Should you acquire or lease earthmoving equipment?

Choosing between equipment loans and leasing when buying earthmoving equipment can be difficult regardless the size of your business.

Generally, the choice should align with your business's financial capabilities, your growth plans and your equipment needs. Leasing may be more attractive if you expect rapid technological advancements that could make your equipment obsolete. Otherwise, purchasing might be a better option.

One of the most common choices is to own the equipment outright. There are several advantages to owning your equipment.

Economic efficiency

Owning your earthmoving equipment is often more economical in the long run than leasing or making monthly payments with interest. While the initial investment might be higher, you won't have to worry about ongoing lease payments.

Asset ownership

When you own the equipment, it's a valuable asset for your business. You can use it as collateral for loans and it contributes to the overall value of your company.

Control

Equipment ownership gives you full control over its use, maintenance, and customisation. You can adapt the machinery to meet your specific needs and preferences.

Tax benefits

Depending on your location and the equipment, you might be eligible for tax benefits related to equipment depreciation and ownership.

Equipment loans and leasing

Not every business can afford to purchase earthmoving equipment outright, especially when new. If that’s the case, your new business can explore equipment loans and leasing as an option.

Equipment loans

An equipment loan allows you to acquire the equipment you need while spreading the purchase cost over time. This means you'll own the asset once the loan is paid off. It's a viable option if you have a good credit history and are confident about your business's profitability.

Leasing

Leasing provides flexibility, as you can access the equipment without a substantial upfront investment. While leasing may cost more in the long run, it allows you to get started quickly and upgrade your equipment as technology advances. Plus, lease payments may be tax-deductible.

Did you know?

_{With our in-house mortgage broking division we bridge the gap between the
countless phone calls and emails between lender and accountant making your refinancing and borrowing much less stressful.}

. LET'S TALK MORTGAGES LET'S TALK MORTGAGES

We do the hard work.

The best person to talk to about business equipment will
be your finance broker, who can help assess your businesses
situation and compare your options.

CONTACT US CONTACT US

2026 EXPRESSIONS OF INTEREST - Skybots: RPA & A.I - 2-Days Training Course

2 Feb

After overwhelming demand and sold-out sessions in Perth, Brisbane, Sydney, Melbourne and Mornington in 2025, we’re inviting expressions of interest for 2026. If you missed out earlier or are ready to dive into hands-on automation training, we’re considering additional sessions in various locations across Australia in 2026.

Read More

UNDER THE HOOD: Accessibility and Inclusion with MP Shire Business

18 Dec '25

Excellence in Inclusivity and Accessibility recognises businesses for their leadership in creating welcoming, inclusive spaces and ensuring accessibility for all. In this episode, the award-winnings share how inclusion isn’t just the right thing to do - it’s a smart business move.

Read More

UNDER THE HOOD: Connected Communities - The Small Business Advantage

18 Dec '25

The Local Community Connection Award recognises businesses with a commitment to strengthening the Mornington Peninsula community through networks, partnerships and social contributions. This episode features the award-winners as they share practical strategies, proven approaches, and inspiring stories that show how community connection isn’t just good for people - it’s sound business practice.

Read More