Top 5 Loan Myths Debunked

Confused by all the loan advice out there? You’re not alone. Let’s set the record straight.

Why This Matters

Whether you’re applying for a vehicle loan, equipment finance, or working capital, there’s no shortage of “advice” online. Unfortunately, a lot of it is outdated, misleading—or just plain wrong.

At Thrift Capital, we help business owners and entrepreneurs navigate the finance world with confidence. So today, we’re clearing up five of the most common myths we hear every day—and giving you the facts to make smarter decisions.

Myth 1: “You need perfect credit to get approved.”

Truth: A less-than-perfect score doesn’t disqualify you.

While credit history matters—especially for unsecured loans—it’s only one part of the equation. Lenders also consider:

• Cash flow or bank statements

• Business stability

• Loan purpose and security

• Industry experience

Plus, we work with specialist lenders who are open to low-doc and new-ABN applicants, even with limited credit history.

Myth 2: “I can only get a loan if my business has been trading for over 2 years.”

Truth: New businesses can get finance too.

Many think they need years of tax returns to qualify. But lenders now offer finance options for:

• Startups

• Sole traders with new ABNs

• Side hustlers going full-time

If you have solid industry experience, a clear loan purpose, or asset security (like a vehicle or machine), you can likely get approved.

Myth 3: “All lenders are the same—just compare rates.”

Truth: Not all loans—or lenders—are created equal.

Rates are important, yes. But so is:

• The speed of approval

• Flexibility of repayments

• Ease of document requirements

• Pre-approval conditions

• Balloon options or seasonal structures

Some lenders are better suited for your industry, cash flow, or equipment type. That’s why working with a broker makes a real difference.

Myth 4: “Applying for finance will hurt my credit score.”

Truth: Not always—and not if you do it properly.

Multiple applications with the wrong lenders in a short time can hurt your score. But when you work with a broker:

• Your application is strategically placed with the right lender

• We often start with a soft credit check or pre-assessment

• We avoid unnecessary rejections

Bottom line: one well-placed application is far better than going it alone and hoping for the best.

Myth 5: “If I got rejected before, I won’t get approved now.”

Truth: Rejection isn’t final—and it’s often fixable.

Many applicants get declined simply because they:

• Applied with the wrong lender

• Had missing documents

• Didn’t structure the application clearly

We’ve helped dozens of clients who were previously rejected get approved within days—just by matching them with the right lender and repackaging the deal.

Final Thought: Know the Facts Before You Apply

Finance doesn’t need to be complicated, but it does require clarity.

By knowing what lenders actually look for—and avoiding the common myths—you can make better decisions, access better deals, and save time (and money) in the process.

Need Help Navigating Your Options?

 Talk to a Thrift Capital broker today.

New ABN? How to Get Approved Even If You’re Just Starting

Starting a business is a bold move—and one that often requires funding early on, especially if you’re purchasing vehicles, equipment, or preparing for a contract. But if you’ve only just registered your ABN, you might be wondering: 

Can I even get finance this early? 

The short answer: Yes, you can. While some lenders still favour businesses with 12 months of trading history, many now offer finance solutions specifically for new ABNs, startups, and sole traders—especially when your application is structured properly. 

This guide breaks down how finance works when you’re just getting started, what lenders actually look for, and how Thrift Capital helps you improve your chances of fast approval—even in your first weeks of trading. 

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The Misconception: “I Need 12 Months in Business to Qualify” 

This is one of the most common myths we hear.

While it’s true that major banks usually want to see trading history, this isn’t the case across the board. In fact, Australia’s non-bank and specialist lenders are increasingly offering products built specifically for early-stage businesses, many with no minimum ABN age requirements. 

That means if you’ve just registered your ABN—whether as a tradie going out on your own, a side hustler formalising your business, or a company director launching a new venture—you can still qualify for funding with the right lender and the right documentation. 

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What Lenders Look for When There’s No Trading History 

When you don’t have BAS statements or financials to show, lenders shift their attention to other key areas: 

• Your personal credit profile. This becomes your main credibility indicator. A good score shows reliability, especially for low-doc or unsecured loans. 

