Glossary
Equipment and asset finance
Lending tied to a specific income-producing asset, the truck, the machine, the fit-out, with the asset itself as security.
In plain English
Equipment finance funds a specific asset, secured by that asset, with the term usually matched to its working life. Because the security is defined and recoverable, approval is generally simpler than unsecured lending, and the structures, chattel mortgages and leases among them, carry different tax and ownership treatments that belong with your accountant.
The credit logic is direct: the asset should earn its own repayments. Five new trucks are financeable to the extent the work they will do carries the finance, which is a forecasting question before it is a lending one.
Why a lender cares
Assessors test equipment deals on the earnings uplift: what does the asset add, how certain is the work behind it, and what happens to repayments if the contract starts late? Our growth modelling runs exactly that case, in best, mid and worst, before the commitment is made. The financier's interest is registered on the PPSR, which matters when the business is later sold.
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