Pepper Asset Finance: Alternative Business Lending Review

Pepper Asset Finance specialises in alternative business lending for equipment, vehicles, and machinery, often serving businesses that major banks may decline or those seeking streamlined approval processes. As of 2025, Pepper typically considers businesses with trading histories from 12 months, varied credit profiles, and specialist asset types through their flexible assessment approach.

Rates are not published publicly and require individual quoting, with Pepper often providing solutions for self-employed borrowers, developing businesses, and unique circumstances.

Modern comparison platforms allow businesses to evaluate Pepper alongside 100+ lenders efficiently for optimal matching.

Pepper Asset Finance Overview

Pepper Money operates as a specialist non-bank lender in Australia, providing alternative lending solutions for businesses and individuals. Their asset finance division focuses on equipment, vehicle, and machinery funding for businesses that may not fit traditional bank lending criteria.

Pepper’s market position centres on flexible assessment and willingness to consider scenarios that major banks often decline. This includes businesses with shorter trading histories, varied credit profiles, self-employed borrowers with complex income structures, and unique asset types.

As a non-bank lender, Pepper operates outside traditional banking structures, allowing for more flexible credit policies and streamlined decision-making processes. This approach often results in faster approvals for straightforward applications and more accommodating assessment for left-of-centre scenarios.

Businesses exploring Pepper typically fall into several categories: those previously declined by major banks, self-employed borrowers seeking alternative assessment methods, businesses with trading histories under 2 years, or those requiring quick funding for time-sensitive equipment purchases. For comprehensive asset finance options across multiple lenders, comparison platforms provide efficient market visibility.

Pepper Asset Finance Products

Pepper offers several asset finance structures designed for business equipment funding:

Chattel Mortgage

Pepper’s chattel mortgage products allow businesses to own assets from day one while the lender holds security. This structure remains popular for businesses seeking tax benefits through depreciation deductions and GST input tax credits.

Key features typically include:

• Asset ownership from purchase
• Flexible deposit options (including low or no deposit scenarios)
• Potential tax benefits (subject to individual circumstances)
• Optional balloon payments
• Terms commonly from 1-5 years

Understanding chattel mortgage structures helps businesses determine if this option aligns with their tax planning strategies.

Commercial Hire Purchase

An alternative structure where ownership transfers at the end of the agreement. Often used when businesses prefer lower initial outlay or want flexibility at term end.

Asset Types Financed

Pepper typically finances diverse business assets including:

• Commercial Vehicles and Trucks - Light commercial through to heavy vehicles
• Construction Equipment - Excavators, loaders, earthmoving machinery
• Manufacturing Equipment - Industrial machinery and production equipment
• Technology Equipment - IT infrastructure, software, communications equipment
• Healthcare Equipment - Medical and dental equipment
• Agricultural Machinery - Farm equipment and machinery
• Hospitality Equipment - Restaurant and café equipment

For truck finance options specifically, Pepper competes alongside multiple specialist transport finance lenders.

Low-Doc and Alternative Documentation

Pepper’s willingness to consider alternative documentation sets them apart from major banks. Self-employed borrowers or businesses with complex income structures may find Pepper’s assessment approach more accommodating than traditional bank criteria.

For self-employed business loans and alternative documentation pathways, specialist lenders like Pepper often provide pragmatic solutions.

Rates, Fees and Terms

Pepper does not publish asset finance rates publicly. Actual rates are not published publicly and require individual assessment based on multiple factors.

Rate Determination Factors: Pepper assesses rates based on:

• Business trading history and financial strength
• Credit profile (business and directors)
• Asset type and residual value
• Loan amount and term
• Deposit contribution
• Industry sector and business model
• Documentation type (full-doc vs low-doc)

Indicative Market Context (2025): Specialist non-bank lenders typically offer rates ranging from 8-14% p.a. depending on business risk profile and asset type. Prime borrowers with strong financials may access the lower end of this range, while developing businesses or those with varied credit may see higher rates. Pepper’s actual rates depend entirely on individual circumstances.