• Your industry experience. If you’ve been working in the field—even as an employee—lenders view you as “low risk” despite the new ABN. 

• The asset you’re financing. Tangible assets like vehicles or machinery often make approvals easier, especially if they hold resale value. 

• The loan purpose. If you can show what the funds will be used for—via quotes, invoices, or a supplier proposal—that helps lenders gain confidence in your plan. 

• Supporting documentation. Items like your driver’s license, ABN certificate, past payslips, or a simple business plan can help complete the picture. 

It’s less about being a “fully established” business and more about demonstrating that you’re serious, stable, and ready to generate income. 

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What Finance Can a New ABN Access? 

You might be surprised by what’s available. 

Vehicle finance, for example, is commonly approved for new ABNs—particularly for utes, vans, or work vehicles. So is equipment finance for tradies, creatives, or professionals buying tools or machinery.

Other lenders may offer unsecured business loans, especially if you have payslips or contract agreements that show your ability to repay. There are even low-doc and no-doc loans tailored to sole traders and directors starting fresh. 

And while your interest rate may be slightly higher than an established business, the key benefit is access: you get the asset now, build credit, and refinance later at better terms.

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How Thrift Capital Makes It Easier 

As brokers, we act as your bridge to lenders who are open to working with new ABNs.

We know which lenders are comfortable with minimal trading history, and we help you: 

• Avoid unnecessary paperwork (no one-size-fits-all applications here) 

• Show your strengths, whether it’s experience, credit, or clear purpose 

• Get matched with the right lender from our diverse panel 

• Fast-track approvals, with many clients approved within 48 hours 

We’ve helped dozens of new ABN holders get funded—some within a week of registering their business. 

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Real-World Example

Recently, we assisted a carpenter from Western Sydney who had just gone out on his own. He registered his ABN two weeks prior and needed $38,000 to buy a ute and trailer setup. 

He had no trading history—but he had: 

• 12+ years’ experience in construction 

• A clean personal credit record 

• A vehicle quote ready to go 

We matched him with a flexible lender that supports new ABNs in the trades. He was approved within 48 hours—no BAS, no tax returns, just smart structuring. 

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Final Thoughts: It’s Not Too Early—It’s Just a Different Path 

Starting a business is a leap. And while funding a new ABN isn’t always as simple as ticking a box, it’s absolutely achievable with the right approach. 

Whether you’re applying as a sole trader, company director, or trust, we’ll help you understand what’s needed and guide you through every step—without delay or confusion. 

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Ready to Apply? 

Checkout our Pre-Approval Checklist to see what documents you might need 

Or speak with a Thrift Capital broker to find out what your options are today 

You don’t need to wait 12 months. You just need someone who knows how to help you get started. 

Chattel Mortgage Benefits You Can Still Access Post-Tax Time

Think the EOFY deadline was your last chance to secure tax savings through finance? Not quite.

Even after June 30, chattel mortgages continue to offer significant GST and tax benefits—especially if you’re purchasing business equipment, vehicles, or machinery.

Here’s what Australian businesses need to know about making smart finance moves after tax time.

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What Is a Chattel Mortgage?

A chattel mortgage is a type of business loan where the lender provides funds for an asset (e.g. vehicle, equipment), and the business takes immediate ownership. The asset is used as security, and the mortgage is released once the loan is repaid.

It’s one of the most popular asset finance structures in Australia—particularly for small to medium businesses.

According to the Australian Bureau of Statistics (ABS):

• 85% of Australian small businesses finance capital purchases rather than buying outright.

• Vehicle and equipment finance makes up a large portion of commercial loans, especially post-COVID, with government incentives further accelerating uptake.

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Why Post-June 30 Still Matters

There’s often a rush to settle loans by June 30 to lock in deductions for the closing financial year. But even after EOFY, many benefits still apply, especially for purchases that support new-year growth plans.

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Key Tax and GST Benefits You Can Still Access

1. GST Input Credits 

If your business is GST-registered: 

• You can claim the full GST on the purchase price in your next BAS—even if the asset is financed via chattel mortgage. 

• This applies to cars, trucks, machinery, office equipment, etc. 

Example: For a $100,000 asset (ex-GST), you can claim $10,000 in GST credits in the next BAS cycle—improving cash flow significantly. 

