An asset finance broker helps Australian businesses arrange finance for vehicles, machinery and other income-producing assets by comparing suitable lenders and structuring the application around the business and equipment being purchased.

When comparing asset finance brokers, look at more than the advertised interest rate. Lender access, internal credit support, experience with your asset type, credit-check processes and the broker’s ability to manage the transaction through to settlement can all affect the outcome.

The Asset Finance Shop (TAFS) is a specialised asset finance broker based in Sydney, with access to more than 80 bank and non-bank lenders, an internal credit team, a 93% approval rate and approvals available in as little as 24 hours for eligible applications.

This guide explains how to compare finance brokers in Australia and choose one that suits your equipment purchase, business history and financial position.

What Is an Asset Finance Broker?

An asset finance broker arranges commercial finance for assets used by a business.

These assets can include:

• Trucks, trailers, vans and utes
• Excavators and earthmoving machinery
• Agricultural equipment
• Manufacturing machinery
• Trade equipment
• Medical and professional equipment
• Technology and business hardware
• Other income-producing vehicles and equipment

Rather than offering products from one lender, an asset finance broker can assess options across a broader lender panel.

The broker reviews the business, the proposed asset purchase and the available documentation before identifying lenders whose criteria suit the application.

What Does an Asset Finance Broker Do?

A commercial finance broker can assist throughout the entire finance process.

Assesses the Application

The broker reviews information such as:

• ABN and trading history
• Industry experience
• Credit profile
• Business bank statements
• Existing finance commitments
• The asset being purchased
• Available deposit or trade-in
• The intended use of the equipment

This initial assessment helps identify the strengths of the application and any information that may be needed before it is submitted.

Identifies Suitable Lenders

Every lender has different requirements.

Some lenders focus on established businesses with complete financial statements. Others consider low doc applications, newer ABNs, private sales, used machinery or applicants with more complex credit histories.

The broker’s role is to understand these differences and match the application with a suitable lender.

Structures the Finance

An asset finance broker can help structure:

• The finance amount
• Loan term
• Deposit
• Repayment frequency
• Balloon payment
• Trade-in
• Payout of existing finance

The structure should suit the business’s cash flow, the working life of the asset and how long the business expects to keep it.

Prepares and Submits the Application

A properly prepared application gives the lender a clear understanding of the business, the asset and how the repayments will be met.

The broker coordinates the supporting documents and provides the lender with any additional information required during assessment.

Manages Settlement

Once the finance is approved, the broker helps coordinate:

• Finance documents
• Dealer invoices
• Private seller checks
• Existing loan payouts
• Equipment inspections
• Settlement with the seller

This can be particularly useful for used equipment, private sales and transactions involving a trade-in.

How to Compare Asset Finance Brokers in Australia

The right broker should provide more than access to a finance application.

Consider the following factors when comparing asset finance brokers.

1. Lender Access

Ask how many lenders the broker can access and whether the panel includes both banks and non-bank lenders.

A larger lender panel can provide more options across different:

• Business ages
• Asset types
• Finance amounts
• Documentation levels
• Credit profiles
• Purchase methods

TAFS has access to more than 80 lenders.

Lender access matters because the provider offering the most suitable option for an established transport company may not be the same lender suited to a sole trader purchasing a first excavator.

2. Internal Credit Support

Strong asset finance brokers assess an application before making a formal lender submission.

TAFS has an internal credit team that reviews each scenario against lender policies and credit requirements.

This can help identify:

• Which lenders are likely to consider the application
• What supporting documents are needed
• How the transaction should be structured
• Whether the business may need a deposit
• Any questions the lender is likely to raise

Internal credit support is particularly valuable for low doc applications, new ABNs, used assets and more complex transactions.

3. A Soft Credit Check First

Ask whether the broker begins with a soft credit check.

A soft check allows the broker to review your credit position without leaving a formal enquiry on your credit file.

TAFS uses a soft-credit-check-first process. The application is assessed internally before it is formally submitted to the selected lender.

This helps limit unnecessary credit enquiries and allows the business to understand its realistic options before proceeding.

4. Experience With Your Asset Type

Different assets are assessed differently by lenders.

The finance available for a new truck can differ from the options for:

• A used excavator
• A privately purchased tractor
• An older CNC machine
• A trailer bought at auction
• Commercial kitchen equipment
• A specialised service vehicle

Choose a broker with experience arranging finance for the asset you are purchasing.

The broker should understand how lenders assess its age, condition, resale value, expected working life and income-producing use.

