What are business vehicle loans in Australia?
Enterprises and sole traders often need vehicles for various business purposes. When funds are insufficient to purchase a vehicle outright, a business can apply for business vehicle finance.
A business vehicle loan allows the borrower to:
- Claim GST on the vehicle purchase
- Treat the vehicle as a taxable offset
- Claim depreciation on the vehicle’s purchase value
Business vehicle finance is a fixed-term loan with a fixed interest rate. The purchased vehicle serves as security for the loan, while ownership remains with the business, allowing access to tax benefits.
At Asset Funder, our experienced team helps businesses—large and small—secure business vehicle loans. We connect you with trusted lenders to find the best rates and favourable loan terms to support your business needs
What you should know about Business Finance Loan
Key features of Business Vehicle Finance
Business vehicle finance has unique features that distinguish it from other forms of asset finance:
- Allows funding for a vehicle if it is used more than 51% for business purposes
- Fixed repayments with generally lower interest rates compared to unsecured business loans
- Secured against the commercial vehicle being purchased, so no additional collateral is needed
- Popular among small businesses and sole traders due to its flexibility and benefits
- Interest rates vary based on the vehicle’s age, model, and condition
- Loan terms typically range from 1 to 7 years
- Offers tax benefits to business owners and enterprises
What Vehicles can I buy with Business Vehicle Finance?
- Cars
- Heavy-duty vehicles
- Medium to small vehicles
- Vans, pick-ups, and utes
- Trucks, trailers, and buses
- Motorbikes
- Scooters
Finding the unsecured business loan with the right rate, terms and amount could be stressful and one can often miss the things to avoid on the lookout. We work with our customers to find the best suited loan for their businesses and help them avoid these mistakes. Simply complete the online application form or send us a message and one of our lending specialists will be in touch to discuss your business finance requirement.
Benefits of business Vehicle Finance
Business vehicle finance offers several advantages for enterprises:
- Maximises working capital and preserves cash flow
- Fixed repayments allow for accurate projection of expenses and income
- Flexible payment options help maintain cash flow while meeting loan obligations
- Provides tax benefits, including depreciation and interest claims on the business’s profit and loss statement.
How Can Asset Funder Help?
No matter what type of business financing you need, Asset Funder can facilitate your funding requirements, including business vehicle finance. We help enterprises of all sizes—from start-ups to established businesses—manage cash flow through a range of business finance solutions.
Even businesses with bad credit scores can benefit from our services. Asset Funder acts as a bridge between business owners and lenders, carefully matching financing options to your business’s financial situation and funding needs.
Getting started is simple: complete our online application form, and one of our experts will contact you promptly to guide you through the process.
How to choose the right Business Vehicle Finance?
Our top business finance loans in Australia have been compared below.
Chattel Mortgage
Loan Term
1-7 years
Can claim GST, Depreciation and other tax benefits.
Benefits
Disadvantages
Record of vehicle ownership on the business balance sheet.
Operating Lease
Loan Term
1-7 years
Lower upfront cost, able to upgrade, potential tax benefits, no deposit required.
Benefits
Disadvantages
The business will not have ownership of the vehicle.
Hire Purchase
Loan Term
1-7 years
More potential payments, potential tax deductions.
Benefits
Disadvantages
Full ownership only at the end of the loan term.
Finance Lease
Loan Term
1-7 years
Balloon/Residual options, lower monthly repayments, tax benefits.
Benefits
Disadvantages
Runnings costs are not generally included in the lease.
