Asset Type refers to the category of equipment, machinery, or vehicle being financed. Lenders group assets into types because each category carries different risk levels, resale value, depreciation, and lending conditions. Asset Type is one of the most important factors in approving Equipment Finance, Vehicle Finance, and Low Doc Loans. Related glossary terms: Asset Valuation, PPSR, Verification. Relevant blogs: Are Low Doc Equipment Loans Worth It?, Equipment Finance Application Mistakes.

Why Asset Type Matters

Asset Type determines how lenders assess risk, rate, term length, and approval conditions. High-quality assets (new vehicles, yellow equipment, medical gear) are easier to finance than risky assets (old trucks, specialty machinery). Asset Type is a key factor for approvals in the Tradie Hub, Truckie Hub, and Business Owners Finance Hub.

Common Asset Types

• Vehicles — utes, vans, trucks, prime movers, trailers.
• Construction Equipment — excavators, skid steers, loaders, dumpers.
• Trade Tools — workshop tools, compressors, welders.
• Medical Equipment — imaging machines, dental chairs, diagnostic devices.
• Hospitality Equipment — coffee machines, kitchen equipment, POS systems.
• Technology & Office — computers, printers, IT hardware.
• Specialty Assets — niche machinery with limited resale markets.

The stronger the resale value and demand, the better the lending terms.

Official reference: business.gov.au