When lending rates rise, operators may find the lowest equipment loan rates by maintaining a good credit score and financials and using an expert finance broker. The Reserve Bank’s February decision to increase the official cash rate will have an impact across the lending sector, but with varying outcomes. The cash rate is the overnight lending rate for loans between banks. With this rate increasing, the funding costs for some lenders can increase. This typically results in lenders repricing their lending products with a higher rate. Effectively passing on the rise, either in whole or part, to borrowers.
But as in all markets, there will be lenders looking to capture or retain a competitive edge by keeping their pricing as affordable as possible to attract new customers. The task for business owners requiring asset loans is to find those lenders. We provide guidance on how to achieve that task with background on why we’re seeing a rate rise at this time and how it may impact asset finance rates.
Why are rates on the rise?
Business owners seeking asset financing will likely see that the interest rate offered by many lenders has risen lately. The reason is that the Reserve Bank (RBA) Monetary Policy Board announced a 0.25% increase to the cash rate on 3 February. While this is a lending rate between banks for overnight borrowing, it is a funding cost, and many banks and non-bank lenders will be reacting by raising their rate on different loans.
The markets were expecting the RBA to raise the cash rate early this year, but not all forecasted a February rise and not for 25 basis points. The reason the RBA acted was in response to the sharp uptick in inflation. This first arose in the latter part of 2025 and was noted by the RBA in its December Monetary Policy Statement. At that point, the Board was not certain if the uptick was in response to a temporary factor or was a sign of an upward trend. The Australian Bureau of Statistics (ABS) revealed on 28 January that the Consumer Price Index (inflation rate) rose to 3.8% in December. A rate well above the RBA’s target of 2-3%. As stated by the RBA Governor, Michele Bullock, inflation is expected to remain above target for a while. Thus resulting in the cash rate hike.
Inflation had been coming down from the 2022 peak, and the RBA did cut rates in August 2025. But the current scenario seeks heightened demand in the private and public spending not being met by capacity. Uncertainty in the global economy was also noted by the RBA Governor, but this is not having a negative impact on the Australian economy.
The next CPI data will be released by the ABS on 25 February and will be closely watched and considered by the RBA Board ahead of its 17 March interest rate decision meeting.
What lenders offer the lowest equipment finance rates?
While the lending sector is not compelled to change their lending rates when the RBA cuts or lifts the cash rate, many will. The mortgage sector is typically the first with banks passing on rate changes usually withing the first day or so after the RBA decision is announced.
Across other lending sectors, especially asset finance, there can be mixed reactions. Lenders may be facing additional costs for their funding and will need to recoup those costs with higher rates. But the need also exists to remain affordable for borrowers in a large and highly competitive market.
Identifying which lenders offer the lowest rate for the specific industry, the type of equipment, and for that suit the profile of the business can be a challenge for even the most experienced operators.
A highly effective and time-efficient way to find the best asset finance rates is to engage a specialist finance broker such as Jade. We have accreditation with a large selection of lenders, including those that specialise in lending to key industries. Enabling our brokers to quickly find customers their best option, best asset finance rate, and negotiate for the most affordable solution.
How can operators get the lowest equipment finance rates?
Whether acquiring construction equipment, agricultural machinery, or IT and other types of equipment for an office or business operation, the objective will be to get financing at the lowest possible rate. A low rate not only lowers the monthly commitment but also lowers the overall investment outlay.
Businesses can use our broker services to find the lender that best suits their profile. But operators can also be proactive in maintaining a good payment history and credit score to ensure they receive the best possible offer. Rates advertised by lenders will be for good credit applicants.
Newer and smaller businesses may consider what additional assets they can offer as loan collateral. Providing additional collateral as well as the asset being financed, may reduce the risk assessment by lenders and result in a better rate offer.
Operators may also give thought to how much they are requesting for their financing. While it is typical for businesses to apply for no deposit asset finance and borrow the full purchase price, a lower borrowing may deliver a better rate. Use our Finance Calculator to see how a lower loan amount reduces interest payable and repayments to assist with your planning
To find the lowest equipment loan rates, contact Jade Equipment Finance 1300 000 003.
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.
