Bad Credit Equipment Financing

Having bad credit shouldn’t stop your business from accessing the equipment it needs to operate and grow. Whether you’re after machinery, vehicles, tools or technology, there are lenders out there who can work with businesses of all shapes and sizes to secure the equipment finance deal they need. Finding the right loan or lease for your needs is all about knowing where to look.

Can I get equipment finance with bad credit?

Yes, you can get equipment finance with bad credit. Flexible lenders who work with businesses and sole traders in this position assess applications differently to mainstream lenders like banks, looking at your overall financial situation and your business’s ability to meet repayments. They put less emphasis on your score as a result.

Having defaults or a past bankruptcy on your file won’t automatically rule you out, though your options and the rates and fees you’re offered may look a little different compared to a business with a clean credit file.

What are my business' bad credit equipment financing options?

There are two main ways to finance equipment with bad credit, depending on whether you want to own the equipment outright or simply have access to it:

Chattel mortgage

A chattel mortgage is the standard equipment loan option. You own the asset from the start of the finance term, while the lender uses the equipment as security until the loan is repaid. Terms usually last between one and five years, with some lenders approving loans up to seven years. You’ll repay the debt in even instalments with interest and fees.

Because the equipment itself secures the loan, lenders are often more willing to approve applications from bad credit borrowers than they would for an unsecured loan.

Equipment leasing

Equipment leasing is an alternative for businesses that prefer not to own their equipment outright. Rather than purchasing the asset, you essentially rent it over a set term, with the option to buy, sell or upgrade it at the end. There are fewer leasing options available for businesses with bad credit, so you can speak to a broker about which is best for your situation.

What types of equipment can I finance with bad credit?

Bad credit equipment finance can be used to purchase a wide range of asset types for your business, including:

Agricultural and farm equipment, such as tractors, harvesters and irrigation systems
Heavy machinery, such as excavators, bulldozers and cranes
Construction equipment, such as scaffolding, compactors and concrete mixers
Medical and healthcare equipment, such as diagnostic tools and dental chairs
Hospitality equipment, such as commercial kitchen appliances and refrigeration units
IT and technology equipment, such as computers, servers and point-of-sale systems
Transport and logistics equipment, such as forklifts and pallet jacks
General business equipment, such as printing and manufacturing machinery

The equipment will need to meet your lender’s criteria around its age and condition, and some lenders may restrict the types of assets they’re willing to finance. A broker can help you identify which lenders are the best fit for the specific equipment you’re looking to purchase.

How much can I borrow for bad credit equipment finance?

Bad credit business equipment loans can start from as little as $5,000 and reach as much as $250,000 with some lenders. However, your borrowing power will be determined by factors specific to your business, including:

The nature and severity of your bad credit (minor non-finance defaults aren’t as serious as finance defaults or bankruptcy)
Your business’s turnover and overall financial position
How long your ABN has been active
Whether you’re able to put down a deposit
The type, age and condition of the equipment you’re looking to purchase
The lender you’re approved with (not all lenders will approve the same borrowing range)

It’s important to note that each lender has its own criteria that you’ll be assessed on, so the amount you want to borrow will be subject to their assessment of your business and its ability to manage repayments.

How to apply for bad credit equipment financing

1

Fill out our online application form

Tell us about yourself and your current financial situation, as well as the loan you’re after.
2

Send through any necessary documents

We’ll need to see documentation to verify your current finances and your identity.
3

Have a chat to your broker

Your broker will give you a call and discuss your available commercial finance options.
4

Get your application submitted

Once you’re happy to proceed, your broker will prepare your application for formal submission.
5

Receive approval and settle your loan

You can be approved as soon as within one business day, after which we’ll handle loan settlement.
6

Get your asset

Simply sign off and the equipment is yours!

Apply now

Why Us?

Fast loan approval

We work hard behind the scenes to match you with a suitable lender and have your loan approved and funded in as few as 48 hours.

100% online

Where ever you are across Australia, you can apply for a bad credit car loan using your laptop or even a smartphone.

Trusted brand

For more than a decade, we've been helping borrowers with bad credit get approved for their car loans across Australia.

Equipment loan eligibility and documentation

Eligibility

You must be 18 years of age or older
You must be an Australian citizen, permanent resident or eligible visa holder
You must have an ABN registered in your name
You must be using your car for business purposes at least 51% of the time
Your chosen car must satisfy your lender’s vehicle eligibility criteria

Documentation

A valid driver’s licence, front and back (passports can also be accepted)
Information on business assets and liabilities
Information on business assets and liabilities
Business bank statements and BAS may be required

Common bad credit equipment financing questions answered

Can I refinance an equipment loan with no credit check?

No reputable lender will refinance an equipment loan without conducting some form of credit assessment. That said, specialist lenders place less emphasis on your credit score than mainstream lenders, so bad credit won't automatically rule you out of refinancing. Speaking to a broker can help you identify which lenders are most open to refinancing applications from bad credit borrowers.

Are bad credit equipment finance payments tax-deductible?

Potentially, yes. The interest component of your loan repayments and certain loan fees may be claimable as tax deductions, subject to how the equipment is used in your business. Depreciation and GST on the purchase of the equipment may also be claimable. As with any tax matter, it's worth speaking to your accountant to understand exactly what applies to your situation before making any claims.

Can I give my equipment back at the end of a lease?

No, operating leases, which allow you to simply return the asset at the end of the term, aren't typically available to businesses with bad credit. Any bad credit equipment leases that are available will require you to either purchase the equipment at the end of the term, refinance your lease or sell the asset to cover the residual value.