Choosing between asset finance brokers in Australia should involve more than asking who can offer the lowest interest rate.

A good asset finance broker should be able to explain which lenders they can access, how they assess your application before submission, whether they regularly finance your type of asset, what documentation you will need, how the finance will be structured and who will manage the transaction through to settlement.

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. TAFS uses an internal credit team to assess applications before making a formal lender submission.

Whether you are financing a truck, excavator, ute, tractor or another commercial asset, these are the questions worth asking before choosing an asset finance broker.

1. How Many Lenders Can You Access?

Start with lender access.

An asset finance broker does not lend the money themselves. Their role is to understand your application and identify suitable finance options from the lenders available to them.

Ask:

How many lenders can you access, and does your panel include both banks and non-bank lenders?

Why does this matter?

Different lenders have different requirements around:

• ABN age
• Business trading history
• Asset type
• Asset age
• Finance amount
• Full doc applications
• Low doc applications
• Credit profile
• Private sales
• Auction purchases
• Deposit requirements

A lender that suits a five-year-old transport business buying another prime mover may not be the same lender suited to a sole trader purchasing their first excavator.

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

The number of lenders is useful, but it should not be the only thing you consider.

The broker also needs to know which lenders actually suit your application.

2. Do You Regularly Finance This Type of Asset?

Asset finance covers a very broad range of equipment.

Ask:

How much experience do you have financing the type of asset I am buying?

Financing a new ute is different from financing:

• A used prime mover
• A privately purchased excavator
• A skid steer from an auction
• A tractor
• A specialised commercial vehicle
• Older machinery
• Manufacturing equipment
• A truck with high kilometres

Different assets raise different questions for lenders.

The lender may consider:

• Asset age
• Kilometres or operating hours
• Purchase price
• Market value
• Condition
• Manufacturer
• Remaining working life
• Resale market
• Seller type

A broker that regularly works with commercial vehicles and machinery should understand which lenders are comfortable with those assets and what information is likely to be required.

TAFS arranges finance across transport, machinery and commercial equipment rather than limiting its work to one type of business asset.

3. How Will You Assess My Application Before Sending It to a Lender?

This is one of the most important questions to ask.

A finance broker should do more than collect your documents and forward them to the first available lender.

Ask:

What do you assess before deciding which lender should receive my application?

A proper initial assessment may consider:

• ABN age
• Trading history
• Industry experience
• Credit profile
• Recent business bank statements
• Existing finance commitments
• Asset being purchased
• Purchase price
• Deposit
• Trade-in
• Intended business use

The broker should then use that information to determine which lender criteria suit the application.

TAFS uses an internal credit team to assess applications before a formal lender submission.

This becomes particularly useful where an application involves:

• A newer ABN
• Limited financial information
• Used equipment
• A private sale
• An auction purchase
• Existing ATO debt
• Previous credit issues
• Several existing finance facilities

The question is not simply, "Can I get finance?"

It is, "Which lender is suited to this particular application?"

4. Do You Start With a Soft Credit Check?

Ask:

Will the first credit check leave an enquiry on my credit file?

This matters because there is a difference between reviewing your credit position and formally applying for finance.

TAFS begins with a soft credit check before making the formal lender submission. The soft check leaves no mark on the applicant's credit file.

The internal credit assessment can then be completed before the application is sent to the selected lender.

Also ask:

• When will a formal enquiry occur?
• Will I know which lender is receiving the application?
• Will my information be sent to more than one lender?

You should understand this process before agreeing to proceed.

5. Will My Application Be Submitted to Multiple Lenders?

This is related to the credit-check process, but it deserves its own question.

Ask:

How many formal lender applications will you make?

Access to 80 or more lenders should not mean submitting the same formal application to 80 lenders.

The value of a broad lender panel is being able to assess those options and identify a suitable lender.

TAFS uses an internal assessment process before the formal lender submission rather than simply sending the application across multiple lenders.

