Growing your truck fleet: how to finance the next truck, and the one after

Why growth finance looks different

Once your business has a trading history, a record of meeting repayments and contracts in place, lenders have far more to go on than when you started. That track record can widen the range of lenders and structures available to you. Every application is still assessed on its merits, and the trucks themselves usually remain the security, but your history, your existing fleet and your contracts all form part of the picture.

Funding several trucks together

Rather than applying for each truck separately, some lenders can fund multiple assets under one approval or facility. Depending on the lender and your business, that can help you:

• Keep working capital for fuel, tyres, maintenance and wages rather than tying it up in deposits
• Move quickly when a new contract needs more than one truck ready at the same time
• Finance a truck and trailer together so they're ready to go at once
• Plan regular upgrades to newer, more efficient trucks in a more orderly way

Using the equity in your existing fleet

If you own trucks outright or have paid a fair way down on existing loans, that equity may be able to be released through refinancing and put towards new trucks, mobilising for a contract or working capital. Some operators also combine several existing loans into one facility to simplify repayments. Whether this suits you depends on your fleet, your current finance and your plans, and any refinance is subject to a fresh assessment.

Pace your growth

Lenders look at how your commitments have built up, not just the total. Taking on a new facility, running it smoothly for a period and then coming back for the next generally tells a clearer story than asking for several new commitments at once. Planning your expansion in stages, with a broker who understands how credit teams assess growing transport businesses, can make each step easier.

Matching structures to each asset

The main structures are the same ones used for a single truck, such as chattel mortgage and finance lease, but at fleet scale many operators use a mix. A long-term prime mover you plan to keep might suit one structure, while equipment you replace more often might suit another. The right mix depends on your fleet plans, cash flow and tax position, so it's worth working through with your accountant as well as your broker.

Tax and timing

Tax treatment of trucks and the timing of upgrades can be complicated, and the rules change over time. We don't give tax advice. Talk to your accountant about how a purchase would be treated, and we'll structure the finance to fit the approach you settle on.

General information only

This article is general information only. It does not take your personal circumstances into account and is not personal credit, legal, tax or financial advice. Talk to your accountant about finance structures and tax. Funding options are subject to the asset, supplier, applicant and individual lender policy, and all finance is subject to lender assessment and approval.

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