Asset finance brokers help Australian businesses arrange funding for vehicles, machinery and other income-producing equipment. Rather than applying to one lender directly, a broker can assess the business, understand the asset being purchased and compare suitable finance options across a broader lender panel.
For small business owners and sole traders, the quality of the broker can make a significant difference to the process. Lender access matters, but so does the broker's understanding of your industry, credit support, communication and ability to manage the deal through to settlement.
The Asset Finance Shop (TAFS) is a specialised asset finance broker with access to more than 80 bank and non-bank lenders, an internal credit team and a 93% approval rate. TAFS arranges equipment finance and other asset-backed loans for Australian businesses purchasing trucks, machinery, commercial vehicles and business equipment.
Here are seven things to consider when comparing asset finance brokers in Australia.
One of the biggest reasons businesses use asset finance brokers is access to multiple lenders.
When you apply directly to one lender, your application is assessed against that lender's products and credit criteria. If your business, asset or documentation doesn't fit its requirements, the lender may not have another option available.
A broker can compare lenders with different requirements around:
TAFS has access to more than 80 bank and non-bank lenders.
That lender panel can be particularly useful where the application isn't completely standard. A new ABN purchasing its first excavator may need a different lender from an established transport company replacing its fifth prime mover.
The value isn't simply having a large number of lenders available. The broker needs to understand which lenders are suitable for the application before making a formal submission.
Asset finance covers a wide range of vehicles and equipment, and lenders don't treat every asset the same way.
Financing a new truck can be very different from financing:
A broker who regularly handles commercial assets will understand the questions lenders are likely to ask about the equipment.
These can include:
TAFS arranges finance across transport, machinery and commercial equipment, with a large part of the business focused on assets used by owner-operators and small Australian businesses.
This experience can help the application get directed to lenders that understand both the asset and the industry.
A good asset finance process should involve more than collecting documents and forwarding them to a lender.
The broker should first understand the business and determine what the application looks like from a lender's perspective.
At TAFS, the internal credit team can review factors such as:
The application can then be assessed against the requirements of suitable lenders.
This is particularly important for applications involving:
A broker's credit support can help identify potential issues before the formal application reaches a lender.
Credit enquiries are another important consideration when comparing finance brokers Australia-wide.
A formal lender application can create a credit enquiry. Applying to several lenders independently can therefore create several enquiries.
TAFS starts with a soft credit check that leaves no mark on the applicant's credit file.
The initial information is then reviewed internally before the formal application is submitted to the selected lender.
This approach can be particularly useful where the business wants to understand its position before committing to a formal application.
Ask a broker:
The broker should be able to explain the process clearly before you proceed.
Interest rate matters, but it isn't the only part of equipment finance.
Two loans with similar rates can produce very different outcomes depending on how they are structured.
When comparing options, look at:
A longer term can reduce the monthly repayment but keep the business in debt for longer.
A larger balloon can also reduce regular repayments but leave more owing at the end.
The right structure should reflect the business's cash flow and the expected working life of the asset.
For example, an older piece of machinery may not suit a long finance term if the business expects to replace it in a few years.
TAFS primarily arranges chattel mortgage finance for vehicles and equipment.
Under a chattel mortgage:
The tax treatment of the asset should be confirmed with your accountant.
Fast approval can matter when a truck, excavator or other piece of equipment is ready to purchase.
TAFS can arrange approvals in as little as 24 hours for straightforward applications where the required information is available.
The time required will still depend on the application.
Approval can take longer when the transaction involves:
A good broker should tell you what is required early and explain what could slow the process down.
Preparing information in advance can make a major difference.
For an initial assessment, you may need:
Equipment information can generally be supplied once the asset has been selected.
Finance approval isn't the final step.
The transaction still needs to settle before the business can take delivery of the vehicle or equipment.
Depending on the purchase, settlement can involve:
Private sales and used machinery transactions can require additional coordination because the lender needs to confirm ownership and ensure any existing finance over the asset is dealt with correctly.
An experienced broker should manage these requirements and keep the buyer informed throughout the process.
This can be particularly important when equipment is needed quickly for an upcoming contract or when a seller is waiting for payment.
Asset finance brokers can arrange funding for a broad range of commercial assets.
This can include:
This can include:
This can include:
This can include:
New and used equipment may be financed through dealers, private sellers and auctions, subject to lender criteria.
Yes. Selected lenders consider equipment finance for businesses with newer ABNs.
A lender may assess:
The age of the ABN is one part of the application rather than the only factor considered.
A broker can help identify lenders that are comfortable assessing newer businesses.
Yes. Low doc equipment finance may be available through selected lenders.
Instead of full financial statements, an application may be assessed using:
Low doc doesn't mean no assessment.
The lender still needs to be satisfied that the business can afford the repayments.
Selected lenders may consider applications involving previous credit issues.
The lender can review:
Previous credit issues may affect the available interest rate, deposit, term and lender options.
A broker can review the circumstances before selecting a lender for formal submission.
Selected lenders may consider applications where the business has ATO debt.
The lender may want to understand:
TAFS can assess the tax debt alongside the rest of the application and identify lenders whose criteria may suit the scenario.
Yes. Used equipment can be financed through selected lenders.
The lender may assess:
Older or specialised equipment may require an inspection or valuation.
Lenders have different policies around asset age, so broker access can provide additional options.
Yes. Private-sale equipment finance is available through selected lenders.
The lender may need to confirm:
TAFS can coordinate the required information between the buyer, seller and lender.
Yes. Selected lenders can finance equipment purchased at auction.
Pre-approval may also be available before bidding.
This can help the business understand:
Final approval will depend on the asset purchased.
Auction settlement periods can be short, so arranging finance before bidding can help reduce delays.
Before choosing a broker, ask questions about both the lender access and the service they provide.
Useful questions include:
The answers should give you a clear understanding of how the broker works before you commit.
An asset finance broker helps businesses arrange finance for vehicles, machinery and other commercial equipment.
The broker assesses the application, compares suitable lenders, helps structure the finance and manages the application through approval and settlement.
Look at lender access, industry experience, internal credit support, credit-check process, communication and settlement support.
The best broker for your business should understand both the asset and the type of application you are making.
A bank assesses the application against its own products and lending criteria.
An asset finance broker can compare options from multiple lenders and identify those that suit the business, asset and available documentation.
A broker can provide access to lenders with different credit criteria.
This can be useful for new ABNs, low doc applications, used equipment, private sales and more complex applications.
Approval is still subject to the selected lender's assessment.
Asset finance brokers generally focus on vehicles, machinery and other business assets.
Commercial finance brokers may also assist with other forms of business lending depending on their lender panel and services.
Yes. Sole traders can use an asset finance broker to arrange finance for eligible business vehicles, machinery and equipment.
Yes. Chattel mortgage finance is a common form of asset-backed lending.
The business owns the asset while the lender registers security over it until the finance is repaid.
TAFS can arrange approvals in as little as 24 hours for straightforward applications once the required information has been supplied.
More complex applications may take longer depending on the business, asset and lender requirements.
TAFS can assess your business, proposed asset purchase and available documentation before comparing suitable equipment finance options through access to more than 80 lenders.
Start with a no-obligation assessment and a soft credit check that leaves no mark on your file. Contact The Asset Finance Shop or apply online at www.tafs.com.au.
The Asset Finance Shop (TAFS) is a commercial asset finance brokerage based in Sydney.
Information on this page is general in nature and doesn't take your personal circumstances into account. Speak to a TAFS broker for options tailored to your business, and to your accountant regarding tax treatment.