Truck financing can be arranged directly through a bank or through a truck finance broker. The right option depends on your business, the truck you are buying, the documents you have available and how your application fits the lender's requirements.
A bank assesses your application against its own commercial vehicle finance criteria. A truck finance broker can assess the same application across a wider range of lenders and identify options that suit your ABN age, financial position, credit profile and the truck being purchased.
This becomes particularly useful if you have already approached a bank and the application did not fit its lending criteria. A decline from one lender does not necessarily mean the business has no truck finance options. It means the next step should be understanding why the application did not fit and whether another lender assesses that situation differently.
The Asset Finance Shop (TAFS) is a specialised asset finance broker with access to more than 80 bank and non-bank lenders. TAFS starts with a soft credit check and internal credit assessment before making a formal lender submission.
This guide explains how truck finance brokers work, when using a broker can make sense, how brokers compare with banks and what to do if a previous truck finance application has been declined.
A truck finance broker helps businesses arrange finance to purchase commercial vehicles.
Rather than providing the loan themselves, the broker assesses the business and proposed truck purchase before identifying lenders whose criteria suit the application.
A truck finance broker can assist with vehicles including:
The broker's role can include:
The value of the broker is not simply filling out a finance application.
It is identifying where the application fits before deciding which lender should receive it.
Both can be suitable.
A bank may be a good fit where the business has:
A truck finance broker can be useful where:
The main difference is lender access.
Applying directly to a bank means the application is assessed against one set of lending criteria.
Using a broker allows the business and truck to be considered against lenders with different credit and asset requirements.
|
Factor |
Bank Direct |
Truck Finance Broker |
|
Lenders considered |
One bank |
Multiple lenders |
|
New ABN options |
Depends on bank criteria |
Can compare lenders that consider newer businesses |
|
Low doc applications |
Depends on bank requirements |
Available through selected lenders |
|
Used trucks |
Subject to bank asset policy |
Can compare different lender asset policies |
|
Older trucks |
Depends on bank limits |
Selected lenders may consider older vehicles |
|
Private sales |
Depends on bank |
Available through selected lenders |
|
Auction purchases |
Depends on bank |
Available through selected lenders |
|
Credit issues |
One credit policy |
Can compare lenders with different criteria |
|
ATO debt |
Depends on bank policy |
Selected lenders may consider it |
|
Initial credit assessment |
Depends on provider |
TAFS starts with a soft credit check |
|
Application support |
Direct with bank |
Broker manages the lender application |
|
Settlement support |
Bank process |
Broker coordinates lender and seller requirements |
Neither option is automatically better.
The right option is the one that suits the business, truck and complete finance structure.
The first thing to understand is why the application did not meet the lender's requirements.
A bank decline can happen for many reasons.
It does not always mean that the business cannot afford the truck or that another lender will reach the same conclusion.
The issue may relate to:
Different lenders can take different approaches to these factors.
For example, one lender might require longer trading history, while another may consider previous industry experience alongside the newer ABN.
One lender may have a strict maximum truck age, while another may be comfortable with the same vehicle based on its value and condition.
This is where lender selection matters.
It is generally better to understand the reason for the first decision before making another formal application.
Submitting several applications without knowing whether the next lender's criteria are any different can create unnecessary credit enquiries.
TAFS takes a different approach.
The process begins with a soft credit check and internal assessment.
The credit team reviews the business, applicant and proposed truck before identifying suitable lender options.
The formal application is then made to the selected lender.
The aim is to make a considered lender selection rather than moving from one application to another without understanding the fit.
Commercial vehicle lenders do not all use the same credit policy.
Each lender decides what type of business and asset it wants to finance.
Those differences can include:
A lender may simply be the wrong fit for the transaction.
This is one of the main reasons businesses use truck finance brokers.
A good truck financing assessment should look at both the business and the truck.
The broker will want to understand:
If the current ABN is new but the applicant has years of transport experience, that background should form part of the application.
The broker may review:
The required documents depend on the lender.
For newer owner-operators, previous experience can be particularly important.
This could include experience as:
A new ABN does not necessarily mean the applicant is new to transport.
