Equipment loan · Sole traders
Equipment loan for sole traders
Sole trader finance is business lending to an individual trading under their own ABN, where the applicant and the business are the same legal person, so personal credit and personal income are assessed alongside business banking.
How a equipment loan works for sole traders
Equipment finance is generally the most accessible product for a sole trader because the asset carries the risk. A lender that would hesitate to advance $40,000 unsecured will often fund a $60,000 machine, since they can value and recover it. That makes it the practical route for a newer sole trader building capability. ABN age, GST registration and whether you own property all shift which lenders on our panel will look at the deal and at what price.
The cash-flow pattern we plan around
Irregular drawings and income concentrated around job completion or invoice payment, frequently with business and personal spending running through the same accounts.
What sole traders typically fund
- A work vehicle or first piece of equipment
- Tools and trade equipment
- Cash flow between invoices
- BAS and income tax liabilities
Equipment loan for sole traders: the numbers
| Typical amounts | $5,000 – $5,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 16% p.a. |
| Repayments | Monthly |
| Speed | Same day to 48 hours for low-doc |
| Documents sole traders usually need | ABN and personal identification · 6 months of bank statements covering business income · Most recent individual tax return or notice of assessment |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Sole trader business loan
A sole trader business loan is finance provided to an individual trading under their own ABN, assessed on both the business banking and the applicant’s personal credit position because there is no separate legal entity.
Low-doc assessment
Low-doc assessment is a lending approach that uses bank statements or an accountant’s declaration in place of full financial statements, commonly used where a sole trader’s tax returns are not yet lodged.
What is equipment finance?
Equipment finance is any loan or lease used to acquire business equipment, with the equipment typically serving as security. The main structures in Australia are chattel mortgages, finance leases and rentals.
Low-doc equipment finance
Low-doc equipment finance approves smaller amounts (often up to $150,000–$250,000) without full financials, relying on ABN age, GST registration, credit history and sometimes a property-owner declaration.