Equipment Finance
Equipment Finance can be an important part of a broader borrowing strategy. At Derwent Finance, we help Australian borrowers understand their options, compare suitable lenders from our panel and structure finance around the outcome they are trying to achieve — not simply around a headline rate.
This page is for people researching equipment finance and related options such as equipment loan, machinery finance, medical equipment finance. It explains how this type of finance generally works, who it may suit, the issues that can affect lender approval, common scenarios and the steps involved from initial review through to settlement or funding.
Every application is assessed on its own facts. Property or asset value, income, expenses, existing debts, credit conduct, entity structure and lender policy can all change the outcome. The information below is general and is designed to help you ask better questions before choosing a lender or loan structure.
Who This Is For
- Construction businesses
- Medical and dental practices
- Agricultural businesses
- Manufacturing businesses
- Hospitality operators
- Trades and contractors
- Businesses replacing or expanding machinery
Match the finance term to the useful life of the equipment
Equipment finance can spread the cost of machinery, medical equipment, construction plant, technology or other business assets over time. The repayment term should make sense relative to how long the equipment will be used and how quickly it may depreciate or become obsolete.
The asset itself can support the application
In many equipment-finance structures, the lender takes security over the equipment being purchased. Asset type, age, supplier, purchase price and resale market can therefore influence lender appetite. New, mainstream equipment may have broader lender options than highly specialised or older assets.
Cash-flow structure can be tailored
Depending on the product and borrower, repayments may be structured monthly and can sometimes include a residual or balloon. A lower monthly repayment created by a residual also leaves a larger amount to deal with at the end, so both the ongoing cash flow and end obligation should be understood.
Our Approach
How We Can Help
We start by understanding the full scenario and what you want the finance to achieve. Depending on the transaction, our work can include:
- Confirm equipment, supplier and purchase price
- Review business trading history
- Determine deposit, term and balloon preferences
- Compare lender pricing and documentation requirements
- Submit the application
- Complete supplier invoice verification
- Settle directly with the supplier
Real Situations
Common Scenarios
Equipment finance can support both replacement and growth. Common transactions include:
- Replacing old machinery
- Expanding production
- Medical equipment
- Construction plant
- New business location equipment
Step by Step
How the Process Works
Initial strategy call and fact-find
Review relevant income, expenses, liabilities, assets and supporting documents
Identify the main lending objective and any policy constraints
Compare suitable lenders and structures
Present the recommended option, expected repayments, fees and key conditions
Prepare and lodge the application after you decide to proceed
Manage lender questions, valuation or asset checks and approval conditions
Complete documents and settlement or funding
Review the lending again when your circumstances or lender pricing change
Why Derwent Finance?
A loan approval is only one part of the process. Derwent Finance focuses on understanding the objective, comparing lender policy and helping manage the application from initial strategy through to settlement. We assist borrowers across Australia with home loans, refinancing, investment, construction, self-employed, complex, commercial and business finance scenarios.
Where the best outcome is to keep an existing loan or wait until the borrower’s position changes, the recommendation should reflect that rather than moving a loan simply to create a transaction.
Ready to understand your options? Book a Strategy Call with Derwent Finance. We can review your current position, what you want to achieve and which lending pathways may be available.
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General information only. Credit assistance is subject to individual circumstances and lender criteria. Interest rates, fees, lender policy, government schemes and eligibility can change without notice. This website does not provide legal, taxation or financial advice. Content last reviewed: August 2026.
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