Asset Finance Explained Australia (Equipment & Vehicle Funding)
Loan Types Explained
ARTICLE 5

Asset Finance Explained Australia (Equipment & Vehicle Funding)

What Is Asset Finance?

Asset finance is a loan used to purchase business assets such as vehicles, machinery, or equipment.

The asset itself acts as security.

Types of Asset Finance

1. Chattel Mortgage

Business owns asset from day one.

2. Lease Finance

Lender owns asset during term.

3. Hire Purchase

Ownership transfers after final payment.

How Asset Finance Works

Business selects asset

Finance is approved

Lender pays supplier

Business repays over time

Benefits

  • Preserve cash flow
  • Access high-value equipment
  • Tax advantages (depending on structure)

Conclusion

Asset finance helps businesses grow without large upfront costs.