Truck finance for new ABN businesses can help Australian sole traders and start-ups purchase a prime mover, rigid truck, tipper, van or other commercial vehicle before they have several years of trading history.
A newly registered ABN does not automatically prevent a business from getting finance. Lenders will usually look more closely at the applicant's previous industry experience, expected income, source of work, personal credit history, available cash and the truck being purchased.
The Asset Finance Shop (TAFS) arranges commercial vehicle finance for new and established Australian businesses through access to more than 80 bank and non-bank lenders. TAFS uses an internal credit team to assess each application before a formal lender submission is made.
This guide explains how truck finance for new ABN businesses works, what documents may be required, when a deposit may be needed and what can strengthen a start-up truck finance application.
Yes. Selected lenders will consider truck finance applications from businesses with newer ABNs.
Approval is based on more than the age of the business.
A lender may also consider:
Someone who has spent several years driving trucks as an employee or subcontractor may still have relevant industry experience even if the ABN itself was only recently registered.
The stronger the overall application, the more options may be available.
The process generally starts by assessing the applicant and expected business activity before a formal lender application is made.
A lender needs to understand how the truck will generate income.
This could include:
For a newer ABN, evidence of work can be particularly important because there may be limited trading history to review.
A lender may ask for a contract, letter of intent or work source agreement depending on the application.
Previous experience can strengthen a new business lending application.
This may include experience as:
The lender will generally want confidence that the applicant understands the industry and the costs involved in operating the truck.
TAFS begins with a soft credit check that leaves no mark on the applicant's credit file.
The internal credit team can then assess the credit position before deciding which lenders suit the application.
This is useful for newer businesses because it avoids submitting applications to multiple lenders before the scenario has been reviewed.
Different lenders have different requirements for new ABN businesses.
Some may require an established trading history. Others may consider start-ups where the applicant has strong industry experience, a clear source of work and a suitable financial position.
TAFS compares the application against the criteria of more than 80 lenders.
The finance can then be structured around:
Once the borrower selects an option, the formal application is submitted to the chosen lender.
Commercial vehicle finance can be available for a broad range of business vehicles.
These may include:
New and used trucks can be considered, subject to lender criteria.
The truck should make sense for the type of work the business intends to perform.
A lender may be more comfortable with a truck that has a clear income-producing purpose than a vehicle that appears oversized for the business or intended work.
The main finance product TAFS arranges for commercial truck purchases is a chattel mortgage.
Under a chattel mortgage:
A balloon payment leaves part of the finance amount until the end of the term.
This can reduce regular repayments, but it creates a larger final amount to manage.
The business may be able to claim the GST on the purchase price, along with eligible interest and depreciation deductions. Speak with your accountant about the tax treatment that applies to your circumstances.
The exact requirements depend on the lender and the strength of the application.
For an initial assessment, you may need:
Some applications may also require:
The truck details are often required later in the process once the vehicle has been selected.
These can include:
TAFS will confirm what the selected lender requires.
Not always.
A newer business may not have completed annual financial statements or tax returns.
Selected lenders may consider low doc applications using information such as:
Low documentation does not mean the lender skips the assessment.
The lender still needs to understand how the business will generate income and whether the proposed repayments are affordable.
There is no single minimum ABN age that applies to every truck lender.
Some lenders prefer businesses with established trading history. Others may consider newer ABNs where the applicant has relevant experience and a clear source of income.
The strength of the application can depend on:
A new ABN application is assessed as a complete scenario rather than solely on the registration date.
A deposit is not required for every application, but newer businesses may be asked to contribute funds depending on the lender and scenario.
A deposit can:
The required contribution will depend on:
A trade-in may also be used as the applicant's contribution where applicable.
Potentially.
Selected applications may qualify for finance covering the full purchase price.
The lender will usually want a strong overall application, which could include:
Finance covering the full purchase price is not guaranteed.
A deposit may still be required where the truck is older, the business has limited supporting information or the lender wants additional equity in the deal.
Yes. Sole traders can apply for truck finance.
The lender may review:
A sole trader does not necessarily need several years of business financial statements to be considered.
The applicant still needs to demonstrate how the truck will support the business and how the loan will be repaid.
Yes. Owner-drivers are a common type of applicant for commercial vehicle finance.
A first-time owner-driver may be moving from:
The lender may place significant weight on the driver's previous experience.
For example, someone with several years of interstate driving experience may be viewed differently from someone entering the transport industry for the first time.
The source of work will also matter.
A work source agreement provides evidence of where the business expects to receive work after purchasing the truck.
It may show:
Not every lender requires a work source agreement.
It can be useful for new businesses because there may not yet be enough bank statement history to demonstrate consistent revenue.
