Sole Trader Equipment Finance: What Lenders Tend to Ask
Running as a sole trader does not rule you out, but you will be asked different questions. Here is what to have ready.
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Equipment finance guide
Know the spec before you sign.
Independent, plain-English guides for owner-operators and small businesses weighing up finance for tools, vehicles, machines and fit-outs. Learn how it works first, then start an enquiry when you are ready.
- Free to enquire
- No obligation
- Independent guides, not a lender
- Learn more at ASIC MoneySmart
Guides by equipment type
Equipment finance explained
What it is, who offers it, and the building blocks of a deal.
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Chattel mortgage vs lease
Ownership, GST, tax treatment and end-of-term, side by side.
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Trade and construction
Utes, tools, trailers and site gear for tradies and contractors.
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Kitchen, medical, office
Specialist equipment that loses value differently to a truck.
Read the guide →Typical deal spec
| Asset | Equipment used to earn income in the business |
|---|---|
| Structure | Chattel mortgage, finance lease or rental |
| Term | Commonly 1 to 7 years, depending on the asset |
| Repayments | Usually monthly; sometimes with a balloon |
| Security | Often the equipment itself |
| Rate | Varies by lender, asset age and your profile |
Before you apply
- Get a supplier quote or invoice for the asset.
- Have your ABN, business structure and ownership details handy.
- Know roughly how long the business has been trading.
- Decide how you plan to treat the asset for tax, and check with your accountant.
- Compare the total cost, not just the weekly figure.
Looking to upgrade? You can also sell your old equipment to put funds towards the next one.
Latest from the guide
New or Used Equipment? How Finance Changes the Maths
The cheaper used machine is not always the cheaper deal once age limits, terms and rates are in the picture. Here is how to compare properly.
Read articleBalloon Payments Explained for Equipment Loans
A balloon lowers your monthly repayment but leaves a lump sum at the end. Here is when it helps, when it bites, and what to plan for.
Read articleReady to talk equipment finance?
Enquiries are free and there is no obligation. Compare the total cost and terms before you agree to anything.
How an enquiry works
- Read up. Use these guides to understand the options and the questions to ask.
- Gather the basics. Quote, ABN, trading history and ID for owners or directors.
- Start an enquiry through Fast Funding, our referral partner for finance enquiries.
- Compare and decide. Check the total cost, fees and terms before agreeing to anything.
Note. Finance For Equipment is an information site. We do not lend money or make credit decisions, and nothing here is a guarantee of approval or of any rate.