Overview
Restaurant equipment finance requirements in Australia centre on three things: your business profile (ABN/GST status, time in business, cash flow and credit), the asset profile (type, age, condition and resaleability), and the facility structure (chattel mortgage, hire purchase, finance lease or operating lease).
Understanding these early helps you shape the right structure, avoid delays, and decide whether a deposit or different lender policy will get a better outcome.
Quick checklist: what you’ll usually need
- ABN (and GST registration if applicable) and director ID
- Supplier quote or invoice with itemised equipment (make/model, serials if known)
- 3–6 months of business bank statements (low doc) or BAS/financials (full doc)
- Proof of trading history (time in business, turnover trends)
- Photo ID for owners/directors and personal address details
- For fit-out: a breakdown of hard assets vs soft costs (install, freight, labour)
- For used/private sales: photos, condition report, proof of ownership, serials
How requirements work (and why they vary)
Lender policies differ, but the commercial logic is consistent: the stronger the trading profile and asset quality, the lighter the documentation and the broader the options. New gear from reputable suppliers is easier to fund than very old or highly customised items with low resale value. Fit-out packages that include a lot of soft costs often need deposits or blended facilities.
Your choice of structure changes requirements too. Ownership-driven products (like a chattel mortgage or hire purchase) differ from a finance lease or operating lease where residuals and end-of-term options matter.
Eligibility: what lenders look for
- Business status: active ABN; GST registration if turnover ≥ $75k; correct entity details (sole trader, company, trust).
- Time in business: typically 12–24+ months for streamlined policies; startups can qualify with stronger evidence.
- Cash flow: positive bank statement trends and headroom for new repayments; BAS or financials for larger amounts.
- Credit profile: recent conduct, any defaults/ATO debt and how they’re being managed.
- Security and guarantees: director guarantees are common; property ownership can help but isn’t required.
- Asset quality: brand, model, age, warranty and expected resale.
Have unique circumstances? There are pathways for startup equipment finance, low doc asset finance and bad credit asset finance.
Document checklist: low doc vs full doc
Low doc (common up to ~$150k–$250k for established businesses)
- Photo ID for owners/directors
- ABN/GST details and business address
- 3–6 months business bank statements
- Supplier quote/invoice with itemised equipment and costs
Full doc (larger amounts or newer/complex files)
- Everything in low doc, plus:
- Recent BAS and/or financial statements (P&L, balance sheet)
- ATO portals or payment plans if relevant
- Lease agreement for premises (if required for fit-out context)
- Installation/commissioning details for specialised equipment
Requirements change with lender policy, facility type and asset mix. See broader equipment finance requirements for cross-industry context.
Asset-related requirements (new, used and private sales)
- New equipment: supplier invoice, model details, warranties; easier approvals.
- Used equipment: age/condition limits apply; may need photos, serials and a condition report.
- Private sale: additional checks on ownership and PPSR; sometimes an inspection/valuation.
- Fit-out and soft costs: many lenders cap soft costs (install, labour, design) at ~20–30% of total.
- Popular items: combi ovens, ranges, fryers, commercial fridges/freezers, dishwashers, exhaust canopies, coffee machines, POS and display units.
How structure changes requirements
- Chattel Mortgage: ownership-focused; interest and depreciation may be claimable; GST on purchase price may be claimable upfront if registered—see GST treatment.
- Hire Purchase: ownership at end; similar documentation to chattel mortgage with timing differences on GST and accounting—see GST treatment.
- Finance Lease: use the asset and pay rentals; residual value applies—see residual value.
- Operating Lease: off–balance sheet for some businesses; focused on use/refresh cycles.
For a broader comparison, explore equipment loan vs lease and finance lease vs operating lease.
Deposits, residuals and LVRs
- No deposit may be possible for strong files; others may need 10–20%+ depending on asset age and soft costs. See no deposit asset finance.
- Residuals/balloons can reduce repayments but must be realistic—see restaurant equipment balloon payments.
- LVR (loan-to-value) is influenced by asset resale profile; older/specialised items may attract lower LVRs.
Startups and credit-impaired scenarios
New venues and credit-challenged files can still get funded with the right structure and evidence. Expect tighter policy and possibly a deposit. Options include:
- Startup equipment finance for new venues or expansions
- Low doc asset finance for simpler evidence
- Bad credit asset finance when there is adverse history
- Fast approval asset finance when timing is critical
Process, approval time and documentation
- Scope: confirm asset list, supplier(s), and structure preference.
- Evidence: provide low doc or full doc set as needed (see checklists above).
- Assessment: lender reviews cash flow, credit, and asset details; may request clarifications.
- Approval: streamlined cases can be approved in 24–48 hours once complete documents are received. Complex files can take longer.
- Settlement: supplier invoice verification, any inspections, then payment to supplier.
For more detail, see restaurant equipment finance approval time and the broader equipment finance approval process.
Get help with your requirements
Ask a specialist to review your restaurant equipment finance requirements in Australia, confirm what documents to prepare, and suggest a structure that fits your cash flow and tax position.
Frequently asked questions
What are the basic restaurant equipment finance requirements in Australia?
Active ABN (and often GST registration), time in business, stable cash flow supported by bank statements or BAS, acceptable credit history, director ID/guarantees, and a clear supplier quote or invoice. Stronger files face lighter documentation.
What documents do I need for low doc vs full doc?
Low doc: ID, ABN/GST details, 3–6 months bank statements, and a supplier quote/invoice. Full doc adds BAS or financials, ATO info if required, and fit-out contracts when relevant. See the checklist above or our broader equipment finance requirements.
Do I always need a deposit?
No. Many approvals proceed with no deposit, but older assets, private sales or soft-cost-heavy fit-outs may require 10–20%+. Learn more at no deposit asset finance.
Can used assets be financed?
Often yes. Expect more detail: age/condition, serials, photos and proof of ownership. Very old or specialised items may need a deposit or alternate structure.
Which facility should I choose?
Ownership goals and tax treatment often drive the choice. Compare chattel mortgage, hire purchase and finance lease, or see equipment loan vs lease.
What if I’m a startup or have credit issues?
There are targeted options for startups and credit-impaired borrowers. Be prepared for extra evidence and potentially a deposit.
How long does approval take?
Streamlined cases can be approved within 24–48 hours after documents are received. See restaurant equipment finance approval time for what to expect.
Are fit-out and installation costs covered?
Partly. Many lenders cap soft costs (install, labour, design) or split them into a separate facility. A detailed supplier breakdown helps justify inclusions.
Final takeaway
The best way to approach restaurant equipment finance requirements in Australia is to match the structure with your cash flow, asset mix and tax position, then prepare the right documents to support a clean, credible application.
If you want a quick review of your scenario and a tailored checklist, send an enquiry and we’ll outline your options.
General information only. Seek independent tax/accounting advice for your circumstances.