Cleaning equipment finance can help Australian commercial cleaning businesses purchase the machinery, vehicles and specialist equipment they need without using a large amount of working capital upfront.
For a growing cleaning business, equipment is often directly tied to the contracts it can service.
A new hospital contract may require ride-on floor scrubbers. A warehouse contract may need industrial sweepers. A larger facilities management agreement may require several machines, service vehicles and specialist cleaning equipment to be ready before the first invoice has even been paid.
That creates a cash flow challenge.
The business needs the equipment now, but the revenue generated by that equipment may not arrive until weeks later.
The Asset Finance Shop (TAFS) arranges commercial equipment financing for Australian businesses through access to more than 80 bank and non-bank lenders. TAFS can assess the business, equipment, available documents and finance structure before selecting a suitable lender for formal submission.
For straightforward applications where the required information is available, equipment finance approval can be arranged in as little as 24 hours.
This guide explains how cleaning equipment finance works, what commercial cleaners can finance, what affects equipment finance interest rates and what to look for when comparing equipment finance brokers in Australia.
Cleaning equipment finance is a type of commercial asset finance used to purchase machinery, vehicles and other identifiable equipment for a cleaning business.
Rather than paying the complete purchase price in cash, the business finances the equipment over an agreed term.
This can allow the business to put the machinery to work while retaining more cash for operating expenses.
Finance can potentially be used for:
The exact equipment that can be financed depends on the lender, purchase price and overall application.
Commercial cleaning can be a capital-intensive business.
Winning the work is only part of the process.
The business then needs enough equipment, staff and working capital to deliver the contract.
Equipment finance can help separate the equipment purchase from everyday operating cash.
Consider a cleaning business that wins a large commercial contract and needs $120,000 of equipment before commencement.
Paying cash requires the business to remove:
$120,000 from its bank account immediately.
That cash may otherwise be needed for:
Financing the equipment can allow more of that cash to remain available while the machinery is put to work.
Commercial cleaning contracts can create significant upfront expenses before the customer begins paying invoices.
The business may need to fund:
If the customer then operates on 30-day payment terms, the cleaning business may need to carry those costs for several weeks.
Financing the machinery can reduce one of the largest upfront cash requirements.
Older cleaning machinery can create costs through:
A fully paid-off machine does not necessarily mean it is the cheapest machine to operate.
If a newer ride-on scrubber allows one operator to cover significantly more floor area with fewer breakdowns, financing the replacement may improve overall productivity.
A growing cleaning company may have enough equipment for its existing sites but need additional machines for another contract.
Finance can help the business increase capacity without waiting to accumulate enough cash for each machine.
Commercial equipment financing can potentially cover a broad range of cleaning assets.
Ride-on scrubbers are commonly used across:
These can represent a significant equipment investment, particularly where several machines are required.
Finance can spread the purchase cost over the period in which the equipment is expected to generate income.
Smaller scrubber dryers can suit:
Individual lower-value machines may not always meet a lender's minimum finance amount.
However, several machines may potentially be grouped into a larger eligible equipment package.
Commercial sweepers may be used for:
Both ride-on and other commercial sweepers can potentially be financed subject to lender criteria.
Cleaning businesses specialising in:
may require professional extraction equipment.
Where the overall package meets the lender's requirements, finance may be available.
Commercial pressure washers and high-pressure cleaning systems can be required for:
Trailer-mounted or vehicle-mounted systems may also be considered depending on the transaction.
Commercial steam systems can support specialist hygiene and sanitisation work.
The lender will generally want the equipment to be identifiable, commercially useful and appropriate for the business.
Commercial polishing and burnishing equipment can potentially form part of a larger cleaning equipment package.
A single vacuum may be below normal asset finance minimums.
However, a commercial cleaning company purchasing a larger package of:
may have an overall finance requirement suitable for commercial asset finance.
Yes.
Commercial cleaning businesses often need vehicles to move staff, equipment and consumables between sites.
Eligible vehicles can potentially include:
For a growing cleaning company, the requirement might involve both cleaning machinery and another work vehicle.
