Lenders that finance more trucks to small business owners
Whether starting out or adding to your fleet of trucks, there are different finance options for each stage of your business. The trucking and transport industry has been booming, with thousands of Australian transport owners purchase vehicles through their business.
Established businesses will have more options whilst those starting out may be limited until proving their business. Although those starting a new business but with industry experience can also have more options.
New Business Owner Finance Options
For those that are completely new to the industry with minimal to no experience, finance can be difficult as there is no track record. When starting out, leasing a vehicle may be the best option as it has lower up-front costs and allows for flexibility.
Those starting a new business but with trucking industry experience and/or set contracts. They can utilise a 1 day continuance ABN which will open up lending options. In many cases you can access the same finance options as an established trucking business.
General Criteria for Major Banks
Those looking to finance with a major bank will have to have clean business activity and provide supporting documents. In return the big banks generally provide very competitive, if not the sharpest rates. General criteria below:
- Active ABN trading 12-24+ months
- Full financials of the business
- 550+ credit score (higher the better)
- Can require a deposit
Non-Bank & Specialist Lenders
For borrowers who don’t fit the criteria for major banks, there still are great options. Non-banks and specialist lenders provide very competitive finance which can almost match those of the big banks, with one important criteria that sets them apart – that is flexibility. Eligibility for these lenders may include:
- Active ABN for 6 months, even 1 day continuance ABN’s
- Monthly revenue can be lower, just need to be able to prove you can cover repayments
- Longer terms 7 big balloons
- Less chance for deposit
- Low doc options which require little to no paperwork
Truck Types to Finance & Approvals
To avoid surprises or disappointment, its good to understand the types of trucks that can financed and who will approve what. Different lenders approve different truck types, new or used and industries.
Lenders will finance: Tip Trucks, Prime Movers, Crane Trucks, Concrete Trucks, Water Trucks, Livestock Trucks, Dump Trucks, Refrigerated Trucks and more.
However, depending on age and industries rates can vary greatly.
Banks generally approve newer trucks and within industries they consider safe based on their own assessment criteria. Exceptions can be made with strong financials, collateral and other considerations.
Non-banks and specialist lenders will fill the void and provide options for older trucks, riskier industries and other unique circumstances.
Working with a truck finance broker is a quick way to understand what finance is available for the type of truck you need and industry. They can quickly identify the best truck finance lenders based on circumstances. This can include:
> Seasonal work
> Used or older trucks
> Less than perfect credit score borrowers
> No deposit or collateral options if available
Truck Finance Designed For ABN Holders
At Comparison Australia we make finance for Truckies simple. No hassle finance to support the transport industry. New or used trucks across all trucking industries.
Access leading truck loans & get the lowest rates across 70+ lenders & banks.
Lenders Supporting Truckers!
- GST & tax breaks for ABN holders
- No deposit or paperwork options
- Approvals & funding in as little as 24hrs
- Secure or unsecure loans
- Purchase new/used trucks or equipment
Applying For A Trucking Business Loan
People also asked
What are truck business finance rates?
Truck driving business loan rates and truck finance rates will very by lender and circumstances. To see the lowest rates available across Australia’s leading lenders, visit our updated business loan rates chart here.
Are there any purchase restrictions on truck business loans?
Each lender will have its own criteria based on the truck business’s financials in addition to your business background. Similarly, if your just buying a truck, finance will be determined by the trucks age, your credit, ability to pay and more.
Comparison Australia’s partners have access to 70+ lenders and banks making it easier for borrowers to find a lender that will fund most things.
What type of insurance do I need if purchasing a truck through my business?
For a trucking business, you may need to consider the following types of insurance:
Public liability insurance
Commercial vehicle insurance
Income protection insurance
What are truck loan requirements?
The below are general requirements a lender may request.
You’ll first have to confirm that:
– You are a active ABN holder
– That the vehicle will mostly be used for business purposes (i.e. more than 50% of the time)
Proof of Identity (one or multiple of the following)
– Drivers licence
– Passport or Proof of age card
– Valid Medicare card
– Valid credit card or debit card
– Can also use a valid Veteran card
Documents can include any of the following:
– Proof of residence via a rates notice
– Financial statements (ideally from an accountant)
– Bank statements (generally 2 months, possibly more)
– Recent Business Activity Statement (BAS)
– ATO Tax Agent portal report (generally for a trading period)
– Accountants letter confirming business activity
– Depending on trading structure: Income tax return and/or Personal tax return (1 financial year)
Other documents may be requested based on individual business circumstances. For those that may have a difficult time producing these documents, a low or half doc loan may be preferred.
Speak to a Comparison Australia partner to quickly learn about ABN finance options and what documents will be needed.
How fast can I get a truck business loan?
Depending on lender and what your after, there are very quick turnaround times for truck loans. Quick funding is dependant on having all documents required by the lender ready to go for immediate assessment and approval.