For many Australian small businesses, a vehicle is much more than a way to get from A to B.
A ute might carry tools to a job site. A van could be essential for making deliveries. A passenger vehicle may allow staff to visit customers, while an additional truck or vehicle might be needed to take on a new contract or expand the business.
Whatever the reason, choosing the right finance provider can be just as important as choosing the right vehicle.
So, what lenders do we use for small business vehicle finance?
The answer depends on your business.
At Speaking Finance, we have access to a broad range of banks, non-bank lenders and specialist commercial asset finance providers. Each has different lending policies, documentation requirements, rates and areas of appetite.
That means there isn’t one lender that is automatically the best choice for every small business.
Some of the lenders we use for small business vehicle finance
Our lender panel gives us access to a wide range of finance providers.
Some of the specialist commercial and asset finance lenders we may consider for a business vehicle transaction include:
Angle Finance
Angle Finance is a specialist non-bank asset finance lender focused on commercial assets.
Its lending includes motor vehicles, commercial vehicles, trucks, trailers, yellow goods and other business equipment, making it one of the lenders we may consider for a range of small business asset purchases.
Metro Finance
Metro Finance is a specialist non-bank lender with a strong focus on vehicle and equipment finance.
Its commercial finance offering covers passenger vehicles, light commercial vehicles, heavy commercial vehicles and a range of business equipment. Metro also works through accredited finance brokers, making it another option we may consider depending on the transaction.
Pepper Money
Pepper Money operates across a number of finance categories and has dedicated commercial asset and equipment finance options.
Its commercial asset finance offering can cover motor vehicles, light commercial vehicles, trucks, trailers, plant and equipment and other business assets.
Pepper is an example of why specialist non-bank lenders can be valuable in the market, as their credit policies and areas of appetite can differ from those of traditional banks.
Morris Finance
Morris Finance specialises in asset and business finance and provides funding across a broad range of commercial assets.
Its vehicle finance capabilities include commercial vehicles, trucks, trailers and other business assets, with finance structures available for businesses ranging from owner-operators through to larger fleets.
Having lenders with experience in commercial assets can be particularly useful where the transaction goes beyond a standard passenger vehicle.
Dynamoney
Dynamoney is a specialist business finance lender offering vehicle, equipment and broader commercial finance solutions.
Its vehicle finance range includes cars, vans, utes, trucks, trailers and yellow goods, with options designed specifically for business borrowers.
For some transactions, a lender focused predominantly on SME and commercial finance can provide another avenue outside the traditional banking market.
These are only some of the lenders available to us.
Speaking Finance has access to a much broader lender panel, and the lender we recommend will depend on the individual business and transaction.
What about the major banks?
Banks also remain an important part of the asset finance market.
For an established business with strong financials, a good credit profile and an existing banking relationship, a bank may provide a competitive vehicle finance solution.
But your existing bank isn’t automatically the best option simply because you already bank with them.
Going directly to one institution generally means you’re considering the products, policies and pricing available from that lender.
Working with a finance broker allows the transaction to be considered across a broader range of lenders.
Why does the lender matter?
Two businesses purchasing exactly the same $60,000 vehicle could be suited to completely different lenders.
Why? Because the lender isn’t assessing the vehicle alone.
They may also consider:
- How long the business has been operating
- How long the ABN has been registered
- GST registration
- Annual turnover
- Business profitability and cash flow
- The directors’ credit history
- Existing business borrowings
- Whether the vehicle is new or used
- The age and type of vehicle
- Whether it is being purchased privately or through a dealer
- The amount being financed
- Whether a deposit is being contributed
- The requested loan term
- Whether a balloon payment is required
Different lenders can have very different appetites for each of these factors.
A transaction that fits comfortably within one lender’s policy may not suit another lender at all.
That is why knowing where to place a particular transaction is such an important part of what we do.
The lowest rate isn’t always the right lender
It can be tempting to start a vehicle finance search by asking: “Who has the lowest rate?”
Rate is important, but it isn’t the only consideration. The overall finance package can also be affected by:
- Loan term
- Establishment and ongoing fees
- Deposit requirements
- Balloon or residual options
- Early repayment conditions
- Documentation requirements
- Credit policy
- Approval timeframes
A lender with the lowest advertised rate may not necessarily provide the structure that best suits the business.
