Whether you're buying your first truck or adding to an existing fleet, truck finance can feel overwhelming if you're not sure where to start. This guide strips it back to the basics — how it works, what you need, and how to get approved.
How Does Truck Finance Work?
Truck finance is a commercial loan or lease used to fund the purchase of a truck for business purposes. A lender provides the funds to purchase the truck, and you repay the amount — plus interest — in regular monthly instalments over an agreed term. The term typically ranges from 24 to 84 months.
The truck itself serves as security for the loan — no real estate or property security is required. This makes truck finance much more accessible than a standard business loan.
What Documents Do I Need to Apply?
For a low doc truck finance application, you typically need:
- Your ABN (and GST registration details)
- Driver's licence or passport
- 3–6 months of business bank statements
- Details of the truck you're purchasing (make, model, year, price)
- A signed declaration that the loan is for business purposes
No tax returns, no BAS statements and no full financial statements are required for most low doc applications up to $500,000.
What Interest Rates Should I Expect?
For eligible applicants with 2+ years GST registration and a clean credit profile, truck finance rates typically range from 6.1% to 15% p.a. Rates vary depending on your credit profile, ABN age, the age of the truck, and the loan term. Low doc rates are typically slightly higher than full doc, reflecting the reduced documentation requirement. Working with a broker gives you access to multiple lenders simultaneously, so you see the best rate available for your specific situation.
How Long Does Approval Take?
Low doc truck finance can be approved in as little as 4–24 hours for straightforward applications. More complex applications — older trucks, adverse credit, large loan amounts — may take 2–5 business days. Once approved, settlement and payment to the seller can happen within 24–48 hours.
New vs Used Trucks — Is There a Difference?
Both new and used trucks can be financed. New trucks typically attract lower rates and are more straightforward for zero deposit approval. Used trucks can still be financed on competitive terms, though lenders factor in the age and condition of the asset. Private sale and auction purchases are also fully supported — you don't need to buy from a dealer.
Ready to get started? Contact Overdrive Funding for a free, no-obligation truck finance comparison. We compare 80+ lenders to find the best deal for your business.
For the full picture on rates, loan structures and approvals across every truck type we fund, see our main truck finance Australia page.