TAFS can review whether the assets should be structured together or through separate facilities depending on the lender and transaction.
TAFS primarily arranges equipment purchases using a chattel mortgage.
Under a chattel mortgage:
Chattel mortgage finance can suit businesses purchasing long-term income-producing equipment.
Speak with your accountant about GST, depreciation, finance interest and the tax treatment applying to your circumstances.
A typical application involves several stages.
TAFS will need to understand:
If several items are being purchased together, provide the complete equipment quote.
TAFS can assess:
TAFS begins with a soft credit check.
This allows the initial credit position to be assessed without immediately creating a formal lender enquiry.
The TAFS internal credit team reviews the application before formal lender submission.
This can help identify lenders whose criteria suit:
TAFS has access to more than 80 bank and non-bank lenders.
The objective is not to submit the application to every lender.
It is to compare lender criteria first and select an appropriate option.
The finance can be structured around:
Once a suitable lender and structure have been selected, one formal application is submitted.
After approval, TAFS coordinates the remaining lender and supplier requirements through to settlement.
A commercial cleaning business needed to invest in additional ride-on cleaning equipment after securing new work.
The business had:
Time trading: 12 years
Annual turnover: Approximately $5.4 million
Finance required: $145,000
Equipment: Ride-on commercial cleaning machinery
Reason: Supporting a new hospital contract
The issue was not whether the business could simply pay for the machines.
It was whether using that much cash upfront made sense while the company also needed to fund the mobilisation of the new contract.
Cash still needed to remain available for:
TAFS structured $145,000 of equipment finance around the machinery, the business and the timing of the opportunity.
The equipment could be put into operation while more working capital remained inside the business.
That is one of the main reasons established businesses use equipment finance even when they have cash available.
Paying cash eliminates finance interest.
But it also removes the purchase amount from the business immediately.
Consider a cleaning company purchasing:
Cleaning equipment package: $150,000
The business uses:
$150,000 immediately
There is no finance repayment.
But that capital is no longer available for wages, suppliers or contract mobilisation.
The business spreads the equipment cost across an agreed finance term.
That introduces:
But allows more cash to remain available inside the business.
The right option depends on:
Some cleaning businesses hire equipment when they need additional capacity.
That can work well for occasional or short-term requirements.
But where machinery is being used regularly, compare the cost of continued hire with ownership.
For example, consider a business continually hiring a commercial scrubber for a long-term contract.
Compare:
There is no automatic answer.
The correct decision depends on how often the machine is required and how long the contract is expected to run.
Yes.
Sole traders can apply for commercial equipment finance subject to lender criteria.
The lender may consider:
Complete financial statements are not required by every lender.
Potentially.
Selected lenders can consider newer businesses.
There is no single minimum ABN age used by every equipment finance provider.
For a newer cleaning company, the lender may place additional weight on:
For example:
ABN age: 8 months
Cleaning experience: 9 years
New contract: Secured
Equipment: Commercial scrubber and sweeper package
The ABN is relatively new.
The operator may still have significant experience and confirmed revenue opportunities.
That complete story should form part of the finance application.
Potentially.
Selected lenders offer low documentation pathways for eligible businesses.
A low doc application may use information including:
rather than requiring complete current financial statements in every case.
Low doc does not mean no lender assessment.
The lender still needs to establish whether the business can support the repayment.
Not always.
Some equipment finance providers require complete financial statements.
Others can potentially assess eligible applications through streamlined documentation.
The correct pathway depends on:
Not with every lender.
Tax return requirements vary.
If they are not currently available, tell TAFS during the initial assessment so lenders with appropriate documentation policies can be considered.
Not every application requires BAS.
Some lenders may request BAS to verify turnover.
Others may rely on recent bank statements and other business information.
There is no single equipment finance interest rate that applies to every Australian business.
Pricing can depend on factors including:
For example, an established commercial cleaning business with a long trading history and strong financial position may receive different pricing from a newly registered sole trader purchasing used equipment.
An advertised interest rate should therefore not be treated as a guaranteed rate for every applicant.
Do not compare the interest rate alone.
Compare the complete finance structure.
