Commercial asset finance gives Australian businesses a way to purchase vehicles, machinery and equipment without paying the full purchase price upfront. How quickly finance can be approved depends on the ABN, trading history, financial position, credit profile, asset and lender selected.
There is no single minimum ABN age for commercial asset finance in Australia. Different lenders have different requirements. An established business may qualify using its trading history and financial information, while selected lenders can also consider newer ABNs where the applicant has relevant industry experience, evidence of work and a suitable overall financial position.
The Asset Finance Shop (TAFS) is a specialised asset finance broker with access to more than 80 bank and non-bank lenders. TAFS starts with a soft credit check, reviews the application through its internal credit team and matches the application with lenders based on factors including ABN age, documentation, credit profile, asset type and finance amount.
For straightforward applications with the required information available, commercial asset finance can be approved in as little as 24 hours.
This guide explains how fast asset finance approval works, what minimum ABN age lenders may look for, what documents you may need and how Australian businesses can prepare a stronger application.
Commercial asset finance is business finance used to purchase an identifiable asset that supports the operation or growth of a business.
The asset generally provides security for the finance.
Commercial asset finance can be used for:
Both new and used assets can be financed.
Selected lenders can also consider:
The lender will assess both the business and the asset before approving the finance.
Straightforward applications can be approved in as little as 24 hours when the lender has the information it needs.
Fast finance approval is generally easier when:
More involved applications can take longer.
This can include:
The fastest application is usually not simply the easiest applicant. It is the application that is properly prepared and matched with a lender whose criteria suit the transaction.
There is no universal minimum ABN age.
Each lender sets its own asset finance eligibility requirements.
Some lenders prefer businesses with an established trading history. Others can consider a newer ABN where the broader application supports the proposed finance.
This means there is no single rule such as:
The lender needs to consider the complete application.
For a newer ABN, this may include:
A business should therefore have its application assessed rather than assuming its ABN is automatically too new.
Potentially.
Selected lenders consider commercial asset finance for newer businesses.
Where the business does not have a long trading history, the lender may rely more heavily on other parts of the application.
For example, someone establishing a new earthmoving business might have spent the previous ten years operating excavators.
The ABN is new.
The experience is not.
Similarly, an experienced truck driver moving into their own owner-operator business may have significant transport experience even though the business entity was recently established.
That background can help the lender understand:
Yes.
Industry experience can become particularly important where there is limited business trading history.
A lender may consider experience gained as:
For example, a civil contractor financing their first excavator may be able to show several years of experience operating similar machinery.
A transport operator buying their first prime mover may be able to demonstrate years of driving or subcontracting experience.
A new company structure does not erase the experience the applicant already has.
Commercial asset finance approval usually comes down to several areas.
The lender may consider:
A longer trading history provides more information for the lender to assess, but it is only one part of the application.
The lender needs to understand how the business can make the proposed repayments.
Depending on the application, this may be demonstrated using:
The required evidence depends on the lender.
The lender can review:
A clean credit profile can help, but previous credit issues do not automatically prevent every commercial equipment financing application.
Different lenders have different credit policies.
The lender needs to know what the business already owes.
This could include:
Existing finance can also provide evidence of strong repayment conduct where facilities have been managed well.
Ultimately, the lender needs to be comfortable that the business can afford the new finance.
The assessment can consider:
The asset itself is an important part of commercial asset finance.
The lender may consider:
The purchase needs to make sense for the business.
The exact documents depend on the lender and type of application.
For an initial assessment, you may need:
Depending on the application, the lender may later request:
The asset information can generally be supplied once the vehicle or equipment has been selected.
That may include:
Preparing the business documents early can help reduce delays later.
Not always.
Selected lenders offer low doc commercial asset finance.
A low doc application may be assessed using information such as:
TAFS can assess whether a low doc pathway may suit the application before making a formal lender submission.
Low doc does not mean the lender skips its assessment.
The lender still needs to understand the business and determine whether the proposed repayments are affordable.
|
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 |
|
Trading history |
Usually established |
Can suit selected businesses without current full financials |
|
Industry experience |
Relevant |
Can become particularly important |
|
Approval assessment |
Based heavily on financial performance |
Uses alternative business information |
|
Lender availability |
Depends on application |
Selected lenders |
A full doc application may provide additional lender options where strong and current financial statements are available.
Low doc finance provides another pathway where complete financial statements are not available.
It can, depending on the lender.
GST registration is not automatically required for every commercial asset finance application.
Requirements can depend on:
If the business is not GST registered, tell your broker at the beginning so the application can be assessed against suitable lender criteria.
Not necessarily.
There is no standard deposit that applies to every commercial asset finance application.
A lender may consider:
A deposit may help by:
But using a large deposit also removes cash from the business.
The business may still need working capital for:
The deposit should suit the business rather than simply being as large as possible.
Potentially.
Selected applicants may qualify for finance covering the full purchase price, subject to lender criteria.
A lender may be more comfortable with full purchase finance where the application shows:
A deposit may still be required in other scenarios.
Yes.
A trade-in can reduce the amount that needs to be financed.
For example:
Replacement equipment: $150,000
Trade-in value: $50,000
Existing payout: $20,000
Potential trade-in equity: $30,000
That equity may contribute toward the new purchase.
The final figures depend on the trade-in value and any existing finance over the asset.
There is no shortcut that replaces a good application.
But there are several ways to make the process more efficient.
Bank statements give the lender a current view of business activity.
They may show:
Provide complete statements for the requested period.
If the current business is new but you previously operated in the same industry, explain it.
