A business a few months old and one a few years old can be offered different products by different lenders for the same asset. Here’s how to make sure you’re assessed at your real age.
What “established” means
The most common line is two years of ABN and GST registration, uninterrupted. Some lenders want three. Uninterrupted is the part people miss: cancel your GST and re-register later, and the clock resets to zero. The ABN has to be continuous too, not just old.
Some lenders also reward age: six, eight years or more can earn a marginally lower fee or rate.
The continuation trick
Started as a sole trader and moved into a Pty Ltd company? If it’s the same industry and the same kind of work, we can usually argue continuation. A company ABN only a year old, with three years of sole-trader history in the same trade, is often assessed as a four-year business.
Miss it and you’re treated as brand new: more paperwork, fewer lenders, less you can borrow. Always tell us about any earlier ABN.
Sometimes the answer is “wait four weeks”
Say an eleven-month-old business wants truck finance today. We can place it now. But in four weeks it turns twelve months old, and a lender who says no today may say yes, often with a significantly cheaper rate and more money. We lay out both paths; you make the call.
Policy moves month to month, and every direct application can leave a mark on your file, so shopping around yourself can do more harm than good.
Tell us what’s next
Every lender caps how much it will lend one business. If we know you’re buying a forklift or machine today and more gear in six or twelve months, we can choose a lender now that leaves room for the next purchase.
Getting ready as a newer business
- Your ABN, GST details and ID for the directors
- What you’re buying, or what the money is for
- Bank statements in order (see our clean bank statements guide)
- Any earlier ABN or industry experience
With little trading history, lenders lean on the people behind the business: a clean personal credit file, contracts or a deposit all help. Need working capital instead? Compare business loans, overdrafts and equity release.
Common questions
Can a new business finance a car or truck?
Yes. There are fewer lenders than for an established business, but mainstream vehicles are among the easier assets to finance early on: see equipment finance with a new ABN.
Can I get a new business loan without collateral?
Unsecured loans exist but are harder to get for a new business. Asset finance is easier because the vehicle or equipment you’re buying is the security, so your house stays out of it.
How do I get an ABN?
Apply online through the Australian Business Register; it’s free if you apply directly. Register early and keep it active, because lenders count your business age from that date.
How does business finance work?
A lender gives your business money, or pays for an asset, and the business repays it over an agreed term with interest. Before approving, the lender assesses the business, its owners and any security.
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