How to Get Equipment Finance as a Start‑Up Without Full Financials

If your ABN is under two years old, you can still get equipment finance in Australia – but you’re playing a different game to established businesses. Instead of relying on two years of financials, lenders lean heavily on the asset you’re buying, your personal profile, and alternative evidence like contracts and bank statements.

This guide walks you through how to structure a deal that can actually get approved this week, without putting your home unnecessarily on the line.

Choosing the right equipment and structure is critical for a start-up’s first finance deal.

1. What “no two years of financials” really means to a lender

When lenders say they want “two years of financials”, they usually mean:

• Two years of full business tax returns and financial statements; and
• The latest personal tax return for each director/guarantor.

If your business is new, or your financials aren’t ready, they’ll consider other ways to get comfortable – but only if the rest of the deal is tight.

1.1 How lenders actually assess start‑up equipment deals

For an ABN under two years, lenders usually pivot to four questions:

1. Is the asset safe and re‑saleable?

   • Standard gear (utes, excavators, forklifts, coffee machines) is easier.
   • Special‑purpose or obsolete equipment is harder.

2. Is there clear income to cover repayments?

   • Contracts, work orders, leases or franchise agreements.
   • Bank statements, BAS, or payslips if you’re keeping a day job.

3. Is the risk size sensible for a start‑up?

   • Smaller first deal sizes, often $30k–$150k, are more realistic.

4. Is the borrower reliable on paper?

   • Credit history, ATO position, and how you run your personal accounts.

For smaller, simple assets, this can fall under the umbrella of low‑doc / no‑financials equipment lending. If you’re not across those trade‑offs yet, read the companion guide “Low-doc equipment loans: smart shortcuts or expensive trap?” as well.

1.2 Why start‑ups are a special case

From the lender’s point of view, very young businesses:

• Are statistically more likely to fail in the first 3–5 years.
• Don’t yet have stable financials to prove a track record.
• Often rely on the founder’s personal income and credit history.

So the lender shifts risk control to:

• The quality and resale value of the equipment; and
• The strength of the individual behind the business.

Your job is to make those two pillars as strong and clear as possible.

2. Typical limits and structures for new‑ABN equipment finance

You probably won’t get the same limits or pricing as a five‑year‑old business, but you can still get started if you understand the guardrails.

2.1 Indicative deal sizes and terms

Indicatively (not product recommendations), a realistic first deal for a new ABN might look like:

• Loan size: $20,000–$150,000 depending on:
  • Asset type and age.
  • Your personal income and experience.
  • How strong your contracts or order book are.
• LVR (how much of the purchase price is funded):
  • 80–100% for new, standard gear.
  • 60–90% for used equipment, depending on age and resale value.
• Terms: 3–5 years for most movable equipment; up to 7 years for longer‑life vehicles or machinery.

For a deeper dive into how much you can borrow against different asset types, see “How Much You Can Borrow For Business Equipment In Australia”.

2.2 Worked example: small excavator for a new civil contractor

• Purchase price: $80,000 (new excavator).
• Loan: 100% funded (no deposit) over 5 years.
• Indicative rate: say 9.0% p.a. (illustrative only).

Approximate monthly repayment:

• Using standard amortisation, around $1,660 per month.
• Annual repayments: ~$19,920.

If your contracted work is expected to produce, say, $35,000 per month in revenue and your other overheads are modest, that repayment could be acceptable. But if your work is more ad‑hoc, or revenue is only $10,000–$15,000 per month, this would likely be too much risk.

A safer rule of thumb for many small operators is to keep total equipment repayments within roughly 15–25% of reasonably stable revenue (similar ranges are used in logistics and hospitality credit assessments).

2.3 Comparison: full‑doc vs alternative‑evidence scenarios

Below is a stylised comparison of how the same asset might be treated for an established business vs a start‑up with alternative evidence.

The key point: shorter terms and slightly higher costs are common for start‑ups, but the structure can still be safe if the asset earns its keep quickly.

3. The documents that replace “two years of financials”

You can’t magic up tax returns you don’t have. Instead, you assemble a different evidence bundle that answers the lender’s real question: “How will this get paid back?”

3.1 Core alternative evidence items

The most useful pieces of evidence for a new‑ABN equipment deal are:

1. Contracts and work orders

   • Signed contracts with builders, councils, head contractors, or clients.
   • Service agreements or franchise agreements.
   • Letter of offer from a major customer confirming start date and rates.

2. Bank statements

   • 3–6 months of business account statements if trading.
   • If you’ve only just started, 3–6 months of personal statements to show:
     • Rent/mortgage paid on time.
     • No persistent overdrawn balances.
     • Sensible use of credit.

3. BAS and invoices (if trading already)

   • Recent BAS showing turnover trends.
   • A simple invoices summary for the last few months.

4. Personal income evidence

   • Payslips if you’re keeping a part‑time/ full‑time role while starting up.
   • Past tax returns if you’ve recently moved from a PAYG role to self‑employed in the same industry.

5. Experience and qualifications

   • Trade tickets, licences, insurances.
   • CV or brief summary of previous roles that map clearly to the new business.

The lender isn’t expecting a glossy pitch deck. A clear 1–2 page summary plus evidence is usually enough.

3.2 Red flags that scare lenders

For start‑ups especially, lenders are wary of:

• Unpaid or under‑arrangement ATO debts with no plan.
• Repeated overdrawn bank accounts and dishonours.
• High personal credit card utilisation with only minimum payments.
• Unexplained credit defaults.

If any of these apply, you may still get a deal, but expect tougher terms or need to fix the issues first. Our sister article on equipment finance when you’ve had a credit blip or ATO debt gives more context for higher‑risk files.