Published: 2 January 2026 – Perth time
By Kate Sheldrick – Finance Broker
Business owners are back at work, vehicles are older than they should be, equipment is being pushed a bit too hard, and everyone is trying to work out how much risk they’re prepared to take this year.
What’s different heading into 2026 is how many small businesses are quietly planning ahead instead of reacting late.
I’m seeing more clients talk about asset finance early. Not because they want more debt, but because they want more control.
What’s happening and why it matters
For many SMEs, asset finance is becoming the preferred way to fund growth because it’s practical.
Vehicles, equipment, machinery and fit-outs are essential to running a business. Paying cash drains reserves. Relying on overdrafts keeps people exposed. Waiting too long often means rushed decisions.
Asset finance lets businesses match repayments to the working life of the asset itself. That’s the real shift. It’s not about borrowing more. It’s about structuring smarter.
Cash flow is tighter, not worse
Most businesses aren’t in crisis. What they are dealing with is tighter margins, slower payments, higher costs and less tolerance for mistakes.
That’s why asset finance is being used more deliberately.
Clients want to know:
- what their real monthly commitment will be
- how flexible the structure is if things change
- whether they’re locking themselves into something
that limits options later
Those are sensible questions. And they’re being asked earlier than they used to be.
Why pre-approval is part of planning, not paperwork
One of the biggest changes I’m seeing is more businesses getting pre-approved before they start shopping.
A pre-approval gives you clarity on your maximum lend, so you’re not setting your heart on something that doesn’t stack up. It also gives you confidence when you’re negotiating, because you already know what you can move on.
This matters even more with private sales. Good vehicles and equipment don’t sit around waiting for finance to be organised. Sellers want quick turnarounds, and a pre-approval can be the difference between securing the asset and missing out.
It also removes a lot of stress. Instead of scrambling once you’ve found something, the finance side is already done.
Where businesses get caught out
The most common issue I see is delay.
A vehicle finally breaks down. Equipment fails mid-job. A contract is won but the gear isn’t ready. Suddenly finance becomes urgent, and urgency removes leverage.
The other issue is choosing the wrong structure. Not every asset should be financed the same way, and not every lender views risk the same way. The cheapest rate is rarely the most important factor if the structure doesn’t suit how the business actually runs.
This is where good advice matters.
What to take into 2026
If you’re a business owner planning upgrades this year, my advice is simple.
Think early. Ask questions before you need the asset, not after. Look at finance as a planning tool, not a rescue option.
Used properly, asset finance can support growth, preserve cash flow and give you more certainty when opportunities come up. Used poorly, it becomes another pressure point.
Takeaway: Asset finance works best when it’s planned early. A pre-approval gives you clarity, confidence and speed, especially when the right asset comes up quickly.
Next step: If you’re considering vehicles or equipment this year and want to sense-check your options or put a pre-approval in place, reach out before you start shopping. I’ll explain the options clearly and tell you what I’d do in your position.
General Advice Warning
This is general information only and doesn’t consider your objectives, financial situation or needs. It isn’t legal, tax or financial advice. Lender policies, products and government programs can change. Information is current as at January 2026. Get personal advice before acting and speak with your accountant about tax treatment.