Heavy Machinery Loans Australia

In the Australian finance industry, heavy earthmoving and construction machinery is called yellow goods. It is a term that carries specific meaning: these machines are assessed by specialist lenders as a distinct asset class, differently from cars, commercial vehicles, and even standard industrial equipment. A 2005 Caterpillar 336 excavator looks old to a bank algorithm. To a specialist yellow goods lender who understands that a well-maintained CAT or Komatsu in the Pilbara or on a Queensland civil project has 15,000 to 20,000 hours of productive life remaining regardless of its build year, it is a high-value, highly liquid, financeable asset. This distinction between generalist bank assessment and specialist yellow goods lender knowledge is the most important thing to understand about heavy machinery finance in Australia.

Australian Finance & Loans is an independent finance broker with access to over 50 lenders including specialist yellow goods and earthmoving finance providers who understand the true productive life and resale value of heavy plant. We arrange chattel mortgages, finance leases, commercial hire purchase, rent-to-own facilities, low-doc replacement policy loans, and equipment master limit facilities for all types of heavy machinery across construction, civil engineering, mining services, demolition, agriculture and infrastructure. This page is the most comprehensive guide to heavy machinery finance in Australia, covering the specific nuances that determine approval, rate and structure for operators from sole trader subcontractors through to large civil contracting firms.

Heavy Machinery and Earthmoving Equipment We Finance

Excavators

• Mini excavators under 5 tonne: Kubota U55, Yanmar SV100, Bobcat E50, Takeuchi TB257 — $50,000 to $120,000 AUD new

• Mid-range excavators 5 to 20 tonne: Komatsu PC138, Caterpillar 313, Hyundai HX145LCR, Kobelco SK135SR — $120,000 to $350,000 AUD new

• Large excavators 20 to 50 tonne: Komatsu PC360, Caterpillar 336, Hitachi ZX350, Volvo EC380 — $350,000 to $750,000 AUD new

• Mining-class excavators above 50 tonne: Caterpillar 390, Komatsu PC800, Hitachi EX1200 — $750,000 to $3,000,000+ AUD

• Long-reach excavators, dredgers and specialised configurations

Bulldozers and Track Dozers

• Small dozers: Komatsu D39, Caterpillar D4, John Deere 750L — $150,000 to $300,000 AUD new

• Mid-range dozers: Komatsu D65, Caterpillar D6, Liebherr PR736 — $300,000 to $600,000 AUD new

• Large dozers: Komatsu D155, Caterpillar D8 and D9, Liebherr PR766 — $600,000 to $1,500,000 AUD new

• Mining dozers: Caterpillar D10 and D11, Komatsu D375 — $1,500,000 to $3,500,000 AUD new

Loaders and Material Handlers

• Skid steer loaders: Bobcat S450, Caterpillar 232, Kubota SSV75 — $60,000 to $120,000 AUD new

• Compact track loaders: Bobcat T650, Caterpillar 297D, Case TR310 — $80,000 to $150,000 AUD new

• Wheel loaders: Caterpillar 950, Komatsu WA320, Volvo L110H — $250,000 to $600,000 AUD new

• Large wheel loaders: Caterpillar 980 and 988, Komatsu WA600 — $600,000 to $1,800,000 AUD new

• Telehandlers: JLG, Manitou, Merlo and Genie — $100,000 to $350,000 AUD new

Graders and Compactors

• Motor graders: Caterpillar 140, Komatsu GD655, John Deere 770G — $350,000 to $800,000 AUD new

• Soil compactors and vibrating rollers: Caterpillar CS533, Bomag BW213, Dynapac CA3500 — $150,000 to $400,000 AUD new

• Asphalt pavers and rollers: Vögele, Dynapac, Hamm — $250,000 to $900,000 AUD new

Dump Trucks and Articulated Haulers

• Rigid dump trucks: Caterpillar 740, Komatsu HD325, Bell B45E — $600,000 to $2,000,000 AUD new

• Articulated dump trucks: Volvo A40G, Bell B45E, Caterpillar 745 — $600,000 to $1,200,000 AUD new

