Commercial asset finance is business finance used to purchase an identifiable vehicle, machine or piece of equipment.

The equipment generally provides security for the finance.

Businesses can potentially finance assets including:

• Excavators
• Skid steers
• Posi-tracks
• Loaders
• Rollers
• Graders
• Dozers
• Forklifts
• Telehandlers
• Tractors
• Harvesters
• CNC machinery
• Fabrication equipment
• Production machinery
• Workshop equipment
• Commercial vehicles
• Utes
• Vans
• Other income-producing business equipment

Both new and used equipment can potentially be financed.

Selected lenders can also finance equipment purchased through:

• Dealers
• Private sellers
• Auctions

The lender assesses both the business and the asset before approving the finance.

Can a Newer ABN Get Equipment Finance?

Potentially, yes.

A newer ABN does not automatically prevent a business from qualifying for commercial equipment finance.

The important point is that lenders do not all use the same approval criteria.

One lender may require a longer business trading history.

Another may be prepared to consider a newer business if the rest of the application is strong.

For a newer ABN, lenders may place additional weight on:

• Previous industry experience
• Current business activity
• Current contracts
• Upcoming work
• Business bank statements
• Personal and business credit history
• Available working capital
• Existing financial commitments
• Deposit or trade-in
• Equipment type
• Equipment value
• Proposed repayment

The application needs to explain both why the equipment is required and how the business will support the finance.

What Is the Minimum ABN Age for Equipment Finance?

There is no single minimum ABN age that applies across every commercial asset finance lender in Australia.

This is one of the most important points for newer businesses to understand.

You should not automatically assume that you must wait:

• 6 months
• 12 months
• 2 years

before discussing equipment finance.

Some lenders prefer established businesses.

Selected lenders can consider businesses with shorter trading histories.

The available pathway depends on the complete application.

Can I Get Equipment Finance With an ABN Under 12 Months Old?

Potentially.

A business with less than 12 months under its current ABN may still have equipment finance options.

The lender may look more closely at other parts of the application, including:

• How much industry experience you have
• Whether the business is already generating income
• Current bank statement activity
• Existing customers
• Current or upcoming contracts
• Available cash
• Deposit
• Credit history
• Equipment being purchased

For example:

ABN age: 8 months
Industry experience: 11 years
Business: Earthmoving
Equipment: Used excavator
Current work: Ongoing civil projects

Looking only at the eight-month-old ABN would not show the complete position.

The applicant has more than a decade of industry experience and an established source of work.

That background should form part of the finance application.

Does Previous Industry Experience Matter?

Yes.

Relevant experience can be particularly important for a newer business.

A lender may consider experience gained as:

• An employee
• A subcontractor
• A sole trader
• An owner-operator
• A machinery operator
• A driver
• A tradesperson
• A manager
• A previous business owner

For example, someone establishing a new excavation business after operating heavy machinery for ten years already understands:

• Equipment operation
• Fuel costs
• Servicing
• Maintenance
• Project pricing
• Industry conditions

The ABN may be new.

The operator is not necessarily new to the work.

What if I Changed Business Structures?

Explain the complete history.

A business may have operated for years before changing from:

• Sole trader to company
• Partnership to company
• One company structure to another

For example:

Previous sole trader: 5 years
Current company ABN: 9 months
Industry: Same
Customers: Same
Equipment use: Same

The current ABN is relatively new, but the underlying business activity may be well established.

Provide that background during the initial assessment.

How Fast Can Equipment Finance Be Approved?

Straightforward commercial asset finance applications can be approved in as little as 24 hours once the lender has the information required.

Fast approval is generally easier when:

• ABN details are clear
• Business details are complete
• Bank statements are available
• Industry experience is explained
• Existing debts have been disclosed
• The credit position is understood
• The equipment has been identified
• Purchase price is confirmed
• Seller information is available
• Requested documents are supplied quickly

A fast application is not simply about rushing the lender.

It is about preparing the information properly before the formal submission.

What Can Slow Equipment Finance Approval?

Approval can take longer where the lender needs additional information.

