Truck Finance
Commercial truck loans for owner drivers, SMEs and transport businesses across Australia.
Whether you are buying your first truck or adding to an existing fleet, Sierra Finance gives you access to 50+ lenders to find the right fit for your business. We specialise in trucks from light duty rigids through to prime movers, match your asset to the lender that suits it, and turn approvals around fast so you can get moving.
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How Truck Finance Works
Truck finance works the same way for most business borrowers: you finance the truck through a chattel mortgage, take ownership from day one, and make fixed monthly repayments over a term that suits your cashflow. At the end of the term the truck is yours outright.
Chattel mortgage is the most common structure for owner drivers and SMEs because it keeps the asset on your books, allows you to claim depreciation and the interest component, and gives you flexibility on the loan term. Most truck loans run between three and seven years depending on the size of the loan and how you want to structure repayments.
Finance lease and hire purchase are available for businesses that prefer not to own the asset outright, or where accountants structure our file differently for tax purposes. If you are unsure which structure suits your situation, that is part of the conversation before any application goes anywhere.
Balloon payments are common on newer trucks where you want to reduce monthly repayments and preserve working capital. On older trucks, lenders often restrict or remove the balloon because the asset age at the end of the term becomes a concern. Getting the balloon right upfront matters because it affects both your repayment comfort and your refinancing options down the track.
What You Can Finance with Truck Finance
Sierra Finance writes truck files across the full spectrum of commercial vehicles used in Australian business.
Light duty and medium rigids: Isuzu NPR and NPS, Hino 300 and 500 series, Fuso Canter, Mercedes Sprinter van conversions. Common for local delivery, hire and reward, trades and small transport operators.
Tippers and tray trucks: Single axle and tandem tippers for civil and construction, flat beds and crane trucks for general freight and crane work. Cab chassis builds financed with the body are covered below.
Prime movers and semis: Kenworth, Mack, Volvo, Scania, DAF, Western Star, Freightliner. These are typically the higher value files and can involve more documentation depending on loan size.
Pantechs, curtainsiders and refrigerated trucks: Freight and cold chain operators, produce transport, FMCG distribution.
Tilt trays and crane trucks: These sit in specialist territory and lender appetite varies more than on standard freight vehicles. Worth a conversation before assuming approval is straightforward.
Cab chassis plus body builds: Where you are buying a cab chassis from a truck dealer and having a body fitted separately, tray body, tipper, fridge unit, crane mount, both invoices can usually be bundled into a single facility. Settlement is sometimes staged, with the cab chassis funded first and the body funded on completion. This is straightforward to structure but needs to be set up correctly from the start.
New trucks from a dealership, used trucks from a dealer, and private sales are all financeable. Auction purchases through Pickles, Manheim and Grays Online come up regularly and most lenders are fine with them, though older or higher value auction buys may require an inspection before settlement.
On age, most banks draw the line at trucks that are more than 10 to 12 years old at the end of the loan term. Specialist lenders operate well beyond that. A 2010 Kenworth is not a problem. A 2005 Mack is not a problem. The key number is the truck's age when the loan finishes, not when you buy it. Matching the asset to the right lender on age saves the file and protects your credit file.
Loan amounts typically range from around $30,000 for a used light duty truck through to $400,000 or more for a new prime mover. Fleet or combination files can be structured above that.
Who Truck Finance Is For
Owner drivers subcontracting to a fleet or freight company. One of the most common files in truck finance. A driver leaving employment to subcontract needs a truck and often a combination of low documentation finance and a deposit. A letter of intent or subcontract agreement from the principal contractor strengthens your file significantly. Low doc approval with a 10 to 20 per cent deposit is the typical structure for a new ABN with a genuine contract in place.
Established transport operators buying additional units. Clean credit, existing repayment history on previous truck or equipment finance, and a trading record of two or more years puts these files in the best part of the market. Lenders compete for this borrower profile and that competition flows through to pricing.
SMEs buying their first work truck. Builders, civil contractors, earthmovers, hire and reward operators, trades businesses that have outgrown ute or van capacity. Many of these borrowers have never financed a truck before and do not realise how different the approval process is from a car or ute loan.
Businesses with limited or no financials. Low doc truck finance is available for ABN holders with at least 12 to 24 months of trading. The pathway is the same across lenders: ABN and GST registration confirmation, a good bank statement or BAS history, and a clean or explainable credit file. Tax returns are not always required, particularly on loans under $250,000 financed through a dealer.
Borrowers who have been declined by their bank. Banks apply age limits on trucks, GVM restrictions, and conservative credit policies that specialist lenders do not. An owner who applies directly to their bank, gets declined on a 2008 prime mover, and then comes to a broker has now used a credit enquiry on a declined application. Avoiding that outcome is part of what a broker does. The right lender for a 15 year old Kenworth is not a major bank.
Property ownership is a real factor in truck finance pricing and approval. It is not a requirement, but borrowers with property behind them access better rates and often find low doc files easier to get across the line. Renters can absolutely be approved but the lender set and file structure may be different.
Why Use a Broker for Truck Finance
Trucks are a specialist asset and the lending market treats them that way. Banks that are comfortable financing a 2022 prime mover at a sharp rate may not touch a 2006 rigid at all. Lenders that are excellent on low doc approvals for new ABN owner drivers have conservative policies on older gear. The broker's job is knowing which lender fits which asset and which borrower at any given time, not applying to the most obvious place and hoping.
Every credit enquiry leaves a mark on your file. When you apply directly to a bank and get declined, that enquiry sits there regardless of the outcome. A broker submits to the right lender once. The application is structured correctly for that lender, the supporting information is presented in a way that matches their assessment criteria, and the approval comes back. That is the practical difference, not just faster service or saving you paperwork.
On trucks specifically, there are lenders with different appetites for age, GVM, cab type, use case and borrower profile. Knowing that landscape comes from writing these filess regularly. Sierra Finance accesses 50+ lenders, which means the right match exists for most scenarios without compromising on rate.
Cab chassis builds, private sales with inspection requirements, staged settlement, balloon structuring on older assets, these are all things that need to be handled correctly upfront. A broker who has done it before sets the file up right the first time and keeps it moving to settlement.
Get a free truck finance quote
Talk to Sierra Finance and get matched with the right lender for your asset. 50+ lenders, fast approvals, no obligation.
Getting Truck Finance With Sierra Finance
Step 1: Tell us about your truck and your business
What you are buying, new or used, dealer or private, approximate value and what your business looks like. That conversation takes a few minutes and tells us which lenders and which structures to work with. No paperwork at this stage.
Step 2: We match your file and structure the application
We identify the lender that best fits your asset, trading history and borrower profile, then structure the application correctly before it goes anywhere. For most truck files under $250,000, approval comes back within 24 to 48 hours. Larger files or private sales with inspection requirements may take a day or two longer.
Step 3: Settled and on the road
Once approved we coordinate settlement directly with the dealer or private seller, handle the documentation, and make sure the truck is paid correctly. For cab chassis builds with a separate body, staged settlement is managed through the same process.
Truck Finance FAQ's
Thinking about finance for your next truck?
Talk to Sierra Finance and get matched with the right lender for your asset. 50+ lenders, fast approvals, no obligation.