Key Factors to Compare Asset Finance Brokers
Read time: 20 min
Choosing between asset finance brokers is about more than finding someone who can arrange a loan.
The broker you choose can affect which lenders are considered, how your application is prepared, what documentation you need, how the finance is structured and how smoothly the transaction moves from application to settlement.
For Australian businesses financing trucks, machinery, commercial vehicles or other equipment, the strongest broker should understand both sides of the transaction: your business and the asset you are purchasing.
The Asset Finance Shop (TAFS) is a specialised asset finance broker with access to more than 80 bank and non-bank lenders, an internal credit team, a 93% approval rate and more than 500 Google reviews. TAFS arranges asset financing for Australian businesses purchasing trucks, machinery, commercial vehicles and business equipment.
This guide covers the key factors to compare when choosing asset finance brokers in Australia, including lender access, credit assessment, asset experience, finance structure, approval speed and settlement support.
What Does an Asset Finance Broker Do?
An asset finance broker helps a business arrange funding for vehicles, machinery and equipment.
Instead of assessing the application against the policy of one lender, a broker can review the business and identify lenders whose criteria suit the transaction.
The process can include:
- Understanding the business
- Reviewing the asset being purchased
- Assessing available documentation
- Reviewing the credit position
- Comparing suitable lenders
- Structuring the finance
- Submitting the formal application
- Managing lender requirements
- Coordinating settlement
A broker's value therefore goes beyond simply obtaining an interest rate.
The broker should be able to explain why a particular lender, term and finance structure have been recommended.
1. Compare How Many Lenders the Broker Can Access
Lender access is one of the first things to compare between asset finance brokers.
Different lenders have different requirements around:
- ABN age
- Trading history
- Business structure
- Credit history
- Available financial documents
- Asset type
- Asset age
- Private sales
- Auctions
- Deposit requirements
- Finance amount
A business applying directly to one lender is assessed against that lender's criteria.
A broker with access to a broader lender panel can compare different credit policies before deciding where the application should be submitted.
TAFS has access to more than 80 bank and non-bank lenders.
More Lenders Does Not Mean More Applications
A broad lender panel should not mean submitting the same application everywhere.
The value is having more criteria available to compare.
For example, the right lender for:
A five-year-old transport business buying a new prime mover
may be different from the right lender for:
A new ABN buying a used excavator privately.
Both applications may be suitable for asset finance.
They simply need different lender pathways.
Ask the broker:
- How many lenders can you access?
- Do you work with both bank and non-bank lenders?
- How do you decide which lender suits my application?
- How many formal applications will actually be made?
TAFS assesses the application first and then submits the formal application to the selected lender rather than formally applying across multiple lenders at once.
2. Compare the Broker's Experience With Your Asset
Asset finance covers a very broad range of equipment.
Lenders do not assess every asset in exactly the same way.
Financing a prime mover can involve different considerations from financing:
- An excavator
- A skid steer
- A tractor
- A CNC machine
- A forklift
- A rigid truck
- A commercial trailer
- Specialised business machinery
The lender may consider:
- Asset age
- Condition
- Kilometres
- Operating hours
- Purchase price
- Market value
- Remaining working life
- Resale market
- Seller type
A broker that regularly works with commercial assets should understand these questions before submitting the application.
TAFS arranges finance across transport, machinery and commercial equipment.
Truck Finance Experience
For trucks, lenders may consider:
- Vehicle type
- Year
- Kilometres
- Purchase price
- Transport experience
- Work source
- Existing truck finance
- Whether the truck is new or used
- Whether it is being purchased privately
This can apply to:
- Prime movers
- Rigid trucks
- Tippers
- Refrigerated trucks
- Crane trucks
- Tilt trays
- Trailers
- Vans
- Utes
Machinery Finance Experience
For machinery, the lender may consider:
- Operating hours
- Equipment age
- Condition
- Resale market
- Type of work
- Dealer or private sale
- Asset value
This can apply to:
- Excavators
- Skid steers
- Posi-tracks
- Loaders
- Rollers
- Graders
- Dozers
- Tractors
- Harvesters
Business Equipment Experience
Asset finance can also cover:
- CNC machinery
- Fabrication equipment
- Production machinery
- Forklifts
- Packaging equipment
- Other income-producing business assets
The best asset finance broker for your business should understand the actual equipment being financed, not just commercial lending generally.
