Heavy machinery is a significant investment for construction, earthworks, and agricultural businesses across New Zealand. Financing spreads that cost over the working life of the equipment, but the process has a few specifics worth understanding.
Lenders will usually want details about the machine itself: make, model, age, hours of use, and condition. Newer equipment with lower hours generally attracts better terms, because it is seen as lower risk and holds its value longer. Older machinery can still be financed, though the term may be shorter and the rate higher.
The way the equipment will be used also matters. A machine on a long-term contract or used in a stable business is easier to finance than one for speculative work. Providing evidence of contracts, tenders, or regular clients can strengthen your application.
Deposits for heavy machinery can vary. Some lenders will finance up to the full purchase price for established businesses, while others expect a contribution. As with other asset finance, the total cost includes fees and interest, not just the headline rate.
It is sensible to think about maintenance and running costs alongside the finance. A lower repayment on an older machine can be offset by higher repair bills, so the cheapest finance is not always the cheapest overall option.
A broker can help you compare lenders that specialise in heavy machinery. At Loan Link we gather the details lenders need, present your application clearly, and help you weigh up offers so you can choose with confidence.
