Packaging machinery finance from 48+ Australian lenders.

Yes. Machines built to order in Europe or Asia can be funded through progress payments or a trade finance facility and rolled into equipment finance when installed. Lenders want the supplier’s invoice, the payment schedule and evidence the machine meets Australian electrical and safety standards.

Yes. A contract with a retailer, co-packer or brand for the product the line will pack is strong evidence of the machine’s earnings and often moves an application from a deposit to no deposit, or from full financials to a lighter assessment. Include it with your application.

Yes. Fillers, cappers, labellers, case packers, conveyors, checkweighers and palletisers can be financed as a single line under one contract or a master facility, with progress payments to suppliers funded during the build and converted to a chattel mortgage at commissioning. A broker coordinates several suppliers’ quotes into one approval.

Five years is typical, with up to seven on major lines from established manufacturers. Because much packaging equipment is bespoke and harder to resell, lenders may ask for a deposit or financials on very specialised machines. A balloon of 10 to 20 per cent is common where the equipment has a strong secondary market.

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.