Forklift Finance for Businesses and Tradies
Forklift finance lets a business pay for a forklift over time instead of paying the full price up front. It can suit a warehouse, workshop, yard, farm or trade business that needs a forklift for lifting, loading and moving stock. The right structure depends on the machine, how long you will use it, and how your business earns its income. This guide covers the main forklift types and uses, how new and used forklifts differ, the common finance structures, what lenders may ask for, and how to work out a sensible repayment range before you commit. Approval is always subject to lender criteria.
Forklift finance: how it works
With most forklift finance, a lender pays the supplier and you repay the lender in instalments over an agreed term. The forklift usually acts as security for the loan or lease. Some structures let you set a lower repayment by leaving an agreed amount owing at the end of the term, which is known as a balloon or residual. A balloon is not free money: it still has to be paid, refinanced or settled when the term ends. We do not quote rates or balloon figures on this page because they depend on the lender, the machine and your business. Use the equipment finance calculator to test your own numbers, then talk to us about real options.
Common forklift types and what they are used for
| Type | Typical use | Finance points to think about |
|---|---|---|
| Counterbalance forklift | General loading, unloading and stacking in warehouses, yards and docks | Widely available new and used, so supplier quotes are easy to compare |
| Reach truck | High racking in narrow warehouse aisles | Mostly indoor work; confirm the battery, charger and mast are included in the quote |
| Rough-terrain or outdoor forklift | Building sites, timber yards, farms and uneven ground | Used machines can have very different hours and condition; ask for a service history |
| Container or heavy-duty forklift | Heavy loads and large pallets in ports and industrial sites | Higher purchase prices; lenders may look closely at the supplier and the machine's age |
| Order picker | Picking stock from shelves at height | Operators need a different licence class from a standard forklift. Check the details with your state regulator |
Pedestrian-operated pallet trucks and pallet jacks are generally treated differently from forklift trucks, and smaller items like these are sometimes bought outright or financed together with other equipment finance.
Electric, LPG or diesel: how the power source affects the decision
| Power source | Where it is commonly used | Things to confirm before you finance |
|---|---|---|
| Electric | Indoor and enclosed work | Battery type and condition, charger, and who replaces batteries over time |
| LPG | Mixed indoor and outdoor work | Gas storage, cylinder handling and site rules |
| Diesel | Outdoor and heavy-duty work | Servicing needs and where it can legally and safely operate on your site |
For the asset side of the assessment, lenders consider the machine’s value, condition and expected useful life. Choose the power type that suits the work first, then consider the finance structure.
New or used forklift: what changes for finance
- New: comes with a clear price, a supplier warranty and a known starting condition. Lenders can value it easily.
- Used: can lower the purchase price, but condition varies a lot. Ask for the hours, service records, serial number and any recent inspection. Lenders may look at the machine's age relative to the loan term. Our used equipment finance guide explains what lenders commonly check.
- Dealer or private seller: a registered dealer can issue a tax invoice and clear documentation. A private purchase may need extra checks on ownership and any money owing on the machine.
Attachments and specialist equipment
Many forklifts are bought with extras, such as side-shifters, fork positioners, clamps, rotators, extended forks, work platforms or specialist tyres. Ask the supplier to list attachments on the same quote as the machine so they can be considered as part of the asset being financed. Anything fitted later may need a separate arrangement, so check this before you sign.
One forklift or a fleet?
A business buying one forklift usually applies for a single facility. A business adding several machines may arrange them together, stage them over time, or mix new and used units. Fleet buyers should think about maintenance schedules, common parts and whether older units will be replaced on a rolling basis. If you are also buying other plant, our plant and machinery finance guide covers how lenders view a wider equipment list.
Chattel mortgage, finance lease or hire purchase for a forklift
| Chattel mortgage | Finance lease | Hire purchase | |
|---|---|---|---|
| Ownership | Your business owns the forklift from the start, and the lender takes security over it | The lender owns the forklift during the lease; what happens at the end depends on the agreement | The lender owns the forklift until the final payment is made, then ownership passes to you |
| End of term | An agreed balloon may be paid, refinanced or settled | Options may include returning, upgrading, extending or buying the forklift, according to the contract | Ownership transfers when the agreement is completed |
| Often considered when | You plan to keep and use the forklift for years | You expect to upgrade | You want a straightforward path to ownership |
| Learn more | Chattel mortgage explained | Finance lease | Commercial hire purchase |
Tax and GST treatment differs between these structures and between businesses. Ask your accountant which suits your situation before you choose. Our comparison of chattel mortgage, lease and hire purchase goes into more detail.
