How Much Revenue Do I Need for Equipment Finance?
Most Australian lenders do not set a strict minimum turnover limit for equipment finance, prioritizing net cash flow, credit history, and serviceability over top-line revenue.
How much turnover do lenders require?
Most Australian lenders do not set a rigid minimum turnover threshold for equipment finance. Instead of focusing solely on gross revenue, credit assessors evaluate your business cash flow and serviceability—ensuring your operational income comfortably covers existing debts, business overheads, and the proposed loan repayments.
For standard full-doc applications, having an annual turnover between $50,000 and $100,000 is often enough for smaller equipment purchases, provided profit margins are healthy. If your business holds an active ABN registered for GST and maintains a clean credit file, you may qualify for low doc equipment finance, which relies on bank statements or BAS rather than full tax returns.
The required revenue also depends on the asset type and loan structure. Financing standard primary assets like commercial vehicles or light machinery often carries lower turnover demands. If cash flow is tight, structuring the loan with a balloon payment can reduce monthly commitments to help meet lender serviceability criteria.
Because every lender calculates serviceability and turnover requirements differently, finding the right fit depends on your specific financial position. A Lonix broker can compare lenders across Australia and structure your equipment finance to match your cash flow and operational goals.
Related questions
- Can I get equipment finance with less than 12 months trading on my ABN?
- Yes, some specialized lenders offer equipment finance for newer ABN holders, though they may request a personal guarantee, a deposit, or proof of prior industry experience.
- Do I need to supply tax returns for low doc equipment finance?
- Generally no. Low doc equipment loans typically only require your ABN details, basic bank statements, or recent BAS to verify your turnover.
- How does a balloon payment lower my required turnover for serviceability?
- A balloon payment defers a portion of the loan principal to the end of the term, which lowers monthly repayments and makes serviceability easier to demonstrate on lower revenue.
- Will an existing ATO payment plan impact my ability to finance equipment?
- Many equipment lenders will still consider your application with an ATO debt, provided you can show a compliant payment plan and steady bank statement conduct.