Yes, a newer business may be able to obtain truck finance, but having a recently established ABN can affect which lenders and finance options are available.
A business does not necessarily need years of trading history before it can investigate financing a truck. However, lenders will generally want to understand the business, the people behind it, the truck being purchased and how the vehicle is expected to generate or support income.
For someone starting a transport business, becoming an owner-driver or moving from employment into their own operation, buying a truck can be one of the largest upfront costs involved.
That is where truck finance for a new business may help.
Rather than funding the entire truck purchase from available cash, an eligible business may be able to spread the cost over an agreed loan term while putting the vehicle to work.
Can You Get Truck Finance With a New ABN?
Potentially.
A recently registered ABN does not automatically make truck finance impossible. However, a lender may treat a new business differently from one that has several years of established financial history.
The Australian Business Register explains that an ABN is an 11-digit number used to identify a business or organisation.
Having an ABN itself does not demonstrate that a business can afford a truck loan.
When considering truck finance for a newer business, a lender may instead look at factors such as:
- How long the ABN has been active
- The applicant’s previous industry experience
- Current and expected business income
- Existing contracts or work
- Business bank account activity
- Personal and business credit history
- Existing debts and financial commitments
- The truck being purchased
- Whether the truck is new or used
- The purchase price
- Any deposit or contribution
- How the vehicle will be used
The importance placed on each factor can vary significantly between lenders.
How Long Does Your ABN Need to Be Active for Truck Finance?
There is no single ABN age that applies to every truck finance application.
Some lenders prefer businesses with an established trading history, while specialist commercial lenders may consider different circumstances depending on the borrower, documentation and asset.
This is one reason comparing lenders can be particularly important when seeking truck finance with a new ABN.
For example, someone who registered an ABN recently but has spent ten years driving heavy vehicles may present a very different application from someone entering the transport industry for the first time.
Similarly, an established construction business creating a new entity may be viewed differently from a completely new operation with no previous trading activity.
If your business has already been operating for some time but has never purchased a truck before, read our guide on financing the first truck for an established business.
Does Previous Industry Experience Matter?
It can.
When a business has limited financial history, previous experience can help provide context around the application.
Consider someone who has worked as a truck driver for eight years.
They decide to start their own business, register an ABN and purchase their first prime mover.
Although the business itself is new, the applicant may already understand:
- The transport industry
- Vehicle operating costs
- Fuel expenses
- Maintenance requirements
- Routes and scheduling
- Customer expectations
- Licensing and compliance
- How work is sourced
That background does not guarantee finance approval, but it gives a lender more information than the age of the ABN alone.
A new ABN does not always mean the person behind the business is new to the industry.
What Will Lenders Look at When Financing a Truck for a New Business?
For an established company, lenders can often assess previous financial statements, BAS records, bank statements and trading performance.
A newer business may not have the same amount of historical information available.
The lender may therefore need to understand the application through other available evidence.
1. The Applicant
Your personal financial position and credit history may be relevant, particularly when there is limited business history available.
2. Your Experience
Previous employment, contracting or business experience in the same industry may provide useful context.
3. The Truck
The type, age, purchase price and expected use of the truck can all affect the application.
A lender may view a common commercial truck differently from a highly specialised or unusually old vehicle.
4. How the Truck Will Make Money
The commercial reason for buying the truck should be clear.
Will it be used for:
- Freight?
- Local deliveries?
- Civil construction?
- Towing?
- Waste removal?
- Earthmoving?
- Building materials?
- Refrigerated transport?
- Agricultural work?
The clearer the business purpose, the easier it is to explain why the asset is required.
For a broader explanation of how businesses can fund commercial vehicles, see our guide to truck and ute finance for Australian businesses.
Can You Get Truck Finance Without Two Years of Financials?
Potentially.
Not every commercial vehicle finance application requires two full years of financial statements.
Documentation requirements can depend on the lender, finance amount, business history, applicant and truck being financed.
An application could potentially involve information such as:
- Bank statements
- BAS statements
- Accountant-prepared financials
- Tax returns
- Existing contracts
- Proof of income
- Identification
- ABN and business details
- A truck invoice or dealer quote
- Details of existing liabilities
Different lenders can have substantially different documentation requirements.
This is particularly relevant for a new business because approaching a lender whose policy requires financial history you simply do not have can make the application difficult from the beginning.
A finance broker can help identify which lenders may be worth considering before an application is submitted.
Do You Need a Deposit for Truck Finance as a New Business?
Not every transaction is structured the same way.
Whether a deposit is required can depend on factors including:
- Business age
- Credit profile
- Truck value
- Truck age
- Purchase price
- Loan amount
- Applicant experience
- Financial position
- Lender policy
Contributing a deposit may reduce the amount being financed, but a deposit does not automatically make an otherwise unsuitable application acceptable.
The overall transaction still needs to meet the lender’s requirements.
A new business should also consider whether using a large portion of its available cash for a deposit is the best decision.
New businesses often need working capital for expenses such as fuel, registration, insurance, repairs, wages, marketing and general operating costs.
Should a New Business Buy a New or Used Truck?
Both new and used trucks may potentially be financed.
For a startup, the decision should involve more than simply finding the cheapest truck available.
A used truck may have a lower purchase price, but you should also consider:
- Vehicle age
- Kilometres
- Maintenance history
- Expected repairs
- Downtime risk
- Fuel efficiency
- Availability of replacement parts
- Expected useful life
Think Beyond the Purchase Price
The Australian Government’s business.gov.au guidance on buying or leasing vehicles and equipment recommends considering quality and value when purchasing equipment rather than focusing exclusively on the lowest price.
A newer truck may cost more initially but could potentially offer newer technology, warranty coverage and lower maintenance requirements.