• Water carts and site service trucks on standard dump truck platforms

Cranes and Lifting Equipment

• Franna pick-and-carry cranes: Franna AT14, AT20, AT22 — $400,000 to $1,000,000 AUD new

• All-terrain cranes: Liebherr LTM 1070, Tadano ATF 70G — $800,000 to $3,000,000 AUD new

• Tower cranes: Liebherr, Potain, Terex — $500,000 to $2,000,000 AUD new

• Crawler cranes: Liebherr LR 1160, Manitowoc 888 — $1,000,000 to $5,000,000+ AUD new

• Rough terrain cranes and pick-and-carry: Grove, Tadano, Liebherr

Access Equipment

• Elevated work platforms: JLG, Genie, Snorkel — $60,000 to $300,000 AUD new depending on height and type

• Scissor lifts, boom lifts and vertical mast platforms

• Spider lifts and tracked access equipment for rough terrain

Drilling and Specialised Plant

• Piling rigs: Soilmec, Bauer, Liebherr — $500,000 to $5,000,000 AUD new

• Rock drilling rigs, down-the-hole drilling rigs and blast hole drills

• Trenching machines, chain trenchers and vacuum excavation trucks

• Concrete pumps: Schwing, Putzmeister and Liebherr — $250,000 to $1,500,000 AUD new

• Concrete placing booms and stationary pumps

Attachments (Financed Alongside Host Machines)

• Hydraulic breakers and rock hammers: Montabert, Atlas Copco, Epiroc, Indeco

• Couplers and quick hitches: Kinshofer, OilQuick, Rototilt

• Sorting and demolition grapples

• Auger drives and auger flights: Digga, Pengo

• Compaction wheels, rollers and plate compactors

• GPS machine control systems: Trimble, Topcon, Leica — $25,000 to $60,000 per machine

• Vibratory plate compactors, rippers, land clearing rakes

Hours Meter: The Key Assessment Metric for Heavy Machinery

Just as spindle hours are the defining usage metric for a CNC machine, and odometer kilometres define a car's usage, the hours meter reading is the primary assessment metric for heavy earthmoving plant. Every piece of yellow goods maintains an hours meter that logs accumulated engine hours. Understanding how lenders use this number is the single most important thing a used machinery buyer can know before approaching any lender.

What hours meter reading tells a lender

The hours meter tells the lender how much of the machine's productive life has been consumed. A major component rebuild schedule on a large diesel-powered excavator — engine overhaul, hydraulic pump replacement, slew ring, undercarriage replacement — is driven primarily by hours, not years. A Caterpillar 336 excavator with 5,000 hours is early in its productive life. The same machine with 22,000 hours on the meter is approaching or past major overhaul territory for several key components. The hours reading combined with the machine's maintenance history determines the machine's remaining productive life — and that remaining life is what the lender is ultimately lending against.

High hours does not automatically mean bad

One of the most important distinctions specialist yellow goods lenders make, and that generalist bank lenders miss, is that a high-hours machine with documented, thorough maintenance history may be a better lending prospect than a lower-hours machine with no service records. A 15,000-hour Komatsu D65 dozer with a complete KOMTRAX telematics history, documented annual services, and a recent undercarriage replacement and engine overhaul is a well-understood, well-maintained asset. A 6,000-hour machine from an unknown private seller with no service records and no verifiable maintenance history is a significantly higher risk regardless of the lower number on the meter.

