By Eugene Maslov, Founder and Finance Broker at Lendr360
Published 23 September 2026 · Last reviewed 24 September 2026
Equipment finance is not assessed on the asset alone. Lenders generally consider the business purchasing it, its ability to manage the repayments and whether the proposed asset makes sense for that business.
Although every lender applies its own criteria, five common considerations can influence an equipment-finance application.
1. Business history
The lender may consider how long the business has operated, its industry, ownership structure and relevant experience.
A newer business is not automatically excluded, but it may need to provide more information about its owners, contracts, projected income or the reason the equipment is required.
2. Cash flow and repayment capacity
The business needs sufficient cash flow to meet the proposed repayments alongside its existing expenses and commitments.
Depending on the application, a lender may request bank statements, financial statements, tax information or details of current business debts.
Strong turnover alone does not always demonstrate repayment capacity. The timing of income and expenses can also be important.
3. Credit conduct
Lenders may review the credit history of the business and its directors. This can include existing loans, repayment history, defaults and recent credit enquiries.
If there has been a past credit issue, providing a clear explanation and evidence of the current position may help the lender properly understand the circumstances.
4. The equipment being purchased
The type, age, condition, intended use and value of the equipment may influence which lenders and finance structures are available.
Mainstream equipment with a clear business purpose may be viewed differently from a specialised, older or difficult-to-value asset.
The lender may also consider whether the purchase is from a dealer, private seller or auction.
5. Deposit or existing equity
A deposit is not required for every equipment-finance application. However, a contribution may strengthen some applications, particularly where the business is new, the asset is older or the purchase price is higher than the lender’s assessed value.
Existing equity in equipment may also provide additional options in some circumstances.
A clear application makes a difference
A strong application should explain what the equipment is, why the business needs it, how it will support the business and how the repayments will be managed.
If you are planning an equipment purchase, speak with Lendr360 about the equipment finance options that may be available for your business and circumstances.
General information only. Approval, finance terms and documentation requirements depend on the lender, applicant, asset and individual circumstances.
Sources and further reading
The government guidance supports the discussion of cash flow, debts, repayment capacity, security, business plans and financial documentation.