Every machine class, costed before you commit.

Equipment finance is lending secured against an identified piece of business plant rather than against property or on an unsecured basis. It covers machinery, vehicles used as plant, kitchen and refrigeration equipment, workshop tooling, medical devices and technology hardware. The defining feature is that the machine itself carries the security and is registered on the Personal Property Securities Register.

Typically yes, for the same borrower. The lender holds an identifiable asset it can recover and resell if the payments stop, which lowers its exposure and is generally reflected in the indicative rate. The size of the gap depends on how liquid the resale market for that class of machine is, so a mainstream forklift usually prices better than a specialised piece of production plant.

Terms of 24 to 60 months cover most New Zealand equipment lending. The ceiling is usually set by the age the machine reaches at the end of the term rather than its age at purchase, which is why an older machine attracts a shorter term at the same price. Technology hardware commonly runs shorter, at 24 to 36 months, because it depreciates faster.

Yes, and a large share of New Zealand equipment finance is written against used machines. Age caps apply, terms shorten as the machine ages, and deposits are more often sought. A PPSR search matters more on a used purchase than on a new one, because a registered security interest travels with the machine rather than with the seller.

It depends on the structure. Under a hire purchase the business holds the machine as its own asset from settlement and title formally transfers at the end. Under a finance lease or an operating lease the financier retains title for the term. That distinction drives where the depreciation claim sits and how the arrangement is treated in the accounts, which the accountant is the right person to confirm.

A quote or invoice naming the specific machine, twelve months of bank statements, the NZBN and GST registration details are the common core. Financial statements are typically added above larger amounts, and a PPSR search is standard on any used purchase. Businesses trading under a year are commonly asked for a deposit or a personal guarantee as well.

No. Nil-deposit facilities are commonly available on newer machines for businesses with a reasonable trading history. Deposits are more often sought on older machines, specialised classes, and newer businesses. Where a deposit is offered rather than required, it reduces the lender’s exposure and typically improves the indicative rate.

Usually, where they form part of the same purchase. Freight to site, installation, attachments and ancillary items such as a battery and charger are commonly financed inside the same agreement. Recurring costs such as servicing, certification and training sit outside it and are normally budgeted separately.

Under a hire purchase the final payment transfers title and the business owns the machine outright. Under a finance lease the residual is settled, refinanced, or the machine is returned. Under an operating lease the machine goes back. Businesses replacing on a cycle commonly roll the trade-in value of the old machine into the deposit on the next one.

No. This is an education site and a calculator, not a lender, a broker or a registered financial adviser. The calculator hands off to Prospa, a New Zealand business finance provider we have a commercial relationship with, and that relationship is disclosed on every page. No personal information is collected here.