Equipment Finance for Small Business Australia

Can Small Businesses Get Equipment Finance?

Absolutely. In fact, small businesses are the biggest users of asset finance in Australia. According to industry data, over 60% of Australian equipment finance goes to businesses with fewer than 20 employees.

Lenders assess the asset (the equipment being financed) as the primary security — not just your business size. A $50,000 CNC machine or a $30,000 mini excavator is tangible security that reduces the lender's risk, making approval more accessible than unsecured lending.

Finance Options for Small Business

Option	Min History	Deposit	Best For
Chattel Mortgage	6–12 months	0–10%	GST-registered businesses, ownership preferred
Finance Lease	6–12 months	0–10%	Businesses wanting lower payments with balloon
Rental/Operating Lease	3–6 months	None	Short-term needs, project-based work
Low-Doc Finance	12+ months	10–20%	Self-employed with limited financials
No-Doc Finance	24+ months	20–30%	Established businesses, fast approval needed

What Equipment Can You Finance?

Almost any business equipment that holds tangible value:

Construction — excavators, bobcats, compactors, scaffolding
Manufacturing — CNC machines, lathes, welders, compressors
Food & Hospitality — commercial ovens, refrigeration, coffee machines
Medical & Dental — X-ray machines, dental chairs, fit-outs
Transport — trucks, trailers, forklifts, pallet jacks
Agriculture — tractors, harvesters, irrigation systems
IT & Office — servers, phone systems, high-value technology

Lenders typically finance equipment valued from $5,000 to $5,000,000+. For items under $5,000, a business credit card or line of credit may be simpler.

Finance for Sole Traders

Sole traders have the same access to asset finance as companies and trusts. The key differences:

Personal liability — as a sole trader, you're personally liable for the finance (same as a company director giving a personal guarantee)
Tax treatment — deductions flow through your personal tax return, so the tax benefit depends on your marginal tax rate
GST — if you're GST registered (turnover over $75,000), you claim GST credits the same as any business
Low-doc options — sole traders often benefit from low-doc finance that relies on bank statements rather than financial statements

Equipment Finance for Startups

Startups face tighter requirements because they lack trading history. To improve your chances:

Save a larger deposit — 20–30% deposit significantly improves approval odds
Choose new equipment — lenders are more comfortable financing new equipment with manufacturer warranty
Provide a business plan — showing contracts, customer agreements, or industry experience helps
Use a specialist broker — brokers who specialise in startup finance know which lenders are most flexible
Consider rental first — renting equipment for 6–12 months builds trading history that makes future finance applications stronger

How to Improve Approval Chances

Clean credit file — check your credit report (free at Equifax) before applying. Pay off any defaults or judgements.
Stable bank statements — lenders review 3–6 months of business bank statements. Consistent deposits and no dishonours are key.
Current BAS lodgements — being up to date with BAS and tax returns signals a well-managed business.
Accurate application — don't overstate income or understate debts. Lenders verify everything and inconsistencies cause declines.
Right lender match — banks reject more applications than specialist lenders. A finance broker can match your profile to the right lender, improving first-time approval rates.

Frequently Asked Questions

Low-doc applications can be approved same-day for amounts under $150,000. Full-doc applications with financials typically take 2–5 business days. Rental agreements can sometimes be approved within hours.

Yes. Most lenders finance used equipment up to 10–15 years old (age at end of term). A valuation or inspection may be required for older or specialised items. Rates are typically 0.5–1.5% higher than new equipment.

Not always. Many lenders offer 100% finance for established businesses with good credit. Startups and businesses with limited history will usually need 10–30% deposit. A deposit always improves rates and approval chances.

Specialist lenders cater to businesses with impaired credit. You'll likely need a larger deposit (20–30%), pay higher rates (9–15%), and may be limited to shorter terms. The asset security makes approval more achievable than unsecured finance with bad credit.

Model Your Equipment Finance

Enter your equipment value, compare structures, and see projected repayments and tax deductions.

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