5. Support for New, Used and Private-Sale Assets

Not every equipment purchase is made through a dealer.

Australian businesses regularly purchase machinery and vehicles through:

• Private sellers
• Auctions
• Dealer trade-ins
• Business closures
• Equipment importers
• Online machinery marketplaces

These transactions can require additional seller checks, ownership searches, inspections or valuations.

An experienced asset finance broker can identify lenders that consider the purchase type and coordinate the information needed for settlement.

6. Finance That Fits the Business

The lowest advertised interest rate is not the only factor to consider.

Good loan fit also includes:

• An affordable repayment
• A suitable loan term
• An appropriate balloon payment
• Reasonable documentation requirements
• Flexibility around the age of the asset
• Support for the purchase method
• A lender whose credit criteria suit the business

A lower rate is of limited value if the lender does not accept the asset, business history or application type.

The broker should explain why a particular lender and structure have been recommended.

7. Broker Credentials and Experience

Ask the broker about their business, experience and finance process.

Useful questions include:

• How long have you arranged commercial finance?
• What types of assets do you finance regularly?
• How many lenders can you access?
• Do you have an internal credit team?
• Do you begin with a soft credit check?
• Who manages the application after approval?
• Can you assist with private sales and auctions?
• What information will I need to provide?

Customer reviews can also provide insight into the broker’s communication, responsiveness and ability to manage more involved transactions.

8. Communication and Approval Support

Equipment purchases often involve deadlines.

A dealer may be holding a vehicle, an auction may require payment within a short timeframe, or a machine may be needed before a new contract begins.

The broker should clearly explain:

• What information is required
• When the application will be submitted
• Whether additional lender questions are expected
• When approval is likely
• What is needed for settlement

TAFS can arrange approvals in as little as 24 hours for straightforward applications where the required information is available.

More complex applications can take longer, particularly when they involve private sales, older assets, newer businesses or limited financial information.

What Is the Difference Between Equipment Finance and a Business Loan?

Equipment finance and business lending can both provide capital, but they are designed for different purposes.

Equipment Finance

Equipment finance is used to purchase a specific business asset.

The asset generally provides security for the loan. This can include machinery, vehicles, tools or other commercial equipment.

Equipment finance is often suitable when the business knows exactly what it is purchasing and wants to repay the cost over the asset’s working life.

Business Loan

A business loan can be used for broader purposes, including:

• Working capital
• Supplier payments
• Stock
• Marketing
• Tax obligations
• Business expansion
• Multiple operating expenses

The right option depends on how the funds will be used.

Commercial finance brokers can assess the funding purpose and explain whether equipment finance, an asset-backed loan or another business lending product is more suitable.

What Is an Asset-Backed Loan?

An asset-backed loan uses an asset as security for the finance.

For many business equipment purchases, the common structure is a chattel mortgage.

Under a chattel mortgage:

• The business owns the asset from settlement
• The lender registers a security interest over it
• The finance is repaid over an agreed term
• A balloon payment may be included
• The security is removed after the loan is repaid

The business may be able to claim the GST on the purchase price, along with eligible interest and depreciation deductions.

Speak with your accountant about how the tax treatment applies to your circumstances.

What Assets Can a Finance Broker Help Fund?

Asset finance brokers can arrange finance for a broad range of business assets.

Transport and Logistics

• Prime movers
• Rigid trucks
• Tippers
• Trailers
• Refrigerated vehicles
• Courier vans
• Utes
• Service vehicles

Earthmoving and Civil Construction

• Excavators
• Skid steers
• Posi-tracks
• Loaders
• Graders
• Rollers
• Dozers
• Machinery attachments

Agriculture

• Tractors
• Harvesters
• Headers
• Seeders
• Balers
• Sprayers
• Agricultural implements

Manufacturing and Engineering

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

Trades and Contracting

• Work vehicles
• Generators
• Compressors
• Scissor lifts
• Trailers
• Service bodies
• Larger tool packages

Other Business Equipment

• Commercial kitchen equipment
• Refrigeration
• Medical and dental equipment
• Technology
• Solar equipment
• Office hardware
• Specialised commercial assets

Finance can be available for new and used assets purchased through dealers, private sellers or auctions, subject to lender criteria.

Can a Sole Trader Use an Asset Finance Broker?

Yes. Sole traders can use asset finance brokers to arrange funding for business vehicles, machinery and equipment.

