Refrigerated truck finance helps Australian transport, logistics, food distribution and cold-chain businesses purchase temperature-controlled commercial vehicles without using the full purchase price from working capital.
For an interstate refrigerated freight operator, the truck is more than a cab and chassis.
The complete commercial asset can include:
That means financing a refrigerated truck can require a more detailed assessment than financing a standard commercial vehicle.
The lender may need to understand:
The Asset Finance Shop (TAFS) works with Australian transport operators, food businesses, wholesalers and distributors and can arrange finance for new and used refrigerated trucks through access to more than 80 bank and non-bank lenders.
Finance can potentially be arranged for refrigerated trucks purchased through:
This guide explains how truck financing works for refrigerated vehicles, what lenders assess, how low doc pathways work and what interstate freight businesses should prepare before applying.
Refrigerated truck finance is commercial asset finance used to purchase a truck equipped to transport temperature-sensitive goods.
The vehicle may be used for:
The finance can potentially cover the completed refrigerated vehicle rather than requiring the business to pay the entire purchase price upfront.
TAFS primarily arranges commercial truck purchases using chattel mortgage finance.
Under a typical chattel mortgage:
TAFS can arrange finance for a range of refrigerated commercial vehicles.
These can include:
The appropriate lender will depend on both the business and the vehicle.
A standard truck lender may primarily focus on:
A refrigerated truck has additional components that directly affect its commercial value.
The refrigeration equipment may be essential to the income-producing purpose of the vehicle.
That means lenders can also consider:
A five-year-old truck with a recently installed refrigeration unit can present differently from a five-year-old truck where the refrigeration system has already completed extensive commercial use.
With a refrigerated vehicle, the commercial value is not necessarily limited to the chassis.
The refrigeration system is what allows the truck to perform its primary function.
For a used refrigerated truck, the lender may therefore want to understand:
This becomes particularly important where:
Truck age: 4 years
but:
Refrigeration unit age: 9 years
The lender needs to consider the completed asset rather than the truck year alone.
Interstate refrigerated transport places different demands on equipment compared with short metropolitan deliveries.
An interstate operator may run:
The lender may look at the wider transport operation, including:
TAFS already works with interstate transport operators and can assess regular work, routes, bank statement income, operating costs and industry experience as part of the finance application.
Downtime matters in every transport business.
It can be particularly costly in refrigerated freight.
A breakdown can affect:
That means replacing an ageing refrigerated truck can be both a finance decision and an operational decision.
The business may be replacing a vehicle because:
A finance application should explain that commercial purpose clearly.
Consider:
Business: Refrigerated transport
ABN: 5 years
Existing fleet: 3 trucks
Purchase: Used refrigerated rigid
Reason: Additional interstate customer
The lender may assess:
The new truck should fit within the existing business rather than being assessed as an isolated vehicle purchase.
A refrigerated truck is not only purchased by specialist transport companies.
A business may buy its first refrigerated vehicle because it wants to bring deliveries in-house.
This can include:
The business may currently pay third-party transport providers.
Buying a truck could allow it to:
In this situation, the lender can look at the broader existing business rather than requiring previous experience owning refrigerated trucks.
Consider:
Business: Food wholesaler
Trading history: 6 years
Current deliveries: Outsourced
Truck: New refrigerated rigid
Purpose: Bring metropolitan deliveries in-house
The lender may consider:
The fact that it is the first truck does not mean the underlying business is new.
New refrigerated trucks can offer lenders a relatively clear asset profile.
The transaction may include:
This can provide more certainty around:
However, the lender still needs to assess the borrower.
A new truck buyer may still have:
The asset may be straightforward while the borrower requires more careful lender matching.
Used refrigerated trucks can vary substantially.
Two vehicles with the same manufacturing year can have very different:
Lenders may assess:
The older the vehicle becomes, the more important lender asset policy can be.
Potentially.
Selected lenders can consider older commercial vehicles.
Available terms may depend on:
For example:
Age: 4 years
Kilometres: 250,000
Refrigeration unit: 3 years old
Age: 12 years
Kilometres: 800,000
Refrigeration unit: 10 years old
The same business may receive different finance options for each truck.
Not every refrigerated truck is purchased as a completed vehicle.
A business may purchase:
from different suppliers.
Depending on the transaction and lender, these costs may potentially be structured as part of the overall commercial asset finance.
It is important to tell the broker upfront when multiple suppliers are involved.
Useful documents may include:
Consider:
Cab chassis: $120,000
Insulated body: $45,000
Refrigeration system: $30,000
Installation: $10,000
Total completed project:
$205,000
Rather than looking only at the $120,000 truck, the finance application may need to consider the completed $205,000 refrigerated vehicle.
The lender may also need to coordinate payment to multiple suppliers.
Potentially.
Where the refrigeration unit and insulated body form part of the completed vehicle purchase, they may potentially be included within the finance transaction.
Where equipment is supplied separately, lender requirements can differ.
The complete purchase should be disclosed at the beginning.
Low doc truck finance can be available for some transport businesses.
It can suit borrowers who do not have a complete set of current financial statements available but can demonstrate current business performance through alternative information.
Selected lenders may assess:
TAFS's existing refrigerated truck finance guidance notes that low doc availability can depend on ABN age, GST registration, asset value, credit history and finance amount.
No.
The lender still needs to assess:
Low doc simply changes the evidence used.
Potentially.
A sole trader may apply for finance for a refrigerated commercial vehicle used predominantly for business purposes.
The lender may assess:
TAFS's existing refrigerated truck finance guidance specifically provides for sole trader applications subject to lender criteria.
Potentially through selected lenders.
Where trading history is limited, other factors can become more important.
These may include:
A business may be new while the operator is highly experienced.
Potentially.