3. Compare the Broker's Credit Assessment Process
One of the biggest differences between asset finance brokers can be what happens before the formal lender application.
A good broker should first understand:
- ABN age
- Trading history
- Credit profile
- Bank statement activity
- Existing finance
- Deposit
- Trade-in
- Asset
- Purchase method
- Finance amount
This allows potential issues to be identified before the lender sees the application.
Ask Whether the Broker Has an Internal Credit Team
An internal credit team can compare the application against lender criteria before submission.
This can be useful where the business has:
- A new ABN
- Limited financial statements
- A used asset
- A private-sale purchase
- An auction purchase
- Existing business debt
- ATO debt
- Previous credit issues
- Multiple existing finance facilities
TAFS uses an internal credit team to pre-vet applications before the formal lender submission.
The aim is to identify which lenders are suitable for the application before choosing where to submit it.
4. Ask Whether the Initial Credit Check Leaves a Mark
Before choosing between business finance brokers, ask how they handle the initial credit check.
TAFS begins with a soft credit check.
A soft credit check allows the credit position to be reviewed without leaving a formal credit enquiry on the applicant's file.
A formal lender application will generally involve a credit enquiry.
The important difference is the order.
A broker can first review:
- The business
- Credit position
- Asset
- Available documents
- Lender criteria
before making the formal lender submission.
Why Does This Matter?
Suppose a business approaches several lenders separately.
Each formal application may involve its own assessment and credit enquiry.
A broker-led process can instead focus on understanding the application first and selecting a lender whose criteria match it.
Ask:
Will you complete a soft credit check first?
and:
How many formal lender applications will be made?
Those questions can tell you a lot about the broker's process.
5. Compare New ABN Options
ABN age is an important comparison point, particularly for newer Australian businesses.
There is no single minimum ABN age that applies across every asset finance lender.
Some lenders prefer established businesses.
Selected lenders can consider businesses with shorter trading histories.
For a new ABN application, the lender may place more weight on:
- Previous industry experience
- Current business activity
- Contracts
- Purchase orders
- Work source
- Bank statements
- Credit history
- Deposit
- Available working capital
- Asset being purchased
A broker working with new ABNs should understand which lenders consider different business ages.
Previous Experience Can Be Important
Consider an operator with:
Current ABN: 8 months
Industry experience: 12 years
Asset: Excavator
Current work: Confirmed civil projects
The current ABN may only be eight months old.
The applicant still has extensive experience operating the equipment and working in the industry.
That background should form part of the finance application.
Selected lenders on the TAFS panel can consider newer businesses depending on the complete application.
6. Compare Low Doc Finance Options
Not every small business has a complete current set of financial statements ready when an asset needs to be purchased.
Low doc equipment finance may allow selected businesses to be assessed using alternative information.
This could include:
- Recent business bank statements
- ABN information
- Credit history
- Industry experience
- Current business activity
- Existing finance
- Current work
- Asset information
Low doc does not mean the lender performs no financial assessment.
The lender still needs to determine whether the proposed repayment is suitable for the business.
The difference is the documentation used.
Ask the Broker What Documents Are Actually Required
Do not assume you automatically need:
- Two years of financial statements
- Two years of tax returns
- BAS
- Accountant-prepared accounts
for every application.
Requirements vary by lender.
A broker should tell you what the selected lender needs rather than asking for every possible financial document from the beginning.
7. Compare Used Equipment Finance Capability
Used assets are common in Australian transport, construction, agriculture and manufacturing.
A strong asset finance broker should have lender options for both new and used equipment.
Used asset finance may involve additional assessment around:
- Age
- Condition
- Operating hours
- Kilometres
- Market value
- Purchase price
- Remaining working life
For example, a lender considering a seven-year-old excavator may assess the transaction differently from one involving a new machine from a dealer.
The same applies to:
- Used prime movers
- Used tippers
- Used tractors
- Used skid steers
- Used manufacturing machinery
Ask the broker whether they regularly arrange finance for used assets in your industry.
8. Compare Private-Sale Capability
Businesses do not always buy equipment through a dealership.
A private seller may have:
- A better-priced truck
- A specific machine
- A specialised asset
- Older equipment that fits the business
- An asset unavailable through dealers
Selected lenders can finance private-sale commercial assets.
The transaction may require additional checks around:
- Seller identity
- Asset ownership
- VIN or serial number
- Registration
- Existing security
- Purchase price
- Market value
- Condition
Ask the broker whether they have lenders that support private sales.
