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Business Use Percentage

Business Use Percentage refers to the proportion of an asset — such as a vehicle, machine or equipment — that is used for business purposes. Lenders use Business Use % to determine eligibility for Vehicle Finance, Equipment Finance, and Low Doc Loans. Higher Business Use % often strengthens an application by showing commercial intent. Related terms: Servicing, Borrowing Capacity, Credit Assessment. Relevant insights: Low Doc Vehicle Finance Guide, Fast-Track Asset Finance.

Why Business Use % Matters

Business Use % directly impacts how lenders classify a loan — personal vs business — which determines eligibility for Low Doc, how policies apply, and what tax treatment may be available. A higher percentage shows stronger commercial justification and helps when applying through the Tradie Hub, Truckie Hub, and Business Owners Finance Hub.

How Business Use % Works

  • Calculated based on km logs, work usage, or operational purpose.
  • Lenders assess whether the asset is primarily commercial vs private.
  • Higher Business Use % may enable Low Doc approvals on vehicles or equipment.
  • Tax deductions often depend on an accurate, evidence-backed business percentage.
  • The ATO can request evidence (km logs, invoices, diaries) to validate your claim.

Official info: ato.gov.au

What is Business Use Percentage?
It is the portion of an asset used for business rather than personal purposes.
What counts as business use?
Any usage directly related to earning income or operating your business — for example client visits, site travel, deliveries, or business errands.
Does Business Use % affect Low Doc approvals?
Yes — higher Business Use % generally strengthens Low Doc eligibility and helps lenders justify treating the facility as a business loan rather than a personal loan.
Do lenders check Business Use %?
Yes — they may ask for km logs, work diaries or commercial evidence depending on the loan type, especially for Low Doc Asset Finance.
Does Business Use % affect tax deductions?
Yes — deductions must reflect the correct business percentage under ATO rules, and claims should line up with how you structure your Vehicle Finance or Equipment Finance.