What is business finance?
Business finance covers a range of lending products that help businesses acquire assets, manage cash flow, and fund growth. In Australia, the most common types for small to medium businesses are equipment finance, vehicle finance, and business term loans.
Through BaseRate, you can estimate repayments on business vehicle and equipment finance, then explore suitable lender options from our panel. BaseRate does not charge you to use the service. If an introduced loan settles, the financier pays BaseRate a commission.
Equipment finance explained
Equipment finance allows you to acquire machinery, tools, vehicles, or technology without paying the full purchase price upfront. The main structures are:
- Chattel mortgage: You own the asset immediately. The lender holds a mortgage over it as security. Most common for business vehicles and major equipment.
- Finance lease: The lender owns the asset and leases it to you. At the end of the term, you typically have the option to buy, return, or refinance.
- Operating lease: Similar to a finance lease but the residual risk stays with the lender. Common for technology and vehicles with uncertain residual values.
- Hire purchase: You hire the asset over a term and ownership transfers to you once all repayments are made.
Business vehicle finance
If you use a vehicle for business purposes, the borrower, contract and business-use proportion can affect its tax treatment. Depending on eligibility and circumstances, relevant items can include:
- GST credits where the acquisition is creditable and the business is registered
- Interest attributable to eligible business use
- Decline in value subject to the applicable depreciation rules and limits
The correct approach depends on your business structure (sole trader, company, trust) and the percentage of business use. Always confirm the tax treatment with your accountant before proceeding.
Low-doc, mid-doc and full-doc business finance
Not all business asset finance requires full financial statements. The evidence pathway usually depends on trading history, requested amount, asset type, credit conduct, property or asset backing and comparable credit. Low doc is generally aimed at an established, policy-fitting business—not a business with no evidence.
- Low doc: can use ABN and GST history, declarations, asset backing or comparable credit.
- Mid doc: commonly adds business bank statements and conduct or cash-flow tests.
- Full doc: can require financial statements, tax returns, commitment schedules and tax-position information.
- Start-up: can use a separate pathway with a deposit, industry experience and bank-statement evidence.
The evidence pathway does not by itself determine the rate. Pricing can also depend on the asset, property backing, credit profile, loan amount, term, private sale, brokerage and other product conditions.
What is BaseRate?
BaseRate is a digital finance platform. We are not a bank or lender. BaseRate does not charge customers to use the service. If an introduced loan settles, the financier pays BaseRate a commission. Our platform helps you estimate repayments, explore business finance options and move through an application process online.
