In short
Finance the piece of gear that earns you the most billable hours, or removes the bottleneck that’s turning away work. For most arborist crews that’s the chipper, because it turns a slow drag-and-stack day into a fast feed-and-go day and often lets a two-person job run with one less hand. The truck and stump grinder usually come next, in the order that matches the jobs you’re actually quoting.
The principle is simple. Don’t buy the shiniest machine. Buy the one that lifts revenue per day or lets you say yes to jobs you’re currently knocking back. Book a free consultation →
How to decide what to finance first
The right answer isn’t the same for every crew. A tree removal business clearing big stems all day has different priorities to a maintenance outfit doing pruning and small removals. So before you sign anything, work through three questions about each machine you’re weighing up.
First, what does it earn? Look at the jobs the asset directly makes possible and roughly what they bill. A chipper that lets you offer green-waste removal as part of the quote can lift the value of nearly every job you do. Second, how often will it run? A machine that’s working most days pays for itself in a way a once-a-fortnight specialty tool never will. Third, what’s it unblocking? If you’re subcontracting a grinder on every removal, or hiring a tipper because your ute can’t cart the load, you’re already paying for that gap. Owning the gear can turn that leak into margin.
Run those three filters and the order usually sorts itself out. The asset that scores highest on revenue, utilisation and bottleneck-removal is the one to finance first.
Chipper vs truck vs stump grinder
The chipper
For most crews the chipper is the workhorse that changes the economics of a job. Feeding brush straight into a chipper instead of dragging, stacking and hand-loading it cuts hours off a clean-up and reduces the number of trips to the tip. It’s the machine most likely to turn a two-person job into something one experienced operator can manage, or let the same crew fit an extra job into the day. If you’re trying to pick one asset that pays back across the widest range of work, this is usually it.
The truck or tipper
A truck matters when carting capacity is the thing holding you up. If you’re making multiple tip runs a day, or hiring a tipper most weeks, owning the right vehicle stops that cost and saves you the dead time. A chipper truck setup also keeps your gear together and ready, which matters when you’re moving between sites. The catch is that a truck on its own doesn’t usually create new revenue the way a chipper does. It removes friction rather than adding billable work, so it tends to make sense once the chipper question is settled.
The stump grinder
A stump grinder earns its keep if grinding is a regular line on your quotes and you’re currently subbing it out. Every job you hand to a contractor is margin walking out the door, plus the scheduling headache of working around someone else’s diary. But if grinding is occasional, the numbers can favour hiring or subcontracting until the volume is there. Be honest about how many stumps you’re actually doing a month before you commit to owning one.
New vs used
New gear comes with warranty, predictable servicing and finance that lenders are comfortable with. Used gear costs less up front and can be the smart move for a machine you’re not running every day. The risk with used is condition. A cheap chipper with worn knives and a tired engine can cost you more in downtime and repairs than it ever saved at purchase. If you go used, get a proper inspection and factor a maintenance buffer into your repayment planning. Either way, model the real cost of ownership, not just the sticker price.
Finance options, in plain terms
You don’t need to tie up cash to get the gear working for you. The common structures for arborist equipment are a chattel mortgage, an equipment loan and a lease. With a chattel mortgage or equipment loan you own the asset from day one and the lender holds security over it until it’s paid off, which suits gear you intend to keep and run for years. A lease keeps the asset off your books in a different way and can suit businesses that like to refresh equipment regularly. Each has different cash flow, ownership and tax consequences, so the right one depends on how long you’ll keep the machine and how you want the repayments to sit against your income. Our equipment finance service walks through which structure fits your situation.
The tax angle
As a general rule, gear you buy to run the business is treated as a business asset. The interest on the finance is generally a deductible business expense, and the cost of the asset is generally claimed over time through depreciation. The exact treatment depends on the finance structure you choose, your business setup and the rules that apply in the year you buy, which is why this is worth a quick chat with an accountant before you commit rather than after. Getting the structure right at the start can make a real difference to how the purchase sits on your tax return. For specialist help on this, an arborist accountant who knows the trade is worth more than generic advice.
How to model the repayments
Before you sign, get a clear picture of what the repayment looks like against your real cash flow. Map out the loan amount, the term, any deposit and any balloon or residual at the end, then see what the monthly figure does to a normal month’s takings. The test is simple. Does the extra work or saved cost the machine brings comfortably cover the repayment, with room to spare for a quiet stretch or a breakdown? If it’s tight in a good month, it’ll hurt in a slow one. Run the numbers through our equipment finance calculator to see how different terms and deposits change the repayment, then sanity-check the result against what the gear actually earns.
Should I finance a chipper before a truck?
For most crews, yes. A chipper usually changes the economics of a job more directly than a truck, because it cuts labour and tip runs and lets you offer green-waste removal as part of the quote. A truck mainly removes friction. Once the chipper is sorted, the truck is often the logical next step. The right order still depends on the jobs you’re quoting.
Is it better to buy new or used equipment?
New gear gives you warranty, predictable servicing and easier finance. Used gear costs less and can suit a machine you don’t run every day, but condition is the risk. A worn machine can cost more in downtime than it saved at purchase. If you buy used, get it inspected and budget for maintenance.
What finance options do arborists usually use for equipment?
The common structures are a chattel mortgage, an equipment loan and a lease. The first two mean you own the asset from day one with the lender holding security until it’s paid off. A lease suits businesses that like to refresh gear regularly. The best fit depends on how long you’ll keep the machine and how you want repayments to sit against your income.
Can I claim arborist equipment on tax?
Generally, equipment bought to run the business is a business asset. The interest on the finance is generally deductible, and the cost of the asset is generally claimed over time through depreciation. The exact treatment depends on your finance structure and business setup, so it’s worth confirming with an accountant before you buy.
How do I work out if I can afford the repayments?
Map the loan amount, term, deposit and any residual, then check the repayment against a normal month’s takings. The machine should comfortably cover its own repayment from the extra work or saved cost it brings, with room left for a quiet stretch. Our equipment finance calculator lets you test how different terms and deposits change the figure.
Not sure which machine to finance first?
We work with arborists every day and can help you put real numbers against the chipper, truck or grinder before you commit.
Tools & services: Equipment finance calculator · Equipment finance · Arborist accountant
