Low doc machinery finance gives Australian businesses a way to purchase used commercial equipment without always providing a complete set of financial statements, tax returns or several years of business accounts.
For contractors, sole traders and small businesses, this can be useful when the right machine becomes available through a dealer, private seller or auction and the business needs to move before the opportunity disappears.
Instead of relying entirely on full annual financials, selected lenders may assess a low documentation application using current information such as recent business bank statements, ABN history, industry experience, credit conduct, existing repayments and details of the machinery being purchased.
The Asset Finance Shop (TAFS) arranges low doc machinery finance through access to more than 80 bank and non-bank lenders. Applications are pre-vetted by an internal credit team before a formal lender submission is made, helping identify lenders that suit the business, available documentation and specific machinery being purchased.
For straightforward applications where the required information and machinery details are available, approval can be arranged in as little as 24 hours.
This guide explains how low doc machinery finance works for used equipment, private sales and auction purchases in Australia.
Low doc machinery finance is commercial asset finance where an eligible business can be assessed without necessarily providing the same level of financial documentation required under a traditional full doc application.
A standard full doc machinery finance application may require:
A low doc application may instead use information such as:
Low doc does not mean no assessment.
The lender still needs to be comfortable that the business can support the repayments and that the machinery is suitable security for the loan.
Low documentation business loans for machinery can suit several types of Australian businesses.
Sole traders may not always have the same financial reporting available as larger companies.
Selected lenders can assess applications using:
A newer ABN may still have machinery finance options.
Where the business has limited trading history, the lender may place more weight on:
For example:
ABN age: 9 months
Earthmoving experience: 12 years
Asset: Used excavator
Current work: Civil and excavation projects
The ABN may be relatively new, but the operator is not new to the industry.
That experience can form part of the assessment.
An established business may be trading strongly even if the latest financial statements have not yet been finalised.
In that situation, selected lenders may consider:
An operator purchasing a second excavator, skid steer or loader may already have useful trading and repayment history.
The lender can consider:
Yes.
Used machinery can be financed through selected lenders using a low doc pathway where the application satisfies the lender's criteria.
This can include machinery purchased from:
Used equipment finance is common because many commercial machines continue producing income for years after their original purchase.
The lender will generally assess both the business and the machinery.
TAFS can arrange commercial equipment financing across a broad range of industries.
This can include:
This can include:
This can include:
This can include:
This can include:
The exact lender options depend on the machine, its age, condition, value and the business applying for finance.
Used equipment requires additional asset assessment compared with some new machinery purchases.
The lender may look at:
A five-year-old excavator with reasonable hours and good service history may be assessed differently from a 20-year-old specialised machine with limited resale demand.
The lender's job is not only to assess whether the business can repay the finance.
It also needs to assess the asset securing the loan.
There is no single maximum machinery age across every lender.
Different lenders have different asset policies.
One lender may be comfortable financing an older excavator.
Another may restrict:
Older machinery can still be financeable, but it may affect:
This is where access to multiple lender criteria becomes useful.
Yes.
For machinery such as excavators, loaders, tractors and harvesters, operating hours can help the lender understand how heavily the equipment has been used.
The lender may assess hours alongside:
High hours do not automatically prevent finance.
They may influence which lenders are suitable and how the loan is structured.
Potentially.
A lender may request a valuation where:
A valuation helps confirm whether the machinery provides appropriate security for the finance amount.
Potentially.
An inspection may be required depending on:
An inspection may verify details such as:
TAFS can confirm whether an inspection is required once the lender and equipment have been identified.
Yes, through selected lenders.
Private-sale machinery finance can be useful when the right equipment is being sold by:
Private sales can sometimes provide better access to specialised or well-maintained equipment that may not be available through dealers.
However, the lender may need to complete additional checks.
Private-sale machinery finance may require confirmation of:
If the seller has finance owing on the machine, that may need to be paid out during settlement.
The lender may also require:
The requirements depend on the transaction.
Potentially.
An existing finance balance does not necessarily prevent the sale.
However, the existing security needs to be dealt with correctly.
For example:
Machinery purchase price: $120,000
Seller's existing payout: $50,000
The settlement process may involve paying the existing lender so its security can be released before the remaining proceeds are dealt with.
The buyer should not simply transfer the purchase price without ensuring the lender's settlement requirements are satisfied.
TAFS can coordinate the required information between the buyer, seller and lender.
Yes, through selected lenders.
Auction purchases are common for:
Auction transactions can move quickly, so preparing the finance position before bidding can be important.
Potentially.