There is no universal answer. The truck needs to make sense for both the work being performed and the business’s financial position.
Example: Starting an Owner-Driver Business
Consider a fictional example.
Sam has worked as an employed truck driver for seven years and decides to become an owner-driver.
He registers an ABN and finds a used truck suitable for the type of freight work he plans to undertake.
His business is new, so he cannot provide several years of business financial statements.
However, the finance application can still explain:
- His previous industry experience
- What work the truck will perform
- The vehicle being purchased
- His expected operating costs
- Available income information
- His financial position
- Any contracts or work arrangements available
- Why the proposed truck suits the intended work
A broker can then investigate whether there are lenders whose policies suit the scenario.
That does not mean the finance will necessarily be approved.
It does mean the application can be considered based on more than simply saying the ABN is new.
What Type of Finance Can Be Used to Buy a Truck?
Commercial trucks may be funded through several types of business asset finance.
One common structure is a chattel mortgage, where the business purchases the vehicle and the lender takes security over the asset while the finance remains outstanding.
Depending on the transaction, other commercial finance arrangements may also be available.
The Australian Government’s business funding guidance notes that businesses purchasing vehicles, equipment and tools may consider different funding structures depending on their circumstances.
The appropriate structure can depend on your:
- Business structure
- Cash flow
- GST registration
- Tax position
- Desired loan term
- Truck
- Deposit
- Ownership requirements
Businesses should speak with an accountant or registered tax professional about tax treatment rather than choosing a finance product solely for an expected tax outcome.
Is Truck Finance Different From General Business Finance?
Yes.
Truck finance is normally connected to a specific asset: the truck.
A general business loan may instead be used for broader purposes such as working capital, expansion, stock or other eligible business expenses.
When a truck is financed, the vehicle itself will commonly form part of the lender’s security for the transaction.
For more information, see the Australian Government’s guide on applying for a business loan.
Truck finance therefore sits within the broader category of commercial equipment finance.
If your business also needs excavators, forklifts, trailers, machinery or other assets, our guide to how commercial equipment finance works explains how these purchases may be funded.
You can also read our broader article on using asset finance for trucks and other business equipment.
Can Truck Finance Help a New Business Preserve Working Capital?
Potentially, but the business still needs to be able to service the repayments.
Buying a truck outright can consume a large amount of capital before the vehicle has completed its first job.
Financing allows an eligible business to spread the cost over time.
That may leave more cash available for operating expenses such as:
- Fuel
- Insurance
- Registration
- Tyres
- Servicing
- Repairs
- Wages
- Initial project costs
This concept can become even more important as a business grows.
For example, our article on equipment finance for demolition businesses taking on bigger projects looks at how acquiring additional equipment can support increased operational capacity without necessarily paying for every asset upfront.
However, preserving cash today should not come at the expense of taking on repayments the business cannot sustainably manage.
What Should You Prepare Before Applying?
If you are starting a business and considering truck finance, begin by gathering as much information as possible about both the business and the vehicle.
Useful information may include:
- Your ABN and business structure
- Identification
- Details of previous industry experience
- Business bank statements where available
- Existing income information
- Existing debts and finance commitments
- Details of expected work
- Contracts where applicable
- Truck make and model
- Purchase price
- Dealer quote or invoice
- Whether the truck is new or used
- Proposed deposit
- Intended business use
You do not necessarily need every document listed above for every application.
The requirements will depend on the lender and transaction.
Should You Speak to a Broker Before Choosing the Truck?
For a new business, it can be useful to investigate finance before committing to a vehicle.
There is little benefit in finding the perfect truck only to discover that the available finance options do not suit your business circumstances.
Speaking to a broker earlier may help you understand:
- Which lenders could consider the scenario
- Possible documentation requirements
- Whether a deposit may be required
- Vehicle-age restrictions
- Potential loan structures
- How much you may realistically be able to finance
You can then look for a truck within a more realistic range.
How Can LoanBrix Help With Truck Finance for a New Business?
A newer ABN can make commercial finance more specialised because different lenders have different approaches to trading history, financial documentation, industry experience and vehicle types.
LoanBrix can assess your circumstances and compare suitable options available through our lender panel.
Rather than relying only on your existing bank, we can look at the business, the people behind it and the truck being purchased before determining which lenders may be worth approaching.
LoanBrix assists businesses with trucks as well as broader commercial equipment finance for machinery, vehicles and other business assets.
If you have recently started a business and need a truck to begin operating or take on more work, speak with LoanBrix about the finance options that may be available.
Frequently Asked Questions About Truck Finance for New Businesses
Can I get truck finance with a brand-new ABN?
It may be possible, but options can be more limited when a business has very little trading history. Lenders may consider factors such as industry experience, income, credit history, the truck and the commercial purpose of the purchase.
How old does my ABN need to be for truck finance?
There is no single minimum ABN age used by every lender. Different lenders have different trading-history requirements, which is why the available options depend on the overall application.
Can a sole trader get truck finance?
Potentially. Commercial vehicle finance may be available to sole traders as well as companies and other eligible business structures, subject to lender requirements.
Can I finance my first truck?
Potentially. If the business itself is already established, read our guide to financing your first business truck.
Can I finance a used truck?
Potentially. Lenders may consider factors including the truck’s age, value, condition and expected age at the end of the proposed finance term.
Do I need two years of tax returns for truck finance?
Not necessarily. Documentation requirements vary between lenders and applications. Some scenarios may require detailed financial statements, while other eligible applications may be assessed using different documentation.
Is truck finance available outside Melbourne?
Yes. Although LoanBrix is based in Melbourne, commercial truck and equipment finance enquiries can be considered for eligible businesses across Australia.
Information in this article is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, fees, rates and eligibility vary between lenders.