Ask the broker to explain:

• How lender selection works
• How many lenders will receive your information
• At what point a formal application is made
• Whether you approve the selected option first

The process should be clear before you proceed.

6. Can You Help if My ABN Is New?

Not every business applying for asset finance has years of trading history.

Ask:

Which lenders on your panel consider newer ABNs?

A newer business may not yet have:

• Several years of financial statements
• Business tax returns
• Long BAS history
• Existing commercial finance history

That does not mean the owner has no relevant experience.

A lender may also consider:

• Previous industry experience
• Current contracts
• Upcoming work
• Bank statements
• Personal credit history
• Available working capital
• Deposit
• The asset being purchased

For example, someone might register a new earthmoving business after spending ten years operating excavators.

The ABN may be new, but the applicant's industry experience is not.

Selected lenders on the TAFS panel can consider newer businesses depending on the overall application.

7. Can You Arrange Low Doc Equipment Finance?

Ask:

What options are available if I do not have current financial statements?

Some businesses have strong current trading activity but do not have a complete set of up-to-date financial statements.

Selected lenders can assess low doc asset finance applications using information such as:

• Recent business bank statements
• ABN details
• Credit history
• Industry experience
• Current business activity
• Contracts
• Assets and liabilities
• Details of the equipment

TAFS has access to lenders that consider low doc applications using recent bank statements and other supporting information rather than requiring full financial statements in every case.

Low doc does not mean the lender does not assess the business.

It simply means the application can be assessed using a different set of supporting information.

8. Can You Finance Used Equipment?

If you are buying second-hand machinery or a commercial vehicle, ask:

Which lenders on your panel finance used equipment of this age?

Lenders can have different requirements around:

• Asset age
• Kilometres
• Operating hours
• Condition
• Purchase price
• Market value
• Remaining working life

Used equipment can be financed through selected lenders, but older or more specialised assets may require a different lender, a shorter finance term, an inspection or a valuation.

The important question is not simply whether the broker offers equipment finance.

It is whether they can finance the particular equipment you are buying.

9. Can You Finance a Private Sale?

Not every business asset is purchased from a dealership.

You may find a truck, excavator, tractor or piece of machinery through another business or private seller.

Ask:

Can you arrange finance for a private-sale asset?

Selected lenders can finance private-sale equipment, but the transaction may require additional checks.

These can include:

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

TAFS can coordinate private-sale information between the buyer, seller and lender.

This can be an important part of the broker's role because the settlement process can be more involved than a standard dealer transaction.

10. Can You Help With Auction Purchases?

If you buy equipment through auctions, ask:

Can you arrange pre-approval before I bid?

Auction purchases can have tight payment deadlines.

Pre-approval may help you understand:

• Approximate borrowing capacity
• Deposit requirements
• Suitable asset age
• Finance term
• Expected repayment
• Any lender conditions

Final approval will still depend on the asset you purchase.

Selected lenders can finance auction purchases, and pre-approval may be available depending on the application.

This can be particularly useful for businesses regularly purchasing:

• Excavators
• Skid steers
• Trucks
• Trailers
• Agricultural machinery
• Other used commercial equipment

11. What Finance Structure Are You Recommending?

The broker should be able to explain the actual finance structure.

Ask:

What structure are you recommending, and why does it suit this asset and my business?

The main asset finance product TAFS arranges for commercial vehicles and equipment is a chattel mortgage.

Under a chattel mortgage:

• The business owns the asset from settlement
• The lender registers a security interest over the asset
• The finance is repaid over an agreed term
• A deposit may be included
• A trade-in may contribute toward the purchase
• A balloon payment may be available
• The lender's security is removed once the finance has been repaid

Your broker should explain the finance clearly enough that you understand what you are agreeing to.

Tax treatment should be confirmed separately with your accountant.

12. How Long Should I Finance the Asset For?

Ask:

Why are you recommending this finance term?