That includes:
A lower interest rate over a substantially longer loan term can still result in a greater overall finance cost.
Likewise, a very low monthly repayment may simply mean a larger balloon remains at the end.
Potentially.
A balloon payment leaves part of the finance amount outstanding at the end of the term.
For example:
Finance amount: $120,000
Term: 5 years
Balloon: $24,000
Regular repayments are generally lower because $24,000 remains outstanding.
This can help a cleaning business preserve monthly cash flow.
But the business still needs to deal with the $24,000 final amount.
A balloon should consider:
The lowest monthly repayment is not automatically the strongest finance structure.
Not necessarily.
Deposit requirements depend on the:
An established commercial cleaner with a strong financial position may have different options from a new business financing its first major machine.
A deposit can reduce:
But it also reduces the cash remaining inside the business.
Not automatically.
Commercial cleaning businesses can have significant operating costs.
Cash may be needed for:
Using every available dollar as a deposit may leave the business unnecessarily tight on cash after settlement.
The deposit should be considered alongside working capital.
Potentially.
Selected businesses may qualify to finance the full eligible purchase price.
The available amount depends on:
Potentially.
Selected lenders can finance used commercial machinery.
For used cleaning equipment, the lender may assess:
Older or highly specialised equipment may have fewer lender options than newer equipment.
Potentially.
Selected lenders accept eligible private-sale commercial assets.
Additional checks may be required around:
An inspection or valuation may also be required.
Potentially.
Selected lenders can finance eligible commercial equipment bought at auction.
Completing an initial assessment before bidding can help establish:
Final approval remains subject to the equipment purchased.
Potentially.
This can be particularly useful for larger commercial contracts.
For example, a business might need:
Rather than treating each machine as a separate small transaction, the overall equipment package may potentially be financed as one larger commercial asset requirement.
The appropriate structure depends on:
A new commercial cleaning contract can create one of the clearest reasons to finance equipment.
Imagine a cleaning business wins a large warehouse contract beginning in six weeks.
To deliver the work it needs:
The business may have strong future revenue from the contract.
But that revenue has not started yet.
Finance can allow the equipment purchase to be spread over time rather than using a large portion of the company's existing cash before the contract even begins.
Where new equipment is being purchased specifically for new work, supporting information can help the lender understand the commercial reason for the transaction.
This might include:
A contract is not required in every application.
However, where the finance is directly connected to new work, the information can provide useful context.
Commercial cleaning machinery has a working life.
Eventually a machine can begin costing the business more through:
Before replacing an older machine, compare:
The fact that the old machine is paid off does not automatically mean keeping it is the cheapest option.
Potentially.
If the supplier or purchaser accepts the existing machine as a trade-in, available equity can potentially contribute toward the replacement.
For example:
Current equipment value: $40,000
Finance payout: $10,000
Potential equity:
$30,000
That amount may reduce the finance required for the replacement equipment.
An established cleaning company might need equipment finance when:
The lender will usually want to understand how the equipment fits the broader operation.
The lender may consider:
Industry experience can support the application, particularly for newer businesses.
Depending on the application, income may be demonstrated through:
The lender can consider:
Previous repayment conduct and current credit position can influence:
The lender assesses:
Ultimately, the lender needs to understand whether the new repayment fits the business's current and expected cash flow.
Straightforward applications can be approved in as little as 24 hours once the required information is available.
Fast equipment finance approval is easier when:
More complex applications may take longer.
Common delays can include:
TAFS pre-vets the application before formal submission so these requirements can be identified earlier.
Not every equipment finance broker works the same way.
Before choosing a broker, compare:
Ask how many lender options can realistically be considered.
TAFS has access to more than 80 bank and non-bank lenders.
The broker should understand that equipment finance is different from a standard consumer vehicle loan.
Ask whether the application is reviewed before a formal lender submission.
TAFS uses an internal credit team to pre-vet applications.
TAFS starts with a soft credit check before the formal lender application.
Different lenders have different financial-document requirements.
Access to low doc options can matter for sole traders and smaller businesses.
Make sure the broker can consider used machinery where required.
