Equipment Finance Approval Checklist
Preparing your ABN details, recent bank statements, tax portal records, and equipment quotes before applying helps streamline equipment finance approval.
What should I prepare before applying?
Before applying for equipment finance, ensure your ABN or ACN is active and correctly registered. Lenders typically check your trading history, registration tenure, and whether you are registered for GST. You will also need to provide valid primary identification, such as an Australian driver's licence or passport, for all ultimate beneficial owners and business directors.
Next, gather your financial documentation. Full-doc applications generally require two years of accountant-prepared financial statements, business tax returns, and recent ATO integrated client account statements. If you qualify for a low-doc policy, lenders may only ask for six months of business bank statements or a simple declaration of financial standing, provided your business meets minimum trading rules.
You must also outline the details of the asset you intend to purchase. Prepare a formal tax invoice or supplier quote specifying the make, model, year, serial number, and purchase price. If the equipment is being bought privately or involves a balloon payment at the end of the term, additional valuation or inspection reports may be required by the credit assessor.
Navigating different lender criteria can be complex, but working with a Lonix broker simplifies the process. A Lonix broker can compare options across multiple Australian lenders, align your financial profile with the right policy, and structure your equipment loan to suit your ongoing cash flow needs.
Related questions
- Can I get equipment finance without full financial statements?
- Yes, many Australian lenders offer low-doc equipment finance requiring only bank statements or a self-declaration, provided your ABN has been active for a set period.
- How does an ATO integrated client account affect my application?
- Lenders review your ATO portal statements to ensure tax obligations are paid on time or managed under an approved payment plan, which directly impacts serviceability.
- Is a deposit or balloon payment required for equipment finance?
- Deposits are not always mandatory, though opting for a balloon payment at the end of the loan term can reduce your regular monthly repayments.
- Does my credit file get checked during the approval process?
- Yes, lenders perform a credit check on the business entity and its key directors to evaluate repayment history before granting loan approval.