Excavator finance from 48+ Australian lenders.

Yes. Used excavators are financed routinely, including auction purchases, provided the machine is within the lender’s age and hours limits, usually under about 10 years or 10,000 hours for mainstream lenders. Auction buys need the invoice from the auction house and settle to the auctioneer; private sales need a PPSR clearance, a signed sale agreement and an inspection. Pre-approval before the auction lets you bid with confidence.

Yes. Tilt hitches, buckets, rippers, hammers and augers can usually be included on the same contract when they are quoted with the machine, which is the cheapest way to fund them. Attachments bought later can be financed separately as equipment, though small amounts sometimes suit a line of credit better. Get everything on one quote where you can.

Not always. Late-model excavators from recognised brands are often funded at 100 per cent of the purchase price for businesses with two years of ABN history and clean credit, and several lenders offer low-doc approvals to around $150,000 to $250,000 without financials. Older machines, start-ups and very large machines may need 10 to 20 per cent down or full financials. Your broker checks fit before you commit.

Three to five years is most common, with up to seven years available on new machines from strong brands. Match the term to how long you will keep the machine and the work you have in front of it, and consider a balloon of 20 to 30 per cent on a new machine to keep repayments in line with the machine’s resale value. A shorter term costs more per month but far less in total interest.

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.