This should be confirmed before committing to the purchase.
9. Compare Auction Finance Capability
Auction purchases can be attractive for businesses looking for trucks and machinery.
However, auction transactions move quickly.
An asset finance broker should be able to explain:
- Whether the lender accepts auction purchases
- What asset ages are acceptable
- What deposit may be required
- What finance term is available
- Whether a valuation may be required
- What documentation will be needed after the auction
An initial assessment before bidding can help establish the business's likely finance position.
Final approval will still depend on the actual asset purchased.
10. Compare How the Finance Is Structured
The broker should not simply find a lender and stop there.
Finance structure can affect the business for several years.
Compare:
- Finance amount
- Deposit
- Trade-in
- Interest rate
- Finance term
- Regular repayment
- Balloon
- Fees
- Total estimated amount repayable
The Lowest Repayment Is Not Automatically the Best Option
A lower monthly repayment could come from:
- A longer term
- A larger balloon
- A lower rate
- A combination of these
A longer term may improve monthly cash flow but keep the debt outstanding longer.
A larger balloon may reduce regular repayments but leave a larger amount owing at the end.
The broker should explain the trade-offs.
11. Ask What Finance Product Is Being Recommended
For commercial vehicles, machinery and equipment, TAFS primarily arranges chattel mortgage finance.
Under a chattel mortgage:
- The business owns the asset from settlement
- The lender registers security over the asset
- The finance is repaid over an agreed term
- A deposit may be included
- A trade-in may contribute
- A balloon may be available
- The lender's security is removed once the finance is repaid
The broker should be able to explain:
- Why the structure suits the asset
- Why the term has been selected
- Whether a balloon is appropriate
- What the repayment will be
- What happens at the end
Speak with your accountant about GST, depreciation and the tax treatment applying to your business.
12. Compare Approval Speed
Fast approval matters when a business is buying an asset that may not remain available for long.
This can happen with:
- Used trucks
- Private-sale machinery
- Auctions
- Dealer stock
- Equipment required for a new contract
Straightforward TAFS applications can be approved in as little as 24 hours once the required information is available.
But approval speed should be considered alongside application quality.
A properly prepared application that takes a little time upfront can be more useful than immediately sending incomplete information to a lender.
Ask What Could Delay Approval
Possible delays can include:
- Missing bank statements
- Incomplete asset information
- New ABN history
- Private seller details
- Valuation
- Inspection
- Large finance amount
- Complex credit history
- Missing contracts
- Incomplete company information
The broker should be able to tell you what will be required before the formal application starts.
13. Compare Settlement Support
Finance approval is not the end of an asset purchase.
The transaction still needs to settle.
Depending on the asset, settlement can involve:
- Dealer invoice
- Private seller details
- Existing finance payout
- Proof of ownership
- Vehicle or equipment identification
- Insurance
- Finance documents
- Valuation
- Inspection
- Payment instructions
A good broker should remain involved throughout this process.
TAFS manages lender requirements, finance documents and payment to the seller through settlement.
Ask:
Who handles the transaction once the finance is approved?
You should know whether the broker remains involved or whether you are expected to deal directly with multiple parties yourself.
14. Compare Communication
Communication is one of the easiest areas to overlook before choosing a broker.
The process becomes much easier when you know:
- Who your contact is
- What documents are outstanding
- Where the application currently sits
- Whether the lender has asked questions
- Whether approval has been issued
- What still needs to happen before settlement
Good communication becomes particularly important where the transaction involves:
- Private seller
- Auction
- New ABN
- Used equipment
- Multiple assets
- Time-sensitive settlement
Ask who will manage your application and how updates are provided.
15. Compare Reviews and Track Record
Customer reviews can give you useful information about what the finance process is actually like.
Look beyond the overall rating.
Read what customers say about:
- Communication
- Speed
- Explanation of finance options
- Settlement support
- More involved applications
- Repeat business
TAFS has more than 500 Google reviews and a 93% approval rate.
Those numbers should still be considered alongside the process used for your individual application.
Every finance application remains subject to lender assessment.
16. Compare Whether the Broker Understands Your Business
Asset finance is not just about the equipment.
The lender also needs to understand the business that will use it.
For example, financing a $200,000 prime mover requires more than knowing the truck's purchase price.
