Frequently Asked Questions

Asset finance provides an excellent opportunity for businesses to acquire the necessary equipment, machinery, or vehicles without the requirement of an upfront payment. Rather, they can opt for regular payments over a period, which facilitates better budget management.

Asset finance can be used to purchase a wide range of assets, including:

• Machinery and equipment: Manufacturing equipment, construction machinery, medical or dental equipment, landscaping equipment etc.
• Vehicles: Cars, trucks, vans, and buses.
• Specialised equipment: Commercial kitchen equipment (including appliances), Vending machines, Security systems, Furniture & fit-outs.
• IT equipment: Computers, servers, and software.

There are several types of asset finance available, including:

• Chattel mortgage: A loan secured against a specific asset.
• Hire purchase: A type of agreement where the business hires the asset with the option to purchase it at the end of the term.
• Lease: A rental agreement where the business can use the asset for a fixed period.
• Sale and leaseback: A transaction where a business sells an asset to a lender and then leases it back.

In order to be eligible for asset finance, it is generally required that you possess an active Australian Business Number (ABN) and fulfil the following conditions:

• A minimum of 6 months of trading history with your ABN.
• A monthly revenue of no less than $5,000.
• Recent bank statements covering a period of 6 to 12 months.
• While a good credit history is advantageous, certain lenders may still review applications that have minor credit concerns.

Generally, the following documents are required:

• Proof of identity (such as a driver’s license or passport)
• ABN details
• Recent bank statements (covering 6-12 months)
• Tax returns or financial statements

Yes, it's possible to refinance an existing asset finance agreement. This could prove advantageous if interest rates have decreased or if the financial condition of your business has enhanced.