Plant and equipment

Buying plant and equipment, funded in full

HomeSec funds the whole purchase price of equipment against equity in real property — no deposit to find, no credit score threshold, and no restriction on the age or type of asset. From $20,000 to $5,000,000, settled in as little as 24 hours, for anything from a truck to a diagnostic imaging machine.

A business owner standing in the workshop of a small fabrication business, machinery behind

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The deposit is the part nobody mentions until late

Equipment finance lends against the asset, and an asset is worth less the moment it is delivered than the day it was invoiced. A financier closes that gap by asking the buyer to contribute — and the more specialised the machine, the wider the gap and the larger the contribution. It is a reasonable way to run an asset finance book. It is also why the most expensive and most productive equipment is frequently the hardest to finance, and why a business can be approved in principle and still unable to proceed.

We fund the whole purchase. Because the loan is secured by equity in real property rather than by the machine, the price of the asset is simply the amount borrowed, and there is no deposit to find from a business that is buying the equipment precisely because it needs the capacity.

Where asset finance narrows, and where we do not

	Equipment finance	HomeSec
Deposit	Commonly required, especially on specialised assets, private sales and newer businesses	None — the full purchase price is funded
Credit assessment	Business and directors credit-scored; defaults and arrears affect the outcome or the price	No credit score threshold; a person reads the file
Asset age	Age limits apply, based on resale value	Not assessed — the asset is not the security
Asset type	Strongest on mainstream plant with a deep second-hand market	Any asset. Specialised, imported, or with no resale market at all
Where you buy	Often dealer or accredited supplier; inspections may apply	Auction, private sale, overseas, receiver's sale — no restriction
Existing asset finance	Counts against your limits	Does not reduce what is available — different security entirely
Repayments	Monthly from the outset	None for the first six months, while the machine is installed and commissioned

What this looks like in practice

A representative file — diagnostic imaging

Typical of the files HomeSec writes in this category rather than one client's file.

A specialist wants a diagnostic imaging machine for a new practice. The machine is $2,000,000. His bank declines equipment finance on it; an equipment finance broker can place it, but wants a twenty per cent contribution — $400,000 — which he does not have in cash, because the practice is being built at the same time.

He owns a home worth around $4,000,000 with roughly $500,000 owing on it. We advance the full $2,000,000 against that equity, with no deposit and no contribution. The machine is bought, installed and scanning patients months earlier than any other route would have allowed. He then refinances the home in the ordinary way, at his own pace, and that refinance repays us.

The arithmetic that made it work was not the interest rate. It was the months of scanning income he would otherwise not have earned at all — income that comfortably exceeded the cost of the money, and that no amount of waiting for a cheaper facility would have produced.

Not just rolling stock

Because the asset plays no part in the credit decision, there is no category of equipment that falls outside what can be funded. Trucks, trailers, excavators and tractors are the assets people assume, and they are the ones asset financiers handle most comfortably. The ones they handle least comfortably are the ones we see most: diagnostic and medical equipment, imported manufacturing plant, processing lines, commercial kitchens, specialised workshop equipment, laboratory instruments, and machines built for one purpose in one industry with no second-hand market to speak of.

A person decides every loan. Every application is read by a Lending Manager and every credit decision is signed off by a person. We do not use artificial intelligence to assess, approve, decline or price a loan.

The usual exit

Two shapes, and both are ordinary. The first is a refinance once the asset is installed and earning — a bank or a mainstream lender will look at the same business very differently when the machine is producing income than it did when the machine was a quote. The second is the earnings themselves, where the equipment pays for itself inside a reasonable period.

The open term is what makes either workable. Commissioning takes longer than planned more often than not, and a facility with a fixed end date turns an ordinary delay into a refinancing problem. Here there is no end date, no fee to extend, and no penalty for repaying early.

How much you can borrow

Take the property's value, multiply by 80% for residential security or 70% for commercial, and subtract what is already owing on it. What is left is roughly what is available, between $20,000 and $5,000,000. Several properties can be added together, and the borrower does not have to be the owner — companies, trusts and sole traders — including start-ups, with everyone on title signing. Up to 80% on residential and 70% on commercial. Lower on large acreage, and LVRs may reduce on properties worth less than $800,000.

The machine's price, age and resale market do not enter that calculation at any point.