Yes. New and established operators can apply for interstate transport financing.
The lender may assess:
Interstate trucks can generate significant revenue, but they also carry substantial operating costs.
The application should show that the expected income can support both the finance repayment and normal transport expenses.
Yes. Selected lenders will consider used commercial vehicles for newer businesses.
The lender may assess:
Older trucks can have fewer lender options or shorter maximum finance terms.
An inspection or valuation may also be required.
The business should consider the ongoing maintenance costs alongside the loan repayment.
Private-sale truck finance may be available through selected lenders.
The lender will usually need to confirm:
A private sale can require more checks than a dealer purchase.
For a new ABN applicant, the lender may also want additional comfort around the applicant's experience, source of work and financial position.
Pre-approval may be available depending on the lender and applicant.
This can help a new business understand:
Final approval will still depend on the truck selected.
Pre-approval can be helpful when shopping through several dealers or preparing to bid at an auction.
Lenders will generally consider several parts of the application together.
Relevant transport experience can help compensate for limited business trading history.
The lender needs confidence that the truck will have enough work to generate income.
Good credit conduct can strengthen the application.
Previous credit issues do not always prevent approval, but they may affect the available options.
Bank statements can help show savings, existing expenses, repayment conduct and available cash.
The lender may consider the applicant's broader financial position.
The age, condition, purchase price and market value of the vehicle can affect lender appetite.
A deposit can strengthen the application, although it is not required in every scenario.
A clear and well-prepared application can make the lender assessment easier.
Provide a clear summary of your transport background and the type of work you have performed.
Contracts, letters of intent and work source agreements can help demonstrate expected income.
Avoid unnecessary dishonours, overdrawn balances and unexplained transactions where possible.
Buying the truck is only one part of starting a transport business.
The business will also need funds for:
The truck should suit the work and expected income.
A realistic purchase can make the application easier to support.
Declare current finance, tax debts and other commitments.
Providing accurate information early can reduce delays later.
Selected lenders may consider applicants with previous credit issues.
The lender may review:
Credit issues may affect:
TAFS reviews the scenario before deciding where a formal application should be submitted.
Selected lenders may consider a new business applicant with tax debt, depending on the circumstances.
The lender may want to understand:
ATO debt adds another consideration to the application, so clear supporting information is important.
Straightforward applications can be approved in as little as 24 hours once the required information is available.
New business applications may take longer if the lender needs:
Preparing the business information before selecting the truck can help reduce delays.
TAFS reviews the applicant's experience, ABN history, source of work and proposed truck purchase.
A soft credit check is completed without leaving a formal enquiry on the applicant's credit file.
The TAFS internal credit team assesses the application against the requirements of more than 80 lenders.
Available truck finance options are reviewed based on the applicant, truck and proposed structure.
Once an option is selected, the formal application is submitted to the chosen lender.
TAFS coordinates lender requirements, finance documents and payment to the truck seller.
Before applying for truck finance with a new ABN, ask:
Yes. Selected lenders will consider truck finance for new ABN businesses.
Your previous industry experience, source of work, credit history, available deposit and the truck itself can all contribute to the lender's decision.
There is no single minimum that applies to every lender.
Some lenders prefer established businesses, while others will consider newer ABNs based on the strength of the complete application.
Not always.
Selected lenders can assess low doc applications using bank statements, credit history, industry experience and information about the proposed work.
A deposit is not required for every application.
The lender may request one based on the truck, applicant, finance amount and supporting information.
Potentially.
Eligible applicants may be able to finance the full purchase price, although this depends on lender requirements and the complete application.
Yes. Sole traders can apply for commercial vehicle finance.
The lender will generally assess the applicant's experience, credit history, work source, financial position and proposed truck.
Yes. Used trucks can be financed through selected lenders.
The truck's age, kilometres, condition and value will affect the available options.
Yes. Private-sale finance may be available.
Additional seller, ownership and vehicle checks are usually required before settlement.
Pre-approval may be available depending on the lender and applicant.
Final approval will still depend on the truck meeting the lender's requirements.
TAFS can arrange approvals in as little as 24 hours for eligible applications with the required information available.
New business applications can take longer where additional work evidence, vehicle checks or lender conditions are required.
TAFS can assess your transport experience, business plans and proposed truck purchase before comparing suitable commercial vehicle finance options through access to more than 80 lenders.
Start with a no-obligation assessment and a soft credit check that leaves no mark on your file. Contact The Asset Finance Shop or apply online at www.tafs.com.au.
The Asset Finance Shop (TAFS) is a commercial asset finance brokerage based in Sydney.
Information on this page is general in nature and doesn't take your personal circumstances into account. Speak to a TAFS broker for options tailored to your business, and to your accountant regarding tax treatment.