The longest available finance term is not automatically the best option.

The term should be considered against:

• Asset age
• Expected working life
• Annual kilometres or operating hours
• Maintenance requirements
• Expected replacement date
• Business cash flow
• Balloon payment

For example, financing an older machine over a very long term could leave the business still making repayments when maintenance costs begin increasing.

A newer long-life asset may suit a different structure.

The broker should be able to explain why the proposed term suits the equipment rather than simply showing you the lowest possible repayment.

13. Should I Use a Balloon Payment?

Ask:

What happens to the repayment with and without a balloon?

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

It can:

• Reduce regular repayments
• Preserve more monthly cash flow
• Leave a larger final payment
• Affect the total interest paid

The right balloon should take into account:

• Asset value
• Expected resale value
• Replacement plans
• Finance term
• Business cash flow
• How long the business plans to keep the asset

A broker should be able to show you how different balloon amounts affect the repayment.

The lowest monthly payment is not automatically the strongest overall structure.

14. How Much Deposit Should I Use?

Ask:

Do I actually need a deposit, and how does changing the deposit affect the finance?

A deposit can:

• Reduce the amount financed
• Reduce the regular repayment
• Reduce total interest
• Improve the loan-to-value position

But a larger deposit also takes cash out of the business.

That cash may be needed for:

• Wages
• Fuel
• Suppliers
• Insurance
• Registration
• Repairs
• Tax obligations
• Stock
• Working capital

A good asset finance broker should consider what the business needs after settlement, not only how much cash can be contributed upfront.

15. Can I Use My Trade-In?

If you are replacing existing equipment, ask:

Can my trade-in equity be used toward the new purchase?

A trade-in can reduce the amount that needs to be financed.

Where the existing asset is still under finance, the current facility may need to be paid out as part of the transaction.

For example:

Trade-in value: $80,000
Existing finance payout: $50,000
Potential remaining equity: $30,000

That equity may then contribute toward the new asset.

The broker should be able to explain how the trade-in, payout and replacement finance work together.

16. What Documents Will I Need?

Ask this early.

What documents do you need from me now, and what may be required later?

The answer depends on the lender and application.

For an initial assessment, this may include:

• Driver's licence
• ABN details
• Recent business bank statements
• Existing finance information
• Industry experience
• Details of current work
• Assets and liabilities

Depending on the application, a lender may later request:

• BAS
• Financial statements
• Tax returns
• Contracts
• Accountant information
• Asset details
• Dealer invoice
• Private seller details
• Inspection
• Valuation

A good broker should tell you what is actually required rather than assuming every applicant needs the same paperwork.

17. How Quickly Can Approval Happen?

Ask:

What needs to be provided for this application to be assessed quickly?

Straightforward asset finance applications can sometimes be approved quickly when the correct information is available.

Approval speed can be affected by:

• Missing documents
• New business structures
• Limited financial information
• Older equipment
• Private sales
• Credit issues
• ATO debt
• Inspections
• Valuations
• More complex transactions

A broker should be realistic about the timing.

They should also tell you what can be done now to avoid unnecessary delays later.

18. Who Manages the Application After Approval?

Approval is not the end of the process.

Ask:

Who looks after the transaction from approval through to settlement?

Settlement can involve:

• Finance documents
• Dealer invoices
• Existing loan payouts
• Insurance
• Private seller information
• Asset checks
• Inspections
• Valuations
• Payment to the seller

An asset finance broker should remain involved through this part of the transaction.

TAFS coordinates lender requirements and the settlement process for commercial asset finance applications. Managing the process through settlement is an important part of the broker's role.

19. Can You Help With More Complex Applications?

Not every business has a completely standard finance profile.

Ask:

What happens if my application includes something outside a standard finance scenario?

This could include:

• New ABN
• Limited financial statements
• Previous credit issues
• ATO debt
• Older equipment
• Private sale
• Auction purchase
• Existing asset finance
• Several assets being financed
• A higher finance amount

The broker should be able to explain which parts of the application need to be addressed and which lenders may be suitable.

