See which lenders will give you the best truck loan. Instant online results.
This is a totally free process and will not affect your credit rating.
Borrow from $5,000 to $500,000
Fixed or variable interest rates
Repayments to suit your budget
Terms from 1 month to 5 years
Secured & unsecured options
Own a business and have an ABN
Business is GST-registered
Permanent Citizenship or Residency
Minimum business-operating time of six months
Can provide business bank statements
Truck finance is a type of asset or vehicle loan used to purchase a heavy vehicle. There are several types of loan available and to find the right solution for your business you’ll need to understand and compare each of them.
Most truck finance will be secured against the vehicle you purchase, and many include high loan limits exceeding $1 million. To be eligible for truck finance you’ll need to prove your business has the cash flow needed to repay the loan.
Several different lenders offer truck finance including banks, non-bank lenders and vehicle finance brokers.
Banks often have strict credit policies and detailed applications for vehicle finance. Your business must have good cash flow, accurate and up-to-date financial statements and high turnover (at least $75,000).
Non-bank lenders may have less strict credit policies than major banks as well as easy online applications. These lenders often have competitive interest rates and flexible loan terms.
Vehicle finance brokers are a great option to consider if you need help selecting, structuring and applying for truck finance. They’ll offer expert advice and shop around to find you suitable loan terms and a low rate.
The bank provides a loan to purchase the vehicle and takes out a mortgage over it as security. You or the business will own the vehicle and be able to use it. Once you’ve purchased the vehicle you’ll need to make regular repayments on the loan - with interest - until it’s repaid in full.
With commercial hire purchase, you make regular payments to the lender to hire the vehicle for a set period. Once the period ends if you’ve made all payments you or the business will take ownership for the vehicle.
The lender buys a vehicle of your choosing then leases it to you for a set period of time. You’ll make regular lease repayments and be able to use the vehicle until the lease period ends. When the lease ends you can choose to purchase the vehicle by paying your lender the remaining value, or upgrading the vehicle by taking out a new lease.
Small business loan
Small business loans feature fast approval and loan limits of $250,000+. Many do not require assets as security. While this may be a simple and fast option, it may be more expensive than other alternatives with higher interest rates and fees.
Interest rates will differ based on several factors including:
The type and age of the vehicle you’re purchasing
The type of finance you choose
How risky lenders perceive you to be as a borrower.
Vehicle type and weight
Generally speaking, loans to purchase heavy commercial vehicles tend to attract higher interest rates, especially if they’re for a specialised or niche use.
This is because lenders may find it more difficult to sell such vehicles and recoup their losses (compared to a passenger vehicle or a property, for example).
Loans to purchase brand-new vehicles usually have the lowest rates, with higher interest rates for used vehicles under five years of age, and higher rates again for used vehicles over five years of age.
Your risk profile as a borrower
Your lender will weigh up a number of factors to assess your risk as a borrower. That might include:
How long your business has been trading
How profitable your business is
Your business cash flow
Your business assets and liabilities
What documentation you’re able to provide (low doc loans may attract a higher rate)
If your lender identifies you as a high-risk borrower, they may charge you higher rates to cover themselves against that risk.
Fees differ depending on the type of truck finance you choose, the lender you apply with and the type of vehicle you’re buying, but generally, they will include:
Monthly account keeping fees
Early loan termination fees
Early termination fees
Early repayment fees
If you have good credit you may be able to negotiate with your lender to reduce the amount of the establishment fee.
Several lenders also don’t charge early termination or early repayment fees, which can make it easier to repay your loan faster and save on interest.
Each lender and each type of loan has different minimum and maximum loan amounts. Your lender will also decide how much you can borrow based on your ability to service the loan.
Generally truck loans start at $5,000 to $7,500 and have maximum loan amounts from $250,000 to $20,000,000 or more.
In Australia, most truck finance options have loan terms from one to seven years. Small business loans generally have shorter terms from one month to two or more years.
To be eligible for most truck finance options:
Your business must have an ABN
Your business must be registered for GST
Your business must have been operating for at least two years (new businesses can apply but may be denied or charged higher interest rates)
Your business must meet the lender’s minimum turnover requirements (usually $75,000 to $100,000)
Your business must have less than the lender’s maximum level of existing borrowings (usually $1 million)
You must be able to prove to your lender that your business can service the debt and/or afford the lease payments.
You must intend to use the vehicle for mainly business purposes
To verify details about your business and prove that you can afford the loan, you may have to provide certain documents during the application process such as:
Business bank statements
Business activity statements
Balance sheets including details of your business’s profits, losses, assets and liabilities
ATO tax returns for the last two years
If you’re unable to provide the documentation your lender requires, you may be able to apply for a low-doc business loan, or use alternate documentation such as financial statements prepared by your accountant.
Once you’ve prepared your documentation and made sure that you and your business are eligible, you can apply for a truck loan through your chosen lender’s website. Some lenders can also arrange the loan for you in person at a physical branch.
Truck finance is a method of financing a heavy vehicle purchase that helps to spread the upfront costs of buying a vehicle over a longer period of time.
Available through banks, non-bank lenders, vehicle finance brokers and vehicle dealerships.
There are several types of truck finance including: Chattel mortgage, Hire purchase, Finance lease, and Small business loans.
To be eligible for truck finance your business must meet several criteria, including having an ABN and being registered for GST.
Truck finance typically has minimum loan amounts of $5,000 and maximum loan amounts of $200,000 or higher with loan terms from one to seven years.
Your risk profile as a borrower and the vehicle’s type, age and weight could affect your loan’s interest rate.