Last updated: 8 December 2025 – all rates & tax rules verified this week
Written & reviewed by the Ding Financial team – Australian Credit Licence 222640, equipment finance specialist brokers
⚠️ Important Disclaimer
All information on this page is general in nature and does not constitute personal financial, taxation, or legal advice.
Rates, approval times, and eligibility are indicative only and vary significantly based on credit history, income, deposit, equipment condition, and lender criteria.
There are no guarantees on interest rates, approval speed, or funding timelines for credit-impaired applications.
Tax benefits (including the $20,000 instant asset write-off) depend on your specific situation and current ATO rules.
Please contact Ding Financial or your own adviser before making any decisions.
Bad Credit Equipment Finance NSW – Second Chance Approvals
Specialist finance for NSW businesses with credit challenges. Defaults, court judgements, low credit scores, or past bankruptcies considered. Access 15+ near-prime lenders, understand the $20k instant write-off, and get indicative quotes from Ding Financial. We have helped 100+ NSW contractors secure equipment finance despite credit issues.
Get a No-Obligation Confidential AssessmentImportant Tax & Financial Disclaimer
General Information Only: The information provided on this page is for general guidance purposes only and should not be considered as professional tax, legal, or financial advice.
Seek Professional Advice: You must seek professional advice from a qualified accountant, tax advisor, or financial planner regarding your individual tax circumstances, strategies, and current regulations before making any financial decisions.
ATO Requirements: For official information about tax deductions, instant asset write-offs, depreciation schedules, and current ATO requirements, always cross-reference with the Australian Taxation Office website:
Tax laws and regulations are subject to change. Always verify current requirements with the ATO and consult with professional advisors before making equipment finance decisions.
What Qualifies as "Bad Credit"? – Honest Assessment
Minor Issues
Usually Approved (Higher Rates)
- • Paid defaults under $1,000
- • Credit card arrears (now cleared)
- • Late payments on utilities
- • Credit score 500–650
- • 1–2 credit enquiries in 6 months
Indicative rates: 10–14% p.a.
Deposit: 25–35%
Moderate Issues
Case-by-Case Assessment
- • Unpaid defaults $1,000–$5,000
- • Court judgements (satisfied)
- • Previous loan arrears (now current)
- • Credit score 350–500
- • Multiple credit enquiries (3–5 in 6 months)
Indicative rates: 14–18% p.a.
Deposit: 35–50%
Severe Issues
Specialist Lenders Only
- • Unpaid defaults over $5,000
- • Unsatisfied court judgements
- • Bankruptcy (discharged 3+ years ago)
- • Credit score under 350
- • Part X/IX debt agreements
Indicative rates: 18–24% p.a.
Deposit: 50%+
Ding Financial Specializes in Bad Credit Assessments
Every application is unique. We work with 15+ specialist near-prime lenders who assess on current income and cashflow rather than past credit issues. Even severe credit problems may qualify with the right lender, deposit, and equipment choice. Contact us for a confidential, no-obligation assessment.
7 Strategies to Improve Approval Chances – Practical Advice from Ding Financial
1. Increase Your Deposit (30–50%)
Impact: Significantly improves approval odds and reduces interest rates by 2–4% p.a.
Example: $50,000 excavator with 20% deposit ($10k) → declined at most lenders.
Same excavator with 40% deposit ($20k) → approved at 14% p.a. (vs 18% if accepted at 20% deposit).
Pro Tip: Use trade-in equity, savings, or short-term family loan to boost deposit.
2. Choose Newer, Lower-Value Equipment
Impact: Newer equipment (under 5 years) has 30–40% higher approval rates for bad credit.
Why: Better resale value protects lender if you default. Lower loan amounts ($30k–$80k) are easier to service.
Avoid: Old equipment (15+ years) or exotic brands with poor resale value.
Best choices: Mainstream brands (Caterpillar, Komatsu, Kubota) under 7 years old.
3. Provide a Written Credit Explanation
Impact: 1-page letter explaining credit issues can increase approval rates by 20–30%.
