) | 9.5% – 14.0% p.a. | Confirmed contracts, industry experience, and deposit strengthen the case. |
| Contractor with credit issues | 12.0% – 15%+ p.a. | Specialist lenders required. Deposit usually needed. Bad credit options → |
Rates current as of June 2026. Comparison rates will be higher once fees are included. Individual circumstances vary. Subject to lender criteria and approval. Detailed equipment finance rate guide →
Your trading history and project track record. Three-plus years of completed projects, consistent BAS lodgements, and clean bank statements is the strongest position. Lenders reward demonstrated capacity to deliver projects and manage cash flow.
The equipment’s brand and resale value. A new Cat 320 excavator has a deep, liquid resale market — lenders know they can recover their money. A less common brand or a highly specialised piece of equipment has a thinner market, which translates to higher rates. How equipment brand affects your rate →
Your credit profile. Both personal and business credit matter. Clean credit opens the widest range of lenders at the best rates. Defaults or adverse history narrow your options but don’t eliminate them. Equipment finance with credit issues →
Whether you have confirmed projects. For newer contractors, a signed contract or letter of intent from a principal contractor can materially strengthen the application. It answers the lender’s core question: will this equipment generate the income needed to make the repayments?
You own the equipment from day one. The lender holds a security interest until the loan is repaid. GST credit typically claimable upfront for GST-registered businesses. Interest and depreciation generally tax-deductible. This is the default structure for most construction equipment purchases. Chattel mortgage vs hire purchase →
The lender purchases the equipment and hires it to you. Ownership transfers at the end of the term after payment of a residual amount. Some construction businesses prefer this for accounting or fleet management reasons.
For equipment needed for a specific project duration. You use the equipment and return it at the end. No ownership. This can suit project-specific assets where you don’t want long-term ownership exposure — for example, a tower crane for a 2-year commercial build.
Consult your accountant for tax advice specific to your situation. The right structure depends on your business type, GST position, and how you’ll use the equipment.
The following examples illustrate how construction equipment finance can work in practice. Individual outcomes depend on your specific circumstances, credit profile, business history, and the equipment being financed.
D.W., Yatala, QLD — Civil contractor, 6 years trading
Financing a new Komatsu PC210 excavator ($245,000) and a used Isuzu FVZ tipper ($95,000) for a council road upgrade contract. Clean credit, strong BAS history. We structured both machines under a single chattel mortgage through a specialist lender at 7.3% p.a. over 5 years, with a 20% balloon on the excavator aligned to its expected trade-in value at year 5. Consolidating the deal into one application meant one set of establishment fees and a streamlined approval process.
Individual circumstances vary. Outcomes depend on lender assessment and are not guaranteed. Consult your accountant for tax advice specific to your situation.
S.G., Penrith, NSW — Growing contractor, 2 years trading
Previously a site foreman for a tier-one builder for 11 years. Financing a used Cat 308 mini excavator ($78,000) and a used Kubota SVL75 skid steer ($52,000) for residential subdivision work. Limited trading history meant his bank was cautious — they offered to finance only the excavator, not both machines. We presented his industry experience, a confirmed subcontracting arrangement, and 3 months of clean bank statements to a specialist lender. Both machines approved at 9.8% p.a. on a low-doc chattel mortgage with a 15% deposit across the package.
Individual circumstances vary. Outcomes depend on lender assessment and are not guaranteed.
Construction isn’t a 9-to-5 business with steady monthly income. It’s project-based, seasonal, and equipment-intensive. The right finance should reflect that — structured around your project timelines, your cash flow patterns, and the specific equipment your operation needs.
Talk to Ryan and the team about your equipment needs — no cost, no obligation.
This article contains general information only and has been prepared without taking into account your objectives, financial situation, or needs. You should consider whether the information is appropriate for your circumstances before acting on it. Consider seeking independent financial, tax, or legal advice. All finance applications are subject to lender criteria and approval. Rates mentioned are indicative and current as of June 2026 — individual circumstances vary. Past examples are illustrative only and do not guarantee any particular outcome.
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Last updated: June 2026 · Reviewed by Ryan Masters, Director of National Sales, Novara Finance