Frequently asked questions
What is asset finance?
Asset finance is a broad term used for funding arrangements that allow a person or business to acquire an asset while spreading the cost over time. It commonly applies to vehicles, equipment, machinery and other commercial assets.
What kinds of assets can usually be financed?
Common examples include vehicles, construction equipment, heavy machinery, medical equipment, office equipment, fitout items, specialised tools, trailers and manufacturing assets.
What is the difference between leasing and hire purchase?
Structures vary, but leasing generally focuses on the use of the asset over a defined term, while hire purchase style arrangements are usually structured with eventual ownership in mind once the agreement is completed.
Do all applications require a deposit?
Not always. Deposit requirements can differ depending on the asset type, lender policy, borrower profile, business strength, credit history and the overall risk position of the application.
Can a new business get asset finance?
In some cases yes. Outcomes can depend on the directors, the quality of the asset, business purpose, available supporting information, income position and the overall proposal being put forward.
Can low doc borrowers access asset finance?
Some borrowers may be able to access low doc style options depending on the lender, asset type and strength of the file. The level of documentation required can vary widely.
How do lenders assess asset finance applications?
Assessment commonly looks at the borrower or business, repayment capacity, trading history, credit profile, asset value, asset use, deposit contribution and how comfortably the facility appears to fit within the applicant's financial position.
Is vehicle finance part of asset finance?
Yes. Vehicle finance is one of the most common forms of asset finance and can include personal vehicles, commercial vehicles, trucks, vans, utes and fleet related assets.
Can existing asset finance be refinanced?
In many situations yes. Existing facilities may be reviewed and potentially refinanced or restructured to improve cash flow, alter terms, consolidate debt or better suit the current business position.
Why is an asset finance FAQ useful before applying?
A detailed FAQ helps people understand structures, prepare better questions, gather useful supporting information and approach the process with stronger clarity.
What documents are commonly relevant?
Depending on the situation, useful documents may include identification, bank statements, business financials, BAS information, invoices or quotes for the asset, existing loan statements and business trading details.
Why does the asset itself matter in the application?
The asset often matters because lenders may look at its market value, age, usefulness, resale profile and suitability as part of their overall risk assessment.
Important note
This website is being built as an information resource. It is not a substitute for personalised financial, credit or legal advice. The purpose is to make asset finance topics easier to understand and easier to research.