The application may also need to explain:
- Transport experience
- Existing fleet
- Freight contracts
- Current income
- Proposed work
- Driver arrangements
- Existing loan commitments
The same principle applies to machinery.
An excavator application may need context around:
- Civil construction experience
- Current contracts
- Machine utilisation
- Existing equipment
- Project income
The broker should understand why the asset makes sense for your business.
17. Compare Support for Sole Traders
Sole traders are common across transport, construction and trades.
An asset finance broker working with sole traders should understand that documentation may look different from a larger company.
A sole trader application may involve:
- Personal credit profile
- Business bank statements
- ABN history
- Industry experience
- Current work
- Existing finance
- Asset being purchased
- Deposit
Complete financial statements are not always required.
Selected lenders may offer low doc pathways using current bank statements and other supporting information.
18. Compare Support for Growing Businesses
An asset finance broker should be able to work with more than first-time asset purchases.
Growing businesses may need finance to:
- Add a second truck
- Replace several fleet vehicles
- Purchase another excavator
- Add machinery for a new contract
- Upgrade production equipment
- Purchase multiple assets
The lender may consider the wider business rather than one asset in isolation.
This can include:
- Existing finance
- Current repayments
- Business cash flow
- Contracts
- Asset utilisation
- Proposed additional debt
- Trade-in equity
A broker that understands growth finance can help present the transaction as part of the overall business position.
19. Compare the Broker's Approach to More Involved Applications
Not every application is completely straightforward.
Situations may include:
- New ABN
- Limited documentation
- ATO debt
- Previous defaults
- Older equipment
- Private seller
- Existing finance
- Multiple assets
The important thing is not whether the broker claims to accept every situation.
It is whether they have a process for assessing the circumstances and identifying which lenders may consider them.
Different lenders have different policies.
A broader lender panel can provide more pathways, but approval is always subject to lender assessment.
20. Compare Fees and the Complete Finance Cost
Before proceeding, make sure you understand what you are paying.
Ask for clarity around:
- Interest rate
- Establishment fees
- Broker fees where applicable
- Monthly repayment
- Finance term
- Balloon
- Other lender costs
- Total estimated amount repayable
Do not compare brokers using the rate alone.
For example, two finance offers could have similar rates but different:
- Terms
- Balloons
- Establishment costs
- Repayments
- Total finance costs
Any fees payable by the customer should be explained before the application proceeds.
Asset Finance Broker vs Bank
A bank and an asset finance broker serve different roles.
Applying Directly to a Bank
The application is assessed against that bank's:
- Products
- Credit criteria
- Asset rules
- Documentation requirements
If those criteria suit the business and transaction, the bank may be a suitable option.
Using an Asset Finance Broker
A broker can assess the application across different lender criteria.
This can be particularly useful where the business has:
- A newer ABN
- Low doc requirements
- Used equipment
- Private-sale purchase
- Auction purchase
- More involved credit circumstances
The advantage is not that a broker automatically gets every application approved.
The advantage is having more lender criteria available to compare before deciding where the formal application should go.
Asset Finance Broker Comparison Checklist
Before choosing a broker, ask these questions:
- How many lenders can you access?
- Does your panel include banks and non-bank lenders?
- Do you regularly finance my type of asset?
- Do you have an internal credit team?
- Do you complete a soft credit check first?
- How many formal lender applications will be made?
- Can you work with new ABNs?
- Do you have low doc options?
- Can you finance used equipment?
- Can you finance private-sale assets?
- Can you finance auction purchases?
- What finance structure do you recommend?
- Why does the term suit the asset?
- Is a balloon appropriate?
- Is a deposit required?
- Can a trade-in be used?
- What interest rate applies?
- What will the repayment be?
- What fees apply?
- What is the total estimated amount repayable?
- What documents do I need?
- How quickly could approval happen?
- Who manages the application after approval?
- Who coordinates settlement?
- Why are you recommending this particular lender?
A broker should be able to answer those questions clearly.
How the TAFS Asset Finance Process Works
Step 1: Initial Assessment
TAFS reviews:
- Business
- ABN history
- Available documentation
- Proposed asset
- Finance amount
- Existing commitments
Step 2: Soft Credit Check
TAFS completes 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 against lender criteria.
Step 4: Compare Suitable Options
TAFS has access to more than 80 bank and non-bank lenders.
