For businesses in civil construction, earthmoving, mining, agriculture and quarrying, machinery is the most capital-intensive investment the business will make. Financing heavy equipment through an ABN gives business owners access to low doc products, tax benefits and commercial lending rates that are simply not available to private borrowers. Whether you are a sole trader buying your first excavator or an established company expanding a fleet of heavy plant, machinery finance for ABN holders is one of the most accessible commercial lending products in Australia.
Who Qualifies for ABN Machinery Finance?
Machinery finance is available to any entity with an active ABN — sole traders, partnerships, companies, trusts and self-managed super funds. There is no minimum ABN age required with most specialist heavy equipment lenders. A 1-day ABN holder can be approved for machinery finance, though rate and loan-to-value will improve with longer ABN history and stronger financials. Businesses that have been trading for 2 or more years with clean credit will access the most competitive rates.
Low Doc Machinery Finance for ABN Holders
Low doc machinery finance is one of the most popular products for ABN holders in the civil construction and earthmoving industries. It does not require the submission of full financial statements, tax returns or BAS statements. Instead, the lender assesses your loan based on your ABN history, credit profile, and the details of the machinery you are purchasing. Low doc machinery finance is available up to $500,000 from most lenders, and some lenders offer lite-doc and no-financials products up to $750,000 for strong applicants.
What Machinery Can ABN Holders Finance?
Through Overdrive Funding, ABN holders can finance virtually all types of commercial heavy equipment — excavators, bulldozers, graders, articulated dump trucks, compactors, road rollers, scrapers, screening and crushing plants, concrete pumps, drill rigs, trenchers, cranes, telehandlers, forklifts, skid steers, loaders, and all types of agricultural machinery including tractors, harvesters, sprayers and seeders. New and used machinery are both eligible, including auction purchases.
Machinery Finance Rates for ABN Holders
Machinery finance rates for ABN holders in Australia currently range from approximately 6.1% to 15% per annum. The rate depends on your ABN history, credit profile, the age and type of machinery, and which lender your application is matched to. Established ABNs with 2+ years of trading purchasing new machinery with full financials typically access rates from 6.1% to 8.5%. Used machinery, shorter ABN history or previous credit issues may see rates from 9% to 13%. A specialist machinery finance broker with access to 80+ lenders will always achieve a better rate than a single bank.
Tax Benefits of Financing Machinery Under Your ABN
Financing machinery under your ABN through a chattel mortgage offers significant tax benefits. GST-registered ABN holders can claim the full GST on the purchase price in the next BAS, the interest component of repayments is tax-deductible, and the asset can be depreciated in the business tax return. For eligible businesses, the ATO's instant asset write-off may also apply. Your accountant or broker can help you determine the most tax-effective structure for your specific situation.
Overdrive Funding Director Simon Kendrick works directly with ABN holders across Australia to arrange machinery finance at competitive rates. We compare 80+ lenders and manage everything from application through to settlement. Contact us today for a free, no-obligation quote.