If you run a construction, earthmoving, civil or agricultural business, the machine is what earns the money — so a past credit issue is the last thing you want standing in the way. The good news is that bad credit does not have to keep you off the tools. Specialist lenders finance excavators, loaders, dozers, forklifts and other plant for credit-impaired businesses every week. Here is how it works and how to get approved.
Can You Get Machinery Finance With Bad Credit?
Yes. The banks usually decline anyone with a mark on their file, but specialist and non-bank lenders assess these applications on the full picture — your income, your experience, the machine and your explanation of what happened — not just a credit score. Because machinery is asset-backed, lenders are often more comfortable than they would be with an unsecured loan. Overdrive Funding compares 80+ lenders, including specialists who work with credit-impaired clients, so your application reaches the ones most likely to approve it.
What Counts as ‘Bad Credit’?
Lenders may see any of the following on your file:
- Defaults on loans, credit cards or utility bills (listed for 5 years)
- Missed or late repayments and arrears
- Court judgments or writs
- A discharged bankruptcy or a Part IX debt agreement
- Outstanding ATO or tax debt
- A low credit score or several recent credit enquiries
- A new ABN with limited trading history
Even with one or more of these, machinery finance is often still achievable — it comes down to how the deal is structured and which lender it is sent to.
How Lenders Assess a Bad-Credit Application
Specialist lenders look well beyond your score. What strengthens a credit-impaired machinery application:
- A clear, honest explanation of the credit issue and how it has been resolved
- Evidence of income — contracts, purchase orders or steady work
- Hands-on experience in your industry
- A deposit or trade-in (often 10–30% for bad-credit deals)
- The machine itself — a reputable brand in good order that holds its value
- Clean recent banking with no dishonours
Your Finance Options With Bad Credit
- Specialist lenders — non-bank financiers who price for risk and consider defaults, judgments and discharged bankruptcy
- Low doc finance — apply on an ABN declaration and bank statements instead of tax returns
- Rent-to-own — rent the machine and buy it out over the term, with assessment focused on income rather than your credit file
- Finance with a deposit — money down lowers the lender's risk and improves both approval odds and pricing
Can I Get Machinery Finance With ATO Debt?
Often, yes. An ATO or tax debt does not automatically rule you out, particularly through specialist lenders or a rent-to-own arrangement. What matters most is your ability to service the repayments and the value of the machine. We have arranged approvals for businesses with an active ATO payment plan in place — and if the debt is holding you back, we can also look at financing to clear it.
Tips to Improve Your Chances of Approval
- Check your credit file (free from Equifax or illion) and dispute any errors
- Stop applying to lenders directly — each decline adds another enquiry
- Settle or reduce small overdue debts where possible
- Save a deposit and keep your bank statements clean for a few months
- Have proof of upcoming work or contracts ready
- Talk to a bad-credit finance specialist before you apply
A Path Back to Mainstream Rates
Bad-credit finance carries a higher rate, but treat it as a stepping stone. After around 12 months of on-time repayments and an improved credit position, we can often refinance you into a mainstream chattel mortgage at a lower rate and reduce your repayments. Getting the machine working and paying reliably is what rebuilds your file.
How Overdrive Funding Can Help
We arrange machinery finance for credit-impaired businesses regularly. By comparing 80+ lenders — including specialists who understand defaults, judgments, ATO debt and discharged bankruptcy — we position your application with the lender most likely to approve it. We run only a soft credit check while we quote, our service is free, and Director Simon Kendrick works with you personally from application to settlement.
Been declined for machinery finance? Get a free, no-obligation assessment today and we will tell you exactly what you can access.
You can see the full range of plant we fund, and current rates, on our low-rate machinery finance page.