Fee Structure: Pepper asset finance commonly includes:

• Application or establishment fees (typically $300-$995, though actual fees may vary depending on whether you apply directly or through an intermediary or broker)
• Monthly account keeping or service fees
• PPSR registration fees
• Documentation and legal fees
• Early repayment fees (may apply depending on product)
• Variation fees (if loan terms are modified)

Note that establishment fees for non-bank lenders may differ based on application channel. Applications through brokers or intermediaries may have different fee structures than direct applications. Specific fee schedules require individual quoting as they vary by product type, loan amount, and application method.

Loan Terms: Pepper typically offers terms from 1-5 years for most business equipment, with term length depending on:

• Asset type and expected useful life
• Repayment capacity
• Residual value considerations
• Business requirements

Balloon payments may be structured to reduce regular repayments, with final balloon typically ranging from 10-40% of the original loan amount depending on term length.

Eligibility Requirements

Pepper’s eligibility criteria differ from major banks, often providing more flexible pathways to approval:

Business Criteria:

• Trading History - Typically minimum 12 months, though some scenarios may consider less with strong circumstances
• ABN/GST Registration - Active ABN required; GST registration often preferred but not always mandatory
• Credit Profile - More flexible than major banks; will consider varied credit histories
• Financial Strength - Demonstrated ability to service repayments, though assessment methods vary
• Business Structure - Sole traders, partnerships, companies, and trusts typically eligible

Asset Requirements:

• Business use assets (typically 51%+ business use required)
• Assets with established markets or clear valuations
• New or used equipment (age restrictions apply by asset type)
• Clear title and legitimate purchase documentation

Documentation Approach: Pepper offers multiple documentation pathways:

• Full Documentation:
  • Business financial statements (typically 1-2 years)
  • BAS statements or tax returns
  • Bank statements (usually 3-6 months)
  • Asset purchase documentation
• Low-Doc Options:
  • Reduced financial documentation requirements
  • May accept accountant declarations or alternative income verification
  • Bank statements often sufficient for some scenarios
  • Particularly useful for self-employed borrowers with complex structures

Eligibility criteria may vary by industry, loan amount, and asset type. For ABN holders seeking equipment finance, Pepper’s flexible assessment often provides viable pathways.

Pepper vs Major Banks

Understanding how Pepper compares to major bank lenders helps businesses evaluate optimal financing sources:

For businesses previously declined by major banks or those with unique circumstances, Pepper often provides pragmatic alternatives. However, businesses with strong financials and established trading histories may find more competitive rates through major bank asset finance or other lenders.

Comparing options across multiple lenders ensures optimal rate and term matching. Equipment finance comparison across 100+ lenders reveals the full market opportunity.

Application Process

Pepper Application Process:

1. Initial Assessment - Submit basic business and asset details
2. Documentation - Provide financial documentation (full-doc or low-doc pathway)
3. Credit Assessment - Pepper reviews business profile and repayment capacity
4. Approval Decision - Initial credit decisions often within 24-48 hours for straightforward applications (this refers to the approval decision itself; actual settlement depends on documentation completion and vendor coordination)
5. Formal Offer - Receive credit approval with specific terms and conditions
6. Documentation Execution - Complete security documents and contracts
7. Settlement - Funds released and asset purchased (timeframe depends on how quickly documentation is executed and vendor arrangements are finalised)

While Pepper’s streamlined processes often result in faster initial approval decisions than traditional bank applications, particularly for businesses with clear documentation and straightforward asset purchases, the complete settlement timeline varies based on documentation execution speed and coordination with asset vendors.

Comparison Platform Approach: Modern comparison platforms provide efficient alternatives:

• Single application reaches Pepper and 100+ other lenders
• Automated matching to suitable lenders based on business profile
• Side-by-side comparison of rates, terms, and structures
• Specialist broker support for complex scenarios
• Complete market visibility without multiple separate applications

This approach is particularly valuable for businesses unsure whether Pepper or alternative lenders provide optimal solutions. Compare business equipment finance options efficiently across multiple lenders.

