Looking to save money on equipment without compromising safety or legal compliance? Reconditioned equipment might be your golden opportunity – but only if you know how to secure finance the right way.
Finance for Reconditioned Equipment: Ensuring Compliance and Safety
Acquiring reconditioned equipment can be a smart, cost-effective strategy for Australian businesses. However, ensuring that such equipment meets all regulatory and safety standards is crucial. Compliance plates and accurate documentation play a key role in legal operation, securing finance, and maintaining workplace safety.
What is a Compliance Plate and why does it matter for loans?
A compliance plate, often featuring the Regulatory Compliance Mark (RCM), is an identifier affixed to equipment. It confirms that the equipment meets Australian safety and design standards and typically includes details such as:
✅ Manufacturer’s information
✅ Serial number
✅ Confirmation of adherence to the Australian Design Rules (ADRs)
For electrical equipment, the RCM also signifies compliance with electrical safety regulations and electromagnetic compatibility requirements under the Electrical Equipment Safety System (EESS).
The importance of Compliance Plates:
- Legal and Safety Assurance
A compliance plate ensures that equipment meets Australian safety regulations, reducing workplace risks and legal liabilities. - Facilitates Finance
Lenders require proof of compliance before approving finance. However, they reference the Year of Manufacture (YOM), not the compliance date, when determining an asset’s eligibility. - VIN Verification
For vehicles and heavy machinery, the Vehicle Identification Number (VIN) on the compliance plate must match the equipment’s actual VIN. Any discrepancies can cause complications with registration and finance approval.
*Example of a Compliance Plate for Second Stage of Manufacture
What is a Modification Plate and why does it matter?
Alongside compliance plates, modification plates are essential for any equipment or vehicle that has undergone structural or mechanical changes beyond standard repairs. These plates certify that the modifications have been inspected and approved by an accredited certifier or engineer and meet all applicable Australian standards.
A modification plate typically includes:
✅ Certification number
✅ Description of the modification (e.g., engine swap, suspension upgrades)
✅ Approval date
✅ Certifier’s name or registration number
Why are Modification Plates important to Finance Reconditioned Equipment?
- Ensures Legal Operation
Modifications that affect the structure or performance of the equipment must be legally certified. Without a valid mod plate, your asset may not be roadworthy or compliant under Australian regulations. - Improves Finance Eligibility
Just like compliance plates, modification plates provide transparency to lenders. A properly certified mod plate reduces the perceived risk and increases the chance of finance approval. - Simplifies Registration and Resale
Assets with certified modifications are easier to register and command better resale value, as buyers and insurers are assured of their compliance. - Protects You from Delays or Rejections
Missing or incorrectly issued modification plates can trigger red flags during the finance process, especially for high-value reconditioned assets like trucks or heavy machinery.
What to do if a Mod Plate is missing
1️. Engage a Certified Vehicle Engineer – They can inspect the modified component and issue a new plate if it meets standards.
2️. Check Local State Requirements – Mod plate processes vary across states. Refer to your transport authority’s guidelines for approval steps and documentation.
3️. Gather Records of Modifications – Collect receipts, photos, and service records of the modifications. These can support the re-certification process and may help with financing in the interim.
*Example of a NSW Modification Plate showing licensed engineering changes and certification details
Considerations for Engine Replacements or Reconditioning
Businesses, particularly truck operators, should be mindful of compliance when replacing or reconditioning an engine:
🔹 Update Registration and PPSR Documents – Ensure all documents, including registration and the Personal Property Securities Register (PPSR), reflect the new engine details. Inaccurate records can create challenges during resale or finance approval.
🔹 Reattaching Compliance Plates – The compliance plate must be properly affixed after major modifications. If an engine or significant component is reconditioned or replaced, the compliance plate must be securely reattached to avoid registration, finance, and resale issues.
Steps to address missing Compliance Plates
If an asset lacks a compliance plate, follow these steps:
1️. Contact Regulatory Authorities – Each Australian state has regulatory bodies that handle assets missing compliance plates. Some departments may provide solutions, especially if proof of previous registration exists.
2️. Consult the Manufacturer – The original manufacturer or the company responsible for reconditioning may be able to supply a replacement compliance plate or provide documents verifying compliance with Australian standards.
3️. Obtain a Professional Inspection – A certified inspection can assess whether the equipment meets current compliance standards. This may assist with registration and finance approval.
Here are some helpful links on compliance plate regulations across Australia:
🔗 Where can I find the build and compliance plates on my car?
🔗 How can I replace a damaged compliance plate?
Collaborate with Specialist Equipment Finance Brokers
Used or reconditioned machinery loans require more documentation compared to new assets, especially when it comes to compliance plates and VIN verification. Navigating the complexities of finance for reconditioned equipment can be challenging, particularly when compliance issues arise. Partnering with an experienced equipment finance broker, like PMG Finance, offers several key benefits:
✔️ Access to Specialised Lenders – Brokers connect businesses with lenders who specialise in finance for pre-owned and reconditioned equipment, increasing the likelihood of approval.
✔️ Tailored Financial Solutions – Expert advice on structuring finance to align with business needs and the specific characteristics of the equipment.
✔️ Streamlined Approval Process – Brokers help navigate potential roadblocks, ensuring a smoother and more efficient finance experience.
Reconditioned equipment loans provide an excellent opportunity for businesses to enhance operations cost-effectively. However, ensuring compliance with Australian safety and regulatory standards is essential to avoid legal, financial, and operational issues.
If you’re considering finance for reconditioned equipment, PMG Finance is here to guide you through the process, ensuring you secure the right finance solution for your business needs.
Don’t let missing compliance details stall your loan – talk to our experienced brokers at PMG Finance today.
📞Contact us on 07 4639 1011 to explore your options and ensure your equipment meets all necessary compliance requirements.
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DISCLAIMER: The above content is to provide general information and does not constitute financial, legal or other advice. This means that duties and requirements imposed on people who give financial advice do not apply to this content. For advice contact your accountant or legal advisor.