The better question is often:
“Which lender provides the right combination of rate, structure, policy and flexibility for this transaction?”
What if I don’t have current financial statements?
This is particularly relevant for small businesses as a business owner may have strong cash flow but not have their latest tax returns or financial statements completed.
That does not automatically mean vehicle finance is unavailable.
Some commercial lenders provide streamlined, low-doc or alternative-documentation pathways for eligible business borrowers.
Depending on the lender and application, the assessment may consider information such as:
- ABN history
- GST registration
- Business bank statements
- Asset position
- Existing credit facilities
- Credit history
- Declared business information
The important part is knowing which lenders are comfortable with the circumstances of the particular business.
Rather than simply submitting the same application everywhere, we can consider the available information and determine which lender policies are more likely to suit the transaction.
Different vehicles can mean different lenders
The business isn’t the only factor.
The vehicle itself can influence which lenders we consider.
A new passenger vehicle purchased through a dealership may have a wide range of lender options.
The situation can change when you’re financing:
- A used commercial vehicle
- An older ute or van
- A truck
- A private-sale vehicle
- A specialised commercial vehicle
- Multiple vehicles
- A growing fleet
Some lenders have stronger appetites for particular asset classes, while others place tighter limits around vehicle age, purchase type or the age of the asset at the end of the loan.
This is another reason we don’t automatically send every vehicle finance application to the same lender.
How quickly do you need the vehicle?
Sometimes lender selection isn’t only about rate and policy, It’s also about timing.
- A work vehicle may have broken down.
- A new employee may be starting next week
- You may have secured a new contract and need another vehicle to complete the work.
- Or you’ve found the right vehicle and don’t want to lose it while waiting for finance.
In these circumstances, turnaround time can become an important part of the lender decision.
Knowing which lender is suited to the transaction and what information they are likely to require can help make the process more efficient from the beginning.
Which vehicle finance lender should a small business choose?
Rather than starting with a particular lender, we believe the starting point should be your business and the transaction. We look at questions such as:
What vehicle are you purchasing?
A standard passenger vehicle may be viewed differently from a truck, specialised vehicle, high-value vehicle or older commercial asset.
How established is the business?
A business that has traded for ten years may have different lender options from one that commenced twelve months ago.
What documentation is available?
Some lenders require detailed financial information, while others may offer streamlined assessment options to eligible businesses.
How much are you financing?
Different lenders can have different appetites depending on the size of the transaction.
What repayment structure works for the business?
Rate is only one part of the equation. Loan term, fees, deposit, balloon payments and monthly cash flow can all influence the overall structure.
How quickly do you need the vehicle?
When a vehicle is needed urgently, lender turnaround can become an important consideration.
Once we understand those factors, we can start looking at which lenders may suit.
This is where Speaking Finance comes in
There are plenty of lenders offering business vehicle finance in Australia.
The challenge isn’t simply finding a lender.
It’s knowing which lender makes sense for the transaction in front of us.
At Speaking Finance, asset and equipment finance is what we do.
We take the time to understand:
- Your business
- What you’re buying
- How much you need to finance
- Your trading history
- The documentation available
- Your preferred finance structure
- Your timeframe
- Your short and long-term business objectives
We can then assess the lenders available to us and identify options whose products, credit policies and areas of appetite may suit the application.
We don’t choose the lender first and then try to make your business fit.
We look at your business first and then work out where the deal fits.
Need finance for your next business vehicle?
Whether you’re buying your first work vehicle, replacing an existing car, adding another ute or van to the business, purchasing a truck or expanding an entire fleet, our team can help you understand the options available.
Before you start submitting applications, talk to Speaking Finance.
We make finance black and white.
Call 03 9075 0050
Email info@speakingfinance.com.au
Finance is subject to lender approval, eligibility criteria, terms, conditions, fees and charges. Lending policies, rates and product availability can change. The lenders mentioned above represent only some of the lenders available through our lender panel and may not be appropriate for every applicant or transaction. Taxation information is general in nature and you should seek independent taxation or accounting advice relevant to your circumstances.