Pros and Cons

Potential Advantages

• Flexible Credit Assessment - Pepper considers businesses and credit profiles that major banks may decline, providing pathways for developing businesses or those with varied credit histories.
• Low-Doc Options Available - Alternative documentation pathways suit self-employed borrowers or businesses with complex income structures that don’t fit traditional bank assessment models.
• Faster Approval Processes - Non-bank structure often allows streamlined decision-making and quicker initial approval decisions than traditional bank bureaucracy, particularly for straightforward applications. Settlement timeframes still depend on documentation execution and vendor coordination.
• Shorter Trading History Accepted - Pepper typically considers businesses from 12 months trading, versus 2+ years often required by major banks.
• Specialist Asset Experience - Willingness to finance diverse asset types including specialist equipment that major banks may avoid.
• Unique Circumstance Consideration - Pepper’s flexible policies often accommodate left-of-centre scenarios that don’t fit traditional lending boxes.

Potential Limitations

• Higher Rates Than Major Banks - Pepper’s rates typically exceed major bank rates for prime borrowers, reflecting their higher-risk lending profile and non-bank funding costs.
• Rate Transparency Limited - Like most lenders, Pepper doesn’t publish rates publicly, requiring individual quoting for specific circumstances.
• Fees May Be Higher - Non-bank lenders often have higher establishment and ongoing fees compared to major banks, impacting total cost of financing. Additionally, fees may vary depending on whether you apply directly or through a broker or intermediary.
• Not Suitable for All Businesses - Strong businesses with established trading histories and excellent credit may find better rates through major banks or other lenders.
• Limited Additional Services - Unlike major banks, Pepper doesn’t offer comprehensive business banking services, transaction accounts, or integrated financial solutions.

Frequently Asked Questions

What types of businesses does Pepper typically approve? Pepper focuses on businesses from 12 months trading with active ABNs, often approving scenarios that major banks decline. This includes self-employed borrowers, businesses with varied credit histories, and those requiring flexible documentation pathways. However, businesses still need to demonstrate repayment capacity and have legitimate business purposes for assets.

How do Pepper’s rates compare to major banks? Pepper’s rates typically range higher than major banks for prime borrowers (indicatively 8-14% vs 6-9% p.a. for banks), reflecting their higher-risk lending profile. However, for businesses that major banks decline, Pepper’s rates may represent the most competitive option available among alternative lenders. Rate comparison across multiple lenders remains essential.

Does Pepper require a deposit for asset finance? Pepper offers flexible deposit options, including low-deposit and sometimes no-deposit scenarios depending on business strength, credit profile, and asset type. Larger deposits typically result in better rates and improved approval prospects, but Pepper’s flexibility often accommodates businesses with limited upfront capital.

Can Pepper finance used equipment? Yes, Pepper finances both new and used business equipment. Used asset eligibility depends on age, condition, asset type, and remaining useful life. Older equipment typically requires lower loan-to-value ratios and may face stricter assessment than new assets.

What’s the difference between Pepper’s full-doc and low-doc products? Full-doc products require comprehensive financial documentation including tax returns, financial statements, and BAS statements. Low-doc options accept reduced documentation, often relying on bank statements and accountant declarations. Low-doc products typically carry higher rates reflecting increased lender risk, but provide pathways for self-employed borrowers with complex income structures.

How quickly can Pepper approve applications? Initial approval decisions for straightforward applications may be provided within 24-48 hours, though this timeframe applies to the credit decision itself. Complete settlement timeframes vary depending on how quickly documentation is executed and vendor arrangements are coordinated. Complex scenarios requiring additional assessment may take longer for initial approval decisions as well.

Should I apply to Pepper or compare multiple lenders? While Pepper provides valuable alternatives for many businesses, comparing options across multiple lenders ensures optimal rate and term matching. Pepper may offer the best solution for some scenarios, while other specialist lenders or even major banks may provide better terms for others. We encourage businesses to compare options regardless of credit history.

Speak with Specialists

Need expert guidance on your Pepper asset finance application?

Email: loans@loanphone.com.au   Website: www.loanphone.com.au

Related Resources

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Last updated: October 10, 2025