Selected lenders can consider ATO debt, used equipment, private sales and other applications that need a more tailored assessment.

Approval is always subject to the selected lender's criteria.

20. Why Are You Recommending This Lender?

This may be the best question of all.

Ask:

Why is this lender suited to my business and this asset?

A useful answer should be more specific than:

"They had the lowest rate."

The broker might explain that the lender:

• Accepts your ABN age
• Suits your documentation
• Finances the asset age
• Accepts private sales
• Offers an appropriate finance term
• Suits your credit position
• Provides the required finance amount
• Offers a structure that works with your cash flow

The broker should be able to explain the fit.

If they cannot explain why the lender was selected, you do not have much insight into how your application has actually been assessed.

21. What Will My Repayment Be?

Ask for the actual repayment, not just the interest rate.

The amount will be influenced by:

• Purchase price
• Finance amount
• Deposit
• Interest rate
• Finance term
• Balloon payment

Two loans with the same rate can have different repayments because they are structured differently.

Make sure you understand:

• Regular repayment
• Finance term
• Balloon
• Amount financed
• Total estimated amount repayable

This gives you a more complete picture than the advertised interest rate alone.

22. Does the Repayment Suit the Business?

This is ultimately more important than whether the finance can be approved.

A business should consider the repayment alongside the cost of actually operating the asset.

For a truck, that can include:

• Fuel
• Registration
• Insurance
• Repairs
• Servicing
• Tyres
• Tolls
• Driver costs

For machinery, it can include:

• Fuel
• Insurance
• Servicing
• Repairs
• Operators
• Transport
• Consumables

A finance repayment should leave enough room for the asset to operate and the business to maintain working capital.

Ask:

Does this structure still make sense after the operating costs are included?

What Does an Asset Finance Broker Actually Do?

An asset finance broker helps a business arrange finance for vehicles, machinery and commercial equipment.

The process can include:

Assessing the Business

The broker reviews information such as:

• ABN history
• Industry experience
• Credit profile
• Business bank statements
• Existing commitments

Understanding the Asset

The broker considers:

• Asset type
• Purchase price
• Age
• Seller
• Intended use

Comparing Lenders

Different lenders suit different transactions.

The broker identifies options from their lender panel based on the application.

Structuring the Finance

This can include:

• Finance amount
• Deposit
• Term
• Balloon
• Trade-in
• Existing loan payout

Preparing the Application

The broker coordinates the information required for the selected lender.

Managing Settlement

Once approved, the broker helps coordinate the finance documents and payment to the seller.

What Assets Can an Asset Finance Broker Help Finance?

Asset finance can cover a broad range of income-producing business assets.

Transport and Commercial Vehicles

• Prime movers
• Rigid trucks
• Tippers
• Trailers
• Vans
• Utes
• Refrigerated trucks
• Specialist commercial vehicles

Earthmoving and Construction

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

Agriculture

• Tractors
• Harvesters
• Headers
• Seeders
• Implements

Manufacturing and Business Equipment

• CNC machines
• Fabrication machinery
• Forklifts
• Production equipment
• Commercial equipment
• Other income-producing assets

TAFS provides asset finance for business vehicles and equipment including trucks, trailers, utes, excavators and machinery.

How Do You Compare Asset Finance Brokers in Australia?

When comparing Australia finance brokers, look at the entire process rather than one advertised number.

Consider:

• Lender access
• Bank and non-bank options
• Experience with your asset
• Internal credit support
• Soft credit-check process
• New ABN options
• Low doc options
• Used asset finance
• Private-sale capability
• Auction capability
• Communication
• Finance structuring
• Approval support
• Settlement support

The best asset finance broker for your business should understand both your circumstances and the asset you are buying.

Asset Finance Broker vs Bank

A bank and an asset finance broker play different roles.

