Commercial asset finance allows Australian businesses to purchase vehicles, machinery and equipment and repay the cost over an agreed finance term rather than paying the full purchase price upfront.
To qualify, lenders generally look at your ABN and trading history, business income, credit profile, existing commitments, industry experience and the asset you want to finance. There is no single minimum ABN age that applies across every Australian lender. Some lenders prefer established businesses, while selected lenders can consider newer ABNs where the overall application supports the purchase.
The Asset Finance Shop (TAFS) is a specialised asset finance broker with access to more than 80 bank and non-bank lenders. TAFS reviews applications through an internal credit team before making a formal lender submission, helping match the business and asset with lenders whose requirements suit the application.
For straightforward applications where the required information is available, approval can be arranged in as little as 24 hours.
This beginner's guide explains asset finance eligibility in Australia, minimum ABN age requirements, what lenders assess, what documents you may need and how to prepare for a faster commercial asset finance approval.
Commercial asset finance is business finance used to purchase an identifiable vehicle, machine or piece of equipment.
The asset generally provides security for the finance.
Businesses can use commercial asset finance for assets including:
Both new and used assets can be financed through selected lenders.
Finance may also be available for purchases through dealers, private sellers and auctions.
Asset finance eligibility depends on the complete application rather than one single requirement.
A lender will generally want to understand:
An established company with several years of trading history may have a different application pathway from a newly registered sole trader.
Both can potentially qualify.
The important part is matching the application with a lender whose criteria suit the business.
There is no universal minimum ABN age for commercial asset finance in Australia.
Different lenders have different policies.
Some lenders may prefer businesses with an established trading history.
Selected lenders can also consider newer ABNs where the application is supported by factors such as:
This means you should not assume you need to wait six months, 12 months or two years before asking about finance.
The first step is finding out which lenders are prepared to consider your current business position.
Potentially.
Selected lenders consider businesses with ABNs under 12 months old.
A shorter trading history means there is less historical business information for the lender to review, so other parts of the application can become more important.
These may include:
For example, someone starting an earthmoving business may have only recently registered an ABN but have ten years of experience operating excavators.
The business is new, but the applicant already understands the work, machinery and operating costs involved.
That experience can form part of the lender's assessment.
Potentially.
A brand-new ABN does not automatically mean commercial asset finance is unavailable.
Selected lenders can consider start-up or newly registered businesses where there is enough information to support the application.
A lender may look more closely at:
The lender needs to understand how the business is expected to operate and how the asset will help generate income.
Yes.
Previous industry experience can be particularly useful when the current ABN has limited trading history.
Relevant experience can include time spent as:
Consider a driver starting their own transport business.
They may have years of experience operating heavy vehicles, understanding transport contracts and managing daily running costs even though their own business has only recently started.
That background can help explain the application to the lender.
Commercial asset finance lenders generally assess several areas together.
The lender may look at:
A longer trading history can provide more evidence for the lender, but it is not the only way to demonstrate that a business can support the finance.
The lender needs to understand how the proposed repayments will be made.
Depending on the application, income may be supported through:
Different lenders can ask for different levels of documentation.
Industry experience helps the lender understand whether the applicant knows the work associated with the asset.
For example:
The clearer the connection between the applicant's experience and the asset, the easier it is to explain why the purchase makes commercial sense.
The lender may consider:
Credit history is one part of the assessment.
Different lenders have different approaches to previous credit issues, so the available options depend on the circumstances.
The lender also needs to understand what the business already needs to repay.
This may include:
Existing finance does not automatically prevent another approval.
The question is whether the business can comfortably manage the additional repayment.
The asset itself matters.
The lender may consider:
A $100,000 excavator and a $100,000 piece of highly specialised equipment may have different lender options because the assets themselves are different.
Ultimately, the lender needs to be comfortable that the business can afford the proposed finance.
That assessment can consider:
Approval is not simply about whether the lender is willing to finance the equipment.
The finance also needs to fit the business.
For an initial commercial asset finance assessment, you may need:
Some applications may also require:
You do not necessarily need to have the final dealer invoice or complete asset paperwork before starting the initial finance assessment.
