Key Takeaways
- Different types of lorry loans allow businesses to finance trucks without paying the full cost upfront, helping maintain cash flow and expand operations.
- Secured lorry loans use the lorry as collateral, offering lower interest rates and potential tax benefits.
- Leasing options allow businesses to use a lorry without ownership responsibilities, with flexible payment terms.
- Rent-to-own solutions help businesses gradually build ownership while making structured payments.
- Lorry loan refinancing can extend repayment terms, or spread out balloon payments for better cash flow management.
- Businesses can finance new or used lorries, though loan conditions may vary based on the vehicle’s age and condition.
- Choosing between leasing and outright ownership depends on business goals, tax implications, and long-term financial planning.
- Approval for a lorry loan in Australia depends on factors like credit score, time in business and income.
- If you’ve been abn or gst registered for more than 24 months there are no income verification lorry loans for asset purchases up to $250,000.
- Applications up to $500,000 can be done with a read only view of business bank account statements.
- Working with Dark Horse Financial can help businesses select the right lender, optimise loan structures, and secure competitive terms.
The right financing option can shape how efficiently your business operates and expands. If you’re considering adding a lorry to your fleet, replacing an old vehicle, or simply exploring cost-effective ways to maintain cash flow, understanding the various loan types is essential.
Lorry loans enable businesses to secure vehicles without paying the full cost upfront, keeping financial flexibility intact. But with multiple types of lorry loans available, choosing the right one requires knowledge of ownership structures, tax benefits, and repayment terms.
Here’s everything you need to know about the types of lorry loans in Australia and how Dark Horse Financial can work to your advantage.
What are the Types of Lorry Loans in Australia
Lorry loans come in different forms to match various financial and business needs. The primary types of lorry loans include secured loans, unsecured loans, leasing, rent-to-own agreements, and refinancing.
1. Secured Lorry Loans – Own While You Pay
Secured loans use the lorry as security, giving businesses access to lower interest rates and structured repayment terms.
- Chattel Mortgage – Immediate ownership of the lorry while making repayments. This loan provides tax benefits such as GST credits, depreciation claims, and interest deductions.
- Asset-Based Loans – Businesses can use existing lorries or equipment as security, freeing up cash while ensuring stable operations.
✅ Best for: Businesses wanting full ownership, lower interest rates, and tax benefits.
2. Unsecured Lorry Loans – No Security, More Flexibility
Unsecured loans do not require asset security, making them an option for businesses with strong credit or those unable to provide security. However, they often come with higher interest rates.
✅ Best for: Businesses needing quick funding without offering security.
- Leasing Options – Usage Without Ownership
Leasing is an alternative for businesses that need vehicles without long-term ownership responsibilities.
- Finance Lease – The lender retains ownership while the business makes payments. At the end of the term, there may be an option to purchase or upgrade.
- Operating Lease – A rental-style option where businesses return the vehicle at the lease’s end, avoiding resale concerns.
- Novated Lease – Employees finance a lorry through salary sacrifice, lowering their taxable income.
✅ Best for: Businesses wanting low upfront costs, flexible terms, and no long-term ownership risks.
4. Rent-to-Own Solutions – Gradual Ownership
This type of lorry loan allows businesses to build ownership over time while making structured payments, particularly beneficial for those who don’t qualify for traditional financing.
✅ Best for: Startups and those with bad credit but can demonstrate they have work to make repayments.
5. Lorry Loan Refinancing – Optimising Existing Loans
Refinancing can help businesses reduce interest rates, extend repayment terms, or adjust balloon payments.
- Balloon Refinancing – Spreading out a large final payment into manageable instalments.
- Switching Lenders – Moving to a lender with better rates and repayment flexibility.
✅ Best for: Businesses wanting to improve loan terms or free up capital with a lorry loan available in Australia.
Applying for Types of Lorry Loans in Australia
- Define Business Needs – Decide whether to own, lease, or rent-to-own.
- Assess Eligibility – Lenders review credit scores, financials, and trading history.
- Compare Loan Terms – Look at interest rates, tax implications, and repayment flexibility.
- Prepare Documents (if required) – Some lenders still ask for financials, tax returns, and detailed business history. But if you’ve been ABN and GST registered for 24+ months, you may not need to provide any financial documents at all.