What to gather for a used machine application

• A current photo or screenshot of the hours meter display

• The machine's service logbook or service records from an authorised dealer or qualified mechanic

• Any KOMTRAX (Komatsu), VIMS (Caterpillar), or equivalent manufacturer telematics reports showing operational history

• Records of any major component replacements: engine, hydraulic pumps, undercarriage, slew ring, travel motors

• A condition report from an independent heavy equipment inspector for machines above $100,000

• A current market valuation from a specialist yellow goods valuer for machines above $200,000

Typical service life milestones by machine category

• Caterpillar and Komatsu large excavators (30 to 50 tonne): typically 10,000 to 15,000 hours before major engine overhaul; undercarriage typically 4,000 to 6,000 hours

• Caterpillar D8 and D9 dozers: engine typically rated for 12,000 to 20,000 hours with proper maintenance

• Wheel loaders: drivetrain and hydraulics typically 8,000 to 12,000 hours

• Mini excavators under 5 tonne: engines typically 5,000 to 8,000 hours with regular service

• Crane slew bearings and boom sections: service-interval driven rather than pure hours

Specialist Yellow Goods Lenders vs Major Banks: Why It Matters

This is the most important practical distinction in heavy machinery finance and no other Australian heavy machinery finance page explains it as clearly and honestly as we do here. Major banks and specialist yellow goods lenders assess heavy machinery applications using fundamentally different frameworks, and choosing the wrong type of lender for your situation leads to either unnecessary declines or missing access to better rates.

How major banks assess heavy machinery

Major banks apply standardised asset assessment models that treat heavy plant with the same scepticism they apply to motor vehicles. Under bank policy, a machine's age is heavily weighted: a 10-year-old excavator may trigger automatic policy restrictions regardless of its hours, condition, or remaining productive life. Major banks typically apply their General Security Agreement (GSA) over the borrower's entire company assets rather than taking security specifically over the machine being financed. This means your entire business — including other equipment, intellectual property and receivables — is encumbered by the bank's security interest when financing a single piece of plant. For an established civil contractor with a diversified fleet, this is a significant imposition that specialist lenders do not require.

Banks also typically require two years of full financial statements and tax returns. For a contractor who has just won a major new tender or is in a rapid growth phase where the most recent financials do not reflect current capability, this creates a documentation bottleneck. Applications that should be straightforward commercial decisions become lengthy administrative processes.

How specialist yellow goods lenders assess machinery

Specialist equipment lenders who focus on yellow goods understand that a well-maintained Caterpillar or Komatsu machine has a productive life that is defined by hours and maintenance, not calendar years. These lenders are comfortable with machinery that is 15 to 20 years old where the hours and condition justify it. They take security specifically over the machine being financed rather than a blanket GSA over the entire business. Their assessment centres on: the asset's verified market value from specialist valuers, the operator's track record in the equipment sector, the hours and maintenance evidence, and the business's ability to service the proposed repayment. For established operators, the replacement policy product (described below) provides approved credit with minimal documentation based on proven repayment track record.

The Replacement Policy: Low-Doc for Established Equipment Operators

The replacement policy is a specialist product available through yellow goods lenders on our panel that most equipment operators have never heard of but should know about. Under a replacement policy, a lender who has an established relationship with an operator and a history of on-time repayments on existing equipment loans will approve a new equipment loan up to $500,000 without requiring financial statements, tax returns or formal serviceability calculations. The assessment is based on the track record: if you have been making repayments consistently on your existing equipment loans, the lender matches the new payment to a new machine purchase without putting your whole file through full credit assessment.

The replacement policy is specifically designed for operators who are in a growth phase, may have recently won a large new contract, or whose latest financial statements do not fully reflect their current trading position. It is a product that rewards consistent repayment conduct rather than penalising operators who cannot easily document income that has recently grown. We identify which lenders on our panel have replacement policy products available and whether your existing repayment history qualifies you.

Mine-Spec vs Construction-Spec: Why This Distinction Affects Finance

One of the most important distinctions in used heavy machinery assessment that virtually no finance page addresses is the difference between mine-spec and construction-spec plant. The distinction is significant because mine-spec machines command different resale values and attract different lender assessment criteria.

Mine-spec machines

Mine-spec heavy plant is configured and maintained to comply with strict mine site access requirements. This typically includes: full roll-over protection structure (ROPS) and falling object protection structure (FOPS), fire suppression systems, secondary guarding on all rotating parts, enhanced lighting and reversing cameras, pre-wired communications systems, and documentation of compliance with the relevant state's mine safety regulations. Mine-spec machines often have more comprehensive maintenance records because mine operators maintain detailed service histories as part of their safety compliance obligations. They are typically maintained to a higher standard than general construction-spec machines.

