Asset finance is a type of commercial financing that helps businesses acquire essential assets, such as vehicles, equipment and machinery, by spreading the cost over a set period, typically between one and five years. This allows businesses to get the resources they need without large upfront costs.
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What are the different types of asset finance?
In Australia, companies have a variety of asset finance options available:
- Chattel mortgage: a chattel mortgage is a type of loan that allows businesses to own the asset from the start. You can claim depreciation and potentially recover GST on the purchase price in your next BAS.
- Finance lease: with this option, the lender owns the asset, and the business leases it with the option to purchase at the end of the term. Lease payments are tax-deductible, and you take ownership when the lease concludes.
- Operating lease: this arrangement can be ideal for leasing vehicles for shorter-term use, allowing businesses to use then return them at the end of the term without any ownership obligations. Maintenance costs can sometimes be bundled into monthly payments, making this a cost-effective option for short-term needs.
With these options, businesses can choose how they finance assets based on their tax objectives, ownership preferences and operational requirements.
What assets can I cover with asset finance?
Asset finance allows businesses to obtain nearly any type of equipment or asset required for daily operations, making it suitable for a wide range of industries, from construction and agriculture to IT, healthcare and retail. This includes:
- Vehicles: cars, trucks, vans and commercial fleet vehicles can be financed to keep your business moving.
- Heavy machinery: equipment for construction, mining, manufacturing and other industrial applications, including excavators, cranes and forklifts.
- Agricultural equipment: farm machinery like tractors, harvesters and irrigation systems, ideal for agribusinesses.
- Medical and dental equipment: specialist devices, diagnostic tools and machinery for healthcare facilities.
- Office equipment and technology: computers, printers and IT infrastructure for day-to-day operations.
- Point-of-Sale systems and cash registers: essential for retail and hospitality sectors to manage sales and transactions.
- Security systems: alarms, cameras and surveillance equipment for office or site safety.
- Green assets: solar panels, energy-efficient machinery and electric vehicles.
You can finance either new or second-hand equipment and vehicles, giving your business a broader range of options while potentially saving on upfront costs. However, be aware that lenders often set conditions for second-hand assets, such as a minimum valuation or age limit, especially for vehicles.
What do asset finance brokers do?
Asset finance brokers help businesses secure funding for equipment, vehicles and machinery by connecting them with a wide range of lenders. Unlike going directly to a single lender, brokers offer access to multiple finance providers, increasing your chances of finding the best deal with competitive rates and flexible terms.
At Savvy, our expert brokers handle the entire process – from comparing loan options to managing paperwork and negotiating with lenders – saving you time and effort. We work with an extensive lender panel, ensuring you get tailored solutions that meet your business needs.
Our brokers are also on hand to help you understand lender requirements and avoid common pitfalls that could delay or affect your application. Their in-depth knowledge of the market allows them to match you with products that offer real value, whether you’re upgrading equipment, purchasing vehicles, or expanding operations. By creating lender competition, brokers help secure better deals for your business.
The benefits of asset finance
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Improved cash flow
Asset finance enables your business to acquire essential equipment without large upfront payments. This preserves cash flow, allowing you to allocate funds toward other operational needs and growth opportunities.
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Access to high-value assets
You can secure machinery, vehicles and technology that might be otherwise unaffordable, especially if you are a new company. This can help your business expand, boost productivity and stay competitive.
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Flexible repayment options
You may have the option to choose fixed or variable interest rates, match repayments to cash flow cycles or set a residual value, helping you manage finances effectively.
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Tax benefits
Many asset finance options allow you to claim tax deductions, such as on interest payments and depreciation. Depending on your finance type, you may also be able to claim back GST, providing additional financial relief.
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Quick access to equipment
Approval for asset finance can be fast, which means you can access the equipment quickly. This can help you meet urgent operational needs or take advantage of growth opportunities without delay.
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How to apply for asset finance with Savvy
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Tell us about yourself and what you want to buy
Fill out our simple online application form. This will tell us details like what you want to buy, how much you need and your business’ structure, revenue and trading time.
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Send through any required documentation
We may require further information in some cases to verify parts of your application. If this is the case, we’ll ask you to submit additional documents via our online portal.
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Discuss your next steps with a Savvy consultant
Once we get all the info we need, we’ll get to work comparing options from our lender panel. A member of our consultant team will give you a call to talk about your options.
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Submit your application for formal approval
If you're happy with the deal, we’ll get to work preparing your application to submit to your lender. This can be formally approved as soon as within 24 hours.
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Sign your contract and settle the deal
Once approved, you’ll be sent all the required contracts and forms to sign electronically. We’ll handle settlement and the asset can be yours before you know it!
Commercial loan eligibility and documentation
Eligibility
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Age
You must be at least 18 years of age
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Residency
You must be an Australian citizen or permanent resident (or, in some cases, an eligible visa holder)
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ABN registration
Have an ABN registered in your name (available from as soon as one day after registration)
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Usage
Meet commercial asset usage requirements (at least 51% of total usage)
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Credit score
You must meet your lender’s minimum personal and business credit score requirements
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Commercial asset
The asset you choose to buy must meet your lender’s requirements in relation to its type, age and condition
Documents
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Personal information
Such as your full name, date of birth, address and contact details
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Driver's licence
Front and back (or another form of government-issued ID)
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Assets and liabilities
Information about your business’ assets and liabilities, as well as those in your name
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Asset details
Information about your asset, including its model and age, is worthwhile having on hand
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Business statements
Business Activity Statements (BAS) and business bank statements may be requested, but not always
