Key Takeaways
- The documents needed for equipment finance depend largely on the loan amount and the lender's assessment requirements.
- No doc equipment finance can be available for asset purchases up to $300,000, with lenders focusing on ABN details, credit score, and property ownership instead of income verification.
- Low doc equipment finance can provide funding up to $1,000,000 with some lenders and only requires a read only access to business bank statements, evidence of property ownership, and credit checks.
- Full doc equipment finance for larger transactions generally requires financial statements, bank statements, tax information, an asset register, and details of existing debts.
- Working with an experienced finance broker can help you understand lender requirements, prepare documentation correctly, and access more competitive lending options.
Equipment finance allows businesses to acquire vehicles, machinery, technology, and other essential assets without paying the entire purchase price upfront. When you seek an equipment loan, lenders will need enough information to assess your application.
The documents needed for equipment finance vary depending on the size of the loan and the lender’s own policy. Smaller transactions may qualify for no doc approval with minimal paperwork, while larger transactions often require detailed financial information and supporting documents.
Understanding the equipment finance application checklist before you apply can save time, reduce stress, and improve your chances of securing approval quickly.
No Doc Applications: What's Actually Required
No doc equipment finance is one of the most popular options for Australian small businesses, sole traders, contractors, and self employed borrowers seeking funding for equipment purchases under $300,000. Many lenders offer streamlined approval processes that do not require income verification or financial statements.
Despite the name, no doc does not mean no information at all.
Most lenders still need enough information to verify your identity, business activity, and creditworthiness.
Typical No Doc Equipment Finance Requirements
For equipment finance applications up to $300,000, lenders will commonly require:
- ABN & GST registration
- Credit file check
- Proof of property ownership
- Equipment details or supplier invoice
A credit score above 500 will typically be strong enough with a number of lenders for an approval. Businesses that have been trading for longer will have access to the lowest rates and new equipment or vehicles will be financed at lower rates than secondhand assets at most lenders.
Low Doc Applications: Bank Statements and Credit Checks
Businesses seeking larger funding amounts often move into the low doc category.
Low doc equipment finance can provide funding up to $1,000,000, with lenders using bank statement analysis as the key metric of their credit assessment.
Equipment Finance Application Checklist for Low Doc Loans
Most lenders will request:
- ABN & GST registration
- Read only access to business bank statements
- Proof of property ownership
- Credit file check
- Equipment quotation or supplier invoice
The bank statement review will utilise technology to analyse revenue through the bank account, if there are any signs of distress like direct debit dishonours and measure the business’ average cash position over 6 months and the last 30 days.
Why Bank Statements Matter
Bank statements provide a real time picture of how your business operates.
Unlike annual financial statements, bank transactions show actual cash movement and allow lenders to assess:
- Revenue consistency
- Average monthly income
- Existing loan commitments
- Overdrawn positions
- Overall account conduct
Full Doc Applications: Financial Statements and More
When equipment finance requirements exceed $1,000,000, lenders usually require a full assessment of the business’s financial position.
Full doc applications involve a more detailed review of profitability, cash flow, assets, liabilities, and existing commitments.
While approval may take longer than no doc or low doc options, businesses can often access larger facilities.
Equipment Loan Documentation Requirements
For full doc equipment finance, lenders commonly request:
- Profit and loss statements
- Balance sheets
- Tax portal information
- Details of any ATO payment plans
- Business bank statements
- Asset register
- Commitment schedule
- Asset and liability statement
These documents help lenders assess the business’s capacity to service the proposed finance facility.
Financial Statements
Financial statements are usually the foundation of a full doc application. Lenders generally review:
Profit and Loss Statements
Profit and loss statements show:
- Revenue
- Gross profit
- Operating expenses
- Net profit
This information helps lenders understand whether the business generates sufficient earnings to support additional debt.
Balance Sheets
Balance sheets provide a snapshot of the business’s financial position. Lenders review:
- Cash balances
- Existing assets
- Current liabilities
- Long term debt
- Net asset position
A strong balance sheet will strengthen an application, particularly for larger transactions.
Tax Portal Information and ATO Payment Plans
Tax portals are a requirement in all full doc applications. This helps verify:
- BAS lodgements
- Outstanding tax debt
- Existing ATO payment arrangements
- Impact of outstanding debt and payment plan obligations to servicing
If a business has an active payment plan with the ATO, lenders will usually assess whether repayments remain manageable alongside the proposed equipment finance facility.