Mine-spec configurations add cost but also add verifiable maintenance documentation and safety compliance that specialist lenders regard positively. A mine-spec Caterpillar 336 with a full Caterpillar dealer maintenance history from a Pilbara mine site is one of the most straightforward used machine applications for a specialist lender to assess.

Construction-spec machines

Construction-spec machines are configured for general civil and building site use without the enhanced safety systems required for mine access. They are often maintained to a lower standard than mine-spec equivalents because documentation requirements on construction sites are less prescriptive than on mine sites. Construction-spec machines can be excellent value and are widely financed, but the lender's ability to verify their condition and maintenance history relies more heavily on dealer service records or independent inspection reports.

Ex-mine plant: the opportunity and the caution

Ex-mine machines that come out of Pilbara, Bowen Basin or other mining regions after a major contract often represent excellent value buying for construction operators. They have typically been well-maintained, are mine-spec configured, and arrive with documented service histories. However, they have often operated in harsh conditions with high utilisation rates, which means high hours. For a specialist yellow goods lender, an ex-mine Komatsu D375 dozer with 18,000 hours but a complete maintenance history and recent major component overhauls is a bankable proposition. For a major bank, the same machine at 18,000 hours may be automatically declined. This is where specialist lender access through a broker becomes directly valuable.

Equipment Master Limits: Finance for Fleet Operators

Contractors who regularly purchase equipment benefit enormously from an equipment master limit facility, also called a fleet finance line. An equipment master limit is a pre-approved revolving credit facility up to a set maximum amount that can be drawn against for multiple equipment purchases without the need to reapply for each individual machine.

Once the facility is established and approved, drawing against it for a new machine typically involves providing the machine details and the invoice amount. The lender approves the individual draw against the standing limit within 24 to 48 hours. This eliminates the full credit assessment cycle that applies to each standalone application. For a growing civil contractor purchasing 2 to 5 machines per year, an equipment master limit transforms equipment acquisition from a series of individual finance processes into a simple operational draw.

Who benefits most from an equipment master limit

• Established civil contractors with an annual equipment acquisition budget of $500,000 to $5,000,000

• Plant hire businesses that regularly refresh their fleet to maintain modern, well-maintained hire equipment

• Mining services companies operating multiple machines simultaneously on rotating contracts

• Demolition contractors who regularly replace machines that are written off or sold after project completion

• Earthmoving operators who take on large contracts requiring rapid fleet expansion

How master limits are sized

Master limits are established based on the business's demonstrated repayment capacity, its existing fleet size and value, the annual equipment acquisition pattern and the security position available. Master limits typically range from $500,000 to $5,000,000 for SME operators and can extend to $10,000,000 and above for larger civil contracting businesses. Establishing a master limit involves a single, more detailed credit assessment at outset, after which individual draws are streamlined. We arrange equipment master limit facilities for fleet-operating businesses across all heavy machinery sectors.

Wet Hire vs Dry Hire: How Operating Structure Affects Your Finance Application

The distinction between wet hire and dry hire affects how your income is characterised and how lenders assess your serviceability. Understanding this before applying avoids confusion and positions your application accurately.

Wet hire

Wet hire means you supply the machine and a qualified operator to the hire customer. You are paid a combined rate for the machine and operator's time, typically $100 to $250 per hour for a mid-range excavator depending on the machine size, location and market conditions. The hire customer is responsible only for directing the work. As a wet hire operator you carry the overhead of employee wages, workers compensation insurance and machinery operating costs. Your billable rate is higher to cover these costs but your net margin per machine hour is similar to or sometimes lower than dry hire after labour costs.

Dry hire

Dry hire means you supply the machine without an operator. The hire customer supplies their own operator and is responsible for operation of the machine. Dry hire rates are lower than wet hire rates, typically $40 to $120 per hour for the machine alone, but your operating overhead is minimal as you carry only the machine's capital cost, insurance, maintenance and fuelling. Dry hire operations have more variable income than wet hire as they depend on customer utilisation of the machine rather than a defined project.

