Equipment Finance for Companies
What companies need to provide, who guarantees the facility, and how entity structure affects an equipment finance approval.
How do companies obtain equipment finance?
Entity structure changes the paperwork, not the availability of finance. Australian asset lenders fund sole traders, partnerships, companies and trusts every day — what varies is who signs, who guarantees and what evidence the lender needs to confirm the borrowing entity is properly constituted.
For companies, the lender will verify the ABN and its registration date, GST status, and the identity and credit position of every director, trustee or principal. Companies almost always provide director guarantees. Trusts must supply the trust deed so the lender can confirm the trustee has power to borrow and grant security; where a corporate trustee is used, its directors normally guarantee as well. Partnerships typically require all partners to be party to the contract.
Beyond that, the assessment is the same as any other deal: the asset and its resale value, time in business, credit conduct, and whether the directors own property. Established, property-backed applicants regularly obtain low doc approvals with no financials, while newer entities may be asked for bank statements, BAS or a deposit of 10–20 per cent.
Getting the entity details, deed and guarantor information ready at the outset avoids the most common cause of delay. A Lonix broker will tell you exactly what your structure requires before the application is lodged.
Related questions
- Who has to guarantee the loan?
- Directors, trustees or partners generally provide personal guarantees regardless of entity type.
- Will the lender want the trust deed?
- Yes, where a trust is borrowing. The lender must confirm the trustee has power to borrow and grant security.
- Does the entity's age matter?
- Yes. A recently registered entity is assessed more closely, though director experience and property can offset it.
- Can I change the borrowing entity later?
- Only by refinancing into the new entity, which is treated as a fresh application.