From the call to the money

Tell us the deal

Amount, purpose, timing, the property and how the loan gets repaid. A Lending Manager gives you an indicative answer on that call — usually in minutes.

Minutes

Conditional approval

Photo ID, a rates notice and your most recent mortgage statement. That is the whole list, and it takes about fifteen minutes.

About 15 minutes

Funds released

As little as 24 hours from a clean, complete scenario. Paid where you tell us — to your account, or straight to the ATO.

As little as 24 hours

What it costs

Priced per file, on the property, the position, the amount and the exit. No rate is published, because a rate with "from" in front of it is the best file's number. How it is priced, and every fee that exists.

✓Upfront: a small commitment fee, payable only once your loan is conditionally approved

✓Valuation fee: none — we don't use valuers

✓Monthly or line fees: none — no monthly, line or account-keeping fees

✓Fee to extend: none — no rollover fees, legal fees or rewriting the loan to extend

The number worth comparing is not the rate against an asset finance rate. It is the cost of the money against the income the equipment earns in the months you would otherwise have spent waiting for a deposit, or waiting for a lender to get comfortable with the machine.

Questions we get on the phone

Can I borrow the full purchase price of equipment?

Yes. Where the equity in the property supports it, we fund 100% of the purchase — there is no deposit to find. That is the single biggest practical difference from equipment finance, which commonly requires a contribution from the buyer, particularly on specialised assets, private sales and newer businesses.

Do you only fund trucks and machinery?

No. The asset is not the security, so what you are buying does not affect the assessment. We have funded diagnostic and medical imaging equipment, manufacturing plant, commercial kitchens, workshop and processing equipment, and specialised machines with no meaningful second-hand market at all — the kind of asset an equipment financier finds hardest to price.

Why does equipment finance ask for a deposit?

Because it lends against the asset's resale value, and resale value is lower than purchase price the moment the machine is delivered. A contribution from the buyer closes that gap. The more specialised the asset, the wider the gap and the larger the contribution tends to be — which is why the most expensive equipment is often the hardest to finance.

Does my credit file matter?

There is no credit score threshold here. Equipment financiers credit-score both the business and the directors, and a file with defaults or arrears will affect the outcome or the price. We assess the property and the exit, and a credit report is read as context at formal approval rather than as a pass mark.

Can I buy at auction, privately, or from overseas?

Yes to all three. Because the loan is not tied to the asset, there is no supplier accreditation, no dealer requirement and no asset inspection. Funding is as little as 24 hours from a clean, complete scenario, which is what makes auction and private purchases workable.

Does my existing equipment finance reduce what I can borrow?

No. Chattel mortgages and hire purchase agreements sit over the plant, not over the real property we take security against, so they do not reduce the amount available here. A business that has used all of its asset finance can still buy the next machine.

What usually repays the loan?

Most often a refinance once the asset is installed and earning, or the earnings themselves. A common structure is to buy the equipment now, get it working, and refinance the property or the business facility afterwards on your own timetable — which is materially easier to arrange once the machine is producing income than it was beforehand.

How long can I hold it?

The term is open with no minimum, no maximum and no fee to extend, and repaying early carries no penalty with unused months of capitalised interest rebated. That matters on an equipment purchase, because installation and commissioning frequently take longer than anyone plans.

Can you fund a repair or a rebuild rather than a purchase?

Yes. Financiers fund purchases rather than repairs, so a major rebuild — an engine, a transmission, a press, a compressor — sits in a gap. Commercially these are often the best money a business can spend, because the alternative is replacement at many times the cost.

Tell us the machine and the property

The price of the equipment, the property behind you and what is owed on it. A Lending Manager will tell you on the call whether the full amount is available. 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.

Other ways businesses grow

Funding an expansion Buying a business Buying a franchise Fit-out and refurbishment What a business is worth Releasing equity to fund it Buying commercial premises

Sixty seconds, no documents

See if you qualify in sixty seconds

Three short questions, no credit check to apply and no financial statements. A Lending Manager reads it and calls you back with a real answer — not a call centre, not an algorithm.

That's the HomeSec Advantage.

See if you qualify Call 1300 93 83 87Mon–Fri, 8:30am – 5:30pm Melbourne time

Reviewed by Matt Hempel, National Credit Manager