How lenders assess wet vs dry hire income

Both wet hire and dry hire income are accepted by specialist equipment lenders as income for serviceability purposes. The key requirement is that the income is evidenced by bank statement deposits showing regular payments from hire customers. Long-term hire contracts with creditworthy customers, including government agencies, major Tier 1 contractors and mining companies, provide particularly strong income evidence. Short-term casual hire income is accepted but may attract more conservative serviceability assessment from some lenders. We advise on how your specific hire income structure is best presented to the lenders on our panel.

PPSR Checks on Used Heavy Machinery: Non-Negotiable

The Personal Property Securities Register (PPSR) records security interests over personal property including heavy machinery. A PPSR search by the machine's serial number reveals whether any lender or financier has registered a security interest over the machine, meaning whether any finance is outstanding against it. For used heavy machinery, this search is absolutely non-negotiable before any purchase commitment.

If you purchase a machine with an undisclosed security interest registered on the PPSR, the original lender can repossess the machine from you regardless of the fact that you paid for it. The burden of loss falls on the buyer who did not check the PPSR before purchasing. In the yellow goods market, where private sales, interstate transactions and machinery coming out of deceased estates or company liquidations are common, PPSR checking is a critical protection step.

How to run a PPSR check on heavy machinery

A PPSR search is conducted at ppsr.gov.au by searching against the machine's serial number or VIN. The search costs $2 to $6 depending on the search type. It takes minutes and returns current registered security interests if any exist. Every used heavy machinery buyer should run a PPSR search before signing any purchase contract or paying any deposit. For purchased from dealers, the PPSR is typically provided as part of the purchase process. For private sales and auction purchases, run the search yourself. We advise on PPSR checking as part of our pre-purchase guidance for every used machine application.

Financing Heavy Machinery Attachments

Heavy machinery attachments are financed separately from or alongside the host machine and represent a significant additional capital investment for operators who want to maximise the productivity of their plant. A well-configured excavator with a range of attachments can deliver capabilities that would otherwise require multiple specialised machines.

Commonly financed attachments

• Hydraulic breakers and rock hammers: a quality Atlas Copco HB 2500 or Epiroc Breaker costs $40,000 to $100,000. Breaking rock, concrete and asphalt is core work for many civil and demolition operators

• Tilting and rotating couplers: OilQuick, Rototilt and similar systems cost $25,000 to $80,000 and dramatically increase excavator productivity in confined space and complex slope work

• Grapples and sorting grapples: demolition, timber handling and scrap processing grapples cost $20,000 to $80,000

• Auger drives and flights: Digga, Pengo and Kinshofer auger drives cost $15,000 to $40,000. Auger flights for specific diameters add $3,000 to $8,000 each

• GPS machine control: Trimble, Topcon and Leica 3D machine control systems for excavators, dozers and graders cost $25,000 to $60,000 per machine and deliver significant productivity improvements and reduced survey costs

• Compaction wheels and sheepsfoot drums

• Land clearing rakes, stick rakes and mulching heads

How attachments are financed

Attachments purchased at the same time as a host machine can typically be included in the same equipment finance facility. Attachments purchased separately after the machine acquisition are financed as standalone equipment items. Many lenders assess attachments as part of the machine's total productive capability rather than as separate minor items. GPS machine control systems in particular are well-understood by specialist lenders and are financed as capital assets alongside or separate from the host machine.

Auction Pre-Approval for Heavy Machinery

The Australian heavy machinery auction market is large and active. Pickles Auctions, Grays Online, Ritchie Bros Auctioneers and West-Auctions regularly conduct online and physical auctions of used earthmoving and construction plant at which genuine quality machines sell at competitive prices. Many of the best used machine buying opportunities in Australia occur at these auctions. Pre-approval before attending any auction is not optional — it is essential.