2. Depreciation and Interest Deductions 

Even if EOFY has passed: 

• The interest portion of repayments is tax-deductible. 

• You can claim depreciation on the asset annually through your tax return. 

According to ATO guidelines, depreciation can be applied to any business-use asset with a life over one year—even if financed.  

3. Instant Asset Write-Off / Temporary Full Expensing 

While the Temporary Full Expensing scheme ended in June 2023, the government has proposed new thresholds for the Instant Asset Write-Off from 1 July 2023 to 30 June 2024: 

• Eligible businesses (turnover under $10 million) may deduct up to $20,000 per asset purchase. 

• Check ATO updates for confirmation and updates.

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Perfect for Equipment & Vehicle Upgrades 

Chattel mortgages remain ideal for financing: 

• Commercial vehicles 

• Construction machinery 

• Medical or industrial equipment 

• Tools and technology   

They’re especially effective when your business wants ownership of the asset rather than lease-style usage, with long-term deductions. 

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Global Context: Still Relevant Worldwide   

Globally, businesses in the UK, US, and Canada also benefit from similar structures, like hire purchase or secured equipment loans. However, Australia’s GST and depreciation rules make chattel mortgages uniquely beneficial—particularly for small businesses looking to improve post-COVID cash flow. 

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Why Work With a Broker Like Thrift Capital? 

Each lender may treat asset classes, repayment terms, or business types differently. At Thrift Capital: 

• We match you with lenders who understand your industry 

• We know what documentation is truly required (no unnecessary paperwork) 

• We help you secure approvals fast—often within 48 hours for qualified applications 

Next Steps: Make Your Finance Work Harder 

Even after June 30, the benefits are far from over. 

Thinking about an equipment upgrade? 

Talk to a Thrift Capital broker today to explore your options, or 

Checkout our free Pre-Approval Checklist to get started. 

Post-EOFY Finance: Why July Is the Smartest Time to Apply

Fresh financials. Flexible lenders. Faster approvals. 

Here’s why early in the financial year is the best time to apply for business finance. 

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A New Financial Year = New Opportunities

If you’re planning to invest in equipment, vehicles, or working capital, applying for finance in July can give you a head start. 

Why? Because you’re armed with fresh numbers, and lenders are more responsive early in the financial year. 

Your Financials Are Fresh and Ready

At this time of year: 

• Your FY23–24 financials are complete or in final stages 

• You’re working with your accountant to wrap up reports 

• Lenders can make faster decisions with up-to-date data  

It’s the perfect moment to apply while everything is still recent and accessible. 

Lenders Are More Flexible in July

Post-EOFY, lenders are looking to kickstart their new-year lending goals. That often means:

• Faster approvals

• Competitive rates

• More flexible terms

And as brokers, we know exactly which lenders are ready to move—and how to match them with your needs.

Beat the Rush Before Peak Season

Many business owners wait until March–June to sort their funding.

By then, lenders are busier and policies can tighten.

**Applying now puts you ahead of the rush—**with more options and faster results.

What You Might Need

Every application is different, but here’s a general list to prepare: 

• FY23–24 Profit & Loss and Balance Sheet 

• Last 6 months of bank statements 

• Recent tax returns and ATO portals 

• BAS for the last 2 quarters 

• Asset invoice or quote (if buying equipment or vehicles) 

Don’t stress—you might not need all of these. Your Thrift Capital broker will guide you through exactly what’s required.

Ready to Move Forward? 

We’ll help you: 

• Know exactly what to submit 

• Get matched with the right lender 

• Secure funding faster, with less stress 

Checkout our free Pre-Approval Checklist 

Or speak with a finance broker today.

Free Pre-Approval Checklist for Business Loans Over $300K

Know what you need before you apply—and get approved faster. 

Applying for a business loan over $300,000? Lenders typically require more detailed documentation at this level. That’s why we’ve created this free Pre-Approval Checklist—to help you prepare, avoid delays, and give your application the best chance of success. 

Whether you’re a sole trader, company director, or applying through a trust, this checklist covers the documents that matter most. 

