Question 1

What is asset finance and how does it work in Australia?

Accepted Answer

Asset finance is a way to fund the purchase of a business asset, such as a vehicle or piece of equipment, without paying the full cost upfront. The asset usually acts as security for the finance, and you repay it over an agreed term. At the end of the term, ownership depends on the structure you choose.

Question 2

What is the difference between a chattel mortgage and a finance lease?

Accepted Answer

A chattel mortgage means you own the asset from the start and the lender holds a mortgage over it, while a finance lease means the lender owns the asset and you lease it for an agreed term. Chattel mortgages often suit businesses wanting outright ownership, and leases can suit those who prefer to upgrade assets regularly.

Question 3

Can I finance used equipment for my business?

Accepted Answer

Yes, many lenders on our panel finance used equipment, provided it is in good working condition and meets the lender's age criteria. The acceptable age and condition of the asset can vary by lender and asset type, so we compare options to find one that suits the equipment you want to buy.

Question 4

What types of assets can I get finance for?

Accepted Answer

You can finance a wide range of business assets, including cars, trucks, excavators, commercial ovens, dental chairs, CNC machines, motorcycles and caravans. If the asset has a clear value and useful life, there is likely a lender willing to consider it. Read more on our equipment finance page.

Question 5

Is asset finance the same as a business loan?

Accepted Answer

No, asset finance is secured against a specific asset you are buying, whereas a business loan is often unsecured or secured against other business assets. Asset finance usually has a clearer purpose and structure. For unstructured funding, see our business loans page.

Question 6

Do I need an ABN to get asset finance?

Accepted Answer

Most asset finance for business use requires an active ABN, and many lenders also prefer GST registration. Some lenders do consider applications without an ABN for personal use assets, but the options are narrower. We review your circumstances to find lenders whose criteria you meet.

Question 7

Can a sole trader apply for equipment finance?

Accepted Answer

Yes, sole traders can apply for equipment finance, as can companies, trusts and partnerships. The lender will assess your identity, the asset and your ability to meet repayments. The structure of your business affects which lenders and products are available to you.

Question 8

How long do I need to have been trading to get finance?

Accepted Answer

Trading history requirements vary between lenders, with some accepting newer businesses and others preferring an established track record. Rather than a fixed rule, each lender sets its own criteria. We compare your situation across our panel to find lenders that match your trading history.

Question 9

Can I get asset finance with a bad credit history?

Accepted Answer

A bad credit history does not automatically rule you out, as some lenders specialise in applicants with past credit issues. The lender will look at the full picture, including the asset and your current circumstances. We help you understand which lenders are most likely to consider your application.

Question 10

What documents do I need to apply for asset finance?

Accepted Answer

You typically need identification, your ABN, details of the asset and some financial information such as bank statements or trading figures. The exact documents depend on the lender and the finance amount. We give you a clear checklist so you can prepare everything before applying.

Question 11

How much deposit do I need for asset finance?

Accepted Answer

Deposit requirements vary by lender, asset type and your circumstances, with some lenders offering no deposit options and others requiring a contribution. There is no single standard figure. We compare options across our panel to find structures that suit your available deposit.

Question 12

What loan terms are available for equipment finance?

Accepted Answer

Loan terms vary by lender and asset, and are usually aligned to the useful life of the asset. Terms can range from short periods to several years depending on what you are financing. We help you compare term lengths so the repayments fit your cash flow.

Question 13

Are asset finance repayments tax deductible?

Accepted Answer

Whether repayments or interest are tax deductible depends on how you use the asset and your business structure, and tax treatment varies between chattel mortgages and leases. We do not provide tax advice. Speak with your accountant to confirm how any structure would apply to you.

Question 14

Can I claim GST back on an asset I finance?

Accepted Answer

GST treatment depends on the finance structure and whether you are GST registered. With a chattel mortgage, a GST registered business may claim the GST on the asset price upfront. Lease and rental structures handle GST differently. Confirm the treatment with your accountant before deciding.

Question 15

What happens at the end of an asset finance term?

Accepted Answer

What happens at the end of the term depends on the structure you chose. With a chattel mortgage you already own the asset, while with a lease you may have the option to buy it, return it or refinance. We explain the end of term options for each structure before you commit.

Question 16

Why use a broker instead of going straight to a bank?

Accepted Answer

A broker compares options across a panel of over 70 lenders, not just one bank, so you see a wider range of products and structures. We handle the paperwork and negotiate on your behalf. This can save time and help you find a structure better suited to your circumstances.

Question 17

How much does it cost to use Gateway Asset Loans as my broker?

Accepted Answer

The cost of using a broker depends on your finance and circumstances, and we explain any fees or commissions before you proceed. We are transparent about how we are paid. Contact us for a clear explanation of any costs that would apply to your situation.

Question 18

How long does the asset finance application process take?

Accepted Answer

Application timeframes vary depending on the lender, the asset and how quickly you provide documents. We cannot state a fixed timeframe as each case differs. We keep you informed at every stage and work to move your application forward as efficiently as possible.

Question 19

Can a broker help me finance an asset I already own?

Accepted Answer

Yes, some lenders offer finance against assets you already own, releasing equity for working capital or other business needs. This is sometimes called a sale and leaseback. We review whether this option suits your goals and which lenders on our panel offer it.

Question 20

What areas does Gateway Asset Loans service?

Accepted Answer

We are a boutique brokerage based in Sydney and we service clients across all of Australia. Because we work with a large panel of lenders, we can help business owners and sole traders wherever they are located. Get in touch to discuss your asset finance enquiry.

Asset Finance Frequently Asked Questions

About Asset Finance

Eligibility and Applying

Costs, Terms and Structures

Working with a Broker

Still have questions about asset finance?