Ever wondered why some equipment finance applications are approved within a day, while others get delayed—or declined altogether?
The truth is that lenders aren’t just looking at one thing. They’re assessing your business from multiple angles—cash flow, asset type, ABN activity, and more. At PMG Finance, we’ve helped hundreds of Australian businesses—from tradies and contractors to farmers and fleet owners—get approved by presenting strong, well-prepared applications that tell your full story.
Here’s what we’ve learned about what lenders really want—and how you can improve your chances of a fast, stress-free approval.
What lenders look for in equipment finance applications
📋 1. Business tenure & ABN Activity
Lenders want to see that your business is up and running. Ideally, your ABN has been active and trading for at least 6 to 12 months.
That said, new businesses aren’t out of options—we regularly help start-ups and first-time operators through low-doc loan pathways or lenders who are more flexible with trading history.
💰 2. Cash flow & affordability
Your ability to repay is one of the biggest factors. That’s why lenders often ask for your last 3–6 months of bank statements.
They’re looking for:
- Consistent business income
- Enough surplus to comfortably cover repayments
- Minimal unexplained expenses or overdrawn accounts
Even if you’ve had a few quiet months, we can often present your case in a way that highlights your overall financial health—especially if things are trending upward.
3. Asset backing
Owning property will generally improve your application profile as it can demonstrate equity outside your business.
🧾 4. Credit history
A clean credit file helps, of course—but minor defaults or missed payments aren’t always deal-breakers.
We work with a network of lenders, including those open to credit-impaired or non-conforming applicants, so if your business is otherwise in good shape, you could still be eligible.
🛠 5. Asset type & use
Lenders love assets that hold their value. If you’re financing equipment like excavators, commercial vehicles, farm machinery, or trailers—you’re in a strong position.
They’ll also want to know:
- Is the equipment essential to your day-to-day operations?
- Is it new or in good condition if used?
- Are you purchasing from a dealer, or auction, or a private vendor?
We help you tick all those boxes before the application goes in.
✅ How to make your application stronger
Here’s what you can do to boost your approval odds:
- Get your documents ready: BAS, recent bank statements, and a quote or invoice for the equipment.
- Tell your story: A short explanation of your business, your growth plans, and how this asset fits in can really help.
- Act quickly once you’ve found your equipment: We’ve seen deals fall through because buyers weren’t ready to move—some lenders can approve in as little as 24 hours.
- Use a broker who speaks the lender’s language: That’s us. We know how to match you with the right lender for your situation—not just the first one that says yes.
📌 Looking for expert financial guidance? Contact us today!
If you have any concerns, or want to discuss your situation, reach out to us today. Acting now could save you from bigger challenges in the future!
DISCLAIMER: The above content is to provide general information and does not constitute financial, legal or other advice. This means that duties and requirements imposed on people who give financial advice do not apply to this content. For advice contact your accountant or legal advisor.