Overview
Beauty equipment finance lets clinics and salons acquire treatment devices and fitout without tying up working capital. A lender funds the asset and you repay it over a fixed term, often with the option to add a balloon or residual to lower monthly outgoings.
Popular assets include laser/IPL systems, LED therapy panels, RF/ultrasound devices, hydrafacial and microdermabrasion units, autoclaves, skin analysers, treatment chairs and salon furniture. If a device is classified as a medical device (TGA‑listed), lenders may pay closer attention to supplier credentials and service/maintenance plans.
How it works: the typical flow
- Choose equipment and get a supplier quote (brand, model, age, price, warranty, delivery).
- Select a finance structure to match your ownership and tax position:
- Chattel Mortgage – You own the asset; repayments include interest and principal. Common for businesses wanting ownership and potential GST claim upfront.
- Hire Purchase – Similar cash flow to chattel mortgage; ownership transfers after final payment.
- Finance Lease – Lender owns the asset; you pay rentals and a set residual at term end.
- Operating Lease – Pure rental with return/swap options; often used for frequent upgrades.
- Apply with business and asset details (see Docs section below).
- Approval and settlement. The lender pays the supplier; you take delivery.
- Repay over the agreed term (often 2–5 years) with optional balloon/residual to manage cash flow.
- End of term: own it, refinance the balloon, upgrade, or return (depending on structure).
Finance options for beauty equipment
The right option depends on whether you want ownership, how you claim GST, and how frequently you plan to upgrade:
- Want ownership and potential upfront GST claim? Consider a chattel mortgage or hire purchase.
- Want lower monthly rentals and plan to upgrade regularly? Consider a finance lease or operating lease.
Related deep dives: Beauty equipment finance interest rates, balloons and residuals explained, and GST treatment.
Costs, deposits and balloons
- Term length: commonly 24–60 months; shorter for rapidly depreciating tech.
- Deposits: strong files can be approved with no deposit; 10–30% deposit may improve approval and pricing for startups, older assets or softer credit.
- Balloons/residuals: reduce monthly repayments but leave a lump sum at the end. See balloon/residual guide.
- Fees: establishment and documentation fees vary by lender; ask for a full quote including any final payout or residual.
- Insurance: proof of insurance is typically required before settlement.
Tax and GST at a glance
- Chattel mortgage / hire purchase: GST is generally claimable upfront on the purchase price if registered; interest may be deductible; depreciation or instant asset write‑off may apply (subject to ATO rules).
- Leases: GST typically applies to each rental; rentals may be deductible if used to produce assessable income.
Learn more: tax benefits and GST treatment. Always confirm with your accountant.
Approval and documentation
What lenders commonly ask for:
- ABN/ACN, director ID, and time trading
- Supplier quote and equipment specs (brand/model, new/used, serial where available)
- Driver licence or passport for ID
- Recent bank statements and/or BAS; financials for larger amounts
- Evidence of cash flow or forward bookings where relevant
- Insurance details prior to settlement
Fast-track guidance: see requirements and approval timelines.
Key considerations before you apply
- Upgrade cycle: tech like laser/IPL advances quickly—avoid terms that outlast usefulness.
- Revenue match: align repayments with treatment bookings and seasonality.
- Residual risk: set balloons/residuals at realistic future values.
- New vs used: used can be cheaper but may reduce lender appetite or term length.
- Support and warranties: strong supplier backing improves approvals and reduces downtime.
Startups, low‑doc and credit‑challenged options
If you’re new or rebuilding credit, specialist lenders can help. Expect tighter settings (larger deposits, shorter terms) and more emphasis on supplier quality and service contracts.
Simple example
A clinic purchases a new $60,000 laser. They choose a 48‑month chattel mortgage with a 20% ($12,000) balloon to keep repayments lower. After settlement (lender pays supplier), they claim GST on the purchase price if eligible, make monthly repayments, and plan to refinance or pay out the balloon at month 48—by then deciding to upgrade or keep the device.
Get help with this topic
Have questions about how beauty equipment finance works, which structure fits, or how to set the right balloon and term? Send an enquiry and our Australian team will map the options to your goals.
Frequently asked questions
How does beauty equipment finance work in Australia?
Lenders fund your equipment and you repay over a set term. You can choose structures like chattel mortgage, hire purchase, finance lease or operating lease depending on whether you want ownership, a residual, or flexible upgrades.
What equipment can I finance?
Laser/IPL, LED therapy, RF/ultrasound, hydrafacial, microdermabrasion, autoclaves, skin analysis systems, treatment beds and salon fitout. Lender appetite varies by brand, age and resale strength.
Do I always need a deposit?
No. Many approvals proceed with little or no deposit. Startups, older devices or softer credit may be stronger with a 10–30% deposit.
Can used equipment be financed?
Often yes, but term length, pricing and required documentation may change with age and condition.
How are GST and tax handled?
It depends on the structure. See our pages on GST treatment and tax benefits, and confirm with your accountant.
How quickly can I be approved?
Simple files can be assessed within 24–72 hours. Complex cases may take longer for valuations and verifications. See the approval process.
Final takeaway
The best beauty equipment finance structure balances ownership goals, tax position and your clinic’s booking patterns. Decide on term length, deposit and any balloon with the expected upgrade cycle in mind—and align repayments with real cash flow.
Ready for a tailored plan? Request guidance now.