Start-up equipment finance is available on a wide range of yellow goods, machinery and other assets for new businesses without full financial documentation. Providing a workable way forward for those planning to set up a new venture to kick off the 2025/26 financial year. Acquiring machines such as loaders, dozers, backhoes and other wheeled goods can be an ideal starting point to operating your own business. Computer equipment, essential to all business operations, can also be financed on a low doc or no doc basis.
Access to the specialist non-bank lenders that offer loan approval without complete financials is made possible through Jade. We assist and support new operators to get their start with workable financing at affordable rates. We outline what new operators can expect when applying for loans without financials, the requirements, and the credit options and opportunities available.
What is start-up equipment finance?
Applying for asset financing requires completing a commercial credit application form. Lenders request documents to show the financials of the business and the turnover for the past 12 months at least. The documentation requested includes annual tax returns, annual business accounts, bank statements, BAS returns and other financials. Other essential criteria such as 12-24 months in business and minimum turnover figures are required by some lenders.
New businesses, many that may not yet have been trading, do not meet these criteria. Start-up equipment finance are loans for those businesses. Businesses starting up or which have only been in operation for less than 12 months. These loans are known as without financials, low docs, no docs, and often ABN-only loans. The references are a description of the type of application or the operation. They are not specific loan facilities or products. The category can comprise a company structure, a partnership arrangement, or a one-person operation.
Requirements for Start-up Equipment Finance
Requirements for no docs or low docs financing can vary with lenders and for individual business operators. Essential for eligibility for all commercial credit products is providing ID and holding an ABN. The ABN can be recently attained. GST registration is considered a plus by some lenders but is not an essential eligibility requirement. Operators should note that under Australian tax regulations, any business that records an annual turnover of $75,000 or greater is required to register to pay, charge and claim GST.
The stronger the application in regard to financial information, the greater the potential for approval and a better loan offer. Businesses that do not have accountant-prepared financials are encouraged to prepare and present what financial details they do have available. In addition to turnover for any work already carried out, operators may include a business plan and other supporting information.
The personal financial position and documents of the owner of the operation will usually be requested by lenders to support a no financials business loan application. Operators should expect to have personal tax returns and other financial documents requested and that their personal credit rating will also be checked.
New operators should also be prepared for special requirements or conditions attached to any loan offer. This may include providing loan security as well as the equipment being financed. Cars, boats, property and other assets may be provided as loan collateral. A personal guarantee may meet the approval requirements of some lenders.
Start-up Equipment Finance Products
New businesses have access to the complete selection of asset finance facilities when their application is approved. Operators should select the loan product that is compatible with their accounting approach and the goals they have for their business. Choose from Lease, Rent-to-Own, Chattel Mortgage and Commercial Hire Purchase. Seeking advice from an accountant is recommended when choosing the most suitable loan facility.
Interest rates on Low Docs asset finance can be higher than for businesses that have complete financials. But our brokers will be sourcing the best possible rate for you from across our large lender base. The interest rate will be fixed. Asset finance includes fixed terms and fixed repayments.
Low Docs loans include all the features and benefits of fully documented loans – balloons, residuals, buybacks, and tax deductions. For budgeting purposes, get a rough estimate on your possible loan payments by using our Equipment Finance Calculator with our displayed rates or another rate.
Eligible Machinery for Start-up Equipment Finance
All types of assets used in a commercial enterprise may be financed with Low Docs loans. This includes yellow and wheeled goods for construction and agriculture from leading names such as CASE, John Deere, CAT and others. Computers and other equipment used in all industries may be financed without full financials.
When considering a new versus a used unit, be aware that interest rates on used goods may be higher than new, and that the lender will need to approve your loan limit. Getting a pre-approved Low Docs Machine Loan can assist operators to better choose machines within their loan limits.
To apply before you buy for start-up equipment finance, speak with Jade Equipment Finance on 1300 000 003.
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.
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