Purchasing new equipment or machinery is one of the most impactful investments a business can make — but the upfront cost doesn’t have to hold you back. If you’re wondering how to apply for an equipment loan, understanding the process before you start will save you time, reduce stress, and dramatically improve your chances of approval. This guide walks you through everything from eligibility and documentation to what happens after you submit your application, so you can move forward with confidence.
Equipment Finance Eligibility: Who Can Apply?
The good news is that equipment finance eligibility criteria in Australia are more accessible than many business owners expect. Most lenders require an active Australian Business Number (ABN) that has been registered for at least 6–12 months, though some specialist lenders offer options for newer businesses and startups. You’ll generally need to demonstrate that your business generates consistent revenue and that the equipment you’re financing serves a genuine operational purpose.
Your personal and business credit history also plays a role. While a strong credit score opens the door to lower interest rates and more favourable terms, it’s not the only factor. Lenders look at the overall picture — your industry, cash flow, existing debts, and the value of the asset being financed. If your financials aren’t perfect, low-doc and no-financials options are available for eligible businesses with solid trading history. At Unconditional Finance, we work with over 30 lenders, which means we can match you with the right equipment loan option regardless of where you sit on the eligibility spectrum.
Sole traders, partnerships, companies, and trusts can all apply. Whether you need construction machinery, medical technology, or office IT systems, the pathway is straightforward when the right broker is guiding you.
Equipment Loan Documents: What You’ll Need to Apply
Having your equipment loan documents prepared before you start your application is the single biggest factor in how quickly you’ll receive a decision. Here’s a breakdown of what lenders typically require:
Identification and Business Registration
All applicants need a valid photo ID (driver’s licence or passport) along with proof of their ABN and GST registration. ABN requirements for equipment loans are non-negotiable with most lenders, as the ABN confirms you’re operating a legitimate business entity. If you’re applying as a company or trust, you may also need to provide your Certificate of Registration or trust deed.
Financial Statements and Bank Records
For standard applications, lenders will request 3–6 months of business bank statements to assess your cash flow. Larger loans — typically above $150,000–$250,000 — may also require your most recent financial statements or tax returns. However, many lenders now offer low-doc equipment finance for loans up to $250,000, requiring only bank statements and your ABN, with no full financials needed.
Equipment and Supplier Details
You’ll need a quote or tax invoice from the equipment supplier that outlines the make, model, year, and purchase price of the asset. For used equipment, lenders may request a valuation or inspection report. Having these details ready demonstrates to the lender that you’ve done your research and are serious about the purchase.
If you’ve previously completed a small business loan application, you may find that some of the core documentation is similar, particularly around identification, recent bank statements and general financial records, although equipment finance will also require asset-specific information.
The Equipment Loan Application Process: Step by Step
Applying for an equipment loan through Unconditional Finance is designed to be simple and stress-free. It starts with an initial consultation where we learn about your business, the equipment you need, and your preferred repayment structure — whether that’s monthly, quarterly, or seasonal payments. From there, our team compares options from our panel of 30+ lenders to find competitive rates and terms that align with your cash flow.
Once you’ve chosen a finance structure — such as a chattel mortgage, finance lease, or hire purchase — we handle the paperwork and submit your equipment loan application on your behalf. Our streamlined process means most applications are submitted within 24 hours of receiving your documents. You’ll have a dedicated broker keeping you informed at every stage, so there are no surprises and no unnecessary delays.
After submission, the lender assesses your application, verifies your documents, and issues a formal approval. With everything in order, equipment loan approval can happen in as little as 24–48 hours for straightforward applications. Once approved, settlement is arranged with your supplier and you can take delivery of your equipment — often within the same week.
Ready to Get Started? Whether you’re upgrading existing machinery or investing in new equipment for the first time, our team makes the finance process fast, transparent, and tailored to your business. Speak with one of our lending specialists today and find out how quickly you could be approved.
Disclaimer: The information provided is general in nature and does not take into account your personal objectives, financial situation or needs. Lending criteria, policies and assessment processes vary between lenders and may change at any time without notice. You should consider whether this information is appropriate for your circumstances and seek independent professional advice where necessary.
Frequently Asked Questions (FAQs)
At a minimum, you’ll need a valid photo ID, your ABN and GST registration details, 3–6 months of business bank statements, and a quote or invoice for the equipment you’re purchasing. For loans above $250,000 or full-doc applications, financial statements and tax returns may also be required. Low-doc options simplify this significantly for eligible businesses.
Approval timelines depend on the lender and complexity of your application. Simple, low-doc applications can be approved within 24–48 hours. Full-doc applications with larger loan amounts may take 3–5 business days. Working with a finance broker like Unconditional Finance typically speeds the process up, because we ensure your application is complete and matched to the right lender from the start.
There’s no single credit score threshold that applies across all lenders. A score above 500 is generally considered acceptable for machinery loan approval, though stronger scores unlock better rates and terms. If your credit history has some blemishes, specialist lenders on our panel may still be able to help — particularly for secured equipment loans where the asset itself provides additional security for the lender.