The detailed vehicle or equipment information can generally be provided later once the asset has been identified.
That may include:
Not always.
Selected lenders offer low doc commercial asset finance.
A low doc application may use information such as:
instead of requiring a complete set of financial statements and tax returns.
Low doc does not mean the lender does not assess the business.
It simply means the lender uses a different documentation pathway.
|
Factor |
Full Doc |
Low Doc |
|
Financial statements |
Commonly required |
May not be required |
|
Tax returns |
May be required |
May not be required |
|
BAS |
Commonly used |
Depends on lender |
|
Bank statements |
May be required |
Commonly used |
|
Business history |
Often established |
Can suit selected applicants without current full financials |
|
Industry experience |
Relevant |
Can become more important |
|
Lender options |
Depends on application |
Selected lenders |
Neither pathway is automatically better.
The appropriate option depends on what information the business has available and which lenders suit the application.
Not for every asset finance application.
GST registration requirements vary between lenders.
A lender may consider:
If your business is not registered for GST, tell your broker at the beginning.
That allows the application to be assessed against lenders whose requirements fit the business.
Not every commercial asset finance application requires a deposit.
Whether one is needed can depend on:
A deposit can:
However, a larger deposit also removes more cash from the business.
That cash may still be needed for:
The right deposit should fit the overall business position.
Potentially.
Selected applicants may qualify for finance covering the full purchase price of an eligible asset.
The lender may consider:
Finance covering the full purchase price is subject to lender criteria and is not available in every application.
Yes.
A trade-in can contribute toward the purchase of replacement equipment.
For example:
Trade-in value: $60,000
Existing finance payout: $25,000
Potential equity: $35,000
That remaining equity may contribute toward the new asset.
The actual amount will depend on the trade-in value and existing finance payout at settlement.
The fastest way to get an asset finance application approved is to have the important information ready before the formal lender submission.
There are several practical ways to do this.
Recent bank statements can give the lender a current picture of the business.
They may show:
Providing complete statements early can reduce follow-up questions.
If the ABN is new but you have previous experience, explain it clearly.
This could include:
The registration date only tells the lender how old the current ABN is.
It does not necessarily tell them how experienced the applicant is.
Provide accurate information about:
If debts are discovered later, the lender may need to reassess the application.
The lender should understand the commercial reason for the purchase.
For example:
A clear purpose makes the application easier to assess.
This can be particularly useful for a newer business.
Supporting information could include:
Not every lender requires these documents.
Having them available means they can be provided quickly if needed.
The proposed purchase should make sense for the business.
The lender may consider whether:
A sensible asset purchase is easier to explain than one that appears disconnected from the size or activity of the business.
Where possible, start discussing finance before:
This gives more time to assess suitable lenders and deal with any documentation requirements.
Once the application is underway, approval can be delayed while waiting for requested information.
If your broker or lender asks for:
providing it promptly can help keep the application moving.
Yes.
Straightforward commercial asset finance applications can be approved in as little as 24 hours when the required information is available.
This is more achievable where:
Applications can take longer where they involve:
Fast approval still requires a proper credit assessment.
Incomplete applications usually require more back and forth.
The ABN, business structure and applicant information should be accurate.
Where a current ABN is new, explain any previous business or industry history.
Existing debts found later may require the lender to recalculate repayment capacity.
The lender may require additional background or supporting information.
An older machine or vehicle may require a shorter term, valuation or inspection.
The lender may need to verify the seller, asset ownership and existing security.
Additional information about the balance and any payment arrangements may be needed.
Potentially.
Different lenders have different approaches to previous credit problems.
The lender may consider:
Previous credit issues can affect lender availability, pricing, deposit requirements and approval time.
Providing the complete background at the beginning allows the application to be assessed more accurately.
Potentially.
Selected lenders may consider businesses with ATO debt.
The lender may want information about:
The lender still needs to be satisfied that the business can manage both its existing obligations and the proposed asset finance repayment.
Yes.
Selected lenders finance used commercial vehicles and equipment.
The lender may assess:
An older asset may have different lender options or a shorter available finance term than a newer asset.
Yes, through selected lenders.