This can include:

• Very new ABN
• Limited bank statement history
• Unclear income source
• Missing financial information
• Previous credit issues
• Existing ATO debt
• Private-sale equipment
• Older machinery
• Specialised equipment
• High finance amount
• Equipment valuation
• Equipment inspection
• Complex business structure

Many delays can be reduced by identifying these issues before the formal lender application.

What Documents Do Newer Businesses Need?

The exact finance application documents depend on the lender.

For an initial assessment, you may need:

• Driver's licence
• ABN details
• Business structure
• Recent business bank statements
• Existing finance details
• Details of current work
• Industry experience
• Assets and liabilities
• Proposed equipment
• Approximate purchase price

A lender may later request:

• BAS
• Financial statements
• Tax returns
• Contracts
• Purchase orders
• Work source agreements
• Dealer invoice
• Private seller information
• Auction invoice
• Equipment serial number
• Inspection report
• Valuation
• Deposit evidence

Not every business needs every document.

The aim should be to identify the lender first and then provide the documentation that particular lender requires.

Do I Need Two Years of Financial Statements?

Not with every lender.

Selected lenders can consider commercial equipment finance without requiring two complete years of financial statements.

For an eligible low doc application, the lender may instead use:

• Recent bank statements
• ABN history
• Credit history
• Industry experience
• Current business activity
• Contracts
• Assets and liabilities
• Equipment information

The lender still needs to determine whether the business can afford the finance.

Low doc does not mean no assessment.

Do I Need Tax Returns?

Not always.

Some lenders require tax returns as part of their standard assessment.

Selected lenders offer alternative documentation pathways.

The requirement can depend on:

• ABN age
• Finance amount
• Equipment
• Business history
• Credit position
• Available bank statement history
• Lender

If complete tax returns are not available, discuss that at the beginning rather than assuming the business cannot apply.

Do I Need BAS?

Not in every application.

BAS may be requested where the lender wants additional evidence of business turnover.

Other lenders may be comfortable assessing eligible applications through bank statements and supporting information.

Why Are Bank Statements Important for a Newer Business?

Recent bank statements can give the lender a current picture of how the business is operating.

They may show:

• Customer payments
• Business turnover
• Existing repayments
• Operating costs
• Cash reserves
• Account conduct
• General cash flow

Where a business does not yet have several years of financial history, current bank statement performance can become particularly important.

What if the Business Has Only Just Started Trading?

Selected lenders can consider startup or early-stage businesses, but the application generally needs additional context.

Useful information may include:

• Previous industry experience
• Evidence of upcoming work
• Contract
• Work source agreement
• Purchase order
• Customer correspondence
• Savings or working capital
• Deposit
• Credit history
• Equipment details

The lender needs to understand what will generate the income required to make the repayments.

Does Having a Contract Help?

Potentially.

A contract is not required for every equipment finance application.

However, if the business is purchasing equipment specifically to complete new work, supporting information can help.

This could include:

• Signed contract
• Work source agreement
• Purchase order
• Letter of intent
• Customer correspondence
• Evidence of recurring work

For example, if a contractor needs an excavator for a newly awarded project, showing the lender that work can help explain why the equipment is being purchased.

Does a Deposit Improve Asset Finance Eligibility?

Potentially.

A deposit reduces the amount being financed.

For example:

Equipment purchase: $120,000
Deposit: $20,000
Finance amount: $100,000

A deposit can sometimes:

• Reduce lender risk
• Reduce the repayment
• Improve available options
• Help with older equipment
• Help where the business has limited trading history

A deposit is not required in every application.

The amount, if any, depends on the lender and overall application.

Can the Full Equipment Purchase Price Be Financed?

Potentially.

Selected applicants may qualify to finance the full purchase price of eligible commercial equipment.

This depends on factors including:

• ABN history
• Industry experience
• Credit position
• Business cash flow
• Asset value
• Finance amount
• Existing commitments
• Lender criteria

A newer ABN should not assume that a large deposit is automatically required.

Can a Trade-In Be Used?

Yes, subject to the transaction.

If the business already owns equipment, available equity may potentially contribute toward the new purchase.

For example:

Trade-in value: $70,000
Existing payout: $25,000

Potential equity:

$45,000

That equity may reduce the amount that needs to be financed.

Can Sole Traders Get Equipment Finance?

Yes.

Sole traders can apply for commercial asset finance.

