Whether it's your first prime mover or the fifth truck in the fleet, the finance behind it shapes your cash flow for years. Get the structure right and the truck pays for itself. Get it wrong and every quiet month hurts. Here's how truck finance works in Australia, what lenders look at, and how to give yourself the best shot at a sharp approval.
What is truck finance?
Truck finance is a business loan or lease used to buy a heavy or light commercial vehicle. That covers rigid trucks, prime movers, trailers, tippers, tow trucks and vans. The truck itself usually secures the loan, which is why truck loans often come with sharper rates than unsecured business borrowing.
Most commercial vehicle finance is written to an ABN holder, whether that's a sole trader, partnership, company or trust, with the vehicle used mainly for business.
The main types of truck finance
| Type | Who owns the truck | Best known for | Often suits |
|---|---|---|---|
| Chattel mortgage | Your business, from day one | GST credit generally claimed up front, depreciation and interest claims | Most owner drivers and fleets |
| Finance lease | The lender, during the lease | Fixed residual, payments generally deductible | Operators who upgrade regularly |
| Commercial hire purchase | The lender, until the final payment | Ownership passes at the end | Businesses that prefer staged ownership |
Chattel mortgage
The most popular option. Your business buys the truck and the lender takes security over it until the loan is repaid. If you're registered for GST, you can generally claim the GST credit in your next BAS. We break this down fully in our chattel mortgage vs finance lease guide.
Finance lease
The lender buys the truck and leases it to you for a set term, with a residual value agreed at the start. GST is spread across the lease payments.
Commercial hire purchase
The lender owns the truck while you make the payments, and ownership passes to you with the final instalment.
What lenders look at
Every lender has its own policy, but most truck finance applications come down to five things:
- ABN and GST history. How long you've held your ABN and whether you're registered for GST.
- Industry experience. Time behind the wheel or in the industry, even as an employee, counts for a lot.
- Credit history. Your personal and business credit files, plus any defaults or arrears.
- The truck. Make, model, age, kilometres and whether you're buying from a dealer or privately.
- Capacity to repay. Contracts, invoices, bank statements or financials showing the work is there.
Having a work contract lined up, such as a subcontract with a transport company, can make a real difference, especially for newer operators.
Truck finance for a new ABN
Plenty of owner drivers start their business and buy their first truck in the same month. Some lenders will consider a new ABN, often looking for:
- solid industry experience, such as a few years driving for another operator
- a clean credit history
- a deposit or trade in, or a property you own (asset backed)
- a contract or letter of engagement showing where the work is coming from.
Lenders vary a lot here, which is exactly where a broker earns their keep. One lender's "no" can be another lender's "yes".
Low doc truck finance
If you've been trading a while but your tax returns aren't up to date, low doc truck finance may help. Instead of full financials, lenders may accept things like BAS statements, bank statements or an accountant's declaration. Low doc options are available up to $500k, subject to lender criteria. See our low doc loans page for more.
Prime mover finance
Prime movers usually carry bigger price tags, longer working lives and heavier use than rigid trucks. Lenders often look closely at your experience in heavy haulage, the age and kilometres of the unit, and the contracts it will run on. Financing a trailer at the same time? Ask whether it can go on the same deal, as that can simplify things.
Repayments, terms and balloons
Your repayment depends on four levers:
| Lever | What it does |
|---|---|
| Loan amount | The price, less any deposit or trade in |
| Term | Commonly 1 to 7 years, depending on the lender and the truck's age |
| Interest rate | Set by your profile, the truck and the lender |
| Balloon | A lump sum at the end that lowers regular repayments |
A balloon can free up cash flow, but it doesn't make the debt disappear. Plan how you'll pay it before you sign. Our balloon payment guide covers the risks and your options.
A truck finance calculator gives you a ballpark, but rates are personal. The fastest way to a real number is a quote based on your truck and your business.
GST and tax: the quick version
- GST. With a chattel mortgage, GST registered businesses can generally claim the GST credit for the business use portion up front.
- The car limit. The ATO's car limit applies to cars designed to carry less than one tonne and fewer than nine passengers. Most trucks fall outside it, so the cap generally won't apply. Check with your accountant.
- Instant asset write-off. The $20,000 limit applies per asset, and most trucks cost more than that. Assets of $20,000 or more can generally go into the small business depreciation pool instead.
How this lands for your business is a question for your accountant.
Tips to get your truck loan approved faster
- Have your ABN, licence and the truck details (invoice or listing, VIN, kilometres) ready.
- Pull together 3 to 6 months of business bank statements.
- Keep a copy of any work contract or letter of engagement.
- Fix small credit file issues before you apply.
- Avoid applying with several lenders yourself, as multiple credit enquiries can count against you.
How Lend It helps
We compare 70+ lenders for truck finance, from first trucks for new ABNs to fleet upgrades and prime movers. Approvals can come through in as little as 24 hours, and we also handle trailers, yellow goods and equipment finance.
Getting a quote doesn't affect your credit score. We may run a soft check, and a full credit enquiry only happens when you apply. We're based on the Gold Coast, help operators Australia wide and we're open 7 days, 8:30am to 6pm.
FAQs
Can I get truck finance with a new ABN?
Often, yes. Lenders usually look for industry experience, clean credit and a deposit, a trade in or property ownership. A work contract helps too.
Do I need a deposit for truck finance?
Not always. Established businesses can often borrow with no deposit. Newer ABNs and larger deals may need one.
Can I finance a used or private sale truck?
Yes, many lenders finance used trucks from dealers or private sellers. Age and kilometre limits vary by lender.
How long can a truck loan be?
Terms commonly run from 1 to 7 years. The maximum depends on the lender and how old the truck will be at the end of the term.
Is truck finance different from a business car loan?
The structure is similar, often a chattel mortgage. Lenders assess trucks differently, though, with more focus on industry experience and the work the truck will do.
Ready to get moving?
Tell us about the truck and your business, and we'll line up the options. Get a truck finance quote or call 1300 082 012.
General information only. This article is not financial, tax or legal advice and doesn't take your circumstances into account. Talk to your accountant or a licensed adviser before you make a decision. Tax rules are current as at October 2026. Lend It Finance Group is a credit representative (535206) of COG Compliance Services Pty Ltd, Australian Credit Licence 384428.