Can I Finance Equipment I Already Own?

Key highlights

• Equipment you already own can often be financed to release capital
• You keep using the equipment throughout the arrangement
• Funds can support cash flow, growth, wages, stock or tax bills
• Compare refinance and leaseback against unsecured funding at once
• Check with your accountant on repayments and any tax treatment

Financing equipment after you own it

Financing equipment you already own is entirely possible and reasonably common. The usual route is a sale and leaseback, where a financier buys the equipment you own outright, pays you a lump sum, and leases it back so you keep using it. This is sometimes described as refinancing owned equipment, because it converts a paid-off asset back into cash. The equipment underpins the funding, which can support an amount you might not access unsecured. How much you can raise depends on the equipment's market value, age and condition, and on lender assessment. As with all lending, the amount and terms are indicative and subject to lender criteria, so comparing options before committing is worthwhile for your business.

Why finance equipment you already own

It might seem counterintuitive to finance something already paid for, but there is clear logic to it. A fully owned asset is capital that is not working: it holds value but generates no liquidity. Financing it releases that value as flexible working capital you can redeploy. Businesses commonly do this to smooth cash flow, cover wages, buy stock or materials ahead of demand, fund an expansion or fit-out, take on a larger contract, or settle a pressing supplier or tax obligation. The trade-off is the repayment commitment you take on in exchange for the cash. Whether it makes sense depends on the return you expect from deploying the funds against the cost of the arrangement, so weigh both carefully.

Equipment that can be refinanced

A wide range of owned equipment can potentially be financed, provided it is held outright, in sound condition and retains market value. Common examples include manufacturing and processing machinery, workshop and CNC equipment, earthmoving and civil plant, trucks and trailers, utes and vans, and specialist trade gear. Lenders generally prefer identifiable, serviceable items with useful working life remaining. Very old, obsolete or highly specialised equipment may attract less appetite or a lower advance, being harder to value and resell. Because financiers assess equipment differently, one may offer more than another against the same asset. Comparing the market helps you find the strongest structure, and approaching several lenders at once tends to surface options a single financier would not offer alone.

How this compares with a new loan

Refinancing owned equipment differs from taking a standard unsecured loan. An unsecured business loan advances cash based on your overall profile, needs no asset, and funds quickly, but is usually capped around $500,000 and priced higher. Financing owned equipment leans on the asset, which can support a larger amount or a different structure, though you give up ownership for the lease term under a leaseback. A line of credit suits fluctuating day-to-day needs, and invoice finance releases cash from unpaid invoices. None is inherently best; each suits a different situation. Comparing total cost, term and conditions across several lenders gives the clearest view of what genuinely works for your business, rather than assuming one product is the answer.

Eligibility and lender requirements

To finance equipment you already own, lenders generally want an active Australian ABN, evidence you own the equipment outright, and a current valuation. Most look for a minimum trading history, often around six to twelve months, and turnover that comfortably supports the repayments. Low-doc options may accept bank statements or BAS instead of full financials for some applicants, and newer businesses can sometimes still qualify subject to criteria. Your credit profile, existing commitments and the equipment type all influence the offer. Because each lender applies its own rules, outcomes vary across the market. Everything here is indicative and subject to a full assessment, so treat it as a guide to what to expect rather than a fixed outcome for your business.

Amounts, terms and turnaround

Across the funding we compare, indicative amounts range from around $5,000 up to $5 million, with an advance against owned equipment driven by the asset's value and lender appetite. Terms commonly run from a few months to five years. For eligible applicants, some facilities move quickly, with same-day pre-approval and funds potentially within 24 to 48 hours, though a formal valuation can add a little time. Pricing varies: rates start from around 7.49% p.a. for stronger secured facilities, with unsecured and short-term products higher depending on turnover, term, security and profile. All figures are indicative and subject to lender criteria and assessment, so compare carefully before you commit to any arrangement.

So yes, you can usually finance equipment you already own, and the useful next step is to see what it might release. Overdrive Business Loans compares more than 80 banks and non-bank lenders on one application, so you can weigh refinance and leaseback options against unsecured, secured and line-of-credit funding and choose what fits. Simon Kendrick will explain the numbers and any commitment plainly, with an obligation-free quote and only a soft credit check to start, so your score is unaffected. For eligible applicants, funding may be arranged within 24 to 48 hours. Reach out for a no-pressure conversation, and check with your accountant about how any arrangement would sit within your tax position.