Not every lender handles private-sale equipment in the same way.
Where equipment is needed for a new contract, delays can directly affect the business.
Straightforward TAFS applications can be approved in as little as 24 hours.
A broker should help compare:
rather than simply quoting the lowest-looking interest rate.
Going directly to an equipment finance provider means the application is considered against that provider's own lending policy.
An equipment finance broker can compare different lender criteria.
For example:
May prefer established businesses with full financials.
May accept low doc applications.
May be comfortable with a newer ABN and strong contracts.
May be better suited to used or specialised machinery.
The business has not changed.
The lender criteria have.
That is the value of matching the application before formally submitting it.
Small business equipment loans can be useful where the purchase directly supports revenue.
The strongest applications generally have a clear commercial purpose.
For example:
Equipment: $85,000 ride-on scrubber package
Purpose: New distribution-centre contract
Contract term: Long-term commercial work
Reason for finance: Retain working capital during mobilisation
The lender can clearly see:
Before applying, prepare as much of the following as possible:
|
Area |
Information |
|
Identity |
Driver's licence |
|
Business |
ABN and business structure |
|
Trading |
Time in business |
|
Banking |
Recent business bank statements |
|
Work |
Existing and new cleaning contracts |
|
Existing debt |
Equipment, vehicle and business loans |
|
Equipment |
Machine type, make and model |
|
Purchase |
Quote or invoice |
|
Seller |
Dealer, private seller or auction |
|
Contribution |
Deposit or trade-in if applicable |
|
Settlement |
Serial number and insurance where required |
The exact requirements depend on the lender.
Yes.
Commercial cleaning businesses can potentially finance eligible machinery, work vehicles and other identifiable business equipment.
Eligible equipment may include ride-on scrubbers, industrial sweepers, commercial cleaning machinery, pressure cleaning systems, access equipment, vans, utes, trailers and larger equipment packages.
Yes, subject to lender criteria.
TAFS has arranged finance for ride-on cleaning equipment for established commercial cleaning businesses.
Potentially.
Several eligible machines may be grouped into a larger equipment finance transaction where appropriate.
Yes.
The lender may assess ABN history, bank statements, credit position, current work and the equipment being purchased.
Potentially.
Selected lenders can consider newer businesses where the complete application supports the purchase.
Not always.
Selected lenders may offer low doc options using recent bank statements and other supporting information.
Not necessarily.
Deposit requirements depend on the business, equipment, finance amount and lender.
Potentially.
Selected applications may qualify for finance covering the full eligible purchase price.
Potentially.
Selected lenders finance used commercial equipment.
Age, condition and market value can affect the available options.
Potentially.
Private-sale commercial equipment finance is available through selected lenders, subject to seller and asset checks.
Potentially.
Selected lenders can consider eligible auction purchases.
Yes.
Eligible new and used commercial vans can potentially be financed.
Potentially.
TAFS can review the complete equipment requirement and determine whether the assets should be financed together or separately.
TAFS primarily arranges chattel mortgage finance.
The business owns the equipment from settlement while the lender holds security over it until the finance has been repaid.
There is no single rate for every applicant.
Equipment finance interest rates depend on the business, credit position, asset, finance amount, term, deposit, balloon and lender.
Not automatically.
Compare the rate alongside the repayment, term, balloon, fees and total estimated cost.
Straightforward applications can be approved in as little as 24 hours once the required information is supplied.
An equipment finance broker can compare multiple lenders rather than assessing the application against only one lender's policy.
TAFS has access to more than 80 bank and non-bank lenders.
No.
TAFS assesses the application first, compares suitable lender criteria and then submits one formal application to the selected lender.
For a commercial cleaning business, the right machinery can directly affect how efficiently a site is serviced, how many contracts the business can manage and how much labour is required to complete the work.
The challenge is putting that equipment in place without unnecessarily reducing the cash needed to actually run the business.
TAFS can review your current operation, contracts, available documentation and proposed equipment before comparing suitable commercial equipment financing options through access to more than 80 bank and non-bank lenders.
For straightforward applications where the required information is available, approval can be arranged in as little as 24 hours.
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.