Private-sale transactions may require additional checks, including:
These requirements usually become relevant once the asset has been identified.
Yes.
Selected lenders can finance auction purchases.
Pre-approval may also be available before bidding.
This can help you understand:
Final approval will still depend on the asset purchased.
The main commercial asset finance product TAFS arranges is a chattel mortgage.
Under a chattel mortgage:
A chattel mortgage can be used for eligible vehicles, trucks, machinery and commercial equipment.
The business may be able to claim eligible GST, interest and depreciation depending on its circumstances.
Speak with your accountant about the tax treatment that applies.
Before starting the application, work through this checklist.
You do not need every answer to be perfect before speaking with a broker.
The purpose of the initial assessment is to understand the position and identify suitable finance pathways.
TAFS reviews the business, ABN history, industry experience, available documentation and proposed asset purchase.
TAFS starts with a soft credit check that leaves no mark on the applicant's credit file.
The TAFS internal credit team assesses the application before a formal lender submission.
TAFS has access to more than 80 bank and non-bank lenders.
The application can be matched based on factors including:
TAFS can review:
The objective is to structure the finance around the asset and business rather than simply seeking the lowest possible repayment.
Once the business selects an option, the formal application is submitted to the chosen lender.
TAFS coordinates the remaining lender requirements, finance documentation and settlement with the approved seller.
Before applying, ask:
There is no single minimum ABN age that applies across every Australian lender.
Some lenders prefer established businesses, while selected lenders can consider newer ABNs where the applicant has suitable industry experience, financial capacity and a commercially sensible asset purchase.
Potentially.
Selected lenders consider newer businesses.
Industry experience, bank statements, contracts, credit history, working capital and the proposed asset can all form part of the assessment.
Potentially.
ABN age requirements vary between lenders.
A business with less than 12 months of trading history may still have options depending on the overall application.
Potentially.
Selected lenders can assess new businesses where there is enough supporting information to demonstrate experience, expected work, financial position and repayment capacity.
Not for every lender.
Some lenders prefer longer trading histories, while selected lenders consider newer businesses.
There is no universal two-year requirement across commercial asset finance.
Lenders can consider ABN history, trading history, business income, industry experience, credit history, existing commitments, repayment capacity and the asset being purchased.
Have your business information and bank statements ready, disclose existing debts, explain your ABN and industry history clearly and provide evidence of current or upcoming work where relevant.
The application should then be matched with a lender whose requirements suit the business and asset.
Yes.
Straightforward applications can be approved in as little as 24 hours where the required information is available.
More complex applications may take longer.
Not always.
Selected low doc lenders may assess applications using recent bank statements, ABN information, industry experience and other business information.
Not for every application.
GST requirements vary depending on the lender, business and finance amount.
Not every application requires a deposit.
The requirement depends on the business, asset, finance amount, lender and overall strength of the application.
Potentially.
Selected applicants may qualify for finance covering the full purchase price, subject to lender criteria.
Yes.
Sole traders can apply for commercial asset finance for eligible vehicles, machinery and equipment.
Yes.
Selected lenders finance used vehicles, machinery and other commercial equipment.
Yes, through selected lenders.
Additional seller, ownership and asset checks may be required.
Potentially.
Selected lenders may provide pre-approval before bidding, subject to the final asset being acceptable.
Potentially.
Different lenders have different credit criteria, so the available options depend on the nature of the issue, current financial position and complete application.
Potentially.
Selected lenders may consider ATO debt where the business can demonstrate that its existing obligations and the proposed repayment are manageable.
TAFS reviews the application internally and compares suitable lender criteria before making the formal lender submission.
Once an option has been selected, the formal application is submitted to the chosen lender.
TAFS primarily arranges chattel mortgage finance for commercial vehicles, machinery and other eligible business assets.
For straightforward applications where the required information is available, approval can be arranged in as little as 24 hours.
You do not need to know whether your ABN is "old enough" before speaking with a broker.
Commercial asset finance eligibility depends on the full picture, including your trading history, industry experience, business income, credit position, existing commitments and the asset you want to purchase.
TAFS can assess your current position, complete a soft credit check and compare suitable options through access to more than 80 bank and non-bank lenders.
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.