Machinery Finance for Trusts

Yes. Eligible trusts can apply for commercial machinery finance in Australia. Finance may be available for family trusts, discretionary trusts and other eligible trust structures, subject to the trust, trustee, business circumstances and credit assessment. The exact requirements vary, which is why we compare options across 80+ lenders to find finance suited to the trust structure and machine being purchased.

Yes, potentially. A family or discretionary trust may be able to finance a new or used machine where the trust and trustee meet the applicable eligibility requirements. The application may require information about the trust structure, trustee and business, along with details of the machine being purchased.

Yes. A trust with a company acting as trustee may be eligible for machinery finance. The application will generally identify the trust and corporate trustee, and information about the company's directors and ownership may also be required as part of the assessment.

Potentially. Trusts with individual trustees can also be considered for commercial machinery finance. Eligibility depends on the trust structure, the trustees, business history, financial position, credit profile and the machine being financed.

The borrowing structure depends on the trust and finance product. Generally, the trustee enters into the finance agreement in its capacity as trustee for the trust. The trust deed may also need to give the trustee authority to borrow money and grant security over trust assets. Trust finance documentation can therefore be more involved than a straightforward sole trader application.

Generally, an active ABN will be required for commercial machinery finance, although individual eligibility requirements vary. Some finance products may also have requirements relating to GST registration, trading history and how the machine will be used by the business.

Potentially. A newly established trust may still have machinery finance options, although the number of available options can be more limited where there is little or no trading history. Previous industry experience, the trustee's credit profile, existing business activity, available deposit, expected income and the machine being purchased can all influence the application.

Potentially. No deposit machinery finance may be available to eligible trusts, subject to the overall application and credit assessment. Whether a contribution is required can depend on the trust's trading history, financial position, credit profile, amount being borrowed and the age and value of the machine.

Potentially. Eligible trusts may have access to low doc or alternative-documentation machinery finance, reducing the amount of financial documentation required compared with a traditional application. Low doc doesn't mean no assessment. Information about the trust, trustee, business and proposed machine purchase will still be required, and additional supporting documentation may be requested.

Potentially. Some applications may be assessed without complete financial statements or tax returns, subject to eligibility. Alternative documentation may be required to demonstrate the business's financial position and ability to repay. The requirements depend on the trust structure, trading history, loan amount and overall application.

Requirements vary, but you may be asked to provide the trust's ABN and business details, trust deed, trustee details, identification and information about the machine and purchase price. Where there is a corporate trustee, information about its directors or ownership structure may also be required. Financial information or alternative supporting documentation may be requested depending on the application.

Yes. The trust deed can be important because the trustee needs appropriate authority to borrow money and provide security in connection with the finance. The trust structure may therefore need to be verified before finance can proceed.

Not necessarily. With many commercial vehicle finance structures, the machine itself can be used as security for the finance, so additional property security may not be required. Other guarantees or conditions can still apply depending on the application and finance structure.

Yes. Eligible trusts can finance new commercial machines for business use. The amount available and finance structure will depend on the trust, financial position, machine, purchase price and overall application.

Yes. Finance may also be available for used machines, including vehicles purchased through dealerships, private sellers and auctions. The machine's age, condition, value and expected useful life can influence the finance term and options available. Commercial vehicle finance commonly accommodates both new and used vehicles.

Yes, subject to eligibility. Finance may be available for machines purchased from private sellers, although additional checks on the machine, ownership and seller may be required before settlement. It's a good idea to have the finance assessed before committing to a private purchase.

Potentially. Eligible auction purchases can be financed, subject to the machine and application meeting the applicable requirements. Commercial vehicle finance products can accommodate auction purchases. Because auctions often have short payment deadlines, arranging pre-approval before bidding can help establish your available budget.

There isn't one borrowing limit for every trust. Borrowing capacity depends on the trust structure, business cash flow, financial position, credit profile, existing commitments, machine and purchase price. We compare options across 80+ lenders to identify suitable finance based on the amount required and your circumstances.

Commercial machinery finance terms of up to 7 years may be available, depending on the machine and application. Seven-year commercial vehicle finance terms are available in the Australian market. A longer loan term can reduce regular repayments but may increase the total interest payable over the life of the finance.

Potentially. A balloon payment may be available on eligible machinery finance. A balloon leaves an agreed amount outstanding at the end of the finance term, which can reduce regular repayments during the loan. The balloon must then be dealt with at the end of the term in accordance with the finance agreement.

Depending on the trust and circumstances, commercial finance structures may include a chattel mortgage, commercial hire purchase, finance lease or other business asset finance arrangements. A chattel mortgage generally involves the business owning the machine while a security interest is registered over the vehicle until the finance is repaid. The tax treatment of different structures can vary, so you should obtain professional tax advice for your circumstances.

Potentially. Previous credit issues don't automatically prevent a trust from obtaining machinery finance. The application may involve assessment of the trust, trustee, directors or guarantors. The nature and age of previous credit issues, current financial position, deposit and machine being purchased can influence the options available.

Yes. Eligible trusts may be able to finance multiple machines, trailers and other commercial vehicles, subject to approval. Finance can potentially be structured for businesses adding a second machine, replacing several vehicles or expanding an established fleet.

Potentially. Existing commercial machinery finance may be refinanced where suitable options are available. Whether refinancing makes sense depends on the current payout amount, remaining loan term, existing rate and fees, the machine's value and the replacement finance available.

Eligible applications may receive same-day pre-approval, with decisions or approvals potentially available within 24 to 48 hours once all required information has been provided. Trust applications can sometimes require additional verification of the trust structure and trustee, so approval times aren't guaranteed.

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

There may be GST, depreciation, interest or other tax considerations when a trust purchases and finances a machine for business use, depending on the finance structure and circumstances. Tax outcomes aren't the same for every trust, so you should speak with your accountant or tax adviser before relying on any potential tax benefit.

Machinery finance through a trust can be more involved because eligibility and documentation requirements can differ depending on the trust type, trustee structure, trust deed, business history and financial position. We compare options across 80+ lenders to identify suitable finance for your trust and machine purchase, without limiting you to one finance provider. 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.