Bank

A bank assesses your application against its own:

• Lending policy
• Asset requirements
• Documentation requirements
• Finance products

Asset Finance Broker

A broker can assess your application and compare lenders with different criteria.

That can be useful when the business wants to compare options or has:

• A newer ABN
• Low doc requirements
• Used equipment
• A private purchase
• An auction purchase
• A more complex credit position

A bank can still be a suitable option for many businesses.

The advantage of using a broker is having the application considered against a broader range of lender criteria before selecting where to apply.

Quick Checklist: What to Ask an Asset Finance Broker

Before choosing an asset finance broker, ask:

1. How many lenders can you access?
2. Does your panel include banks and non-bank lenders?
3. Do you regularly finance my type of asset?
4. How do you assess my application before submission?
5. Do you use a soft credit check first?
6. How many formal lender applications will be made?
7. Can you assist with newer ABNs?
8. Do you have low doc options?
9. Can you finance used equipment?
10. Can you finance private sales?
11. Can you arrange auction finance?
12. What finance structure are you recommending?
13. Why does the term suit this asset?
14. Should I use a balloon?
15. Do I need a deposit?
16. Can I use a trade-in?
17. What documents will I need?
18. How quickly could approval happen?
19. Who manages the transaction through settlement?
20. Why are you recommending this particular lender?
21. What will the repayment be?
22. What is the total estimated amount repayable?

You should understand the answers before proceeding.

Frequently Asked Questions

What Should I Ask an Asset Finance Broker?

Start by asking about lender access, experience with your asset, the credit assessment process, documentation requirements, finance structure and settlement support.

You should also ask why the broker is recommending a particular lender.

How Do I Choose Between Asset Finance Brokers in Australia?

Compare more than the interest rate.

Look at lender access, internal credit support, experience with commercial assets, how the broker handles your credit file, finance structuring and whether they manage the application through settlement.

How Many Lenders Should an Asset Finance Broker Have?

There is no required number.

A larger panel can provide access to different credit policies, but the broker also needs to understand which lenders suit each application.

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

Should I Ask About the Interest Rate?

Yes, but do not stop there.

Ask about:

• Finance amount
• Deposit
• Repayment
• Term
• Balloon
• Total estimated amount repayable

The complete finance structure matters more than one number.

Can Asset Finance Brokers Help With New ABNs?

Yes. Selected lenders consider newer businesses depending on the applicant's experience, financial position, source of work and asset being purchased.

Can Asset Finance Brokers Arrange Low Doc Finance?

Yes. Selected lenders can assess eligible applications using recent bank statements and other supporting information rather than requiring complete financial statements in every case.

Can Asset Finance Brokers Finance Used Equipment?

Yes.

The available options will depend on the asset's age, condition, purchase price, market value and expected working life.

Can an Asset Finance Broker Arrange Private-Sale Finance?

Yes. Selected lenders consider private-sale commercial assets.

Additional seller, ownership and asset checks may be required.

Can a Broker Help With Auction Finance?

Yes.

Selected lenders finance auction purchases, and pre-approval may be available before bidding depending on the application.

Does an Asset Finance Broker Apply to Multiple Lenders?

The process depends on the broker.

TAFS assesses the application internally before making the formal lender submission rather than simply sending the application to multiple lenders.

What Is the Main Asset Finance Product TAFS Arranges?

TAFS primarily arranges chattel mortgage finance for commercial vehicles, machinery and other business assets.

The business owns the asset from settlement while the lender registers security over it until the finance is repaid.

How Quickly Can Asset Finance Be Approved?

Straightforward applications with the required information available can be approved in as little as 24 hours through TAFS.

Applications involving newer businesses, private sales, older equipment, valuations or more complex circumstances may take longer.

Speak to TAFS About Asset Finance

TAFS can assess your business, proposed asset purchase and available documentation before comparing suitable options across 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.