Not every refrigerated truck finance application requires a deposit.
Some businesses may qualify for full purchase-price finance.
Other applications may benefit from:
The required structure depends on the application and lender.
A deposit reduces the amount financed.
For example:
Refrigerated truck: $180,000
Deposit: $30,000
Finance: $150,000
That may reduce:
But refrigerated transport businesses also need significant working capital.
Cash may be needed for:
Using too much cash as a deposit can create another problem.
Potentially.
An existing truck can contribute positive equity toward the replacement vehicle.
For example:
Trade value: $100,000
Finance payout: $65,000
Potential equity:
$35,000
That equity may reduce the amount that needs to be financed.
A balloon leaves part of the finance principal outstanding at the end of the term.
For example:
Finance: $180,000
Term: 5 years
Balloon: $35,000
The regular repayment will generally be lower than financing the complete balance to zero.
The business then needs to manage the final $35,000.
For refrigerated trucks, the balloon should be considered against expected future value.
That includes:
A high balloon can reduce today's repayment while leaving too much debt against an ageing refrigerated vehicle later.
Refrigerated transport businesses may finance additional vehicles to:
The lender may assess:
An additional truck should make sense in the context of the wider business.
Consider:
Existing fleet: 5 trucks
New purchase: 2 refrigerated rigids
Reason: New food distribution contract
The application may include:
The lender can assess the expansion rather than simply considering each vehicle independently.
A business may also finance a replacement because the existing truck is becoming expensive to keep operating.
Consider:
Existing truck: 11 years old
Refrigeration system: 10 years old
Repairs: Increasing
Replacement: 3-year-old refrigerated rigid
The business can compare:
The cheapest option on paper is not always the cheapest operationally.
Dealer purchases generally provide straightforward documentation.
The dealer can usually provide:
Where the refrigerated truck is already completed, the invoice should clearly identify what is included in the purchase.
The recommendation behind this page also includes the query “best finance partner for a truck dealership.”
Dealerships selling refrigerated trucks benefit from a finance partner that can handle different buyer profiles.
A dealership customer may be:
A single lender may not suit every buyer.
TAFS can review the customer and proposed truck before comparing suitable options across its lender panel.
TAFS can arrange finance for eligible refrigerated trucks purchased privately.
Additional lender checks can include:
The lender needs to be comfortable with both:
the borrower
and:
the private-sale asset.
Refrigerated trucks purchased at auction can potentially be financed, subject to lender criteria.
Where possible, complete an initial finance assessment before bidding.
That can provide a clearer understanding of:
The final truck will still need lender approval.
A refrigerated truck lender may consider three broad areas.
The strongest finance application explains all three clearly.
Depending on the lender, applicants may need:
Where relevant:
Potentially.
Depending on the lender and borrower, an initial assessment or conditional approval may be possible before the final refrigerated truck has been selected.
This can help establish:
The final vehicle will still need to satisfy lender asset criteria.
Straightforward applications can move quickly where the required information is available.
The final timing depends on:
A private-sale older refrigerated truck may take longer to settle than a straightforward new vehicle purchased from a dealer.
Make sure the lender receives accurate:
Low doc applicants in particular should prepare current business statements.
Tell the lender whether the vehicle is:
Include information about:
Where relevant, provide:
Existing truck loans should be included upfront.
Tell the broker whether the purchase is through:
TAFS uses a four-stage commercial finance process for refrigerated vehicles.
Provide:
Where multiple suppliers are involved, provide the complete project.
TAFS considers:
The application is compared against lenders whose criteria fit the business and refrigerated vehicle.
TAFS has access to more than 80 bank and non-bank lenders.
Once the finance option has been selected, TAFS coordinates the lender documentation and settlement requirements.
Before applying, prepare:
Not every lender requires every item.
The appropriate checklist depends on the application.
Refrigerated truck finance is commercial vehicle finance used to purchase temperature-controlled trucks for business purposes.
TAFS can potentially finance refrigerated rigid trucks, light trucks, delivery trucks, chiller trucks, freezer trucks, multi-temperature trucks and other refrigerated commercial vehicles.
Potentially.
New truck, body and refrigeration equipment can be assessed as part of the transaction.
Yes, subject to lender criteria.
Age, kilometres, condition and refrigeration equipment can affect available options.
Potentially through selected lenders.
The expected remaining working life of the vehicle and refrigeration equipment can influence the available term.
Potentially.
Where the refrigeration equipment forms part of the completed vehicle purchase, it may be included in the overall finance transaction.
Potentially.
TAFS can assess transactions involving a cab chassis plus separately supplied refrigerated body and equipment.
Potentially.
The application remains subject to lender criteria.
Potentially through selected lenders.
Previous industry experience, bank statements, credit history and expected work can become particularly important.
Potentially.
Low doc availability depends on factors including ABN age, GST registration, credit profile, asset value and finance amount.
Not always.
Some businesses may qualify for the full purchase price, while others may benefit from a deposit or trade-in.
Potentially.
The balloon should be appropriate for the expected future value of the refrigerated truck.
Yes, subject to lender criteria and additional seller and vehicle checks.
Potentially.
Initial finance assessment before bidding is recommended.
Potentially.
An initial or conditional approval may be available depending on the lender and applicant.
Yes.
TAFS works with interstate transport operators, including businesses financing prime movers, refrigerated trucks, trailers and other linehaul assets.
TAFS has access to more than 80 bank and non-bank lenders.
Refrigerated truck finance needs to consider more than the truck itself.
The lender may need to understand:
For a cold-chain operator, that makes specialist lender matching particularly valuable.
TAFS can assist with finance for:
TAFS works with more than 80 bank and non-bank lenders and reviews the business and completed vehicle before matching the application with suitable commercial finance options.
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.