Truck finance

Why truck finance is its own category

Trucks are expensive, hard-working and specialised. A prime mover and trailer set can cost as much as a house, and the business depends on it earning every week. Lenders who specialise in trucks understand how they’re used, what they’re worth second-hand and how transport income flows.

What lenders look at

Area	What they check
The truck	Make, model, age, kilometres, condition, price
The operator	Licence class, years driving, business history
The work	Contracts, regular customers, freight rates
The finances	Bank statements, existing fleet debt, credit

Owner-drivers and start-up operators

Lenders often fund experienced drivers starting their own business, especially with a contract or a subcontracting arrangement in place. A deposit or other security can help.

Growing a fleet

Established operators financing additional trucks are assessed on the fleet’s performance and the work available. Each new truck should have work to pay for it. Contract funding can help with the costs of mobilising for a big new contract.

Before you buy used

Get a PPSR search to make sure there’s no finance owing on the truck, check its service history and get it inspected. Lenders will do their own checks, but you want to know first. When you’ve found the right truck, enquire here.

An illustrative example

An experienced driver secures a subcontract with a regional freight company. A chattel mortgage funds a used prime mover, with repayments covered by the subcontract income. (Illustrative only.)

What else is truck finance called?

Lenders, accountants and search engines don’t all use the same words. You’ll also see this entry described as Truck loan, Prime mover finance and Trailer finance. In our A–Z index every one of those names points back to this page, so whichever term you searched, you’ve landed on the same thing. If a lender uses a name you don’t recognise, ask them to describe how the security, the term and the repayments work; that tells you far more than the label.

Where does it sit in the directory?

This entry lives on the trade, stock and asset shelf. It’s most often used for equipment and vehicles, and the security usually involved is the asset being bought. It is one of the quicker entries to put in place when the paperwork is ready. Its closest neighbours are:

• Equipment finance — Spread the cost of machines, tools and tech over their working life.
• Business vehicle finance — Cars, utes and vans for the business, with the vehicle as security.
• Chattel mortgage — You own the asset from day one; the lender holds a security interest over it.
• Machinery finance — Excavators, loaders, tractors and production lines.

To compare all of them at once, filter the Loan Finder by purpose and security.

Common mistakes to avoid

• Choosing the structure before talking to your accountant. Chattel mortgage, hire purchase and leases are treated differently for GST and tax.
• Stretching the term past the asset’s useful life. Paying for something you’ve already replaced is the most common equipment finance regret.
• Skipping the PPSR search on used gear. A quick search confirms nobody else has a security interest over the asset you’re buying.
• Setting a balloon you can’t meet. A big final payment lowers repayments now but needs a real plan for later.
• Forgetting running costs. Insurance, servicing, registration and fuel all sit on top of the repayment.

What should I ask before signing up for truck finance?

A short list of questions saves a lot of regret. Put these to any lender or specialist before you commit:

1. Is the price including or excluding GST? It changes the amount financed and the GST credit you might claim.
2. What age limit applies at the end of the term? Older assets may need shorter terms or a deposit.
3. Is there a balloon, and can I change it? Set it to suit how long you’ll keep the asset.
4. What insurance is required? Lenders usually require comprehensive cover with their interest noted.
5. Can I pay out early? Ask how payout figures are calculated before you commit.

If an answer is vague, ask again or ask for it in writing. Good lenders are happy to explain their terms clearly.

Keep the wheels turning

If your business needs a truck, or another one, finance from a lender that understands transport makes all the difference. No credit check is involved in enquiring, and your details go to one specialist, not out to every lender on the highway.

Please tell us the truck, its price and age, your experience and the work lined up. Accurate details mean a faster answer. Start your enquiry.