Suitable options can be identified based on:
- Business history
- Credit profile
- Documentation
- Asset
- Asset age
- Seller
- Finance amount
Step 5: Structure the Finance
TAFS can review:
- Purchase price
- Deposit
- Trade-in
- Amount financed
- Term
- Repayment
- Balloon
Step 6: Formal Lender Submission
Once the business selects an option, the formal application is submitted to the chosen lender.
Step 7: Approval and Settlement
TAFS manages the remaining lender requirements and coordinates the finance through settlement.
Frequently Asked Questions
What Should I Compare Between Asset Finance Brokers?
Compare lender access, experience with your asset, credit assessment process, low doc options, new ABN pathways, used equipment finance, private-sale capability, finance structure, communication and settlement support.
The broker should also be able to explain why the recommended lender suits your application.
Who Are the Best Asset Finance Brokers in Australia?
There is no single broker that will be the best choice for every business.
The best asset finance broker for your situation should have access to lenders that suit your business, experience with the asset being purchased and a clear process for assessing the application before submission.
TAFS has access to more than 80 bank and non-bank lenders, an internal credit team and a 93% approval rate.
How Many Lenders Should an Asset Finance Broker Have?
There is no required number.
A broader panel can provide access to more credit policies and asset criteria.
The broker still needs to understand which lenders are appropriate for each individual application.
TAFS has access to more than 80 lenders.
Why Does Lender Access Matter?
Different lenders have different requirements around:
- ABN age
- Documentation
- Credit history
- Asset type
- Asset age
- Deposit
- Private purchases
- Finance amount
Broader lender access allows the broker to compare those requirements before choosing where to apply.
Is the Broker With the Most Lenders Automatically the Best?
No.
Lender numbers only matter if the broker understands the panel.
A broker should know which lender criteria suit your business and asset rather than simply having a long lender list.
Should an Asset Finance Broker Use a Soft Credit Check?
A soft credit check can allow the broker to review the applicant's credit position without creating a formal enquiry.
TAFS uses a soft-credit-check-first process before the formal lender application.
Can Asset Finance Brokers Help New ABNs?
Yes.
Selected lenders can consider newer businesses.
Previous industry experience, current work, bank statements, credit history, deposit and the asset itself may form part of the assessment.
Can an Asset Finance Broker Arrange Low Doc Finance?
Yes.
Selected lenders may assess eligible businesses using recent bank statements and other supporting information rather than complete financial statements.
Can Asset Finance Brokers Finance Used Equipment?
Yes.
Selected lenders can finance used vehicles, machinery and equipment.
Asset age, condition, value and remaining working life can affect the options available.
Can Asset Finance Brokers Finance Private Sales?
Yes.
Selected lenders finance eligible private-sale business assets.
Additional ownership, seller and asset checks may be required.
Can Asset Finance Brokers Finance Auction Purchases?
Yes.
Selected lenders can consider auction purchases.
An initial finance assessment before bidding can help establish the likely finance position.
Can Sole Traders Use Asset Finance Brokers?
Yes.
Sole traders can use asset finance brokers to arrange eligible business vehicle, machinery and equipment finance.
Are Asset Finance Brokers Only for Equipment?
Asset finance brokers primarily arrange funding secured against business assets such as vehicles, machinery and equipment.
Some commercial finance brokers can also arrange other business lending products depending on their lender panel.
Is a Broker Better Than a Bank for Asset Finance?
It depends on the transaction.
A bank assesses the application against its own criteria.
A broker can compare different lender criteria before choosing where to submit the application.
This can be particularly useful where the business wants broader lender access.
How Fast Can Asset Finance Be Approved?
Straightforward TAFS applications can be approved in as little as 24 hours once the required information has been supplied.
More involved applications may take longer depending on the business, asset and lender requirements.
What Finance Structure Does TAFS Mainly Arrange?
TAFS primarily arranges chattel mortgage finance for eligible commercial vehicles, machinery and business equipment.
Does TAFS Submit Applications to Multiple Lenders?
No.
TAFS assesses the application, completes an internal credit review, compares suitable lender options and then submits the formal application to the selected lender.
Compare Asset Finance Brokers With the Right Questions
The best way to compare asset finance brokers is to look at the complete process.
A competitive rate matters, but so do lender access, credit assessment, experience with your asset, finance structure, documentation requirements, approval support and settlement management.
TAFS combines access to more than 80 bank and non-bank lenders with an internal credit team, a soft-credit-check-first process and experience arranging finance across trucks, machinery and commercial equipment.
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.