A finance assessment before the auction can help establish:
Final approval will still depend on the machine purchased.
The lender will usually need details such as:
Pre-vetting before bidding can help avoid purchasing machinery that does not fit the available lender criteria.
TAFS generally starts with the business rather than immediately sending an application to a lender.
TAFS reviews:
TAFS begins with a soft credit check that leaves no formal enquiry on the applicant's credit file.
This allows the initial credit position to be reviewed before the formal lender application.
The internal credit team reviews the application against lender criteria.
This is particularly useful when the transaction involves:
TAFS has access to more than 80 bank and non-bank lenders.
One lender may suit a newer excavator purchased from a dealer.
Another may be more suitable for:
The goal is to identify the lender that fits the overall application before making the formal submission.
The machinery loan can be structured around:
Once a suitable option has been selected, the formal application is submitted to the chosen lender.
The lender assesses the application and confirms any outstanding conditions.
For straightforward applications, approval may be available in as little as 24 hours once the required information is available.
TAFS coordinates the lender, seller, auction house or dealer requirements so the approved funds can be released.
The required documents vary by lender.
For an initial assessment, useful information may include:
The lender may later request additional documents.
These could include:
Low doc does not mean the applicant will never be asked for additional information.
It means the business may have access to lenders that do not require full annual financials in every application.
Not always.
Selected lenders can consider low doc machinery finance without a complete set of current financial statements.
An established business may instead demonstrate its position using:
A newer business may rely more heavily on:
Not necessarily.
Some lenders may require tax returns.
Others may accept an alternative low documentation pathway.
Whether tax returns are needed depends on:
Not always.
Some lenders may ask for Business Activity Statements.
Others can potentially assess eligible applications using recent bank statements and supporting business information.
TAFS can confirm the documentation requirements once the lender pathway has been identified.
Bank statements can give the lender a current picture of the business.
The lender may review:
For a business without current financial statements, this can provide useful evidence of current trading activity.
Potentially.
Selected lenders can consider newer ABNs.
The lender may assess:
A new ABN does not automatically mean the operator has limited experience.
Someone starting an earthmoving business after ten years operating machinery may have significant experience despite having a recently registered entity.
Yes, subject to lender criteria.
A sole trader may be assessed using:
This can provide an equipment finance Australia pathway for operators who do not have complete accountant-prepared financial statements available.
Potentially.
An established contractor adding another asset may have useful evidence from the existing business.
The lender may consider:
For example, an excavation operator adding another skid steer may already have:
That can support the machinery loan application.
Yes.
Machinery finance can be used to replace ageing equipment.
Before replacing the machine, compare:
A machine with no finance repayment can still be expensive if downtime and repairs are affecting revenue.
Trade-in equity may potentially contribute toward the replacement.
Potentially.
Consider:
Trade-in value: $80,000
Existing finance payout: $35,000
Potential equity:
$45,000
That equity may contribute toward the replacement machine.
This can reduce:
The existing finance can be paid out as part of settlement.
Not every machinery finance application requires a deposit.
The lender may consider:
A deposit can sometimes:
However, the business should also retain enough working capital to operate the machinery once it is purchased.
Potentially.
Selected applicants may qualify for finance covering the full machinery purchase price.
The outcome depends on factors including:
TAFS primarily arranges machinery purchases using a chattel mortgage.
Under a chattel mortgage:
The structure can be used for eligible new and used machinery.
Potentially.
A balloon leaves an agreed amount outstanding at the end of the finance term.
For example:
Machine price: $150,000
Amount financed: $140,000
Finance term: 5 years
Balloon: $28,000
The balloon generally reduces regular repayments.
The trade-off is that $28,000 remains payable at the end.
The balloon should consider:
Finance terms depend on the lender and machine.
The lender may consider:
A newer excavator may support a different finance term from an older specialised machine.
The loan should generally make sense relative to how long the equipment is expected to remain productive.
Potentially, machinery finance options may still exist.
The lender may look at:
Different lenders have different credit policies.
Pre-vetting the application before formal submission can help determine which lenders are more appropriate.
Potentially.
Selected lenders may consider businesses with ATO debt.
The lender may assess:
The tax debt forms part of the complete business assessment.
Not every lender has the same appetite for used commercial equipment.
For example:
May prefer newer dealer-purchased machinery.
May consider older machinery but require an inspection.
May accept a newer ABN with strong industry experience.
May accept private-sale equipment and low doc financials.
The strongest application is not necessarily the one submitted to the lender with the lowest advertised rate.
