Equipment Finance Calculator for Arborists
Planning to finance a chipper, crane, truck, or stump grinder? Use our free equipment finance calculator to estimate your monthly repayments and total cost of finance. This tool is designed specifically for Australian arborists and tree care businesses.
How to Use This Calculator
This equipment finance calculator helps Australian arborists estimate loan repayments for common tree care equipment:
- Wood chippers – Typically $30,000 to $150,000+ for commercial units
- Stump grinders – Range from $15,000 to $80,000
- Elevated work platforms (EWPs) – $50,000 to $300,000+
- Trucks and tippers – $60,000 to $200,000+
- Cranes and crane trucks – $150,000 to $500,000+
- Trailers and transport equipment – $10,000 to $50,000
Understanding the Inputs
Equipment Cost: The total purchase price of the equipment you’re financing. Include GST if applicable to your situation.
Interest Rate: The annual percentage rate (APR) for the loan. Rates typically range from 5% to 12% depending on your credit history, business financials, and the equipment type. The default 7.5% is a mid-range estimate for established businesses.
Loan Term: How long you’ll take to repay the loan. Longer terms mean lower monthly payments but more total interest paid. Most equipment finance runs 3-7 years.
Residual/Balloon: A percentage of the equipment value that remains owing at the end of the term. A 20-30% residual reduces monthly payments but requires a larger final payment. Set to 0% for a fully amortising loan.
Deposit: Any upfront payment that reduces the amount financed. A larger deposit means lower repayments and less interest overall.
Equipment Finance Options for Arborists
There are several ways to finance tree care equipment in Australia. Each has different tax implications and ownership structures:
Chattel Mortgage
The most common option for business equipment. You own the asset from day one, can claim GST upfront, and depreciate the equipment. Interest is tax-deductible. Best for GST-registered businesses wanting to claim input tax credits immediately.
Finance Lease
The lender owns the equipment and you pay to use it. Lease payments are fully tax-deductible as an operating expense. At the end, you can purchase the equipment for the residual value, extend the lease, or return it.
Hire Purchase
Similar to chattel mortgage but ownership transfers only after the final payment. Depreciation and interest are tax-deductible. Common for equipment that holds value well.
Operating Lease (Rental)
Pure rental arrangement where you never own the equipment. Payments are 100% tax-deductible. Best for equipment you’ll need short-term or that depreciates quickly.
Tax Benefits of Equipment Finance
Financing equipment rather than paying cash often makes tax sense for arborist businesses:
- Instant Asset Write-Off: Eligible businesses can immediately deduct the full cost of equipment under the instant asset write-off scheme (check current thresholds with us)
- Interest Deductions: Finance charges are generally tax-deductible as a business expense
- Preserve Working Capital: Keep cash available for wages, insurance, and unexpected costs
- GST Recovery: With chattel mortgage, claim full GST credit in the BAS period of purchase
- Depreciation: Write off equipment value over its effective life
Learn more about equipment finance for arborists or contact us to discuss your specific situation.
Common Equipment Finance Scenarios
Financing a Wood Chipper
Example: A Bandit 15XPC chipper at $85,000 over 5 years at 7.5% with no residual = approximately $1,700/month. With a 20% residual, monthly payments drop to around $1,450 with a $17,000 balloon at the end.
Financing a Crane Truck
Example: A used 12-tonne crane truck at $180,000 over 6 years at 8% = approximately $3,200/month. Crane trucks hold value well, so a residual can work if you plan to trade up later.
Financing a Stump Grinder
Example: A Rayco RG45 at $45,000 over 4 years at 7.5% = approximately $1,090/month. Stump grinders are workhorses with solid resale value.
Want a Real Equipment Finance Quote?
The calculator gives you an estimate. We can get you actual rates from our finance partners, tailored to your arborist business and the specific equipment you need.
What you will get in your free consultation:
- ✓ Actual finance rates for your equipment
- ✓ Tax impact analysis (instant write-off vs depreciation pool)
- ✓ Cash flow modelling with your real numbers
- ✓ Buy vs finance vs lease recommendation
Frequently Asked Questions
What credit score do I need for equipment finance?
Most lenders look for a credit score above 500, but approval depends on your overall financial position. Newer businesses (under 2 years) may need a larger deposit or guarantor. We work with lenders who specialise in trade businesses including arborists.
Can I finance used equipment?
Yes. Most lenders will finance quality used equipment, though rates may be slightly higher and terms shorter than for new equipment. The equipment typically needs to be less than 10-15 years old at the end of the loan term.
How quickly can I get approved?
Pre-approval can be as fast as 24 hours for straightforward applications. Full approval typically takes 2-5 business days depending on documentation requirements. We can often expedite urgent purchases.
Should I use a residual/balloon payment?
A residual lowers monthly payments but means a lump sum at the end. It works well if you plan to sell or trade the equipment, or if you expect strong future cash flow. Avoid residuals if you want to own the equipment outright with no surprises.
What documents do I need to apply?
Typically: driver’s licence, 6 months of business bank statements, latest tax return or financial statements, and a quote for the equipment. Sole traders may also need personal financials.
Get Expert Equipment Finance Advice
This calculator provides estimates only. Actual finance terms depend on your credit profile, business financials, the equipment type, and current lender policies.
At Arbour Advisory, we help arborists across Australia secure competitive equipment finance. As accountants who specialise in tree care businesses, we understand what lenders look for and can structure applications for the best chance of approval at competitive rates.
Contact us for a personalised equipment finance quote – we’ll help you find the right finance structure for your business.
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