The application should include current commitments such as:
The lender needs to understand how the new truck repayment fits alongside existing commitments.
The broker can consider:
The context matters.
A previous credit issue does not necessarily produce the same outcome with every lender.
The vehicle itself can affect the lender options.
The broker may consider:
A lender suitable for a new prime mover may not necessarily be the best lender for an older rigid truck purchased privately.
Going directly to a bank can make sense when the application already fits comfortably within the bank's normal commercial vehicle lending criteria.
For example, the business may have:
Even then, it is worth comparing the complete proposal rather than assuming the existing bank automatically provides the best structure.
Compare:
A broker can become particularly useful when the application requires lender matching.
Selected lenders consider businesses without several years of trading history.
The lender may place additional weight on:
Not every transport business has current financial statements ready.
Selected lenders can consider low doc applications using information such as:
Different lenders have different asset-age requirements.
A broker can compare lenders based on:
Selected lenders finance trucks purchased privately.
Additional checks may be required around:
Selected lenders can finance trucks purchased at auction.
Pre-approval may also be available before bidding, subject to the final truck meeting lender requirements.
Different lenders can assess previous credit issues differently.
The available options can depend on:
Selected lenders may consider businesses with ATO debt.
The application may need to explain:
A broker can review why the previous application may not have fitted the lender and identify whether another finance pathway is available.
Potentially.
New ABN truck financing is available through selected lenders.
The lender may assess:
Consider an experienced driver who has spent eight years working in transport and has now established their own business.
The ABN may only be a few months old.
The applicant still has years of experience understanding:
That experience can form part of the finance application.
Yes.
Sole traders regularly use truck finance brokers to purchase commercial vehicles.
A sole trader application may be assessed using:
Selected lenders can also offer low doc pathways where complete financial statements are not available.
Yes.
Used truck financing is available through selected lenders.
The lender may look at:
Older trucks can still be financeable, although age may affect:
Yes.
Selected lenders can finance commercial vehicles purchased from private sellers.
The lender may need to verify:
Private-sale settlement can involve more steps than a dealer purchase, so it helps to confirm the finance pathway before committing to the transaction.
Yes.
Selected lenders can finance auction purchases.
A business may also be able to complete an initial finance assessment or obtain pre-approval before bidding.
This can help establish:
Final approval still depends on the actual truck purchased.
Low doc truck financing allows eligible businesses to apply without necessarily providing complete financial statements and tax returns.
Depending on the lender, the application may instead use:
Low doc does not mean there is no financial assessment.
The lender still needs enough information to understand whether the business can manage the repayment.
TAFS primarily arranges chattel mortgage finance for commercial trucks and vehicles.
Under a chattel mortgage:
Chattel mortgage finance can be used for eligible new and used commercial trucks.
Speak with your accountant about GST, depreciation and the tax treatment that applies to your business.
There is no standard deposit that applies to every business truck loan.
The lender may consider:
Some applicants may qualify without a deposit.
Other applications may require a contribution.
A larger deposit can reduce the finance amount and regular repayment, but it also uses cash that could otherwise remain in the business.
Owner-operators still need working capital for expenses including:
The strongest deposit is not automatically the largest one.
Yes.
Trade-in equity can potentially contribute toward the replacement truck.
For example:
Trade-in value: $80,000
Existing finance payout: $50,000
Potential equity: $30,000
That remaining equity may then contribute to the replacement purchase.
The final amount depends on the trade-in value and existing finance payout at settlement.
A balloon is an agreed amount left outstanding at the end of the finance term.
Including a balloon generally reduces the regular repayment because less principal is being repaid during the term.
This can help preserve monthly cash flow.
The trade-off is a larger final payment.
Before choosing a balloon, consider:
A lower monthly repayment does not automatically mean a better truck loan.
There is no single truck financing rate that applies to every business.
The rate can depend on:
An established fleet purchasing a new truck may receive different pricing from a new owner-operator purchasing an older used vehicle.
When comparing rates, compare the complete loan structure.
Look at:
A lower monthly repayment might simply come from a longer term or larger balloon.