Many lenders require outstanding ATO debt to be on a payment plan.
Commitment Schedules
A commitment schedule outlines all existing business debts and financial commitments.
This may include:
- Equipment loans
- Vehicle finance
- Commercial loans
- Business overdrafts
- Property loans
Lenders use this information to help calculate the business’s overall debt servicing position.
Asset and Liability Statements
For larger transactions, directors often need to provide a personal asset and liability statement.
This document summarises:
- Property holdings
- Investments
- Cash balances
- Personal debts
- Other liabilities
It helps lenders understand the broader financial position of the business owners.
What Is an Asset Register and Why Lenders Ask for One
An asset register is a record of the significant assets owned by your business. It commonly includes:
- Vehicles
- Machinery
- Plant equipment
- Commercial equipment
For each asset, the register typically lists:
- Description
- Purchase date
- Original cost
- Current value
- Finance owing against the asset
Asset registers help lenders assess the overall strength of the business. They provide visibility into:
- Existing equipment ownership
- Asset quality
- Available equity
- Business investment history
For larger equipment finance applications, lenders want to understand the assets already supporting the business and whether any existing finance arrangements may impact future borrowing capacity. An accurate asset register can strengthen your application and provide lenders with greater confidence in the business’s financial position.
Let Dark Horse Financial Handle the Application
Preparing an equipment finance application can feel time consuming, particularly when different lenders request different documents.
At Dark Horse Financial, we help businesses navigate the entire process, from identifying the right lender to preparing and submitting the application.
Whether you’re seeking no doc equipment finance or a large full doc facility, we’ll help ensure your application is presented correctly and efficiently.
How to Apply for Equipment Finance
Step 1: Apply Through Our Website
Complete our online form to get started. We’ll call you back to arrange a discussion about your business, the equipment you want to purchase, and your finance requirements. We’ll then identify lenders that match your situation and borrowing needs.
Step 2: Application Submission
We’ll prepare and submit your application. Depending on the lender and documentation requirements, approvals can be received within hours or a few business days.
Step 3: Receive Funding
After approval, settlement is usually within hours or within the day, depending on the lender. After the settlement, a remittance advice showing proof of payment from the lender to the vendor will be provided so you caa collect your asset.
Frequently Asked Questions
No. No doc equipment finance applications do not require financial statements. Lenders typically assess your credit score and property ownership status and want to confirm that your business has an active ABN and is GST registered. Non property owners can get no doc asset finance by providing income verification with a read only view of business bank account statements.
For low doc equipment finance, lenders usually request read only access to your business bank account statements. They review income, expenses, account conduct, liquidity, and existing commitments. For full doc applications, lenders will want to see six to twelve months of business bank account statements.
Most equipment finance applications do not require a business plan. Lenders generally focus on credit score, serviceability, and the asset being purchased rather than detailed business planning documents. However, some larger asset finance applications via banks will benefit from a business plan that documents the business case and the benefits of the assets being purchased.
Requirements vary by lender. Many low doc lenders review the most recent twelve months of business bank statements, with a few lenders requiring only six months.
An asset register is a list of significant business assets, including equipment, vehicles, and machinery. It is commonly required for larger full doc equipment finance applications because it helps lenders assess your existing asset position and overall financial strength.
Final Thoughts
The documents needed for equipment finance depend on the size of the transaction and the lender’s assessment process.
Smaller no doc applications may only require credit checks and proof of property ownership. Larger low doc facilities usually involve bank statement analysis, while full doc applications require detailed financial information, tax records, asset registers, and commitment schedules.
Knowing what lenders expect before you apply can help you prepare the right documentation, avoid delays, and secure approval faster.
Disclaimer: Loans and their accompanying benefits are available only to those who qualify for them and have been approved. Though we put a lot of care into writing this article, the information presented within is general and doesn’t consider your unique situation. It is not meant to serve as a substitute for professional advice, and you should not rely on it solely for any major financial decisions. You should always consult with a professional when you’re dealing with finance, tax, and accounting matters.
Speak With Dark Horse Financial About Equipment Finance
If you’re planning to purchase vehicles, machinery, plant equipment, or business assets, our team can help you identify the right lender and manage the documentation process from start to finish.
Contact Dark Horse Financial today to discuss your equipment finance requirements and get a tailored solution that matches your business goals.
