Low doc approval up to $250,000

100% funding possible

Asset-backed funding

Loan term is 2-7 yrs

Weekly / Fortnightly / Monthly repayment methods

What is asset finance?

An asset could be anything that depreciates over a period of time. It could be a vehicle, equipment, fit-outs or plant & machinery in the business.

An asset finance is a financing option that helps business owners to secure the essential tools and machinery needed for their business without paying a huge amount of money upfront.

It’s important to have the asset you need at the right time to maintain your business growth. Whether you have to buy a new or used vehicle or equipment, financing that asset may be the best-suited option for your small business as costly assets may be out of budget to purchase outright.

Asset loans are backed by the underlying assets to be purchased so no additional security is required in most of the cases.

Are you eligible?

  • Must have an active ABN
  • Business is GST registered
  • Trading for at least 6 months

Our loan guide

Asset Finance

Loan amount

$10k- $1M

Interest rates from

6.25% p.a.

Loan term

2-5 years

Pre-approval time

24 hours – 72 hours

Unconditional approval & settlement time

3-5 days

Repayments

Weekly / Fortnightly / Monthly

Security

Secured against underlying asset financed. May not require real estate security in most of the cases. No real estate security required

What you need to know

Can be used for

Business purpose

Documents required (low doc approval)

Up to $250k basis

Last 6 months bank statement.

Asset liability statement

Asset detailed to be purchased/Purchase order

Valid identification proof of the business owner.

Documents required (full doc approval)

More than $250k basis following additional docs

Financial statements

Rates notice (if you own a property)

Benefits

Can get up to 100% funded

No real estate security required

Free up cash flow of the business

*The information provided in critical information sheet is intended as a guide only. Please contact us for more information.

Secure Your Tomorrow Today: Asset Finance that Fits Your Vision

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Types of assets than can be financed

Businesses operating in different industry could have different asset requirements and most of them can be financed through any of the above-mentioned options. Some of the most popular asset finance options are listed below

What you should know about asset financing

Have questions? Speak to our experts!

What you should know about asset financing

We understand that you might be needing a vehicle or equipment urgently to fulfil your business However, there are few vital things which you should avoid while applying for vehicle and equipment financing.

  • Randomly applying with multiple lenders
  • Not applying honestly
  • Excessive borrowing
  • Applying in quick succession.
  • Allowing multiple credit checks

Finding the vehicle and equipment finance with the right rate and terms could be stressful and one can often miss the things to avoid on the lookout. We work with our customers to find the best-suited loan for their businesses and help them avoid these mistakes. Simply complete the application form or send us a message and one of our lending specialists will be in touch to discuss your financing requirement.

What are the benefits & disadvantages?

Benefits

No need for large money upfront to purchase a vehicle or equipment needed.

Free up cash for business expenses and other opportunities

Requires less documentation

Available for a longer-term between 2 to 5 years

Available at a lower interest rate

You can get funded even with an average credit score

Backed by the underlying asset and does not require real estate security in most cases

Disadvantages

You cannot sell or dispose of the vehicle or equipment unless the loan is repaid

A lender can charge early repayment fees on a vehicle or equipment finance

Should you lease or buy?

Whether you need a vehicle or a piece of equipment to expand your business or to improve the productivity of the operation, you often come to this question: should I buy or lease?

As each of them has a different impact on your working capital, there are some factors you should consider before making a decision:

The lease term of an asset can range from 24 months to 60 months depending on the provider. If you’re planning to the asset for a longer-term, it might be cost-effective to buy the asset.

Signing a lease contract longer than the life expectancy of the asset is unwise. For instance, signing 5 years lease contract on a computer that typically becomes outdated after 3 years doesn’t feel right.

If your business is seasonal, you might find that you only need the extra assets during a certain time of the year. It might be better to lease the assets in this case.

You might prefer to lease the assets if you think they need frequent upgrades or maintenance, as those costs will be covered by the lease provider.

If the ownership of the assets belongs to your business, you can claim depreciation, tax, and other benefits. With leasing, there are no tax benefits that come with it.

What documents are required to apply for asset finance?

Low Doc

In most cases, vehicle and equipment loans up to $150k get low doc approval just basis the following documents.

  • Last 6 months bank statements.
  • Asset details to be purchased.
  • Asset Liability statement
  • Valid identification proof of the business owner.

Full Doc

For a vehicle or equipment finance of more than $150k, you may require submitting the following additional documents

  • Financial statements
  • Rates notice (if you own a property)

What do lenders look at while financing an asset?

Generally, lenders give different weightage to different kind of asset to be financed considering the risk attached to each category of assets.

Potential tax benefits for financing assets through different modes of financing

Every finance structure of the asset finance has different ways of claiming tax deductions. Depending on the finance you choose to finance your asset, you might be able to claim depreciation, interest, or lease payments.

You will be able to claim the interest payment of financing the loan as well as the depreciation on the assets because you are immediately the owner of the asset at the beginning of the finance.

Since you will only become the owner of the asset after making the final payment, you won’t be able to claim depreciation. However, you can still claim the interest cost that comes with financing the asset.

Operating and Finance Lease payments are fully tax-deductible. However, you won’t be able to claim the depreciation cost of the asset as you are not the owner of it.

As every finance structure has different ways of claiming tax deductions, we recommend that you seek independent tax advice to find the best-suited finance structure for your business.

How do I apply for a Asset/Equipment finance?

1.

Submit application

2.

Preapproval

3.

Choose the right asset and supplier

4.

Finalize the financing and Settle

5.

Take delivery of your asset

What are your options for finance assets?