The lender may consider:

• ABN history
• Industry experience
• Business bank statements
• Credit profile
• Current work
• Existing debts
• Equipment being purchased
• Deposit or trade-in

Complete financial statements are not required by every lender.

Can a New Sole Trader Get Equipment Finance?

Potentially.

A sole trader with a newer ABN may still have options where the complete application supports the purchase.

For example:

ABN age: 5 months
Trade experience: 9 years
Current customers: Existing
Asset: Commercial machinery
Bank activity: Current trading income

The lender may assess the full background rather than simply declining because the ABN is new.

Can Used Equipment Be Financed?

Yes.

Commercial asset finance can be available for used machinery and equipment.

The lender may assess:

• Equipment age
• Condition
• Operating hours
• Purchase price
• Market value
• Manufacturer
• Expected working life
• Seller

Older equipment may result in different:

• Lender options
• Finance terms
• Deposit requirements
• Balloon options

An inspection or valuation may also be required.

Can Newer ABNs Finance Used Equipment?

Potentially.

A newer business combined with used equipment can require more careful lender matching because both the applicant and asset need to fit the lender's criteria.

The lender may look at:

• Previous industry experience
• Bank activity
• Current work
• Credit profile
• Equipment age
• Equipment condition
• Market value
• Deposit

The fact that the equipment is used does not automatically prevent approval.

Can Equipment From a Private Seller Be Financed?

Yes, through selected lenders.

Private-sale equipment finance can require additional checks around:

• Seller identity
• Proof of ownership
• Equipment serial number
• Existing finance or security
• Purchase price
• Market value
• Condition

An inspection or valuation may be required.

Private-sale finance can therefore take slightly longer than a straightforward dealer transaction if the required information has not been prepared.

Can Equipment Bought at Auction Be Financed?

Yes, through selected lenders.

An initial finance assessment or pre-approval can be particularly useful before an auction.

It may help the business understand:

• Approximate borrowing amount
• Deposit requirement
• Suitable equipment age
• Expected repayments
• Finance term
• Outstanding conditions

Final approval still depends on the equipment eventually purchased.

What Types of Equipment Can TAFS Finance?

TAFS can arrange eligible commercial equipment finance across several industries.

Earthmoving and Construction

• Excavators
• Mini excavators
• Skid steers
• Posi-tracks
• Loaders
• Graders
• Rollers
• Dozers
• Attachments

Agriculture

• Tractors
• Harvesters
• Headers
• Seeders
• Balers
• Implements

Materials Handling

• Forklifts
• Telehandlers
• Access equipment
• Scissor lifts

Manufacturing

• CNC machines
• Lathes
• Presses
• Fabrication equipment
• Packaging machinery
• Production equipment

Commercial Vehicles

• Trucks
• Utes
• Vans
• Trailers
• Service vehicles

Other Commercial Assets

Selected lenders may consider other identifiable income-producing business equipment depending on the asset and application.

What Do Equipment Finance Lenders Look For?

A lender generally looks at the complete application.

1. ABN and Trading History

The lender may consider:

• ABN registration date
• Time actively trading
• Previous business history
• GST registration where relevant

A longer history provides more information, but shorter trading history does not automatically prevent approval.

2. Industry Experience

Experience becomes more important where the current business is new.

The lender wants to know whether the applicant understands:

• The work
• The equipment
• Business operating costs
• Customer requirements

3. Business Income

The lender needs to understand how the repayment will be made.

Income may be demonstrated through:

• Bank statements
• Financial statements
• BAS
• Tax returns
• Contracts
• Purchase orders
• Current customer income

The documentation pathway depends on the lender.

4. Existing Commitments

This may include:

• Equipment loans
• Vehicle finance
• Business loans
• Credit cards
• ATO debt
• Other regular commitments

The lender looks at the proposed equipment repayment alongside everything the business already needs to pay.

5. Credit History

The lender may consider:

• Current credit
• Repayment history
• Previous defaults
• Recent finance applications
• Overall conduct

Selected lenders may still consider some applications involving previous credit issues.

6. The Equipment

The lender considers:

• Asset type
• Age
• Condition
• Purchase price
• Market value
• Seller
• Working life

7. Repayment Capacity

Ultimately, the lender needs to be satisfied that the proposed repayment fits the business's financial position.

