Equipment finance library
Chattel mortgage, secured loan, commercial hire purchase, finance lease, capital lease, operating lease or rental — here is how each structure works for vending machines and other business equipment, and who each one suits.
A chattel mortgage is an Australian commercial equipment loan where your business takes legal ownership of the asset immediately. The financier secures the loan by placing a charge on the Personal Property Securities Register (PPSR) until the loan, including any balloon payment, is fully repaid.
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A secured business loan is a commercial facility where a lender advances capital to purchase equipment or finance growth, using the asset or existing business property as collateral via a PPSR registration. The borrower takes legal title immediately, enjoying operational control while making structured monthly principal and interest repayments.
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A Commercial Hire Purchase (CHP) is an Australian equipment finance structure where a lender buys equipment and hires it to a business for fixed monthly payments. The business gains immediate operational use, while legal title transfers automatically upon payment of the final installment or balloon amount.
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An Australian finance lease is an agreement where a financier buys equipment and leases it to your business for a fixed monthly fee over a set term. The lender retains legal ownership while you get full use of the asset. At term end, you can pay the residual value to own it, refinance, or upgrade.
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A capital lease is a commercial equipment finance agreement where a business gains full operational use of an asset while recognizing both the right-of-use asset and lease liability on its balance sheet under AASB 16. The lender holds legal title during the term, while the business manages operational risks, repairs, and repayments.
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An operating lease is an Australian equipment finance facility where a financier buys equipment and rents it to your business for a fixed term. You make regular rental payments, while the lender retains ownership and residual risk. At term end, you can return the asset, upgrade, or extend the lease.
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An equipment rental agreement lets Australian businesses use commercial equipment for a set term without purchasing it upfront. The financier owns the asset while you pay tax-deductible rental installments. At term end, you can upgrade, return, or extend the agreement, providing maximum cash flow flexibility.
Read the guideLocalised guidance for every structure — regional industries, typical placements and the questions lenders ask in your state.
General information only, not financial, credit or tax advice. VendingFinance is a referral marketplace, not a lender or broker. Lenders set their own criteria, rates and terms, and no approval is guaranteed. Talk to your accountant about how any structure affects your tax position.
