Low Doc Equipment Finance for Cairns & Brisbane Tradies
Need a new ute, truck, excavator, skid steer, trailer or another piece of equipment for your business?
For established Cairns and Brisbane tradies, low doc equipment finance provides a simpler way to finance business vehicles, plant and machinery without having to provide the level of financial information normally associated with a full-doc application.
Low Doc Equipment Finance: In a Nutshell
Generally, If you've been running your business for 2 + years, are GST registered and have a sound credit history, you may be able to finance your next work vehicle or piece of equipment through a low doc equipment finance option.
Depending on the lender and your circumstances, finance may be available for:
🚙 Utes, vans and commercial vehicles
🚛 Trucks, tippers and trailers
🚜 Excavators, skid steers and earthmoving equipment
🏗️ Forklifts, telehandlers, boom lifts and access equipment
🌾 Tractors and agricultural machinery
🔧 Other eligible business plant and equipment
Low doc doesn't mean no checks and no paperwork. Lenders still consider your application under a matrix scenario, if you fall inside their parameters, the process is much simpler.
For busy Cairns and Brisbane tradies, the advantage is that an eligible application will be processed within hours, rather than days for a full doc application.
Already know what you want to buy? Talk to Tropic Books & Finance about your equipment and we can look at the finance options available for your situation.
Simon Smyth
Phone: 0427 216 011
Email: simon@tropicbooks.com.au
What Is Low Doc Equipment Finance?
Low doc equipment finance is a quicker application method for established businesses.
Importantly, low doc doesn't mean no assessment.
The lender will still want to understand the business, the borrowers and the asset being financed.
Depending on the lender and transaction, they may consider:
How long you've held your ABN
How long the business has been operating
GST registration
Credit history
The type and age of the equipment
Purchase price
Amount being financed
Where you're buying the asset
Deposit or trade-in
Existing finance being paid out
Balloon or residual
Business ownership and director guarantees
For the right borrower and asset, however, the application process can potentially be simpler and quicker than a traditional full-doc business finance application.
What Equipment Can Cairns and Brisbane Tradies Finance?
Low doc equipment finance isn't limited to work vehicles.
Depending on the lender, borrower and proposed transaction, a wide variety of business assets may potentially be financed.
Cars, Utes, Vans, SUV's and Commercial Vehicles
This could include:
Work utes
Vans
Light commercial vehicles
Trucks
Tippers
Trailers
4WD's
For a Cairns electrician adding another service ute or a Brisbane plumber putting another van on the road, the vehicle is more than transport. It's part of the equipment needed to generate income.
Earthmoving and Construction Equipment
Finance options may also be available for equipment such as:
Excavators
Mini excavators
Skid steers
Wheel loaders
Dozers
Graders
Backhoe loaders
Rollers
Forklifts
Telehandlers
Boom lifts
Scissor lifts
Trailers
For Cairns and Brisbane builders, tradies, civil contractors and earthmoving businesses, machinery can represent a substantial investment.
Financing the purchase can allow the business to put that equipment to work without necessarily having to fund the entire purchase price from available cash.
How Much Can You Finance?
There isn't one low doc borrowing limit that applies to every lender.
The amount available can depend on factors including:
The business + the borrower + the asset + the requested finance structure + previous / current borrowings with the lender
The important takeaway for a Cairns or Brisbane tradie is that the type, value and age of the equipment can influence the finance options available.
Needless to say, the available lending limits are generous and appropriate to the items the lending covers.
Your Time in Business Matters
Low doc equipment finance is generally more suited to established businesses than businesses that have only just started trading.
For example, some streamlined lending policies may look for a business that has:
Held an ABN for a minimum period
Been trading in the same business for a minimum period
Registered for GST
Maintained its statutory obligations
Established an acceptable credit history
Some policies can use a minimum two-year trading history as part of their eligibility criteria, while other lenders may have different requirements.
This is one reason having an established business can make a significant difference when looking at low doc finance.
Good Credit Still Matters
Low doc doesn't mean no credit check.
The credit history of the business, borrower, directors and guarantors can still form an important part of the lender's assessment.
You Don't Necessarily Have to Buy New
Second-hand equipment can make excellent commercial sense.
Why spend considerably more on a brand-new excavator if a suitable late-model machine will do exactly what the business needs?
Used assets could potentially include:
Utes
Vans
Trucks
Excavators
Skid steers
Loaders
Forklifts
Trailers
Other machinery
But the age of the asset matters.
Different lenders can have different maximum age requirements for various types of equipment.
Before committing to older machinery, particularly through a private seller or auction, it's worth checking whether the equipment fits the proposed lender's requirements.
Buying Privately or Through a Dealer
Where you're buying the asset can also affect the finance.
Depending on the lender and equipment, purchases could potentially be made from:
Licensed motor dealers
Equipment dealers
Recognised machinery suppliers
Certain private sellers
The requirements may change depending on whether you're buying a ute, truck, excavator or specialised piece of machinery.
For Cairns and Brisbane tradies buying used equipment, it makes sense to investigate the finance before deciding on the asset you are buying.
Deposits, Trade-Ins and Negative Equity
Your trade-in isn't necessarily the same as your equity.
Some low doc policies can have restrictions around refinancing negative equity into the new transaction. Negative equity is the carry over or residual finance remaining after the trade of a vehicle.
That's why it's important to determine the actual payout on the existing equipment when you're working out how much finance you need.
What About a Balloon?
A balloon or residual leaves an agreed amount outstanding at the end of the finance term.
This can potentially reduce the regular repayments during the term of the loan, helping the business manage monthly cash flow.
But it also means there's still money owing at the end.
For tradies who regularly replace work vehicles or equipment, incorporating a balloon may sometimes be appropriate.
The key is making sure the structure fits the business rather than simply trying to achieve the lowest possible monthly repayment.
Low Doc Isn't Just About Getting Approved
Getting something approved isn't the only objective.
The finance also needs to make sense for the business.
The finance structure should take into account factors such as:
Purchase price
Deposit
Trade-in
Finance amount
Term
Repayment
Balloon or residual
Cash flow
Expected working life of the equipment
How long you plan to keep the asset
When it's likely to be replaced
The aim is to put the right equipment into the business with finance that's structured appropriately around it.
Low Doc Equipment Finance for Tradies in Cairns & Brisbane
At Tropic Books & Finance, we understand that tradies would rather be working on their business than spending their time chasing paperwork.
We can help businesses including:
⚡ Electricians and sparkies
🔧 Plumbers
🪚 Carpenters and chippies
🏠 Builders
🧱 Bricklayers
🚧 Concreters
🌿 Landscapers
🏗️ Earthmoving and civil contractors
❄️ HVAC and air-conditioning contractors
🏠 Roofers
🚛 Transport and delivery businesses
🔨 Other trade and contracting businesses
Whether you're looking for a new work ute in Cairns, another van for a growing Brisbane trade business, or an excavator, skid steer, trailer, telehandler, forklift or truck, we can look at the transaction and help determine what finance options may be available.
Simon Smyth
Phone: 0427 216 011
Email: simon@tropicbooks.com.au
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