What to include:
- • Brief explanation of what caused credit issues (illness, business downturn, divorce, etc.)
- • Steps taken since then to improve financial situation
- • Current income/cashflow evidence (bank statements showing consistent deposits)
- • Why equipment is essential for current business operations
4. Wait 12–24 Months After Bankruptcy Discharge
Impact: Bankruptcy discharged 3+ years ago → near-normal rates. Under 3 years → very limited options.
Timeline:
• 0–12 months post-discharge: 90% rejection rate, even with 50% deposits
• 12–24 months: Specialist lenders consider (18–24% rates, 50% deposits)
• 24–36 months: More options (14–18% rates, 35–40% deposits)
• 36+ months: Near-normal rates if income is strong (10–14% rates, 25–30% deposits)
5. Demonstrate Strong Current Income
Impact: 6 months of consistent income can outweigh bad credit history.
What lenders want to see:
• Consistent monthly deposits in business account (no large gaps)
• Income 3–4x higher than proposed monthly repayment
• Recent tax return showing profitability (or accountant letter for new businesses)
• Contracts/invoices proving ongoing work pipeline
Pro Tip: Show 6–12 months bank statements rather than minimum required 3 months.
6. Settle or Pay Down Defaults Before Applying
Impact: Paying down defaults from $8,000 to under $1,000 can change decline to approval.
Strategy:
• Negotiate payment plans with creditors (even $50/month shows good faith)
• Prioritize paying off smallest defaults first (removes them from credit file)
• Get "paid in full" letters from creditors (attach to finance application)
Warning: Paying defaults doesn't remove them from credit file for 5 years, but shows improved behavior.
7. Work with a Specialist Broker (Like Ding Financial)
Impact: Brokers have access to 15+ specialist lenders not available to the public.
Why this matters:
• Major banks reject 95% of bad credit applications (no point applying directly)
• Specialist lenders assess each case individually (not automated credit scoring)
• Brokers know which lender suits your specific credit profile
• Multiple applications hurt credit score further – brokers submit to right lender first time
Ding Financial's success rate: 65% approval rate for credit-impaired applications (vs 5% industry average).
Official ATO $20,000 Instant Asset Write-Off
Based on official Australian Taxation Office guidance - current for 2024-26 financial years
$20,000 Instant Asset Write-Off
Official ATO instant asset write-off for eligible equipment with bad credit finance options
Eligibility Requirements
- •Business aggregated turnover less than $10 million
- •Asset cost less than $20,000 (ex GST if registered)
- •First used or installed ready for use 1 July 2024 – 30 June 2025 (law) | 1 July 2025 – 30 June 2026 (announced)*
- •Using simplified depreciation rules
- •Both new and second-hand assets qualify
How It Works
- •Per-asset basis: Write off multiple assets under $20k each
- •Immediate deduction: Claim full business portion in year of purchase
- •GST treatment: Exclude GST if registered, include if not
- •Business use only: Only claim business portion (not private use)
Assets $20,000 or More
If your asset costs $20,000 or more, it goes into the small business simplified depreciation pool:
- • 15% deduction in the first year
- • 30% deduction each subsequent year
- • If pool balance falls below $20,000, write off the entire balance
Important Exclusions & Limits
Passenger vehicles limited to $69,674 for depreciation purposes (excludes motorcycles and disability-modified vehicles)
- • Assets leased out (>50% of time)
- • R&D assets (special rules apply)
- • Capital works & buildings
- • Horticultural plants
Practical Example
Purchase: Computer for $6,800 (80% business use)
Instant Write-Off: $5,440 (80% of $6,800) in the year of purchase
Total cost ($6,800) is below $20,000 threshold ✓
Business can claim $5,440 deduction immediately, not spread over multiple years
* Legislative Status: The $20,000 instant asset write-off for 2024-25 (1 July 2024 to 30 June 2025) is confirmed law. The extension for 2025-26 (1 July 2025 to 30 June 2026) has been announced by the government but is not yet legislated. While the government has committed to this extension, it requires parliamentary passage before becoming law.
