CNC machine finance from 48+ Australian lenders.

Yes. Many CNC machines are built to order overseas and need a deposit at order and the balance before shipping. Lenders can fund the supplier’s progress payments and convert the whole amount to a chattel mortgage when the machine is installed and commissioned, or a trade finance facility covers the purchase until delivery. Tell your broker the payment schedule early so the structure is in place before the deposit is due.

Yes. Used machining centres, lathes and routers from recognised brands are financed on age, hours, condition and service history, often on terms of three to five years. Very old or obscure machines suit specialist lenders with a deposit. A dealer-refurbished machine with warranty is the easiest to finance.

Five years is the most common term, with up to seven available on new machines from major brands given their long working lives. A balloon of 10 to 20 per cent suits businesses that update machines as technology moves on. Match the term to the contracts and capacity the machine is being bought for.

Yes. Tooling packages, workholding, CAD and CAM software, installation, rigging and training can usually be included when they are quoted with the machine, up to a sensible proportion of the total. Financing them with the machine is far cheaper than paying cash or using a card.

Often no deposit is required, particularly for established businesses buying standard assets from a dealer. A deposit is more likely where the business is new, the asset is older or specialised, the credit profile is weaker, or the amount is large relative to turnover. Deposits typically range from around 10% to 30% in those cases. Putting money in reduces the amount financed and can improve the terms offered, but it is not always necessary.

The common ones are an establishment or documentation fee charged at settlement, a monthly account-keeping fee, and a PPSR registration fee for recording the lender's interest in the asset. A brokerage fee may also apply, which we disclose to you in writing before anything is submitted. Some agreements include an early termination or break cost. Fees vary by lender and are typically a modest part of total cost compared with the interest, but they should still be compared.

Lenders publish maximum residual or balloon percentages that fall as the term lengthens, because the asset is worth less at the end of a longer term. For a vehicle, a common pattern is up to roughly 50% on a two-year term, reducing to around 20% to 30% on a five-year term. The ATO also sets minimum residual values for finance leases. A larger balloon lowers monthly repayments but increases total interest and leaves a lump sum to deal with at the end.

It is far less common than it once was. Under hire purchase the financier owns the asset and you hire it, with ownership transferring automatically after the final instalment. Since the GST changes that made chattel mortgage more attractive for businesses accounting on a cash basis, most equipment lending is written as a chattel mortgage or lease instead. Some lenders still offer commercial hire purchase, and your accountant can advise whether it suits your circumstances.

The Personal Property Securities Register is the national register of security interests in personal property, including vehicles and equipment. When a lender finances an asset, it registers its interest so the security is publicly recorded and its priority is protected if the asset is sold or the business fails. It also means a buyer searching the register will see the finance. The registration is released once the contract is paid out, and a small registration fee is usually passed on to you.

A balloon is a lump sum left to pay at the end of a chattel mortgage, which lowers the regular repayments during the term. For example, a 30 per cent balloon on a $100,000 vehicle leaves $30,000 to pay at the end, so the monthly amount is calculated on $70,000 plus interest on the full balance. Balloons are commonly set between 0 and 40 per cent depending on the asset and term, and at the end you can pay it out, refinance it or sell the asset to clear it. A balloon reduces monthly cost but increases total interest, so your broker shows both figures side by side.