Machinery Finance for Partnerships

Yes. Eligible partnerships can apply for commercial machinery finance to purchase new or used machines for business use. The application will generally consider the partnership, its ABN, the individual partners, business history, financial position, credit profile and the machine being purchased.

Machinery finance for a partnership works similarly to other forms of commercial vehicle finance, but the application needs to reflect the partnership structure and the people behind the business. Depending on the finance structure, the machine may provide security for the loan while the partnership makes repayments over an agreed term.

Potentially. The requirements depend on the partnership structure and finance application. Information about each relevant partner may be required, and partners may need to provide identification, financial information or guarantees. We can establish what's required before submitting the application.

Generally, an active ABN is required for commercial machinery finance. Additional requirements may apply depending on the partnership's trading history, GST registration, financial position, loan amount and finance structure.

Potentially. A recently established partnership may still have machinery finance options even if the business has a limited trading history. Previous industry experience, the partners' credit profiles, financial position, available deposit, existing business activity and expected income can help support the application.

Potentially. If you're establishing a partnership to operate a earthmoving or transport business, finance may be available even where the partnership itself is relatively new. The assessment may consider each partner's industry experience, credit history, financial position and contribution to the business, as well as the machine and proposed work.

Potentially. No deposit machinery finance may be available to eligible partnerships. Whether a deposit is required depends on factors including the partnership's business history, financial position, credit profile, loan amount and the machine being purchased.

Potentially. Eligible partnerships may qualify for low doc, lite doc or no doc machinery finance, including finance up to $500,000 in suitable circumstances. Low doc options can reduce the need to provide complete financial statements and tax returns, although information about the partnership, partners and business will still be required.

Potentially. Some applications may be assessed without complete business financial statements, subject to eligibility. Alternative information may be requested to establish the partnership's financial position and ability to repay the proposed finance.

Potentially. Eligible partnerships may have access to finance options that don't require complete business tax returns. Low doc doesn't mean no assessment. Depending on the application, supporting information such as bank statements, BAS, assets and liabilities or other evidence of business income may be required.

Requirements vary, but you may be asked for the partnership's ABN and business details, identification for the partners, details of the machine and purchase price, and information about existing financial commitments. Depending on the application, additional documents such as bank statements, BAS, financial statements, tax returns, contracts or an assets and liabilities statement may also be requested.

They can be. Because a partnership involves individual partners, the credit profiles of the relevant partners may form part of the overall credit assessment. Previous credit issues don't automatically mean the application will be declined, but they can affect the finance options, rate, deposit requirements or loan terms available.

Potentially. Previous credit problems involving the partnership or one of the partners don't necessarily prevent the business from obtaining machinery finance. The outcome depends on factors including the nature and age of the credit issues, which partner is affected, current financial circumstances and the strength of the overall application.

Yes. Eligible partnerships can finance new machines for business use. Finance can be structured around the purchase price, partnership's circumstances and intended use of the vehicle, subject to eligibility and approval.

Yes. Finance may also be available for used machines. The machine's age, condition, purchase price, market value and expected age at the end of the finance term can influence the available loan structure and term.

Yes. Finance may be available for eligible machines purchased from private sellers as well as dealerships. Private purchases can require additional checks on the vehicle, seller, ownership and purchase price before settlement.

Potentially. Eligible partnerships may be able to finance machines purchased at auction, subject to the vehicle and transaction meeting the applicable requirements. Because auction purchases often have short settlement deadlines, arranging pre-approval before bidding can help establish your available budget.

There isn't one borrowing limit that applies to every partnership. The amount available depends on the business's financial position, cash flow, credit profile, existing commitments, partners, machine and purchase price. Eligible applicants may access low doc or no doc machinery finance up to $500,000, while other commercial finance options may accommodate different loan amounts.

Machinery finance terms of up to 7 years may be available to eligible partnerships. The available term depends on the machine's age and value, amount financed and overall application. A longer term can reduce regular repayments but may increase the total interest payable.

Yes. Balloon payments may be available on eligible partnership machinery finance. A balloon leaves an agreed amount outstanding at the end of the loan term, which can reduce regular repayments during the finance period. The available balloon depends on the machine, finance term and overall application.

Depending on the partnership and circumstances, finance options may include a chattel mortgage, commercial hire purchase, finance lease or rent-to-own arrangement. The appropriate structure depends on your business, cash flow, ownership requirements and machine purchase. Tax treatment can vary, so professional tax advice should be obtained for your circumstances.

Not necessarily. With many commercial machinery finance structures, the machine itself can provide security for the finance, meaning additional property security may not be required. Guarantees or other conditions may still apply depending on the partnership and finance structure.

Yes. Eligible partnerships may be able to finance multiple machines, trailers and other commercial vehicles. This can include purchasing several machines together, adding another machine as the business grows or gradually building a larger fleet.

Potentially. Existing commercial machinery finance may be refinanced where suitable options are available. Whether refinancing is worthwhile depends on the existing payout amount, remaining term, fees, current repayments and the replacement finance available.

A change in partnership structure can affect existing finance arrangements. Removing or adding a partner doesn't automatically remove that person's obligations under an existing finance agreement. The finance arrangement may need to be reviewed or restructured, and approval may be required before changes can be made. It's important to deal with this before changing the partnership structure.

Eligible applications may receive same-day pre-approval, with decisions or approvals potentially available within 24 to 48 hours once the required information has been supplied. Partnership applications can require information from multiple partners, so having identification, business details and supporting documentation ready can help avoid delays.

Not necessarily. Where available, we may be able to initially compare or assess your options without submitting a formal credit application. A formal application may involve credit enquiries for relevant applicants or guarantors. We can explain the process before an application is submitted.

There may be GST, depreciation, interest or other tax considerations when a partnership purchases and finances a machine for business use. The tax treatment depends on the partnership, machine and finance structure, so you should obtain advice from your accountant or tax adviser before relying on any potential tax benefit.

Partnership applications can be more involved because the financial position and credit profile of multiple partners may need to be considered. We compare options across 80+ lenders to identify suitable finance based on your partnership structure, business circumstances and machine purchase. You'll work directly with Simon, our Director, on every deal from your first machine through to your next machine and future fleet growth — no call centres or unnecessary handovers.