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.
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:
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.
Lender access is one of the first things to compare between asset finance brokers.
Different lenders have different requirements around:
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.
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:
TAFS assesses the application first and then submits the formal application to the selected lender rather than formally applying across multiple lenders at once.
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:
The lender may consider:
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.
For trucks, lenders may consider:
This can apply to:
For machinery, the lender may consider:
This can apply to:
Asset finance can also cover:
The best asset finance broker for your business should understand the actual equipment being financed, not just commercial lending generally.
One of the biggest differences between asset finance brokers can be what happens before the formal lender application.
A good broker should first understand:
This allows potential issues to be identified before the lender sees the application.
An internal credit team can compare the application against lender criteria before submission.
This can be useful where the business has:
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.
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:
before making the formal lender submission.
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.
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:
A broker working with new ABNs should understand which lenders consider different business ages.
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.
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:
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.
Do not assume you automatically need:
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.
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:
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:
Ask the broker whether they regularly arrange finance for used assets in your industry.
Businesses do not always buy equipment through a dealership.
A private seller may have:
Selected lenders can finance private-sale commercial assets.
The transaction may require additional checks around:
Ask the broker whether they have lenders that support private sales.
This should be confirmed before committing to the purchase.
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:
An initial assessment before bidding can help establish the business's likely finance position.
Final approval will still depend on the actual asset purchased.
The broker should not simply find a lender and stop there.
Finance structure can affect the business for several years.
Compare:
A lower monthly repayment could come from:
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.
For commercial vehicles, machinery and equipment, TAFS primarily arranges chattel mortgage finance.
Under a chattel mortgage:
The broker should be able to explain:
Speak with your accountant about GST, depreciation and the tax treatment applying to your business.
Fast approval matters when a business is buying an asset that may not remain available for long.
This can happen with:
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.
Possible delays can include:
The broker should be able to tell you what will be required before the formal application starts.
Finance approval is not the end of an asset purchase.
The transaction still needs to settle.
Depending on the asset, settlement can involve:
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.
Communication is one of the easiest areas to overlook before choosing a broker.
The process becomes much easier when you know:
Good communication becomes particularly important where the transaction involves:
Ask who will manage your application and how updates are provided.
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:
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.
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:
The same principle applies to machinery.
An excavator application may need context around:
The broker should understand why the asset makes sense for your business.
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:
Complete financial statements are not always required.
Selected lenders may offer low doc pathways using current bank statements and other supporting information.
An asset finance broker should be able to work with more than first-time asset purchases.
Growing businesses may need finance to:
The lender may consider the wider business rather than one asset in isolation.
This can include:
A broker that understands growth finance can help present the transaction as part of the overall business position.
Not every application is completely straightforward.
Situations may include:
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.
Before proceeding, make sure you understand what you are paying.
Ask for clarity around:
Do not compare brokers using the rate alone.
For example, two finance offers could have similar rates but different:
Any fees payable by the customer should be explained before the application proceeds.
A bank and an asset finance broker serve different roles.
The application is assessed against that bank's:
If those criteria suit the business and transaction, the bank may be a suitable option.
A broker can assess the application across different lender criteria.
This can be particularly useful where the business has:
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.
Before choosing a broker, ask these questions:
A broker should be able to answer those questions clearly.
TAFS reviews:
TAFS completes a soft credit check that leaves no formal enquiry on the applicant's credit file.
The internal credit team assesses the application against lender criteria.
TAFS has access to more than 80 bank and non-bank lenders.
Suitable options can be identified based on:
TAFS can review:
Once the business selects an option, the formal application is submitted to the chosen lender.
TAFS manages the remaining lender requirements and coordinates the finance through settlement.
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.
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.
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.
Different lenders have different requirements around:
Broader lender access allows the broker to compare those requirements before choosing where to apply.
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.
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.
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.
Yes.
Selected lenders may assess eligible businesses using recent bank statements and other supporting information rather than complete financial statements.
Yes.
Selected lenders can finance used vehicles, machinery and equipment.
Asset age, condition, value and remaining working life can affect the options available.
Yes.
Selected lenders finance eligible private-sale business assets.
Additional ownership, seller and asset checks may be required.
Yes.
Selected lenders can consider auction purchases.
An initial finance assessment before bidding can help establish the likely finance position.
Yes.
Sole traders can use asset finance brokers to arrange eligible business vehicle, machinery and equipment finance.
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.
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.
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.
TAFS primarily arranges chattel mortgage finance for eligible commercial vehicles, machinery and business equipment.
No.
TAFS assesses the application, completes an internal credit review, compares suitable lender options and then submits the formal application to the selected lender.
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.