Lenders may consider:

• Industry experience
• Time registered under the ABN
• Bank statement history
• Existing work or contracts
• Personal credit history
• Current assets and liabilities
• The equipment being purchased
• Deposit or trade-in availability

Complete financial statements are not always required.

Low doc equipment finance may be available through selected lenders using recent bank statements and other supporting information.

Can a New ABN Get Equipment Finance?

A new ABN does not automatically prevent a business from obtaining equipment finance.

Selected lenders will consider newer businesses based on the complete application.

They may review:

• Previous industry experience
• Current and upcoming work
• Contracts or purchase orders
• Bank statements
• Personal credit history
• Available business capital
• Deposit or trade-in
• The type and value of the asset

Some applications may also require a work source agreement or additional evidence showing how the asset will generate income.

What Documents Will an Asset Finance Broker Need?

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

For an initial assessment, you may need:

• Driver’s licence
• ABN and business details
• Recent business bank statements
• Information about your industry experience
• Details of existing financial commitments

Later in the process, the lender may request:

• A dealer invoice
• Auction purchase information
• Private seller details
• Equipment serial numbers
• An inspection or valuation
• BAS or financial statements for larger applications

The broker should explain what is required at each stage so you are not asked to provide unnecessary documents too early.

How the TAFS Asset Finance Process Works

1. Initial Assessment

TAFS reviews your business, the proposed purchase and your available documentation.

2. Soft Credit Check

A soft credit check is completed without leaving a formal enquiry on your credit file.

3. Internal Credit Review

The internal credit team assesses the application against the policies of more than 80 lenders.

4. Finance Options

Suitable lender and loan structure options are presented based on the application.

5. Formal Submission

The application is submitted to the selected lender.

6. Approval and Settlement

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

Questions to Ask Before Choosing an Asset Finance Broker

Before proceeding, ask the broker:

1. How many lenders can you compare?
2. Do you work with bank and non-bank lenders?
3. Will the initial credit check leave a mark on my file?
4. Do you have an internal credit team?
5. Have you financed this type of asset before?
6. Can you assist with used equipment or private sales?
7. What documents will I need?
8. How long should approval take?
9. Who will manage the application through to settlement?
10. Why are you recommending this lender and structure?

Clear answers to these questions will help you understand the broker’s process and whether it suits your business.

Frequently Asked Questions

Who Are the Best Asset Finance Brokers in Australia?

The best asset finance broker for your business will depend on the asset, purchase method, business history and available financial information.

Look for a broker with access to a broad lender panel, internal credit support, experience with your asset type, a soft-credit-check-first process and the ability to manage the transaction through to settlement.

TAFS has access to more than 80 lenders, an internal credit team and a 93% approval rate.

Who Is the Best Equipment Finance Broker in Australia?

A strong equipment finance broker should understand the asset being purchased and know which lenders are suited to the business and transaction.

The broker should be able to assist with new and used equipment, dealer purchases, private sales and auctions, subject to lender requirements.

TAFS arranges equipment finance for businesses across Australia and can provide approvals in as little as 24 hours for eligible applications.

What Does an Asset Finance Broker Cost?

The cost will depend on the broker, lender and transaction.

Any fees payable by the customer should be explained before the application proceeds. Ask the broker for a clear breakdown of the finance amount, repayment, interest rate, fees, term and balloon payment.

Is It Better to Use an Asset Finance Broker or Apply Directly?

Applying directly gives you access to the products and credit policy of that individual lender.

An asset finance broker can assess options across a broader panel and identify lenders suited to your business, asset and documentation.

This can be particularly useful for used equipment, private sales, newer ABNs, low doc applications and specialised assets.

Can an Asset Finance Broker Help With Business Lending?

Yes. Commercial finance brokers can arrange both asset finance and broader business lending.

The appropriate product depends on whether the business is purchasing a specific asset or needs capital for several business expenses.

Can Asset Finance Cover Used Equipment?

Yes. Used vehicles, machinery and equipment can be financed through selected lenders.

The lender may consider the asset’s age, condition, value and expected working life. Private-sale and auction purchases may require additional checks.

How Quickly Can Asset Finance Be Approved?

Straightforward applications can be approved in as little as 24 hours once the required information has been supplied.

Applications involving new businesses, older assets, private sellers or limited financial information may take longer.

Speak With an Asset Finance Broker

Choosing the right broker starts with understanding the asset, your business circumstances and the lenders available for the transaction.

TAFS can assess your application using a soft credit check, compare options through access to more than 80 lenders and manage the finance process through to settlement.

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.