- No income verification loans available up to $250,000 with just an invoice
- Low doc applications up to $500,000 using read-only access to business bank statements
5. Apply & Get Approved – Get a quote, some lenders approve applications in hours, not days or weeks.
How Dark Horse Financial Simplifies Lorry Loans
Securing the right lorry loan can be complicated. Dark Horse Financial simplifies the process by:
✔ Providing Expert Guidance – we know which lenders will fund you.
✔ Comparing Lenders – Ensuring you select a lender with a strong track record of financing the required loan amount.
✔ Matching Loan Policies with Needs – Identifying lenders whose policies align with your approval timeframe.
✔ Handling Applications – we know what lenders need to know get approved.
✔ Proven Success – Helping your business obtain approvals and favourable terms.
Looking for lorry loans available in Australia? Call us on 0439062771 for expert guidance.
FAQs About Types of Lorry Loans
What types of lorries can be financed?
Most commercial lorries, prime movers, tipper trucks, box trucks, refrigerated trucks, and more, can be financed through various types of lorry loans in Australia. The availability of financing depends on the lender and loan type.
Are used lorries eligible for financing?
Yes, used lorries are eligible for financing under many lorry loan options available in Australia. However, lenders may impose conditions based on the vehicle’s age, condition, and mileage. Some loans, like chattel mortgages, are commonly used for used lorries.
What are the key differences between leasing and buying a lorry?
Leasing a lorry allows you to use the vehicle without the responsibility of ownership, typically with lower upfront costs and flexible terms. Buying a lorry through a secured lorry loan means full ownership from day one, which builds equity and can provide tax benefits.
How much deposit is required for a lorry loan?
Deposits vary by lender and loan type. Many lenders offer 100% financing on lorry loans available in Australia, while others require a 10-20% deposit, particularly if you have bad credit or are a startup.
What interest rates should I expect?
Interest rates for lorry loans in Australia depend on factors like credit score, loan term, lorry type, and lender policies. Secured loans, like chattel mortgages, usually offer lower rates, while unsecured loans have higher rates.
Can I get a lorry loan with bad credit?
Yes, businesses with bad credit can still obtain financing through asset-based loans, rent-to-own agreements, or specialist lenders that provide bad credit lorry loans.
How fast can I get financing approved?
Approval times vary, but applications can be approved within a few hours for some types of lorry loans in Australia. More complex applications or those requiring full documentation may take longer.
Are there tax benefits with lorry loans?
Yes. Some types of lorry loans, like chattel mortgages, allow businesses to claim GST credits, depreciation, and interest expenses as tax deductions. Lease payments may also be tax-deductible under operating lease agreements.
What’s the best loan structure for growing businesses?
For expanding businesses, a secured lorry loan like a chattel mortgage generally is the cheapest option and results in full ownershp. Rent-to-own can be a smart choice for startups looking to build equity over time.
How can I increase my chances of approval?
Choosing the right lender and loan type can make a significant difference to increase your chances of approval for the best lorry loan available in Australia. Get expert help from Dark Horse Financial to find the right lender and maximise your approval chances.
Quick Recap
Choosing the right type of lorry loan structure is essential to financial stability. If you’re financing a new or used lorry, refinancing, or leasing, your choice should align with your cash flow, business size, and growth strategy.
Before committing, consider:
- How the loan structure impacts your tax benefits and long-term financial position.
- Whether leasing or outright ownership aligns better with your business model.
- The impact of balloon payments, interest rates, and loan terms on cash flow.
Contacting a financial expert can help streamline the process, ensuring you select a lender with a strong track record, favourable approval policies, and financing terms that align with your business goals. Taking the time to structure your loan properly can lead to better interest rates, manageable repayments, and long-term financial stability.
With the right approach, securing the right type of lorry loan can support business growth without unnecessary financial strain.
Choose a Lorry Loan That Works for How You Do Business
Every business has different goals—whether it’s growing your fleet, replacing an older lorry, or keeping cash flow steady. The right loan structure can make all the difference. With options like secured loans, leasing, and rent-to-own, expert advice can help you find a flexible solution that suits your operation, timeline, and budget.
