Equipment Finance Myths Busted: What You Really Need to Know

There is a lot of confusion around equipment finance, and many businesses rule themselves out before even exploring their options. In this podcast, we break down three common equipment finance myths and explain what actually applies in the real world.

Myth 1: You Need Perfect Credit

This is one of the most common misconceptions. Perfect credit is not always required for equipment finance. Some lenders assess applications based on overall business performance, cash flow, and the asset being financed rather than credit score alone. Approval is subject to lender criteria.

Myth 2: Equipment Finance Is Only for Big Businesses

Equipment finance is not limited to large companies. Small businesses, sole traders, contractors, and even individuals can access equipment finance depending on their circumstances. Many lenders cater specifically to small and growing businesses.

Myth 3: It’s Always Cheaper to Buy Equipment Upfront

Paying cash is not always the cheapest or smartest option. Financing equipment can help businesses manage cash flow, preserve working capital, and keep funds available for growth, emergencies, or other investments. The right structure depends on individual circumstances.

Key Takeaway

Equipment finance is more flexible than many people realise. With the right advice and lender match, there may be practical solutions available even if you don’t fit traditional bank criteria.

FAQ: Equipment Finance in Australia

Do you need perfect credit to get equipment finance?

No. Some lenders assess applications using factors such as cash flow, income stability, and asset type rather than credit score alone. Approval is subject to lender assessment.

Is equipment finance only for large businesses?

No. Equipment finance is available to small businesses, sole traders, contractors, and individuals, depending on lender criteria.

Is it always better to buy equipment outright?

Not always. Financing can help manage cash flow and keep capital available for other business needs. The best option depends on your financial situation.

What types of equipment can be financed?

Many types of machinery and equipment can be financed, including vehicles, tools, and specialised business assets. Eligibility depends on the lender and asset type.

Is approval guaranteed through a finance broker?

No. A finance broker cannot guarantee approval. All equipment finance applications are subject to lender assessment, eligibility, and approval conditions.