asset finance Wollongong

Asset finance is lending secured against the equipment or vehicle being purchased rather than against property. It preserves your working capital and existing lines of credit. Common uses include:

• Commercial vehicles, utes, trucks and trailers

• Earthmoving and construction plant

• Manufacturing and processing equipment

• Medical, dental and veterinary equipment

• Commercial kitchen fitouts and hospitality equipment

• IT hardware, printing and office equipment

• Agricultural machinery

Who uses it in Wollongong

Construction, transport, manufacturing, medical, hospitality and professional services businesses across the Wollongong area. For a private vehicle rather than a business one, a car loan is the right product.

Matching the term to the asset

Terms usually run two to seven years and should match the useful life of the asset. Financing a five year asset over seven years leaves you paying for equipment you have already replaced. Where the funding is for something other than an asset, compare against a business loan.

Choose a chattel mortgage if you want to own the asset and claim depreciation, a finance lease if you prefer the financier to own it, or rental if you refresh equipment regularly.

Chattel mortgage

You own the asset from day one and the financier registers a security interest over it. The asset sits on your balance sheet, you claim depreciation, and if you are registered for GST on an accruals basis you can generally claim the GST on the purchase price in your next activity statement.

Finance lease

The financier owns the asset and leases it to you. Lease payments are generally deductible and GST applies to each payment rather than upfront. There is a residual value at the end.

Rental or operating lease

A hire arrangement with no ownership intent, often used for technology you want to refresh regularly. Payments are treated as an operating expense.

The right choice depends on your GST position, accounting method and how long you intend to keep the asset. If you are also planning a residential purchase, note that these structures affect your home loan assessment as a business owner. We are happy to speak with your accountant directly.

Yes to both, though the terms tighten. The main constraint on used assets is the asset's age at the end of the loan term rather than at purchase.

Used equipment and vehicles

Older assets attract shorter terms and higher rates, and beyond a certain age some financiers will decline outright.

Private sales

Fundable, but with extra steps. The financier requires a PPSR check to confirm no existing security is registered over the asset, evidence of the seller's ownership, and often an independent inspection or valuation. Payment goes directly to the seller rather than to you.

Auction purchases

Common in plant and machinery and generally acceptable, though you should have approval in place before bidding because auction settlement terms are short.

Specialised or unusual assets, heavily modified equipment and imported machinery need a financier with genuine appetite for that category. Getting that match right first time avoids a string of declines marking your credit file, which then affects your wider business lending.

Often not. Asset finance has some of the most flexible documentation requirements in commercial lending, and low documentation approvals are widely available.

Low documentation

Typically requires an ABN registered for a minimum period, GST registration, clean credit and sometimes evidence of property ownership. Applicants who own property, known as asset backed borrowers, can frequently access higher limits with minimal financial information. Our low doc loans page explains how these are assessed.

Full documentation

Uses tax returns and financial statements. Delivers better rates and higher limits, and is worth preparing where the asset is significant.

New businesses

Start ups can still be funded, usually with a director's guarantee, a deposit contribution and pricing reflecting the shorter trading history.

Five details decide your outcome: ABN age, GST registration, credit history, whether you own property and the type of asset. If you are a sole trader, the assessment differs again. Give us those details and we can tell you very quickly which lenders will approve you.