Important: This information is based on ATO guidance current as of December 2024. Tax laws change regularly. Consult a registered tax agent or accountant to ensure your specific situation qualifies for the instant asset write-off. Record keeping requirements apply.
Frequently Asked Questions
Can I get equipment finance with defaults on my credit file?
Yes, but it depends on the amount and status. Paid defaults under $1,000 are usually approved (higher rates).Unpaid defaults $1,000–$5,000 require case-by-case assessment (35–50% deposits).Multiple unpaid defaults over $5,000 require specialist lenders (50%+ deposits, 18–24% rates). Contact Ding Financial for a confidential assessment of your specific situation.
How long after bankruptcy can I apply for equipment finance?
Minimum 12 months after discharge for specialist lenders (50% deposits, 18–24% rates).
24–36 months opens up more options (35–40% deposits, 14–18% rates).
36+ months with strong current income → near-normal rates (25–30% deposits, 10–14% rates).
Undischarged bankrupts cannot obtain credit without court permission.
What interest rates should I expect with bad credit?
Minor issues (paid defaults, low credit score): 10–14% p.a.
Moderate issues (unpaid defaults $1k–$5k): 14–18% p.a.
Severe issues (bankruptcy, large defaults): 18–24% p.a.
Compare to prime rates (6.5–9% p.a.). The premium reflects higher default risk and smaller lender pool. Larger deposits (40–50%) can reduce rates by 2–4% p.a.
How much deposit do I need with bad credit?
Minor issues: 25–35% deposit
Moderate issues: 35–50% deposit
Severe issues: 50%+ deposit (some lenders require 60–70%)
Compare to prime applicants (10–20% deposits). Higher deposits protect lenders against asset depreciation and default risk. Trade-in equity counts toward deposit requirement.
Will applying for finance hurt my credit score further?
Each application creates a credit enquiry (stays on file 5 years). Multiple enquiries in 6 months reduce credit score by 20–50 points each.
Pro Tip: Work with a broker like Ding Financial who submits to the right lender first time (not shotgun approach). Pre-assessments don't create enquiries – only formal applications do.
Can I still claim the $20,000 instant write-off with bad credit finance?
Yes, the $20,000 instant asset write-off is available regardless of your credit profile (if equipment under $20k ex-GST and other ATO criteria met). Tax benefits are based on business structure and ATO rules, not your credit score. Consult your accountant and verify at ato.gov.au.
Are there any equipment types easier to finance with bad credit?
Easier: Mainstream brands (Caterpillar, Komatsu, Toyota forklifts) under 5 years old with strong resale value.
Harder: Old equipment (15+ years), exotic brands, low-demand equipment (e.g., specialized attachments).
Pro Tip: Choose equipment with proven resale market – lenders assess "how easily can we sell this if you default?"
Can I refinance existing equipment to improve cashflow with bad credit?
Difficult but possible if:
• You have significant equity in equipment (paid down at least 40% of loan)
• Current repayments are on-time for 12+ months (proves improved behavior)
• Strong current income (3x monthly repayment)
New lender will assess current credit file, so recent improvements matter more than old issues. Contact Ding Financial for refinance assessment.
What if I am knocked back by my bank?
Do NOT apply to multiple banks directly – each rejection creates another credit enquiry and reduces approval odds further.
Instead: Contact a specialist broker like Ding Financial who works with 15+ near-prime lenders not accessible to the public. Banks have strict automated credit scoring (95% rejection rate for credit-impaired). Specialist lenders assess each case individually (65% approval rate).
Who can I contact for confidential bad credit finance advice in NSW?
Contact Ding Financial (Australian Credit Licence 222640) for a no-obligation, confidential assessment.
📞 1300 DING FIN
🌐 www.ding.financial
Our promise: We have helped 100+ NSW contractors secure equipment finance despite credit challenges. All assessments are confidential, and we only submit to lenders with high approval probability (protecting your credit score).
Contact Ding Financial for Your Confidential Assessment – No Obligation
Helped 100+ NSW contractors secure equipment finance despite credit challenges. Specialist near-prime lenders. 65% approval rate.