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No-Financials Equipment Finance Explained

Why some equipment purchases can be assessed without full business financials

No-Financials Equipment Finance: What Lenders Ask and Why It's Faster

Glenn Bowles, Broadlink

Published · Updated

You've found the machine and the price is agreed. The last thing you want is to wait weeks while your accountant pulls together financials. For many equipment purchases, you may not have to.

A number of Australian lenders offer a streamlined “no-financials” assessment for chattel mortgage, hire purchase and lease. Depending on your situation, that can mean little or no business financial information is needed to apply.

Why lenders offer no-financials applications

A streamlined assessment takes less of a lender's time to process than a full financial review. That helps lenders respond faster, and it's part of how they compete for business customers who need equipment quickly. That's common across regional Queensland, where a contractor, farmer or tradie may need to secure a machine before someone else does.

A broker's role is to put your application to lenders whose policies suit it, so lenders compete on what matters to you:

  • Price
  • Ease of application
  • Speed of response

What lenders typically ask

Each lender sets its own rules for when it will accept a streamlined application. Expect questions like:

  • Is the equipment new or used?
  • If used, how old is it, and how old will it be at the end of the finance term?
  • Are you buying from a dealer or a private seller?
  • What type of equipment is it?
  • How much finance do you need?
  • How long has the business been operating?
  • Do you or the business own property?

Depending on the combined answers, a lender may need no financial information, a reduced amount, or a full application.

Two lenders can look at the same purchase very differently. One might be comfortable with a used machine from a dealer but not a private sale. Another might accept a private sale but set tighter limits on the age of the equipment. Policies change often, and some come and go entirely. That's why it helps to have someone who deals with them every day.

Check whether your purchase is likely to qualify

Our No-Financials Quick Assessment asks a few short questions and tells you whether a streamlined application looks likely, maybe or unlikely. It isn't an approval or a borrowing limit, just a quick read before you spend time on paperwork.

Prefer to talk it through? Contact us and we'll look at your scenario.

Choice doesn’t have to come at a cost

We don't charge customers a fee for arranging finance; the lender pays the broker. In rare cases there may be an upfront charge for a specific extra service the lender doesn't cover, such as an equipment inspection. Lenders may charge their own establishment fees, and government fees can apply depending on the finance type.
How brokers are paid.

For your next equipment purchase, consider a business finance broker who works with equipment finance every day. We facilitate your finance application with a range of lenders.

Related reading: Equipment Finance Broker vs Bank · Replacement Equipment Finance · Equipment Finance

Disclaimer: The information in this article is general in nature. It is not tax, legal, investment, accounting or financial advice. Consider whether it suits your circumstances and, where appropriate, get your own professional advice.

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