When it comes to securing asset finance, most people assume a strong credit score is the golden ticket. While credit history is important, it’s only one part of the picture.
Lenders assess risk using a broader set of criteria, and understanding what they look for can significantly improve your chances of approval, particularly in complex or niche sectors.
Not all assets are created equal in the eyes of a lender. Vehicles and equipment that retain value or are considered essential for business operations (like excavators, delivery vans, or medical equipment) are viewed as lower risk. On the flip side, assets with limited resale value or rapid depreciation may be harder to finance without strong supporting documentation.
Tip: Choose assets that have clear business use and a strong resale market, or be prepared to justify their value to your business.
Some industries are seen as riskier than others. For example, construction, hospitality, and startups may be subject to economic fluctuations or seasonal demand, which lenders take into account.
But this doesn't mean finance is off the table - it just means lenders need confidence that you can meet your obligations even in a downturn.
Tip: Demonstrating strong cash flow, forward contracts, or a diversified client base can help counteract perceived industry risk.
It’s not just what you're buying, it’s how you plan to use it. Lenders want to know the asset will generate income or contribute meaningfully to your operations.
Are you replacing a broken-down truck that’s costing you in downtime? Are you adding equipment to meet new demand? Clear, practical use cases go a long way.
Tip: Be ready to explain the “why” behind the purchase. Linking it directly to growth, efficiency, or cost savings helps de-risk the deal in the lender’s eyes.
Beyond the asset, lenders assess your business’s overall financial health. This includes:
If you’re a newer business or have had a rough patch, working with a broker becomes even more valuable. We know which lenders are more flexible and how to structure your application strategically.
Lenders don’t just approve finance based on a number. They take a holistic view, and so should you. By understanding what they look for and preparing accordingly, you not only improve your chances of approval, but you may also access better rates and terms.
If you’re planning an asset purchase and want to get finance-ready, get in touch. We’ll help you put your best foot forward and find a lender that sees the full picture.