Why pre-approval is critical for machinery auctions

An auction purchase is unconditional the moment the hammer falls or the online timer expires. Payment is typically due within 5 to 10 business days. A buyer who wins a $450,000 excavator without finance pre-arranged faces either losing their deposit or scrambling to arrange finance after the fact, which almost never produces the best outcome. Pre-approval establishes your confirmed borrowing limit before you bid, allows you to bid with complete confidence up to your pre-approved amount, and means settlement can proceed within the auction house's payment window.

Pre-approval for auction purchases can typically be established within 24 to 48 hours for established operators with clean credit. The pre-approval specifies a maximum facility amount and general equipment parameters. After the auction, the specific machine details are provided to confirm the draw against the pre-approved facility. We arrange auction pre-approvals for heavy machinery purchases and coordinate the settlement timeline with auction house requirements. Contact us before any auction you plan to attend.

Heavy Machinery Loan Details

Loan Amounts

We arrange heavy machinery finance from $20,000 for quality used mini excavators and small skid steers up to $10,000,000 and above for large mine-class dozers, large cranes and complex multi-machine fleet acquisitions. The most common heavy machinery loan amounts in Australia range from $100,000 to $1,500,000. For crane and piling rig purchases above $2,000,000, specialist industrial lenders with project finance capability conduct more detailed assessments.

Loan Terms

Heavy machinery loans are available over 1 to 7 years from most specialist lenders. Some specialist yellow goods lenders extend to 10 years for newer machines from premium manufacturers. The appropriate term depends on the machine's expected remaining productive life, the income the machine generates, and whether a balloon payment is included. A machine with 5,000 hours that is expected to work for another 15,000 hours can reasonably support a longer loan term. A machine with 18,000 hours should not be financed on a 7-year term unless major components have been recently overhauled.

Interest Rates

Chattel mortgage rates for heavy machinery start from approximately 7.50% per annum for well-qualified operators with strong trading history, clean credit and property security. The typical rate for established earthmoving and construction businesses without property security is 8.50% to 13.00% per annum from specialist yellow goods lenders. Used machine rates typically sit 0.50% to 2.00% above new machine rates from the same lender. Rates are individually assessed based on the machine's age, hours, brand, the operator's trading history and credit profile.

Balloon Payments

Balloon payments reduce regular repayments by deferring a lump sum to the end of the loan term. They are commonly used in heavy machinery finance but require careful structuring. The balloon amount should not exceed the machine's expected market value at the end of the loan term. Overballooning on a high-hours or rapidly depreciating machine creates negative equity risk: when the balloon falls due, the machine may be worth less than the balloon amount, leaving the operator to fund the shortfall from cash flow. We always advise on appropriate balloon sizing based on the machine's current market value, its expected depreciation trajectory and the remaining hours of productive life.

Approval Speed

New machine applications for established businesses with clean credit: 24 to 48 hours conditional approval. Used machine applications with complete hours and condition documentation: 24 to 72 hours. Auction pre-approvals: same day to 48 hours. Applications involving very high-value machines above $1,000,000 or complex fleet facilities: 3 to 7 business days. Replacement policy draws for operators with existing facilities: 24 hours in most cases.

Frequently Asked Questions About Heavy Machinery Loans in Australia

Can I finance a 15 to 20-year-old excavator or dozer?

Yes, through specialist yellow goods lenders on our panel. Generalist banks typically apply age limits that decline machines over 10 to 15 years old regardless of condition. Specialist yellow goods lenders understand that a well-maintained Caterpillar, Komatsu or Hitachi machine with documented service history and reasonable remaining hours has genuine productive life and market value irrespective of its build year. A 2006 Komatsu D375A dozer with 14,000 hours and a complete service history is a bankable asset with specialist lenders. We identify which lenders on our panel have appetite for older machines based on your specific machine's make, model, hours and condition documentation.

What is the replacement policy product and do I qualify?