A structural example (no rates)
This example shows how the numbers fit together. The values are placeholders, not an offer. Replace them with your own in the chattel mortgage calculator.
| Item | What it means |
|---|---|
| Forklift price (P) | The supplier's quote for the machine and attachments |
| Deposit (D) | Cash or a trade-in you contribute |
| Amount financed (P − D) | What the lender pays to the supplier |
| Term (T) | How long you repay over, matched to how long you expect to use the machine |
| Balloon (B) | An optional amount left owing at the end, if the structure allows it |
| Repayment | Depends on the amount financed, the term, the balloon, fees and the rate the lender offers |
A longer term or a balloon can lower each repayment but may increase the total cost over time. Do not choose a term that runs well past the useful life of the forklift.
What lenders may ask for
- ABN and business details, and how long the business has traded
- The supplier's quote or tax invoice for the forklift and attachments
- Details of the machine, such as make, model, age, hours and serial number if used
- Recent bank statements, BAS or tax returns, or alternative evidence for low-doc applications
- Existing business debts and commitments
- Photo ID for directors or owners
Documents differ by lender and by how much you are borrowing. If your paperwork is limited, see low-doc equipment finance for how lenders may approach it.
What affects lender assessment
- Business income and stability. How consistent your trading is, and what the business can comfortably repay.
- The asset. Its type, age, condition, supplier and resale market.
- Deposit. A deposit can reduce the amount financed.
- Existing commitments. Other loans, leases and credit.
- Credit history. Of the business and, for sole traders and small companies, of the owners.
- Term and structure. A term matched to the machine's useful life is usually easier to support.
No checklist guarantees approval. Each lender applies its own policy.
Operator licences and workplace safety are separate
Finance does not cover licensing. In Australia, operating a forklift truck is classed as high risk work, and the operator must hold the right high risk work licence. Check the requirements with the work health and safety regulator in your state or territory. See Safe Work Australia on high risk work licences and, for Queensland, WorkSafe Queensland on forklift licences.
Related equipment finance
Other pages that may help: equipment finance, excavator finance, skid steer and Bobcat finance and crane finance.
Forklift finance FAQs
Can I finance a used forklift?
Often, yes, subject to lender criteria. Lenders usually look at the machine's age, condition and the seller. Having service records, the serial number and a supplier invoice or sale agreement helps.
Can I finance a forklift with an ABN?
Many forklift finance applications are made by ABN holders, sole traders, partnerships and companies. The lender will want to understand your business and how it earns. Lenders vary, so ask what they need for your situation.
What is the difference between a chattel mortgage and a finance lease for a forklift?
With a chattel mortgage the business owns the forklift from the start and the lender holds security over it. With a finance lease the lender owns the forklift during the lease, and what you can do at the end depends on the contract.
Can I finance attachments with the forklift?
Often, if they are listed on the same quote as the machine. Add them to the quote before you apply, as items added later may need separate arrangements.
Is a balloon payment a good idea on a forklift?
It can reduce each repayment, but you still have to pay, refinance or settle the balloon at the end. It should be set with the machine's expected value and your plans in mind. Test different scenarios in the calculator and ask us about options.
Can I finance several forklifts together?
Often, yes. Lenders may consider a fleet as a single application or in stages, depending on the business and the machines. Fleet buyers should compare how the structure will work over time.
Do I need a licence to operate the forklift I finance?
Operating a forklift truck is high risk work in Australia and requires the right licence. Finance and licensing are separate. Check with your state or territory regulator.
Talk to Tradie Finance about forklift finance
Tell us what machine you need, whether it is new or used, and how your business trades. We can explain the options and what a lender may need. Call 1300 879 872, apply online, or enquire now.
This article is general information only and does not constitute credit, financial, tax, legal or safety advice. Approval is subject to lender criteria, terms, conditions and fees. Equipment finance is generally for business use. Speak to your accountant about tax and GST treatment. Tradie Finance operates under Australian Credit Licence 506065 (Five Tees Pty Ltd). Lending is subject to approval, lending criteria, terms, conditions and fees.
Written and reviewed by the Finance Director at Tradie Finance. Sources: Safe Work Australia, WorkSafe Queensland. Accessed 12 October 2026.