There are multiple ways to get an asset financed. Some of the popular methods of financing assets are listed below

Commercial hire purchase (CHP)

By “hiring” a machine, you don’t own the asset, but you are entitled to use it while paying it off. When the last payment is made, the asset becomes officially yours.

Benefits

Potentially tax-deductible on repayments made

Payments can be more flexible

Interest and fees can be claimed in the context of tax

A residual payment option available to reduce monthly repayments

Disadvantages

Ownership will only be transferred to you after the final payment is made

Chattel mortgage

Your business can claim the full ownership of the asset. To qualify for business to finance, 51% of its use must be for business purpose

Benefits

Immediate asset ownership

Business can claim GST

No additional security needed

Depreciation and other tax-deductible benefits can be obtained

Competitive rates of interest

Disadvantages

Unable to sell or upgrade the vehicle/equipment until all repayments are made or refinanced by the buyer

Finance / operating lease

Paying a regular “rental” fee to use the vehicle/equipment you need. Suitable for owners that want to use the assets for a shorter period.

Benefits

Lower upfront cost

Able to upgrade the assets during the lease term

Potential tax benefits

Option to purchase asset at the end of the lease.

Doesn’t require a deposit or security

Disadvantages

You will never own the asset but have part ownership or ownership benefits

Start loan application

Real results with real people.

Niteesha Nagowah

Niteesha Nagowah

We had an incredible experience working with Saroj from Broc Finance. He is incredibly knowledgeable, responsive, and guided us through the purchase of our company vehicle with expertise. The attention to detail and commitment to finding the best possible options truly set him apart. Highly recommend his services for anyone navigating the complexities of obtaining a finance. Thank you again for outstanding assistance.
vishal srivastava

vishal srivastava

We have used Broc Finance over last 2 years for various business line of credits and vehicle loan. Broc finance have been very professional in this journey. They have understood our needs as business and catered the solutions as per requirement . They look around in market and get one the best financial solution for the business be at vehicle of line of credits . I would strongly recommend the business for there services
Nasir sabiry

Nasir sabiry

Thank you very much in helping me with financing a car SAS. You have been very professional and responsive every time I needed information. Fully recommend to any looking to finance a car.
Ajay Kanumuri

Ajay Kanumuri

I would strongly recommend. Saroj Shah helped to get my loan with in span of three days. He was very supportive and clearly explained the loan process.
Atulkumar Patel

Atulkumar Patel

I don't want to miss this opportunity to say About Saroj Work that he just made it impossible job into possible , I have got loan of 1.5 million event though I have very low credit score . Great work , and highly recommend for any kind of loan issues.
Tajinder Kumar

Tajinder Kumar

For those seeking a trustworthy and dependable financial broker, I would like to recommend Broc Finance. While their fees may be slightly higher compared to other brokers, I found that their personalized approach made it worth it. Broc Finance took the time to understand my specific needs and goals and tailored their services accordingly. Additionally, their prompt availability to answer any questions or concerns was greatly appreciated. Overall, if you're in search of comprehensive and professional financial advice, Broc Finance is an excellent option to consider.
Scott Filby

Scott Filby

Excellent experience with the service of Saroj! He did all the hard work and helped me find what I required. Saroj offered excellent suggestions and went the extra mile with his advice, which won my respect and helped in achieving the outcome required.
Mai Yang

Mai Yang

Absolutely wonderful service! Saroj was amazing with keeping us up to date with our loan application which was approved quickly without any hassle. I would definitely recommend Broc Finance!

Have questions? Talk to a specialist!

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Frequently asked questions

Generally, most of the lenders would provide finance terms between 1-5 years. In exceptional cases, the loan term can be extended to 7 years.

You can be eligible for finance up to 100% on your vehicle or equipment depending on your overall business risk profile.

Yes absolutely, we can help you get finance for both new and used vehicles & equipment.

Generally, all primary and secondary assets that can be depreciated for business purposes can be financed. However different lenders have different lending policies regarding what types of assets they are willing to finance.

Yes, you can pay out your loan earlier. However, lenders may charge an early pay out fee depending on their policies.

Small businesses may struggle with irregular cash flows sometimes. We understand that you might have regretted spending a huge amount of money on paying the upfront cost for the vehicles or pieces of equipment your business need. However, we have good news for you! It’s not too late if you have already bought the vehicle, you can still finance it through loans. Some lenders may introduce loans that can reimburse the cost of the asset you bought. However, additional fees might apply.

Lenders take a charge of the assets financed through them and generally, you need to pay out the loan before disposing of it. You may enter into an arrangement with the buyer to refinance the loan with the buyer’s financier and get the differential equity cashed out.

Each lender sets their interest rates which are governed by their cost of funds. Your interest rate may also depend on your business risk profile, nature of the asset, trading time, credit history, financial strength, etc.

You may not always be eligible for an asset finance depending on the class and nature of the assets. In such a scenario, you can purchase an asset by taking a normal business loan which can be obtained against the cash flow of your business. Some of the popular cashflow business loan options are secured business loan, small business loan, unsecured business loans, business line of credit and invoice/debtors finance facilities. Please reach out to us on 1300 253 041 or send us a message. One of our lending specialists would get in touch in no time to assist you.

At Broc Finance, we endeavour to get the most adequate facility suitable to the business requirements of our clients. In most of the cases logged in through us, we try to get an indicative offer from the lender for our client’s consideration before proceeding with formal application and consent to credit check. This approach helps our clients to avoid unwanted rejections and credit checks which can significantly impact their credit scores.

We would be happy to answer if you have any other questions. Please contact us.