A replacement policy is a specialist yellow goods finance product available through certain lenders on our panel. It allows operators with an established history of on-time repayments on existing equipment loans to access a new equipment loan up to $500,000 without financial statements, tax returns or formal serviceability calculations. The lender's assessment is based on your proven track record: consistent repayments on existing equipment facilities demonstrate that you can service a new equivalent payment. This product is specifically valuable for operators in growth phases or with recently won contracts where current financials do not yet reflect new revenue. Contact us to determine whether your existing repayment history qualifies you for replacement policy assessment.

What is the difference between wet hire and dry hire and how does it affect my loan?

Wet hire means you supply both the machine and a qualified operator to the hire customer. Dry hire means you supply the machine only and the customer provides their own operator. Both income streams are accepted by specialist equipment lenders. Wet hire income is typically evidenced by higher total invoice values but carries higher operating costs including wages and workers compensation. Dry hire income has lower overhead but may be more variable. Both are assessed on the bank statement evidence of regular payment receipts. Long-term hire contracts with Tier 1 contractors and government agencies are particularly strong income evidence for loan applications.

Do I need to check the PPSR before buying a used excavator or dozer?

Yes, always. A PPSR search at ppsr.gov.au by the machine's serial number confirms whether any finance is currently registered against the machine. If you purchase a machine with an undisclosed security interest, the original lender can repossess the machine from you regardless of the fact that you paid for it. A PPSR search costs $2 to $6 and takes minutes. It is non-negotiable for any private sale and important even for dealer sales. We advise on PPSR checking as part of our pre-purchase guidance for every used machine application.

What is mine-spec equipment and why does it affect my loan assessment?

Mine-spec equipment is configured to comply with strict mine site safety access requirements including fire suppression, full ROPS/FOPS guarding, enhanced lighting and reversing cameras, and pre-wired communications. Mine-spec machines typically have more comprehensive documented maintenance histories than construction-spec machines due to mine operator safety compliance obligations. A mine-spec machine with a complete CAT or Komatsu dealer service history from a Pilbara or Bowen Basin operation is one of the most straightforward used machine applications for a specialist lender to assess, regardless of the machine's age or hours.

Can I get a pre-approved limit for multiple machinery purchases?

Yes. An equipment master limit is a pre-approved revolving credit facility that allows you to draw against it for multiple machine purchases without reapplying for each one. Once the facility is established, drawing against it for a new machine typically requires only the machine details and invoice. For civil contractors, plant hire businesses and fleet operators who purchase 2 to 10 machines per year, a master limit transforms equipment acquisition from repeated individual credit processes into a streamlined operational draw. Master limits typically range from $500,000 to $5,000,000 for SME operators. We arrange master limit facilities for fleet-operating businesses.

Can a new business or new ABN holder get heavy machinery finance?

Yes. New business and new ABN holder heavy machinery finance is available through specialist lenders on our panel. Day-1 applications are strongest where the operator has documented industry experience in earthmoving or civil construction, a deposit of 20% to 30% is available, a purchase order or confirmed project supports the machine's income case, and personal credit is clean. Equipment finance is more accessible for new operators than unsecured business loans because the machine provides the primary security. For startup earthmoving operators, a quality used mini excavator or skid steer in the $80,000 to $150,000 range is typically the most accessible first machine finance application.

Can I finance attachments alongside my machine?

Yes. Hydraulic breakers, grapples, auger drives, tilt couplers, GPS machine control systems and other attachments can typically be included in the same equipment finance facility as the host machine where they appear on the same invoice or are purchased simultaneously. Attachments purchased separately from or after the host machine are financed as standalone equipment items. GPS machine control systems in particular are well-understood by specialist lenders and are regularly financed as capital assets alongside or separate from the host machine.

How does the hours meter reading affect how much I can borrow?

The hours meter reading is one of the primary factors in how a lender assesses the market value and remaining productive life of a used machine. A low-hours machine relative to its brand's expected service life attracts higher loan-to-value ratios from most lenders. A high-hours machine approaching major overhaul territory may attract a lower LVR or require evidence of recent major component replacements such as an engine overhaul, undercarriage replacement or hydraulic pump rebuild to support the same loan amount. We advise on how your specific machine's hours affect lender assessment before you commit to a purchase.

