Can you get asset finance for a new business or start-up?

Starting a business almost always means you need gear before you have a trading history to show for it. A new ABN, no tax returns, and a machine or vehicle you cannot operate without. It feels like a chicken-and-egg problem, but financing assets as a new business is more achievable than most owners expect.

This guide explains how lenders look at a start-up, what makes the difference between an approval and a decline, and how to give a new-business deal its best shot. It is general information, so confirm your own position with your broker and accountant.

Can a brand new business actually get finance?

Yes, it can. It is harder than financing an established business, but it is far from impossible. The catch is that lenders cannot lean on years of financials, so they weigh other things more heavily. Get those other things right and a start-up deal can come together quickly.

What lenders look at most for a new business:

• Director experience in the same industry. A new ABN run by someone with ten years in the trade reads very differently to a complete beginner. Relevant experience is one of the strongest signals you can bring.
• Property ownership. A director who owns real estate, even with a mortgage, is asset-backed. This de-risks the deal and materially improves the odds, the limit, and the rate.
• Credit history. A clean personal credit file matters more when there is no business track record to rely on.
• The asset itself. A standard, resale-strong asset that the lender can easily sell if needed is much easier to fund than a niche or fast-depreciating one.
• Deposit. Putting some money in lowers the lender's exposure and can turn a maybe into a yes.

What to realistically expect

It helps to go in with clear expectations. As a genuine start-up you are more likely to see lower limits, a deposit requirement, and a higher rate than an established business would get. That is the lender pricing the unknown, not a knock on your idea.

The single biggest lever is the combination of a property-owning director with real industry experience. Put those two together and many lenders will treat the deal much more like a mainstream application. Lacking both does not rule you out, but expect a tighter structure while you build a track record.

Some lenders specialise in start-up and new-ABN finance and write these deals every day. Others will not touch a business under two years old. Knowing which is which is exactly where a broker saves you from wasted applications and needless credit enquiries.

How to give your application its best shot

• Lead with your experience. Make your industry background clear. If you ran or worked in a similar operation before starting your own, say so. It is genuine evidence you can run the asset profitably.
• Be ready to show asset-backing. If you own property, have the details ready. It is one of the most powerful things in your file.
• Tidy up your credit. Clear small defaults, keep existing repayments clean, and avoid applying to lots of lenders at once, since multiple enquiries hurt your file.
• Choose a sensible asset. A standard vehicle or common piece of plant is far easier to finance as a start-up than something unusual.
• Consider a deposit. Even a modest deposit can open doors and improve your rate when you have no trading history.

Why a broker matters more for a start-up

When you are established with strong financials, plenty of lenders will say yes and the game is mostly about price. As a new business, the game is about finding the lenders who will say yes at all, and presenting your file the way their credit team wants to see it. A broker with a 40+ lender panel knows which lenders fund new ABNs, what each one needs to get comfortable, and how to frame your experience and asset-backing so the deal lands.

If you are weighing up how to structure the purchase, our guide to chattel mortgage versus lease versus hire purchase is a useful next read, and a broker can match the structure to your tax position.

This is general information only and not financial, credit, or tax advice. Lender appetite for new businesses varies and changes. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.

This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.