Can I get finance on a new ABN?

Often, yes. Many lenders prefer an ABN that's been registered for two years or more, but plenty will consider newer businesses, and some will look at applications from day one. The key is knowing which lenders suit your situation, because a decline from one doesn't mean they'll all say no.

What lenders look at on a new ABN

• How long your ABN has been registered, and whether you're registered for GST.
• Your experience in the industry, including time as an employee in the same trade.
• Your personal credit history.
• Whether you own property, which can strengthen an application.
• Any deposit or trade in you're putting towards the purchase.
• The type and age of the vehicle or equipment you're buying.
• Any contracts or regular work you have lined up.

Ways to improve your chances

• Register for GST if your turnover means you should be, as many lenders view GST registration positively.
• Keep your business and personal finances separate from the start.
• Have your work history ready, especially if you did the same work as an employee before going out on your own.
• Consider a deposit or trade in, which reduces the amount you need to borrow.
• Avoid applying with several lenders yourself, as multiple credit enquiries can count against you.

Low doc options

If you don't have full financials yet, low doc finance may be an option for eligible borrowers. Instead of tax returns and financial statements, lenders may rely on things like your ABN and GST history, bank statements or an accountant's declaration. Eligibility depends on the lender and your circumstances.

This guide is general information only and doesn't take into account your objectives, financial situation or needs. It isn't financial, tax or legal advice. Talk to us about your situation, and to your accountant about tax.