It is the application matched to a lender whose criteria suit both the borrower and the machinery.
TAFS pre-vets applications before the formal lender submission.
This helps identify:
The business can understand its likely finance pathway before a formal lender application is made.
Straightforward applications may be approved in as little as 24 hours once the required information is available.
This is more achievable where:
More involved applications can take longer.
Examples include:
Approval and settlement are separate.
The business may receive finance approval while the lender is still completing machinery or seller requirements.
Settlement may still require:
If the machinery needs to be purchased quickly, provide the equipment and seller information as early as possible.
Dealer purchases can have a simpler settlement process because the seller regularly deals with commercial finance providers.
The lender may require:
Private sales can require more seller and ownership verification.
The lender may need:
Auction purchases often involve tight settlement deadlines.
Preparing the finance position before bidding can reduce the risk of buying equipment that does not fit lender criteria.
Before committing to a machine, ask:
For a faster initial assessment, prepare:
|
Area |
Information |
|
Identification |
Driver's licence |
|
Business |
ABN and business details |
|
Banking |
Recent bank statements |
|
Experience |
Relevant industry background |
|
Work |
Contracts, customers or current projects |
|
Existing finance |
Current equipment and business loans |
|
Financial position |
Assets, liabilities and working capital |
|
Machinery |
Make, model, year and operating hours |
|
Purchase |
Price and seller type |
|
Private sale |
Seller details and ownership information |
|
Auction |
Listing or auction invoice |
|
Asset checks |
Inspection or valuation if requested |
The lender may require more or less depending on the application.
Low doc machinery finance allows eligible businesses to apply for commercial equipment funding without always supplying a complete set of financial statements and tax returns.
Selected lenders may instead assess recent bank statements, ABN history, credit profile, industry experience and machinery information.
Yes, through selected lenders.
The lender will assess the business as well as the machine's age, condition, operating hours, purchase price and value.
Yes.
Selected lenders can finance eligible private-sale machinery.
Additional seller, ownership, valuation or inspection checks may be required.
Potentially.
Selected lenders finance eligible auction purchases.
Completing an initial finance assessment before bidding can help establish your likely finance position.
Not always.
Selected lenders can consider low doc machinery loans using recent bank statements and other supporting business information.
Not in every application.
Requirements depend on the lender, business and finance amount.
Not always.
Some lenders require BAS while others may accept alternative supporting information.
Yes, subject to lender criteria.
Sole traders may be assessed using ABN history, bank statements, industry experience, credit profile and current work.
Potentially.
Selected lenders consider newer businesses where the overall application supports the purchase.
Relevant industry experience and evidence of current work can be particularly useful.
Potentially.
Older machines can be financed through selected lenders.
The available loan term and lender options may depend on age, hours, condition and value.
Yes.
Selected lenders finance used skid steers and posi-tracks.
The lender may assess age, operating hours, condition, purchase price and expected resale value.
Yes.
Used agricultural machinery can be financed through selected lenders, including dealer, auction and private-sale purchases.
Potentially.
Attachments that form part of the machinery purchase may be included in the same finance facility, subject to lender criteria.
Not in every application.
Deposit requirements depend on the business, machinery, lender and complete application.
Potentially.
Selected applications may qualify for finance covering the full purchase price, subject to lender criteria.
Potentially.
Equity in existing machinery can contribute toward the replacement purchase.
Potentially.
A balloon can reduce regular repayments but leaves a larger final amount payable at the end of the loan.
Potentially.
Different lenders have different credit criteria.
The available options depend on the type of issue, current conduct, machinery and overall application.
Potentially.
Selected lenders may consider applications involving ATO debt where the complete financial position supports the purchase.
Straightforward applications can be approved in as little as 24 hours once the required information and machinery details are available.
More involved transactions may take longer.
No.
TAFS reviews the application, completes a soft credit check, pre-vets the scenario through its internal credit team, compares suitable lenders and then submits one formal application to the selected lender.
TAFS primarily arranges chattel mortgage finance for eligible commercial machinery and equipment.
The business owns the machinery from settlement while the lender holds security over it until the finance has been repaid.
Low doc machinery finance can provide a practical pathway for Australian businesses that need used commercial equipment but do not have a complete current set of financial statements available.
The key is matching the business and the machine to the right lender.
A used excavator purchased privately may require a different finance pathway from a new skid steer purchased through a dealership or a tractor purchased at auction.
TAFS can assess your ABN history, industry experience, current work, available documents, credit position and proposed machinery before comparing suitable options through access to more than 80 bank and non-bank lenders.
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.