A lower interest rate can also be less useful if the lender requires a much larger deposit.
The whole structure matters.
Not through the TAFS process.
TAFS begins with a soft credit check and internal credit assessment.
The application can then be considered against the requirements of more than 80 bank and non-bank lenders.
Once a suitable option has been selected, one formal application is made to the selected lender.
The purpose of the broad lender panel is to improve lender matching, not to submit the same formal application everywhere.
A soft credit check allows TAFS to review the applicant's credit position without leaving a formal finance enquiry on the credit file.
This helps the internal credit team understand the application before selecting where the formal submission should go.
The formal lender application occurs later once the finance option has been selected.
This process can be especially useful if the business has already had an application declined and wants to understand its position before making another formal application.
For straightforward applications where the required information is available, TAFS can arrange approvals in as little as 24 hours.
Approval can take longer where the application involves:
Approval and settlement are also separate stages.
A loan may be approved before:
For an initial application, you may need:
Depending on the application, the lender may also ask for:
Once the truck has been identified, the lender may need:
You do not necessarily need to have selected the exact truck before starting the initial finance assessment.
Start by understanding the reason.
Ask:
Then have the overall scenario reviewed before making another formal application.
The next lender should be selected because its criteria suit the application, not simply because it is another lender.
Before choosing a broker, ask:
Ask:
Understanding these points before making the formal application can help you decide whether applying directly makes sense.
TAFS reviews:
TAFS starts with a soft credit check that leaves no mark on the applicant's credit file.
The internal credit team reviews the application before making a formal lender submission.
TAFS has access to more than 80 bank and non-bank lenders.
The application can be assessed against lender requirements including:
TAFS can structure the application around:
Once a suitable option has been selected, the formal application is submitted to the chosen lender.
TAFS manages the lender requirements and coordinates settlement with the approved truck seller.
It depends on the business and truck.
A bank can suit an established business with complete financial information and a straightforward transaction.
A broker can be useful where the business wants to compare lenders, has a newer ABN, needs low doc finance, is purchasing a used truck or has a more complex application.
It can be worth having the application reviewed before applying elsewhere.
Different lenders have different criteria around ABN age, documentation, credit, truck age and other factors.
A broker can assess why the previous lender may not have suited the application and compare lenders with different requirements.
Not necessarily.
A decline means the application did not meet that lender's requirements.
Another lender may assess the same business differently, depending on the reason for the decline and the complete application.
Yes.
An asset finance broker can have access to both bank and non-bank lenders.
TAFS has access to more than 80 lenders.
Not necessarily.
The available finance cost depends on the lender, business, truck, rate, term, deposit, balloon and fees.
Compare the complete finance structure.
Yes.
Selected lenders consider newer businesses based on factors including industry experience, source of work, financial position and the truck being purchased.
Yes.
Selected lenders provide low doc commercial vehicle financing using bank statements and other supporting business information.
Yes.
Used truck financing is available through selected lenders.
Truck age, kilometres, condition and market value can affect the available finance options.
Yes.
Selected lenders finance trucks purchased privately.
Additional ownership, vehicle and seller checks may be required.
Yes.
Selected lenders consider auction purchases, and pre-approval may be available before bidding.
Potentially.
Different lenders have different credit criteria.
The available options will depend on the nature of the issue, current credit conduct, business position and truck being purchased.
Potentially.
Selected lenders may consider businesses with ATO debt where the overall application supports the proposed finance.
No.
TAFS starts with a soft credit check and internal assessment before making one formal application to the selected lender.
TAFS primarily arranges chattel mortgage finance for eligible commercial trucks and vehicles.
For straightforward applications where the required information is available, approval can be arranged in as little as 24 hours.
Choosing between a bank and a truck finance broker comes down to how well the lender fits your business and the truck you want to purchase.
If you have already approached a bank and the application did not fit its criteria, the next step should be understanding the reason before making another formal application.
TAFS can assess your ABN history, transport experience, credit position, available documentation and proposed truck purchase before comparing suitable truck financing options through access to more than 80 bank and non-bank lenders.
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.