For example:
A two-month-old company run by someone with ten years of industry experience presents differently from someone entering the industry for the first time.
Provide accurate information about:
Finding previously undisclosed obligations later can slow the application.
This can be particularly helpful for newer businesses.
Supporting information may include:
Not every lender requires these documents, but having them available can help when additional evidence is needed.
The lender should understand what the equipment will do for the business.
For example:
A clear commercial purpose helps the lender understand the transaction.
The purchase should be realistic.
Lenders may consider whether:
The right asset can make the finance application easier to understand.
You do not always need to wait until the final asset has been selected.
Starting the assessment earlier can be useful when:
Pre-approval may also be available for selected transactions.
If a lender asks for:
providing it promptly can help keep the application moving.
Common causes of delays include:
Missing documents mean the lender cannot finish the assessment.
If the business structure has recently changed, the lender may need more information about the previous trading history.
The lender may need to recalculate repayment capacity when additional commitments appear.
Previous defaults or other issues may require further background.
The lender may want details of:
Older vehicles and machinery may require:
Additional checks can be required around:
The finance may move quickly, but the lender still needs the final asset information before settlement.
Yes.
Used commercial equipment can be financed through selected lenders.
The lender may consider:
A straightforward used asset purchased from a dealer may be relatively simple.
An older specialised machine purchased privately may require additional checks.
Potentially.
Selected lenders accept private-sale transactions.
The lender may need to verify:
These checks can add time between finance approval and settlement.
The business side of the application can still be assessed beforehand.
Potentially.
Selected lenders can finance auction purchases, and pre-approval may be available before bidding.
This can help the business understand:
Final approval will depend on the asset purchased.
Arranging the initial finance assessment before the auction can make the process more efficient.
Potentially.
Different lenders have different approaches to previous credit issues.
The application may be assessed based on:
Credit issues can affect:
Providing the full background early helps the broker assess the application properly.
Potentially.
Selected lenders may consider applications where the business has ATO debt.
They may want to understand:
The finance still needs to be affordable alongside the business's existing obligations.
An established business may have access to a wider range of options because it can provide more evidence of trading performance.
This can include:
That does not mean an established business automatically receives approval.
The lender still considers:
Established businesses may also be able to access stronger pricing where the complete application is strong.
A new business simply has less historical information available.
The lender may therefore look more closely at:
A newer ABN may need to provide more explanation around how the business will generate the income needed to service the finance.
TAFS primarily arranges chattel mortgage finance.
Under a chattel mortgage:
TAFS uses chattel mortgage finance across commercial vehicles, machinery and other business assets.
The tax treatment of the asset should be confirmed with your accountant.
TAFS can arrange commercial asset finance across a broad range of business equipment.
TAFS's existing commercial asset finance guidance covers these asset groups across transport, construction, agriculture and manufacturing.
TAFS reviews:
TAFS begins with a soft credit check that leaves no mark on the applicant's credit file.
The internal credit team assesses the application before making a formal lender submission.
TAFS has access to more than 80 bank and non-bank lenders.
The application can be matched based on:
The application can then be structured around:
Once the appropriate option has been selected, the formal application is submitted to that lender.
TAFS coordinates the remaining lender requirements, finance documents and payment to the seller.
Before submitting an application, ask:
Getting clear answers early can prevent unnecessary delays later.
There is no single minimum ABN age that applies to every Australian asset finance lender.
Some lenders prefer established businesses, while selected lenders can consider newer ABNs based on industry experience, expected work, financial position and the asset being purchased.
Potentially.
Selected lenders consider newer businesses.
The application may rely more heavily on industry experience, bank statements, contracts, working capital, credit history and the proposed asset.
Potentially.
ABN age requirements vary between lenders.
A business with less than 12 months of trading history may still have options depending on the complete application.
Not for every lender.
Some applications may benefit from several years of financial information, while selected lenders can consider businesses with shorter trading histories.
Have your bank statements and business details ready, disclose existing debts, clearly explain your ABN and industry history, provide evidence of work where relevant and make sure the proposed asset suits the business.
Matching the application with a lender whose criteria suit the scenario can also reduce unnecessary delays.
Yes.
Straightforward applications can be approved in as little as 24 hours once the required information has been supplied.
More complex applications may take longer.
Not always.
Selected low doc lenders may use bank statements, ABN information, industry experience and other supporting information instead.
Not for every application.
GST registration requirements depend on the lender, business and finance amount.
Not always.
The lender can consider the business, asset, finance amount and strength of the overall application before deciding whether a contribution is needed.
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 business equipment.
Yes.
Selected lenders finance used machinery and commercial equipment.
Age, condition, operating hours and value will affect the available options.
Yes.
Selected lenders consider private-sale assets, although additional ownership, seller and asset checks may be required.
Potentially.
Selected lenders may provide pre-approval before an auction, subject to final approval of the asset purchased.
Potentially.
Different lenders have different credit criteria.
The available options can depend on the nature and age of the issue, current repayment conduct, business position and asset.
Potentially.
Selected lenders may consider ATO debt where the business can demonstrate that the tax obligation and proposed asset repayment are manageable.
TAFS reviews the application internally, compares suitable lender criteria and then makes one formal submission once an option has been selected.
TAFS primarily arranges chattel mortgage finance for vehicles, machinery and other commercial assets.
For straightforward applications with the required information available, approvals can be arranged in as little as 24 hours.
If speed matters, the best place to start is before the purchase becomes urgent.
TAFS can assess your ABN history, industry experience, available documents, credit position and proposed asset purchase before comparing suitable commercial asset finance options through access to more than 80 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.