Applying for business or equipment finance? What to prepare first
Updated: 2 days ago
Checked 28 September 2026 · About 7 minutes
In brief
Lenders want to see that the business can repay: recent financials, tax lodgements and bank statements tell that story.
For vehicles and equipment, the asset itself matters: a tax invoice, or for a private sale, registration details and a PPSR check.
Low-doc options exist for some self-employed borrowers, usually at a higher rate. They still need evidence of income.
Business loans have fewer consumer protections than personal loans, so read the terms carefully.
What lenders look for
A business lender is asking two questions: can the business afford the repayments, and what happens if it can't? Your documents answer the first. Security, guarantees and your credit history answer the second.
The clearer and more up to date your figures are, the fewer follow-up questions you will get.
Be clear about what the money is for
Buying a specific machine is a different request from working capital, buying another business or buying premises. The purpose shapes the likely product, the term, the repayments, the security and the documents needed. Before applying, know the amount, what it pays for and how it helps the business.
Documents to have ready
ID for each director or owner, and the ABN and ACN
Two years of business tax returns and financial statements (profit and loss, balance sheet)
Year-to-date figures, or access to your accounting software
Recent business activity statements (BAS) and your ATO portal summary
Six to twelve months of business bank statements
Details of existing business debts and leases
Trust deed or company documents, if you trade through a trust or company
For a purchase: the quote or tax invoice, or the seller's details
Requirements vary by lender. Some also ask for a business plan or cash flow forecast, especially for a newer business or a larger amount.
Match the term to the purpose
The lowest monthly repayment isn't always the best structure. A longer term eases cash flow but usually costs more interest; a very short term can strain working capital. Where the finance is tied to an asset, its useful life and how long you expect to keep it are good guides.
Buying a vehicle or equipment
Equipment finance is usually secured by the asset being bought. From a dealer, the lender will want a tax invoice made out to the business. For a private sale, expect to provide the registration papers and an inspection, and a PPSR search to confirm there is no money owing on the asset. Some lenders also require the ABN to have been held for a minimum time, often 12 months or more.
Security and guarantees
A business loan may be secured by the asset being financed, by property or by other business assets, or it may be unsecured. Directors are often asked for personal guarantees. Understand what you are offering as security and what a guarantee would mean for you before you sign.
If your records are behind: low-doc lending
Low-doc lending verifies income with other evidence, such as BAS, business bank statements or an accountant's declaration, instead of full tax returns. It is aimed at self-employed borrowers who have traded for a while but whose returns aren't up to date. It usually costs more than a full-doc loan, and it is still assessed.
Explain anything unusual
Late payments, tax debts, large one-off transfers, weak months or sudden changes in trading will draw questions. They don't automatically rule out finance, but unexplained issues create doubt. If there is a good reason, give the context and evidence up front.
Tax: the instant asset write-off
For businesses with aggregated turnover under $10 million, assets costing less than $20,000 each can be written off in the year they are first used or installed. This threshold is now law and permanent from 1 July 2026. Talk to your accountant about how it applies to a financed purchase.
Protections are different for business loans
The National Credit Code covers credit that is wholly or mainly for personal, household or residential investment purposes. Credit mainly for business is generally outside it. Some protections still apply: rules against misleading and unconscionable conduct, unfair contract terms for small business contracts, and access to AFCA for complaints from small businesses.
Because of this, it is worth reading the fees, guarantees and default terms with care before you sign.
Common questions
Do all business loans need property as security?
No. Many are secured by the asset being bought, some by other business assets, and some are unsecured. Property security can widen the options or improve the terms.
Can a new business get finance?
Often, but the options are narrower with a short trading history. Lenders put more weight on the deposit, security, the owners' experience, contracts and forecasts.
Should I apply to several lenders at once?
Usually not. Each application can leave an enquiry on your credit file. It is better to work out which lenders suit the request first, then apply where it fits.
Try the numbers
Use our Repayments calculator to test the repayment against your monthly cash flow.
Talk it through
Buying a vehicle or equipment? Request an equipment or vehicle quote
Sources
business.gov.au, apply for a business loan, 18 February 2026
ATO, instant asset write-off, updated 28 August 2026
ASIC, National Credit Code
General information only. This article does not take into account your objectives, financial situation or needs. Your full financial situation and requirements must be considered before any offer or acceptance of a loan product. It is not tax or legal advice; speak with your accountant or adviser. All lending is subject to the lender's assessment and criteria, and fees and charges apply. Figures and rules are correct as at the checked date shown and can change.
Avantgarde Financial Brokerage Pty Ltd, Corporate Credit Representative 580346, authorised under Australian Credit Licence 389328 held by Connective Credit Services Pty Ltd.
