The right piece of equipment pays for itself. A second CNC machine that doubles output, a refrigerated display that stops stock spoilage, an excavator that means you stop sub-contracting earthworks. The hard part is paying for it up-front when that cash is also your working capital.
Equipment funding lets you spread the cost while the asset earns.
What can be funded
If it’s used to earn business income, it can generally be funded:
- Workshop and fabrication gear — lathes, welders, presses, compressors, hoists.
- Construction plant — diggers, compactors, scaffolding, trailers.
- Hospitality fit-outs — ovens, coffee machines, chillers, extraction.
- Farm and horticulture machinery — tractors, sprayers, irrigators, balers.
- Medical, dental and beauty equipment.
- Technology — servers, point-of-sale systems, specialist software licences.
Two ways to fund equipment through Loanster
1. Property-secured
Borrow $20,000 up to $1m secured on New Zealand property you or a supporting party own — home, rental, commercial or land — as a first or second mortgage. No financials or tax returns are needed for the initial assessment, and in some cases funding can happen within 24 hours of approval. Because the equipment isn’t the security, you can buy used, buy privately or buy at auction without a lender needing to inspect the gear.
2. Unsecured
Businesses usually trading six months or more can borrow based on turnover and bank statements. Weaker credit is considered and decisions are sometimes same day. Good for smaller purchases and urgent replacements.
Not sure which? The which loan fits picker asks four questions and points you in the right direction.
Dealer finance, leasing or a business loan?
Equipment sellers often offer finance at the point of sale. It’s worth knowing the options before you sign:
| Option | You own it? | Typical upside | Watch for |
|---|---|---|---|
| Dealer or supplier finance | At the end | Convenient, one-stop | Tied to that supplier and asset |
| Operating lease | No | Predictable cost, easy upgrades | Pay for use, no asset at the end |
| Business loan (secured or unsecured) | Yes, from day one | Buy anywhere, new or used, negotiate cash price | You carry the asset’s resale risk |
Paying cash to the seller — with funding already in place — can also give you negotiating leverage on price. Our lease vs buy vs borrow guide goes deeper.
The tax side: depreciation and Investment Boost
Equipment used in your business is generally depreciated for tax over its useful life, using IRD’s rates. Two points worth knowing:
- Low-value assets costing under $1,000 can usually be written off immediately.
- Investment Boost, introduced in Budget 2025, lets businesses deduct 20% of the cost of qualifying new assets (or assets new to New Zealand) first available for use on or after 22 May 2025, with normal depreciation on the remaining 80%. Second-hand assets sourced within New Zealand don’t qualify.
Timing a purchase before your balance date (31 March for most businesses) can bring deductions into the current year. Our guide on depreciation and buying equipment before 31 March explains the details — and your accountant should confirm your position.
Matching the loan to the asset
A simple principle: don’t fund a long-lived asset with very short-term money unless the asset pays back quickly. A digger that earns for ten years sits better on a loan you can comfortably service than on a facility that needs clearing in a few months. Your lending specialist will talk through a structure that matches the asset’s earning life, within short to medium terms.
Before you buy: a quick checklist
- Get a written quote, including freight, installation and GST.
- Confirm whether the seller is GST-registered (it affects what you can claim back).
- If buying used, search the PPSR to check nobody else has a security interest over it.
- Work out how quickly it pays for itself: extra revenue or savings per month versus the repayment.
- Think about downtime — is there a cost to waiting for funding?
Apply
Start your equipment enquiry — it takes about 60 seconds and doesn’t affect your credit score. Sole traders, companies, partnerships and trusts can all apply.