What Finance Structure Does TAFS Mainly Arrange?

TAFS primarily arranges commercial equipment through a chattel mortgage.

Under a chattel mortgage:

• The business owns the equipment from settlement
• The lender registers security over the asset
• Finance is repaid over an agreed term
• A deposit may be included
• Trade-in equity may contribute
• A balloon payment may be available
• The lender removes its security once the finance is repaid

This can be used for eligible new and used commercial assets.

Can Equipment Finance Have a Balloon?

Potentially.

A balloon leaves part of the finance amount outstanding at the end of the term.

For example:

Equipment financed: $100,000
Term: 5 years
Balloon: $20,000

The regular repayment is generally lower because $20,000 remains payable at the end.

A balloon should consider:

• Asset age
• Expected future value
• Working life
• Replacement strategy
• Business cash flow

The goal should not simply be finding the lowest monthly repayment.

What Is Asset Finance Pre-Approval?

Asset finance pre-approval is an initial assessment before the final equipment purchase is completed.

It can help establish:

• Approximate finance position
• Lender options
• Documentation requirements
• Deposit requirements
• Likely finance term
• Conditions that need to be met

This can be useful if the business needs to:

• Shop for equipment quickly
• Attend an auction
• Negotiate with a private seller
• Secure machinery before another buyer
• Understand a likely finance limit before committing

Pre-approval remains subject to the lender's conditions and the final asset.

Is Pre-Approval the Same as Final Approval?

No.

A lender may still need to confirm:

• Final equipment
• Purchase price
• Seller
• Market value
• Insurance
• Inspection
• Valuation
• Updated business information

Ask what has been approved and what remains outstanding before committing to the purchase.

How to Get Equipment Finance Approved Faster

There are several practical ways to reduce avoidable delays.

1. Check the ABN Details

Know:

• Registration date
• Business structure
• GST status
• Previous business history

If the current ABN is new but the underlying business is established, explain that.

2. Prepare Bank Statements

Do not wait for the lender to request them.

Have recent business bank statements available where possible.

3. Explain Your Experience

For a newer ABN, make previous industry experience clear.

4. Provide Current Work Information

If available, provide:

• Contracts
• Purchase orders
• Customer information
• Upcoming work
• Work source agreement

5. Disclose Existing Finance

The lender needs the complete financial picture.

Leaving debts out can cause delays later.

6. Understand Your Credit Position

TAFS starts with a soft credit check before the formal lender application.

This allows the credit position to be reviewed without immediately creating a formal lender enquiry.

7. Identify the Equipment

Provide:

• Make
• Model
• Year
• Purchase price
• Seller
• Condition
• Serial number where available

8. Confirm the Deposit Position

If a deposit or trade-in is available, have the amount ready.

9. Respond Quickly

Once the lender asks for information, supplying it quickly can materially affect the approval timeframe.

Why Lender Matching Matters for a Newer ABN

Not every lender approaches young businesses the same way.

For example:

Lender A

May require longer trading history.

Lender B

May consider a newer ABN with strong bank statements.

Lender C

May place significant weight on previous industry experience.

Lender D

May accept low doc applications but have different asset requirements.

The business has not changed between those lenders.

The credit criteria have.

TAFS compares the application against more than 80 bank and non-bank lenders before selecting an option for formal submission.

Why TAFS Pre-Vets the Application

TAFS does not simply send the same application to a large number of lenders.

The process starts by understanding:

• Business
• ABN age
• Industry experience
• Available documents
• Credit position
• Existing finance
• Equipment
• Purchase method
• Finance amount

The internal credit team can then compare lender criteria before one formal submission is made.

This helps keep the application targeted.

The TAFS Fast Equipment Finance Process

Step 1: Initial Assessment

TAFS reviews:

• Business activity
• ABN history
• Industry experience
• Available documents
• Existing finance
• Proposed equipment

Step 2: Soft Credit Check

TAFS begins with a soft credit check that leaves no formal enquiry on the applicant's credit file.

Step 3: Internal Credit Review

The internal credit team assesses the application before the formal lender submission.

Step 4: Compare Suitable Lenders

TAFS has access to more than 80 bank and non-bank lenders.