Note: For business loans up to $250,000, approvals can often be secured with just basic identification and minimal paperwork. Speak with a Thrift Capital broker to determine the right path for your business. 

What’s Inside the Checklist?

1. Personal Identification (ID) Documents 
   Confirm the identity of the director or business owner: 

   a.) Director’s Driver’s licence or Passport (front & back) 
   b.) Medicare card 

2. Business Information 
   Provide evidence of your business registration and trading status: 
   a.) ABN/ACN 
   b.) Business registration certificate 

3. Financials 
   Help lenders assess your business performance and serviceability: 
   a.) Business bank statements – last 6 months 
   b.) Profit and Loss (Dated from July 2024-June 2025) 
   c.) Balance Sheet (Dated from July 2024-June 2025) 
   d.) Accountant Prepared Financial Statements for Previous FY (2023-24) 
   e.) Most Recent FY’s Individual Tax Return 
   f.) 12-month ATO Portals – ITA & ICA  
   g.) Business Activity Statements (BAS) – last 2 quarters 

   NOTE: We may only need a handful of the above documents to get your business approved. Speak to your Thrift Capital Finance Broker to find out what documents you need. 

4. Loan Purpose Documents(Recommended but not always required) 
   These are useful when applying for asset, equipment, or vehicle finance:
   a.) Invoice or quote for equipment purchase 
   b.) Lease agreement (for property-related loans) 
   c.) Vehicle details (make, model, year, VIN) for car/truck loans 

5. Other Supporting Documents (if applicable) 
   These documents can enhance your application and speed up processing: 
   a.) Trust deed (if applying through a trust) 
   b.) Existing loan contracts (that can be used as a reference) 
   c.) Rates Notice or other document to verify property ownership 

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Need Help Getting Started? 

Fill out the quick form below and we’ll guide you through the next steps. No pressure—just practical, expert support to help get your business finance-ready. 

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Why It Matters 

Being well-prepared can mean the difference between: 

• Waiting two weeks vs. getting approved in 24 hours 

• Rejection due to missing documents vs. smooth, fast-track success 

At Thrift Capital, we help you cut through the paperwork and match you with the right lender—so you can secure funding faster, simpler, and smarter. 

Lease vs Finance: Which One is Right for Your Business?

If you’re running a business and planning to finance equipment, vehicles, or other assets, one key question comes up often:

Should I lease or should I finance? Is there even a difference?

At Thrift Capital, we help business owners across industries make this decision every day. The right option depends on your cash flow, growth plans, and how long you expect to keep the asset.

This guide breaks down the pros and cons of leasing vs. financing to help you choose the best path for your business.

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What Is Leasing?

Leasing is essentially renting the asset for a set period. You make monthly or quarterly payments, but the lender retains ownership. At the end of the lease, you may return, upgrade, or purchase the asset—depending on the agreement.

Best suited for:

• Businesses needing frequent equipment upgrades

• Companies with limited upfront capital

• Those seeking off-balance-sheet finance options

Benefits of Leasing:

• Lower initial outlay

• Easier approval for some structures

• Potential tax advantages on lease payments

• Greater flexibility to upgrade over time

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What Does Financing Mean?

When you purchase a business asset using finance (such as a Chattel Mortgage), your business owns the asset from day one. The loan is secured against the asset, and you repay it over time.

Best suited for:

• Businesses looking for long-term ownership

• Industries like transport or trades needing equity in equipment

• Owners wanting more control over the asset’s use or resale

Benefits of Leasing:

• Full ownership = long-term value

• Interest and depreciation may be tax-deductible

• May be eligible for upfront GST claims (if GST-registered)

• Flexible terms and balloon payment options

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Lease vs Finance: Quick Comparison

When you lease, you don’t own the asset—you’re essentially renting it over a fixed term. This typically comes with lower upfront costs and greater flexibility to upgrade when needed. Lease payments may also be tax-deductible, depending on your setup. At the end of the lease, you may return the asset, upgrade, or choose to purchase it, depending on your agreement.

When you buy—usually through a Chattel Mortgage—you own the asset from day one. This option often involves a higher upfront cost (unless you structure it with a balloon payment), but it gives you long-term value. You may be able to claim interest and depreciation as tax deductions, and if you’re GST-registered, you could be eligible to claim GST upfront. Unlike leasing, buying gives you full control over the asset at the end of the finance term.

