New Business – Asset Finance

Let QLD Capital Solutions help you reach your business goals with one of the business loan products, designed with small to medium businesses in mind.

Asset financing helps businesses secure access to the vehicles, equipment, machinery and other assets they need without the sizeable cost of purchasing assets upfront.

Whether you have only just established your business or have been in operation for 10+ years we have the knowledge and understanding to help you make the right decision when it comes to financing your next vehicle or equipment purchase.

We have put together some helpful tips to prepare yourself before applying for finance to grow your business.

Regardless of the age of the business, you need to Ensure the purpose of your purchase is relevant to your business needs and growth. Have a clear understanding of what and why the asset is needed will assist with securing the right finance approval.

0 – 12 months in business

Have an active ABN.

You do not need to be GST registered however borrowing amount may be significantly lower if not GST registered. This is due to the lender’s understanding your annual income is below the threshold of $75,000 if not GST registered, therefore ability to service larger amounts may not be possible.

Minimum 3 months trading history – keep your bank accounts in order.

As the business will not have sufficient business financials to provide the lender will request bank statements to verify income being generated by the business. When preparing for finance it is good to maintain good banking conduct and monitor your account closely and ensure there is no overdrawing of funds, your loan repayments if any are up to date.

Prior experience in the same industry is a benefit but not always necessary.

If you were working as a PAYG employee in the same industry that you now operate your business in, this may give the lenders more confidence in approving the transaction.

Established and Acceptable Credit File.

Having an established and clear credit file with current or previous credit showing good conduct will strengthen your application.

Property owner is a benefit but not necessary.

If you are not a property owner, the lenders will prefer to see stability in your address (long term in the same property). Deposit of between 10-30% may be required for finance to be approved.

 

12 – 24 months in business

Up to date Financials

Ensure Last financial year’s business financial statements completed by your accountant, and Tax Returns lodged or finalised.

Interim figures up to date and available to confirm businesses currently financial position.

Lenders will want to see steady income with growth since the business has been established.

Established and Acceptable Credit File.

Having an established and clear credit file with current or previous credit showing good conduct will strengthen your application.

Property owner is a benefit but not necessary.

If you are not a property owner, the lenders will prefer to see stability in your address (long term in the same property). Deposit of between 10-30% may be required for finance to be approved.

24 + months + in business

Once the business has traded for over 24months there are options for no doc or low doc finance products. As vehicle and equipment finance is a vital component of many businesses, low doc or no doc asset finance is a necessity of doing business. They usually take less time which means the asset is purchased and in use by the business quicker.

These products are designed for business with strong trading history, asset backed (some options are available if not asset backed), and preferably but not always a requirement having current lending in the business entity.

However, it is always good to have your financial up to date and in order. This includes BAS and ATO lodgements paid and up to date where possible.