Can Installation and Delivery Be Included in Equipment Finance?

In some circumstances, equipment finance may include eligible costs associated with purchasing business equipment, such as delivery, installation or commissioning. Whether these costs can be financed depends on the lender’s policies, the type of equipment, the supporting documentation and the overall finance application. Not all expenses are eligible, so borrowers should confirm what may be included before entering into a finance agreement. Every application is assessed individually.

Understanding Equipment Finance

Many Australian businesses rely on equipment finance to acquire the assets needed for day-to-day operations without paying the full purchase price upfront. Equipment finance may be used for a wide range of business assets, including vehicles, machinery, manufacturing equipment, medical equipment, construction machinery, agricultural equipment and office technology. Depending on the lender and the type of finance, the funding arrangement may also extend to certain costs associated with acquiring and preparing the equipment for use. Understanding what may be included can help businesses plan more effectively.

Is Installation Included?

Whether installation costs can be included in an equipment finance arrangement depends on several factors. Some lenders may consider financing installation costs where they are directly related to making the equipment operational. Examples may include specialised machinery installation, assembly, calibration or commissioning completed by qualified technicians. Eligibility varies between lenders, and supporting documentation is generally required to demonstrate that the costs form part of the overall equipment acquisition.

What About Delivery Costs?

Delivery expenses may also be considered under some equipment finance arrangements. This is particularly relevant for large or specialised equipment that requires transportation to a business premises, worksite or industrial facility. Depending on the lender’s policies, delivery costs may be eligible if they are included as part of the equipment purchase documentation. Not every delivery expense will qualify, so borrowers should confirm the lender’s requirements before proceeding.

Why Lenders Assess These Costs Separately

Lenders generally distinguish between the cost of the equipment itself and other associated expenses. Installation and delivery costs may only be considered where they are necessary to acquire or make the equipment operational. Expenses that are unrelated to the asset or ongoing business operations may not be eligible for inclusion under the finance arrangement. Each lender applies its own policies when determining which costs may be financed.

Documentation Is Important

Providing complete documentation is an important part of the equipment finance process. Lenders commonly request supplier quotations, tax invoices, purchase agreements or detailed cost breakdowns showing the equipment price alongside any associated delivery or installation charges. Clear documentation assists lenders in assessing which expenses may be eligible under the proposed finance arrangement. The exact documentation required will vary depending on the lender and the transaction.

Equipment Type May Influence Eligibility

The type of equipment being financed can also affect how associated costs are assessed. Large industrial machinery, commercial manufacturing equipment, medical technology and specialised agricultural equipment often require professional installation before they can be safely operated. In these situations, installation costs may be treated differently from equipment that requires little or no setup. Assessment always depends on the lender’s policies and the nature of the equipment.

Budget Beyond the Equipment Purchase Price

When planning to acquire new business equipment, it is important to consider more than just the advertised purchase price. Businesses may also incur expenses such as transportation, installation, commissioning, operator training, insurance, registration, maintenance agreements or servicing. Understanding the full cost of ownership can help businesses prepare a more accurate budget before entering into any finance arrangement. Some of these expenses may not be eligible for finance. Planning ahead can also help preserve cash flow. Read our guide on how asset finance can help preserve business cash flow.

Every Lender Has Different Requirements

Equipment finance products differ across lenders. Eligibility for financing installation or delivery costs may depend on the lender’s policies, the finance product, the borrower’s financial circumstances and the supporting documentation provided with the application. Some lenders may include certain costs, while others may require them to be paid separately. For this reason, it is important to understand lender requirements before committing to a purchase.

Preparing Your Finance Application

A well-prepared application may assist the assessment process. Businesses should gather supplier quotations, equipment specifications, financial information and any supporting documentation relating to associated costs before submitting an application. Providing accurate information enables lenders to conduct a more efficient assessment. Approval decisions are based on multiple factors, including the borrower’s financial position and lender lending criteria. If you’re comparing finance options, you may also find our article on choosing the right equipment finance for your company helpful.

In some circumstances, installation and delivery costs may be included as part of an equipment finance arrangement, but eligibility varies between lenders and finance products. Understanding which costs may qualify, preparing appropriate documentation and budgeting for expenses that may not be financed can help businesses approach equipment purchases with greater confidence. Every application is assessed individually, making early planning an important part of the finance process.