11 Signs Your Business Is Ready for Asset Finance in 2025
11 Signs Your Business Is Ready for Asset Finance in 2025
11 Signs Your Business Is Ready for Asset Finance in 2025
Most owners only think about finance when a ute dies or a key machine finally gives up. By then it is rushed, stressful and expensive.
This checklist lets you spot the signs early. If you are ticking four or more, it is time to set up low doc asset finance and protect your working capital before the next breakdown or tax bill.
Use the checklist below, count your ticks, then match your total here.
11 signs your business is ready for asset finance
Use this like a quick scorecard. Skim each bucket, mark what sounds like you, then total your ticks against the meter above.
| Cashflow signs | ||
| 01 | Cash hits smash your buffer | Big equipment buys drain your cash more than once a year. |
| 02 | Short-term debt for long-term gear | You are using cards or overdraft instead of a plan that fits your cashflow. |
| 03 | Personal borrowings propping up the business | Your home loan or personal cards are quietly carrying business vehicles and equipment. |
| 04 | Repayments feel tight in good months | Existing loans are structured so repayments pinch even when you are busy. |
| 05 | Accountant keeps saying “preserve cash” | Your accountant – and resources on business.gov.au – want your buffer for wages and overheads, not trucks and tools. |
| Equipment & asset signs | ||
| 06 | Constant breakdowns | A ute, truck or key machine is off the road more than once a quarter. |
| 07 | Known upgrades in the next 6–12 months | You know more vehicles, machines or a fit-out are coming but have no funding plan. |
| 08 | Revenue up, gear the same | Turnover has grown but the same old gear is running flat out and capping your capacity. |
| Growth & opportunity signs | ||
| 09 | Turning down good work | You cannot take extra jobs because trucks, plant or vans are already maxed. |
| 10 | 12+ months of solid trading | You have a year of clean trading history and bank statements, which is exactly what many lenders want to see for fast approval. |
| 11 | You are in “rebuild” mode after credit issues | There are marks on your credit file, but revenue and repayment history are back on track and you want to move forward. |
💬Real example
A plumbing business ticked five signs. We used their clean
bank feeds
to fast-track approval for a new vehicle without touching their tax money or wages buffer.
How this article fits into your 2025 plan
Treat this page as the “am I ready?” checkpoint inside the Business Owners Finance Hub. Once you know your score, the next move is picking the right structure and lining up approvals.
Count your ticks so you know whether asset finance belongs on your radar now or later.
With your accountant, choose between chattel mortgage or a lease-style option so repayments match your cash flow forecast.
Pre-approve the next vehicle or machine and link it to your business loan plan so you are ready before peak season.
💬Real example
A café owner used this checklist plus your
business costs you can finance
guide to decide which equipment to fund with finance and which to pay in cash before summer trade.
If you are ticking four or more signs, asset finance should move from “later” to a planned part of your Business Owners Finance Hub strategy, not something you scramble for after a breakdown.
We do this every week with owners upgrading vehicles and equipment – from cafés to civil contractors – by lining up low doc asset finance alongside cashflow tools like business loans so upgrades fit your buffer instead of blowing it.
FAQs: getting ready for asset finance
No. You do not have to be an expert in every structure before you talk to a broker. Your job is to explain how you trade; our job is to match the structure and term length to your cash flow and tax position.
Options like hire purchase are designed so you typically own the asset once the final payment is made, provided you meet the loan agreement terms and any end-of-term balloon payment.
In some cases, a finance lease or operating lease can behave more like renting the asset for a period. Your accountant will help decide whether that suits your balance sheet and depreciation schedule.
Matching the term to the asset’s useful life is a good starting point. A reasonable residual value can lower repayments when it fits your plan and the lender’s approval criteria.
Beyond the rate, look at how the lender tests servicing, what they assume for your borrowing capacity, and how any credit enquiries and security are treated on your business credit report.
💬Real example
A transport operator used a deeper look at terms, residuals and servicing tests, then reshaped two truck loans so repayments matched seasonal work instead of crushing quiet months.
👉Next step: sense-check your assets with Switchboard
If you recognised yourself in four or more signs, it is worth a 15-minute run-through with a broker before the next breakdown or tax surprise.
- Map which vehicles and equipment to fund with finance versus cash.
- Choose structures that fit how your accountant wants you to set things up.
- Line up pre-approvals for the next 6–12 months so you can move quickly when gear comes up.
💬Real example
After a 15-minute call, a fabrication shop owner lined up pre-approval for two new machines and plugged the plan into their
cash flow assessment
so upgrades fit neatly around payroll and tax.
Ready to talk vehicles next? If most of your signs are about utes, vans or trucks, also see low doc vehicle finance and the fast-track guide for ABN holders: Fast-Track Asset Finance for ABN Holders.
