Quick answer
Equipment and tech finance funds business assets such as laptops, servers, networking gear, point-of-sale systems, specialist devices and sometimes software. Hardware can often act as its own security, while software and short-lived tech are usually funded with unsecured or cash-flow finance instead. Applications can run fully online, with the supplier's quote and invoice uploaded digitally.
Key points
- Hardware with resale value can often secure its own finance.
- Software, licences and installation are usually funded unsecured or bundled.
- Match the finance term to how long the tech will be useful.
- The ATO says the $20,000 instant asset write-off has been permanent since 1 July 2026 for eligible small businesses.
- Covers
- Hardware, POS, devices, some software
- Security
- The asset, or unsecured
- Docs
- Supplier quote or tax invoice
- Tax
- $20k instant asset write-off (eligible businesses)
Technology is now core equipment for almost every business. A dental practice runs on imaging and practice software. A café runs on a POS system and tablets. An agency runs on high-spec laptops, displays and cloud tools. An IT provider might need servers and networking gear before it can deliver a contract. Yet tech is awkward to fund: some of it holds value, some of it is worth very little within two years, and some of it — software — isn’t physical at all.
This page explains how lenders treat different types of tech, and how to choose finance that matches the asset rather than fighting it.
How do lenders treat different kinds of technology?
| Asset | How it’s usually funded | Why |
|---|---|---|
| Servers, storage, networking | Equipment finance, asset as security | Identifiable, serial-numbered, some resale value |
| Specialist devices (imaging, diagnostic, manufacturing) | Equipment finance | High value, defined resale market |
| POS terminals and hardware | Equipment finance or bundled unsecured | Moderate value, often bought as a package |
| Laptops, phones, tablets | Unsecured or line of credit | Fast depreciation, hard to recover |
| Software licences, implementation | Unsecured loan or line of credit | No physical asset to secure |
When the asset can secure itself, lenders may lend against it even if your trading history is shorter, because the equipment can be recovered. When it can’t, the assessment shifts to your cash flow — the same bank-statement analysis used for an unsecured business loan.
What term should you choose for tech?
The golden rule is simple: don’t still be paying for something after you’ve stopped using it. A sensible guide:
- Laptops and phones: short terms, matching a typical replacement cycle
- Servers and networking: terms in line with expected service life and warranty
- Specialist equipment: longer terms where the asset genuinely lasts
- Software projects: short, cash-flow funded, repaid as the benefits arrive
Business.gov.au points out that leasing can make upgrades easier, while buying gives you ownership and the ability to sell the asset later. Which suits you depends on how fast that category of tech changes in your industry.
What does the online application need?
Equipment finance is one of the easiest products to complete digitally:
- A supplier quote or tax invoice showing the items, quantities and price
- Supplier details, including their ABN — lenders often pay suppliers directly
- Your business details and ID for the directors or owners
- Bank statements or accounting data, depending on the amount and whether the asset is security
For used equipment bought privately, expect extra checks on ownership and condition. You can start the process online and add the quote as soon as you have it.
How does the $20,000 instant asset write-off fit in?
According to the ATO, the $20,000 instant asset write-off has been permanent since 1 July 2026. Eligible small businesses with an aggregated annual turnover below $10 million can generally write off each qualifying asset priced under $20,000 in the year it’s first used, and the limit applies per asset. That makes timing and structure worth discussing with your accountant — particularly where a purchase of several devices could be split into qualifying items. Our page on asset purchases and the write-off goes into planning around it.
Finance and tax are separate decisions, though. Don’t buy equipment you don’t need for a deduction, and confirm with your tax adviser how ownership and the finance structure affect what you can claim.
Should security spend be part of a tech upgrade?
Business.gov.au’s cyber security checklist recommends steps such as multi-factor authentication, prompt software updates and regular backups. When you’re replacing hardware anyway, it’s a natural time to budget for those basics — secure configuration, backup devices or services, and staff training. Lenders funding a tech upgrade are comfortable seeing security items on the quote; they’re part of running the equipment properly. See tech upgrades for a planning checklist.
Should you lease, buy outright or finance the purchase?
There’s no universal answer, and the right one depends on cash, tax and how quickly the tech dates. A rough way to think about it:
| Option | Tends to suit |
|---|---|
| Pay cash | Small purchases where cash reserves are comfortable |
| Finance and own | Equipment with a useful life well beyond the finance term |
| Lease | Tech that changes fast or where you want upgrades built in |
| Line of credit | Several small purchases spread over time |
Whatever you choose, keep a register of what you own, serial numbers and warranty dates. Lenders financing equipment often ask for this detail, and it’s useful for insurance and for tax time.
Which terms will you see in an equipment finance offer?
- Chattel mortgage: you own the equipment from day one and the lender takes security over it until the loan is repaid.
- Finance lease: the lender owns the asset and you pay to use it, often with an option to buy at the end.
- Balloon or residual: a lump sum due at the end of the term, which lowers regular repayments but must be planned for.
- Supplier payment: many lenders pay the supplier directly once documents are signed, so check the supplier’s bank details are verified by phone.
Ready to fund the tech that runs your business?
Whether it’s a server room, a new POS rollout or a team’s worth of laptops, there’s usually a finance structure that fits the asset. Send us a 60-second online enquiry with what you’re buying and roughly what it costs. There’s no credit check to enquire, your details go to one specialist rather than a crowd of lenders, and a real person will help match the term to the tech. If you have a supplier quote, mention it — accurate details let us get the structure right the first time.
Frequently asked questions
Can I finance software or SaaS subscriptions?
Ongoing subscriptions are normally paid from cash flow. Larger one-off software purchases, implementation projects or bundled hardware-and-software packages can often be funded through an unsecured loan or a line of credit.
Does tech hold enough value to be security?
Some does, some doesn't. Servers, networking equipment and specialised devices can hold value; laptops and phones depreciate quickly, so lenders may treat them more like unsecured lending.
Can I buy used or refurbished equipment?
Often, yes. Lenders may want details of the seller and the condition of the asset, especially if it's being used as security.
How does the instant asset write-off work with finance?
The ATO says eligible small businesses with aggregated turnover below $10 million can immediately deduct assets costing less than $20,000 each. Financing the purchase doesn't automatically stop you claiming it, but check with your tax adviser how it applies to your situation.