Specialised equipment and business loans: why resale value shapes the deal

A tradie buying a new ute and a craft brewer buying a canning line might both spend similar amounts. To a lender, they’re completely different propositions. The ute could be sold next week at a car yard in any town in Australia. The canning line might take months to sell, to a handful of possible buyers, at a fraction of its cost.

That difference — resale value — shapes how equipment is financed in every industry. This guide explains how lenders think about it and how to fund specialised equipment sensibly.

How do lenders value equipment?

When a lender considers equipment as part of a loan, they ask one question: if the business stopped trading, what could this asset be sold for, and how quickly?

The answer depends on:

• How general-purpose it is. A van, a forklift or a mini excavator has thousands of potential buyers. A custom production line has very few.
• How easily it moves. Equipment that can be unbolted and trucked away is worth more to a lender than equipment built into a building.
• How fast it dates. Some technology loses value quickly as newer models arrive.
• The strength of the second-hand market. Some industries have active used-equipment markets; others don’t.

Lenders often record their interest in financed equipment on the Personal Property Securities Register (PPSR), the national register for security over personal property.

General, moderate and specialised: where does your equipment sit?

Category	Examples	How lenders treat it
General-purpose	Utes, vans, trucks, forklifts, mini excavators, common tools	Broad markets; supports lending well
Moderately specialised	Dental and vet imaging, CNC machines, commercial kitchen equipment, wide-format printers	Real second-hand market but narrower; partial support
Highly specialised	Brewery tanks and stills, bespoke production lines, fishing vessels, niche treatment devices	Thin markets; lenders rely on trading or other security
Fit-outs	Salon stations, dental surgery joinery, restaurant fit-outs, shopfronts	Usually minimal resale; funded on cash flow or property

Where your equipment sits changes how much it can support on its own — and what else the lender will look at.

If you’re weighing up a big equipment purchase, check your options in a minute — there’s no credit check to enquire.

Industry by industry

• Breweries and distilleries. Tanks, stills and canning lines are specialised. Most larger projects lean on property security. See the brewery and distillery guide.
• Dental and medical. Imaging and scanners have a second-hand market among practices, but fit-outs don’t. Strong billings often support unsecured lending. See the dental practice guide.
• Printing. Presses are expensive and specialised, with value depending on the segment. See the printing guide.
• Manufacturing. General machines like CNCs resell better than bespoke lines. See the manufacturing guide.
• Trades and transport. Utes, vans and trucks are general-purpose and support lending well.
• Fishing. Vessels and gear are specialised; property security often smooths the path.

How to fund specialised equipment well

When equipment can’t carry the whole loan on its own, there are three main ways to bridge the gap.

1. Rely on trading strength. A business with steady banked income can often borrow unsecured, with the facility sized on turnover and bank statements rather than the asset. Unsecured options typically run from $5k to $500k.

2. Use property security. Equity in residential or commercial property can support larger amounts, from $20k to $5m, through first mortgages, second mortgages or caveat loans. The equipment becomes part of the business case rather than the security.

3. Combine approaches. Some businesses fund general-purpose assets separately and use cash flow or property for the specialised part.

The secured or unsecured check is a quick way to see which lane suits your situation.

Lease, finance or buy outright?

business.gov.au’s guide to leasing or buying vehicles and equipment covers the general trade-offs. A few points specific to specialised gear:

• Technology that dates quickly may suit leasing, so you can upgrade.
• Equipment with a long working life may suit buying, so you own the asset.
• Tax settings affect the after-tax cost. The ATO’s $20,000 instant asset write-off applied to eligible assets for small businesses with aggregated turnover under $10 million in 2025–26. Check current settings with your accountant.
• Stacked leases from several providers add up. Lenders count every repayment.

A worked example

Illustrative. A craft brewery wants $250k for a canning line and three fermenters. A lender estimates the equipment would sell for well under its cost, and slowly. Trading is solid but can’t support that amount unsecured.

The owners offer a second mortgage over their home. The lender now sizes the loan on property equity and the brewery’s combined taproom and wholesale income. The equipment’s job is to lift production and margins — not to secure the loan.

Questions to ask before buying specialised equipment

Before committing to a major purchase, it’s worth working through a few practical questions — the same ones a lender is likely to ask:

1. What will it earn or save? Estimate extra jobs, reduced outsourcing or lower labour costs per month.
2. How often will it be used? Equipment that sits idle half the week takes much longer to repay itself.
3. What does it cost to run? Service contracts, consumables, software licences, power and trained operators.
4. How long will it stay useful? Technology-heavy equipment may be superseded within a few years.
5. Can it move with you? Equipment tied to a building or a lease adds risk if you relocate.
6. What would you do if it failed? A backup plan — a service agreement, a hire option or a second unit — protects income.

Writing down the answers turns a purchase into a business case, and a business case is much easier to finance.

Used equipment: a middle path

Buying second-hand specialised equipment can cut costs significantly. Lenders will look at its age, condition and remaining service life, and may want an independent inspection or valuation. A PPSR search before purchase checks that no one else holds a security interest over the asset — an important step when buying privately or at auction. Used equipment financed with trading strength or property security can be an efficient way to add capacity without stretching the business.

Illustrative: a scanner that earns its keep. A two-chair dental practice wants $60k for an intraoral scanner. The scanner has a second-hand market among dental practices, but not one a lender would rely on for the full amount. Instead, the practice shows two years of consistent billings and estimates the lab and impression costs the scanner will save each month. An unsecured facility sized on turnover funds the purchase. The scanner’s resale value is a bonus, not the basis of the loan.

Put simply: the more specialised the equipment, the more the loan rests on the business behind it. That isn’t a barrier — it’s a reason to present your trading history, or your property, as the foundation of the application.

Mistakes to avoid

• Assuming cost equals value. Lenders care about resale, not purchase price.
• Financing a fit-out on a short lease. If the lease ends before the loan, you may be paying off improvements you’ve left behind.
• Ignoring running costs. Specialised equipment often needs service contracts, consumables and trained operators.
• Buying capacity you can’t fill. Equipment that sits idle doesn’t repay itself.

Ready to fund the equipment that grows your business?

Specialised equipment can transform a business; it just needs the right structure. A 60-second enquiry is the first step. There’s no credit check when you first enquire, your details aren’t sprayed across a list of lenders, and a real person who understands how lenders value equipment will call you. Please be accurate about the equipment, the amount, your turnover and any property — so the structure we suggest actually fits.

See what’s possible for my equipment →