What is a GSA (General Security Agreement) and should I avoid it?

A General Security Agreement is a security interest that encumbers the borrower's entire business assets, not just the specific equipment being financed. When a major bank finances a machine under a GSA, their security interest covers all of the business's present and future assets. This means the bank has a claim over your whole fleet, business equipment, receivables and intellectual property as security for a single machine loan. Specialist yellow goods lenders typically take security specifically over the machine being financed rather than a blanket GSA. For established operators with a valuable existing fleet, avoiding a blanket GSA by using a specialist equipment lender can be an important structural advantage. We identify which lenders on our panel take asset-specific security rather than broad business security.

What documents do I need for a heavy machinery loan?

For a new machine application for an established business: ABN, director's licence, two years of financial statements or six months of bank statements for low-doc, and a dealer invoice or quote confirming the machine details and price. For a used machine: the above plus documented hours meter reading, service records, and for machines above $100,000 an independent condition report or specialist valuation. For an auction purchase: ABN, director's licence and credit information for pre-approval, with machine details provided after the purchase. For very large applications above $1,000,000 or fleet facility applications: full financial statements, fleet schedule and asset position. We tell you exactly what is required once we identify the right lender for your application.

Can I finance a crane in Australia?

Yes. All types of cranes including Franna pick-and-carry cranes, all-terrain cranes, tower cranes, rough terrain cranes and crawler cranes are financed through specialist heavy plant lenders on our panel. Crane finance involves specific assessment considerations including the crane's certification status under the relevant state's work health and safety regulations, the operator's licence category, and in some cases the hire contract documentation for utilisation evidence. For large cranes above $1,000,000, specialist project finance lenders are involved. We have experience in crane finance across all crane categories used in Australian construction and infrastructure.

How does balloon payment sizing work for heavy machinery?

A balloon payment defers a lump sum to the end of the loan term, reducing regular repayments. The balloon must not exceed the machine's expected market value at loan end: overballooning creates negative equity where the machine is worth less than the balloon amount when it falls due. For heavy machinery, appropriate balloon sizing depends on the machine's current market value, its expected depreciation rate, its hours trajectory over the loan term, and the construction and civil market cycle. Specialist yellow goods lenders are experienced in appropriate balloon sizing for different machine categories. We always advise on this specifically, as it is one of the most consequential decisions in any equipment finance arrangement.

Can I get a quick approval for a machinery purchase I need urgently?

Yes. For established businesses with clean credit and straightforward applications under $500,000, same-day or next-business-day conditional approval is achievable through specialist non-bank yellow goods lenders on our panel. For auction purchases, pre-approval can be established within 24 to 48 hours. For replacement policy draws for operators with existing facilities, approval typically comes within 24 hours. The most important thing you can do to accelerate approval is to have your complete documentation ready at the time of your initial contact with us: ABN, identification, bank statements, and machine details.

Why Choose Australian Finance & Loans for Your Heavy Machinery Loan

• Independent broker: we compare 50+ lenders including specialist yellow goods lenders who understand that a 20-year-old CAT has 15,000 hours left in it

• All machine types: excavators, dozers, graders, loaders, cranes, dump trucks, access equipment, drilling rigs and all attachments

• Yellow goods specialists: we understand hours meter assessment, mine-spec vs construction-spec, and the difference between a GSA and asset-specific security

• Replacement policy access: we identify which lenders offer replacement policy low-doc products for operators with proven repayment histories

• Equipment master limits: revolving fleet finance facilities for contractors purchasing multiple machines per year

• Auction pre-approvals: confirmed limits before Pickles, Grays, Ritchie Bros and other heavy machinery auctions

• PPSR guidance: we advise on PPSR checking for every used machine purchase

• Attachment finance: GPS machine control, hydraulic breakers, grapples and all other accessories included

• New and used: all ages, all brands, all conditions with appropriate specialist lender matching

• Fast: same-day conditional approval available for straightforward established operator applications