FAQ's

Equipment Finance FAQ's

Find answers to your frequently asked questions

Eligibility & Requirements

What documents do I need to apply for equipment finance?

Typically, you’ll need a valid ABN, your ID documents (driver’s licence & Medicare card) and residential address verification (a recent rates notice or utilities bill if renting). You will also be asked to sign a Privacy Disclosure & Consent form enabling the lender to access and store your personal information.

Depending on your personal circumstances and/or proposed loan value, you may also be required to provide your business bank statements (6-12 months), ATO portal statements, your last 2 years' financials (tax returns, BAS, or profit/loss if available) and a current commitment schedule.

Can I get approved if my business is new or has a low credit score?

Yes. Some lenders offer leniency for borrowers with adverse credit, such as paid and unpaid defaults or previous insolvencies. Rates may be higher, and more security or a larger deposit may be required.

Do I need a deposit or can I finance 100% of the equipment cost?

Most lenders offer 100% financing, though some may require a deposit based on your credit profile or property-ownership status. While property security is not required to secure finance, non-property owners may require a 10 - 20% deposit in cash or additional security.

How long does the approval process take?

Simple applications can be approved within 24–48 hours, while more complex deals (e.g. large amounts or full-doc applications) may take up to a week.

Loan Types & Options

What’s the difference between a chattel mortgage, lease, and hire purchase?

Chattel Mortgage: You own the asset; the lender takes a mortgage over it.
Finance Lease: The lender owns the asset; you lease it back.
Hire Purchase: You make payments with the option to own at the end.

Which type of finance is best for tax purposes?

A chattel mortgage is often preferred for claiming GST upfront and accessing the depreciation benefits or instant asset write-off. We recommend speaking to your accountant to determine what type of finance best suits your situation.

Can I get pre-approved before choosing the equipment?

Yes. Many lenders offer conditional pre-approvals so you can shop with confidence. Pre-approval may be valid for up to 3 months with the option to extend for another 3 months provided there have been no material changes in your business circumstances (e.g. a change in management structure or ownership, adverse information on your credit file).

Can I finance second-hand equipment or private sales?

Yes, though terms may vary and rates may be higher. Some lenders are more cautious with used equipment, especially from private sellers, while other don't impose any restrictions on the age of the asset. Private sales require third-party verification prior to full approval which is often performed via virtual inspection