The application can be matched based on:

• ABN age
• Documentation
• Credit profile
• Equipment
• Seller
• Purchase method
• Finance amount

Step 5: Structure the Finance

TAFS can review:

• Purchase price
• Deposit
• Trade-in
• Amount financed
• Term
• Repayment
• Balloon

Step 6: Submit One Formal Application

Once the appropriate option has been selected, the formal application is submitted to that lender.

Step 7: Approval

Straightforward applications can be approved in as little as 24 hours once the required information is available.

Step 8: Settlement

TAFS coordinates the remaining lender requirements, finance documents and payment to the equipment seller.

Fast Equipment Finance Checklist

Before applying, have as much of the following ready as possible:

Not every lender will require every item.

Frequently Asked Questions

What Is the Minimum ABN Age for Commercial Asset Finance?

There is no single minimum ABN age across every Australian commercial asset finance lender.

Some prefer established businesses.

Selected lenders can consider newer ABNs depending on industry experience, business activity, financial position and the asset.

Can I Get Equipment Finance With a New ABN?

Potentially.

Relevant industry experience, current work, bank statements, working capital, credit history and the proposed equipment can support the application.

Can I Get Equipment Finance if My ABN Is Under 12 Months Old?

Potentially.

ABN age requirements vary between lenders.

A business with less than 12 months of trading history may still have options.

Do I Need Two Years of Trading History?

Not with every lender.

Selected lenders consider shorter trading histories.

Can Equipment Finance Be Approved in 24 Hours?

Yes.

Straightforward applications can be approved in as little as 24 hours once all required information is available.

Newer or more involved businesses may require additional assessment.

What Is the Fastest Way to Get Commercial Asset Finance Approved?

Prepare your business information, bank statements, equipment details and current work information before applying.

Matching the application with an appropriate lender before formal submission can also reduce unnecessary delays.

Do I Need Financial Statements?

Not always.

Selected lenders may offer low doc equipment finance using recent bank statements and other supporting information.

Do I Need Tax Returns?

Not with every lender.

The requirements depend on the business, asset, finance amount and lender.

Can Sole Traders Get Fast Equipment Finance?

Potentially.

Sole traders can apply for commercial equipment finance and may qualify using ABN history, bank statements, industry experience, credit profile and current work.

Can I Finance Used Equipment With a Newer ABN?

Potentially.

Selected lenders can consider both newer ABNs and used commercial equipment.

The complete application and equipment need to fit the lender's criteria.

Can I Buy Equipment Privately?

Yes, through selected lenders.

Private-sale equipment may require additional seller, ownership, security and valuation checks.

Can I Finance Equipment From an Auction?

Yes, through selected lenders.

Pre-approval can help establish your likely finance position before bidding.

Do I Need a Deposit?

Not necessarily.

Deposit requirements depend on the complete application and lender.

Can I Finance 100% of the Equipment Price?

Potentially.

Selected applications may qualify to finance the full purchase price.

Can a Trade-In Be Used?

Yes, subject to the transaction.

Available equity in existing equipment can potentially reduce the amount being financed.

Can Equipment Finance Have a Balloon?

Potentially.

A balloon may reduce regular repayments but leaves a larger amount payable at the end.

What Equipment Can TAFS Finance?

TAFS can arrange eligible finance for commercial vehicles, earthmoving equipment, agricultural machinery, manufacturing machinery, forklifts, trade equipment and other income-producing commercial assets.

What Is the Main Equipment Finance Product TAFS Arranges?

TAFS primarily arranges chattel mortgage finance for eligible commercial assets.

Does TAFS Apply to Multiple Lenders at Once?

No.

TAFS reviews the application, completes a soft credit check, assesses it internally, compares suitable lenders and then makes one formal application to the selected lender.

Get Equipment Finance Moving Faster With TAFS

A newer ABN does not automatically mean a business needs to wait before financing the equipment required to take on work or increase capacity.

The key is understanding which lender criteria fit the business today.

TAFS can review your ABN history, industry experience, current work, bank statements, credit position and proposed equipment before comparing suitable commercial asset finance options through access to more than 80 bank and non-bank lenders.

For straightforward applications with the required information 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.