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Earthmoving Equipment Finance: What is It and How It Can Benefit Your Business

October 25, 2022
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5 mins


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If you have a business within the earthmoving industry, you know how expensive heavy machinery and assets can be.

However, by investing in earthmoving equipment finance, you can secure these assets now and pay later, keep up with competitors and help your business grow.

There are plenty of finance options for businesses wanting to purchase new assets, but not every product will suit your company.

If you’re hoping to expand your earthmoving business with equipment finance, read our blog to learn what option might best suit you and your business.


What is earthmoving equipment finance?

Earthmoving equipment finance refers to the finance businesses obtain when they need to purchase heavy equipment and machinery.

Earthmoving machines are expensive, so companies that require them often need to rely on finance when purchasing.

The most common industries for earthmoving equipment include:

  • Earthmoving
  • Transport
  • Mining
  • Construction
  • Farming


What types of earthmoving equipment can be financed?

 There are plenty of types of heavy equipment that earthmoving businesses can finance. These include (but certainly aren’t limited to):

  • Hydraulic excavators
  • Dump trucks
  • Bulldozers
  • Trenching shields
  • Concrete pumps
  • Batching plants
  • Tilt trays
  • Trucks and trailers

Every earthmoving business is different, which is why the equipment you require will vary.


What products are on offer to finance earthmoving equipment?  

Due to the unique nature of your business, the Inovayt team offers a range of finance options for those looking to grow their earthmoving business. Here are a few of our most common finance products.


Chattel mortgage

Chattel mortgages are made in a similar way that mortgages on houses are.

However, the asset being purchased needs to be moveable property – such as a vehicle or factory machinery – and should have a serial number.

With a chattel mortgage, the asset being purchased is the collateral for the loan.

This means that the lender can take the asset and liquidate it if the borrower is unable to service the repayments. The benefits of a chattel mortgage include the following.

  • You can structure your repayments over various terms – generally 2 to 7 years.
  • Interest rates are usually lower than unsecured loans and can be fixed or variable.
  • You can tailor the repayments to work around you. This might mean being a fixed amount each month or structured to meet your cash flow requirements.
  • You own the financed asset up-front, so it appears as an asset on your balance sheet, as well as the finance showing as a liability.
  • You can opt for a balloon or residual payment at the end of your term to lower your monthly payments.


Hire purchase

Hire purchase is when a business leases an asset from a provider who purchases the asset and agrees to lease it to the business.

Throughout the life of the lease, the provider owns the asset and is responsible for repairs, maintenance, and insurance.

The business continues making payments to the lender during the lease period for the use of the asset.

Ownership of the asset will then be granted to the company at the end of the lease period.


Low doc loan

Low doc or self-declaration loans are, for all intents and purposes, functionally are the same as a standard doc commercial product. However, these two options are different as you must meet specific criteria to qualify for a low doc loan.

The criteria businesses need to meet to qualify for a low doc loan generally revolve around the length of the ABN and GST registration as well as property ownership.

If businesses do meet those requirements, they aren’t required to provide any financial documentation and are able to get a loan with only a directors drivers license and privacy.

This method is quick and provides a great experience for the client as it increases the speed of approval and removes much of the analysis that happens as part of a full application.


Sale and buyback

Sale and buyback is other types of transaction that can be used for financing equipment. In this instance, a loan is raised against an asset that is owned outright and free from any encumbrance.

This is done through either lease, chattel mortgage, or hire purchase.

The benefit of sale and buyback to businesses means that a company can free up cash in the short term while allowing continued use of the asset to avoid hindering the business.


Growing your business

A successful earthmoving business is a great opportunity and can offer significant income.

However, if you’ve started up your own business, you’ll understand how high start-up costs can be – particularly for equipment and staff.

Obtaining funding for an earthmoving company begins with understanding the ins and outs of the industry.

This type of company is responsible for materials, labour and other incidentals before a project starts, yet it doesn’t receive full payment until the project is complete.

Use our equipment finance calculator to determine your potential repayments.

It’s because of this cash flow shortfall that earthmoving companies often require funding.

The industry is also heavily dependent on the current economy.

Earthmoving companies generally work on a project-to-project basis, with no guaranteed or stable revenues.


How can the Inovayt equipment finance team help you?

At Inovayt, earthmoving equipment finance is one of our specialities.

We know that every earthmoving business is unique, and yours is no exception. O

ur team have worked with various earthmoving equipment businesses before, so we know we can provide quality service to yours.

With us on board to help you with the financial aspects of your business, you have time to work on what you do best – your business!


Working with us means you have more time to focus on the strategic side of your business.

If there’s a new piece of equipment or machinery that you have your eye on, our equipment finance brokers work with you to obtain the asset.

In business, cash flow is like oxygen – without it, your business can’t exist. Investing in assets can help keep the cash flow alive while simultaneously growing your business.


Creating a successful earthmoving business is tough.

Vehicles and equipment can be extremely costly, and work is often on a project-to-project basis meaning cash flow is inconsistent. Investing in new assets is one of the best ways to grow your business and become more profitable.

If you’re looking at investing in earthmoving equipment finance, get in touch with one of our expert team members today.

Do you want to grow your earthmoving business? We're here to help.


Start your journey, contact Inovayt today