Financing beauty equipment in Australia? This guide covers lenders’ criteria, fast approval steps, and how to claim tax deductions the smart way.
Key takeaways
- Approval timeframes: Beauty equipment finance can be approved in as little as 24–72 hours, especially for amounts under $50,000.
- Loan amounts: Most salon owners finance equipment between $5,000 and $150,000, depending on their business size and growth goals.
- Common terms: Loan terms range from 12 to 60 months, with optional balloon payments and fixed or variable interest rates.
- Interest rates: Rates typically range from 7.5% to 14% p.a., influenced by business age, credit score, and asset type.
- Eligibility criteria: Most lenders require 6–12 months of trading history, ABN, and proof of revenue for approval.
- Tax benefits: Eligible salons can claim GST credits, depreciation, and even instant asset write-offs on financed equipment.
- Low-doc options: Start-ups or new clinics can still access finance with minimal documentation, especially under $50,000.
Introduction
Whether you're opening a new beauty salon or upgrading your skin rejuvenation devices, the cost of professional beauty equipment in Australia can be substantial. From IPL and laser machines to hydrodermabrasion systems, upfront costs often stretch well into five figures. That’s where beauty equipment finance becomes a powerful tool.
This detailed guide walks salon and clinic owners through exactly how beauty equipment finance works in Australia—from the application process and lender criteria to tax benefits and insider tips for approval. You'll leave knowing how to use finance strategically to scale your services and preserve cash flow.
What is beauty equipment finance?
Beauty equipment finance allows you to acquire expensive machines and devices without paying the full amount upfront. Instead, you spread the cost over a fixed term, preserving working capital while getting the tools you need.
Common finance options
- Chattel mortgage (business loan for equipment):
- You own the asset from day one.
- Claim depreciation and interest as tax deductions.
- Lease (operating lease):
- Use the equipment while the lender retains ownership.
- Full lease payments are tax deductible.
- Rent-to-own or hire purchase:
- Similar to a lease, with ownership transferred at the end.
- May include balloon payments.
Each option has unique implications for cash flow, tax, and ownership.
How beauty equipment finance works in Australia
Choose your equipment
- Get a quote or pro forma invoice from a registered supplier.
- Common financed items include:
- IPL and SHR devices ($12,000–$45,000)
- Body contouring machines ($8,000–$60,000)
- RF skin tightening machines ($5,000–$18,000)
- Hydrodermabrasion devices ($6,000–$15,000)
- Laser hair removal systems ($15,000–$80,000)
Compare finance providers
- Specialist equipment finance brokers
- Non-bank lenders
- Traditional banks (for established clinics)
Look for:
- Fast approval
- Industry experience
- Competitive rates
- Low-doc flexibility
Submit an application
You'll typically need:
- ABN and GST registration
- Driver's licence or ID
- Last 6–12 months of bank statements
- Business financials if financing more than $50,000
Assessment and approval
Lenders assess:
- Business trading history
- Cash flow and revenue
- Credit history (business and/or personal)
- Equipment type and resale value
Approval can take 24–72 hours, especially for smaller amounts or repeat clients.
Loan settlement and equipment delivery
- Funds are paid directly to the supplier.
- Equipment is delivered and installed.
- Repayments begin monthly, fortnightly or weekly depending on your plan.
Lender criteria and how to qualify
Basic eligibility
- ABN active for six months or more (12 months preferred)
- Monthly revenue of $5,000 or more
- Good personal and/or business credit score
- Clear purpose such as a quote or business plan
For new businesses
- Consider low-doc or no-doc options for loans under $50,000
- You may need:
- Signed lease or business plan
- Proof of savings
- Personal guarantees
What does it cost?
Typical interest rates
- Ranging from 7.5% to 14% p.a.
- Based on your risk profile, term length, and equipment type
Repayment structures
- Fixed monthly repayments (most common)
- Seasonal or flexible repayments are available for some industries
- Balloon options to reduce monthly costs, with a lump sum due at the end
Example scenario
- Financing a $25,000 laser device over 48 months at 9.5%
- Approximate monthly repayment: $635
- Total interest paid over four years: around $5,480
Tax advantages of beauty equipment finance
Claim GST credits
- If registered for GST, claim the GST paid on the purchase (e.g. $2,500 on a $27,500 device)
Depreciation and interest
- Under a chattel mortgage:
- Claim depreciation based on asset life or instant write-off eligibility
- Claim interest on repayments
Instant asset write-off
- For the 2024–25 financial year, equipment under $20,000 can be fully deducted immediately
- Applies if your turnover is under $10 million
- Asset must be installed and ready for use by 30 June 2025
Tips to increase approval chances
- Apply before the end of financial year to maximise tax benefits
- Keep your business bank account clean (avoid overdrafts or bounced payments)
- Use a broker if unsure about lender fit
- Don’t overextend—borrow based on current cash flow, not projected growth
When financing makes sense
- You're launching or expanding treatment offerings
- You want to keep cash free for marketing, staffing or rent
- You're eligible for tax deductions that offset the cost of finance
- You don’t want to delay upgrading essential technology
Commonly financed beauty equipment and costs
- IPL & laser hair removal: $15,000 to $80,000
- Body contouring devices: $8,000 to $60,000
- Hydrodermabrasion machines: $6,000 to $15,000
- RF skin tightening equipment: $5,000 to $18,000
- Tattoo removal lasers: $18,000 to $70,000
- Cryolipolysis machines: $12,000 to $45,000
- LED therapy devices: $2,000 to $10,000
FAQs: How beauty equipment finance works in Australia
Can I get finance with a new salon?
Yes, especially for amounts under $50,000. You may need a business plan, signed lease, or personal guarantee.
Do I need to pay the supplier upfront?
No. In most cases, the lender pays the supplier directly after approval and documentation.
Can I finance used beauty equipment?
Yes, depending on the lender and the age and value of the equipment. New equipment is often preferred.
Is equipment finance tax deductible?
Yes. You can typically claim interest, depreciation, and GST credits—depending on your finance structure.
What if I miss a repayment?
Lenders may charge late fees or report defaults. It’s best to communicate early to avoid damage to your credit.
Can I upgrade equipment during the loan term?
Yes, especially with leasing options. Some lenders offer upgrade flexibility or trade-in solutions.
Can I claim the instant asset write-off on leased equipment?
Not usually. It only applies when you own the asset—such as through a chattel mortgage.
Final thoughts
Beauty equipment finance can be a smart, tax-effective way to grow your salon or aesthetic clinic—without draining your cash reserves. With fast approvals, competitive interest rates, and options for new businesses, it’s more accessible than ever to bring high-performing technology into your space.
Just be sure to work with a lender or broker who understands the beauty industry and can tailor finance to your needs. Done right, financing doesn’t just buy equipment—it helps build a more scalable, profitable business.