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So… Should You Lease or Finance?

Ask yourself:

• Do I need flexibility with cash flow right now?

• How long will I use this asset?

• Is ownership important for my business strategy?

• What are the tax implications? (Speak with your accountant.)

The right structure depends on your business goals—and getting it wrong could cost you more in the long run.

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Need Help Deciding?

We’re here to help.

Thrift Capital brokers explain the options clearly—without jargon. Whether you’re buying a truck, leasing medical equipment, or financing a fit-out, we’ll match you with the right lender and structure to suit your business.

How to Get Approved Fast: What Lenders Look For and Why the Right Match Matters

When it comes to business finance, getting approved quickly isn’t just about completing an application—it’s about understanding how the system works. At Thrift Capital, we don’t just help you apply; we help you get approved—fast. 

The key? Matching the right lender to your industry, understanding approval timelines, and knowing exactly what lenders are looking for. 

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Here’s what every business owner should know to move from enquiry to “approved” with confidence. 

1. Matching Lenders to Your Industry Matters More Than You Think 

Not all lenders are the same—and neither are businesses. 

Each industry has unique financial needs, cash flow cycles, and risk profiles. That’s why one of the most valuable things a broker can do is match you with a lender who understands your space. 

Here’s how it works: 

• Transport & Logistics
  Lenders familiar with this sector offer fast approvals, flexible repayments, and often accept second-hand vehicles—because they understand that time is money. 

• Construction & Trades
  Seasonal cash flow and balloon repayments are common. Lenders experienced with asset-heavy businesses are best suited here. 

• Medical & Allied Health
  Lenders that finance high-value medical equipment with longer terms and industry-specific criteria are ideal for clinics, dental practices, and wellness providers. 

Why this matters: 

The wrong lender could slow your approval—or deny your application altogether. The right one could fund your asset within 24 hours. That’s the power of tailored finance.

2. Why Some Lenders Approve Faster Than Others 

Ever wonder why some lenders give you an answer in hours, while others take weeks? 

Here’s what makes the difference: 

• Lender Type
  Traditional banks often require full-doc applications and lengthy internal reviews. 
  Non-bank lenders are typically more agile, offering low-doc and ABN-only options with quicker turnaround times. 

• Broker Involvement
  A broker who understands lender preferences can submit your application in the right format—streamlining the process and saving valuable time. 

• Your Application
  Clean, complete documentation significantly speeds up decisions. Missing details are one of the most common causes of delay.

Tip: 
Want to move fast? Talk to a broker before submitting your application. It could save you days. 

3. What Lenders Actually Look For in Your Application 

It’s not just about your credit score. Lenders take a holistic view when assessing applications.

Key factors include: 

• ABN Age and Activity
  Even low-doc lenders want to see how long you’ve been trading. While longer histories are preferred, approvals are still possible for newer businesses—with the right lender. 

• Income and Cash Flow
  Whether you provide bank statements or verified financials, lenders need to see that your business can comfortably service the loan. 

• The Asset

  The condition, age, and value of the asset you’re financing matters. New or well-maintained second-hand equipment is typically easier to fund—and often secures better terms. 

• Supporting Documents
  “Low-doc” doesn’t mean “no-doc.” Having ID, ABN details, recent bank statements, or a tax invoice ready makes a smoother process for both broker and lender. 

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The Thrift Capital Advantage 

At Thrift Capital, we don’t just submit applications—we set you up for success. Our team: 

• Understands your industry and funding needs 

• Matches you with the right lender 

• Professionally packages your application 

• Fast-tracks submissions to key decision-makers 

With access to over 40 banks and non-bank lenders, we know how to find the best path—whether you’re a startup tradie, an experienced fleet operator, or a growing medical practice. 

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Need Fast Finance? Here’s What to Do Next 

If you’re planning to buy equipment, finance a vehicle, or need a working capital boost—don’t do it alone. 

The right match, lender, and process can mean the difference between two weeks and 24 hours. 

Speak to a Thrift Capital broker today.