Excavator finance for mini, midi and large excavators

Can I get a loan for an excavator?

Yes. An excavator is standard security for an equipment lender: the machine itself secures the loan, which is why CommBank and NAB publish $0 deposit on equipment finance and Bendigo Bank lists earth-moving machinery among the goods it finances at up to 100% of the price.

What the lender checks is the business. The banks ask for an ABN and a machine used mostly for business; CommBank publishes 12 months of trading as a floor, Grow Finance 12 months of ABN and GST registration, and ANZ applicants aged 18 or over who are Australian citizens or permanent residents. Under 12 months of trading, expect to need a deposit, a stronger asset or a director with equity.

Who has the best financing on mini excavators?

On a new machine of a brand with a promotion, usually the maker. Kubota Australia Finance publishes business offers of 1% p.a. on the U17-3 and U55-4G and 1.90% p.a. on other U and KX series excavators. Those offers run over 36 months, so the monthly repayment is higher than on a longer loan even though the total cost is lower: $50,000 at 1.90% over three years is about $1,430 a month, against about $1,062 over five years at an illustrative 10% p.a.

Dealer finance only covers the dealer’s own machines and its conditions, so it does not help with a used excavator from a private seller, a second brand, or a float and truck bought in the same deal. For those, a bank or a broker quoting several lenders is the comparison, and the right test is total cost over the time you will keep the machine, not the headline rate.

How long can you finance a mini excavator?

Up to seven years at ANZ and Westpac, and 36 months on Kubota’s promotional offers. Lenders match the term to the machine’s working life and set a maximum age at the end of the term, so an older machine gets a shorter term. A balloon at the end lowers the monthly repayment but leaves a lump sum to pay, refinance or cover with the sale of the machine.

New, used or private sale?

NAB and Westpac publish finance for new or used equipment, and Grow Finance prices new (0 to 2 years old) and used (3 years or more) assets on separate tiers. For a used or private-sale machine, expect the lender to ask for the make, model, year and hours, and for a private sale, proof of ownership and a PPSR search to confirm nobody else has a security interest over it. Older machines may need an inspection or valuation.

Attachments, GST and tax

Ask the supplier for an itemised invoice that lists the machine, buckets, hitch, breaker and any float, so the lender can see exactly what it is financing. A GST-registered business on a chattel mortgage or hire purchase claims the GST in the price on its next BAS. A machine that costs $20,000 or more (excluding GST, if you are registered) is outside the instant asset write-off, so a small business depreciates it through the small business pool (15% in the first year, 30% after that) or under the general rules; confirm the treatment with your accountant.