When does borrowing for equipment make sense?
When the asset pays for itself. A second excavator that lets you run two crews, a coffee machine that gets queues moving at 7am, a refrigerated van that opens up a new delivery run — these are purchases where the extra income covers the repayments with room to spare.
It makes less sense when the purchase is mostly about comfort or image. A friend would ask you one blunt question: “What will this let you do that you can’t do now, and what’s that worth each month?” If you can answer that clearly, you’re in good shape to borrow.
What should I check before I buy?
Search the PPSR
The Personal Property Securities Register shows whether a lender has a registered security interest over a vehicle or piece of equipment. If there is one and you buy it anyway, the item could be repossessed from you — even though you paid for it. You can search motor vehicles by registration, VIN or chassis number, and it’s worth checking any second-hand item of real value.
Check the vehicle’s history
For vehicles, check the Warrant or Certificate of Fitness status, the odometer history and whether the Road User Charges are paid up for diesels. If you’re buying from a registered motor vehicle trader, ask for their Consumer Information Notice.
Get the tax treatment straight
From 22 May 2025, Investment Boost lets businesses deduct 20% of the cost of eligible new assets in the year they’re first available for use, with normal depreciation on the remaining 80%. Assets that are new to New Zealand can qualify even if they were used overseas, but second-hand assets sourced here don’t. That can tip the maths between new and used — worth a quick call with your accountant before you sign.
How can I fund it?
| Route | Good for | What the lender looks at |
|---|---|---|
| Unsecured business loan | Utes, vans, tools and machines for businesses trading 6+ months | Turnover and bank statements; weaker credit considered |
| Property-secured business loan | Larger purchases, bundles, or when you want a longer runway | The property (home, rental, commercial or land), from $20,000 up to $1m |
| Line of credit | Regular smaller kit purchases through the year | Turnover and account conduct |
Some owners also look at finance that’s secured on the asset itself through a dealer. That can work, but compare the total cost and the conditions — especially early repayment terms — against a straightforward business loan.
If the seller is offering “easy finance” at the counter, take the paperwork home and read it with a coffee before you sign. Good deals survive a night’s sleep.
What about buying a vehicle for a sole trader business?
Sole traders can absolutely borrow for a work vehicle. The key is that the funds are for business purposes. If the vehicle will be used privately as well, talk to your accountant about how to apportion the costs for tax — lenders on our panel are interested in the business use.
How LendFriend helps
Tell us what you’re buying and what it’ll do for the business. We’ll look at your trading history and whether property is part of the picture, then match you with a lender from our panel that suits the purchase. We’ll explain the offer in plain English — including the parts some people skim over — and you decide.
Want to weigh up new against used first? Read buying equipment: new, used or imported. Ready now? Start your 60-second enquiry.
The honest bit
Don't let finance talk you into a nicer truck than the job needs. The best equipment purchase is the one that pays for itself fastest — sometimes that's a well-kept second-hand machine, not the shiny new one on the showroom floor.