A light truck, typically under 8 tonnes and often drivable on a car licence, is usually financed with a chattel mortgage. You own it from settlement, secure the loan against it and repay over one to seven years with an optional balloon. Light trucks are popular with tradies and couriers, so lenders view them as accessible, resaleable assets. Overdrive compares 80+ banks and non-bank lenders to structure finance around your work.
The common way to fund a light truck
Light trucks, often under 8 tonnes and drivable on a standard car licence, are a popular first commercial vehicle for tradies, couriers and small businesses. Most are financed with a chattel mortgage: you own the truck from settlement, the lender holds security against it, and you repay over one to seven years. A balloon can lower monthly repayments to suit a growing business. Because light trucks are affordable and in steady second-hand demand, lenders often treat them as straightforward security, which can smooth approval. The right term depends on how long you will keep the truck and your cash flow, so it pays to compare options.
What lenders assess
Lenders look at the truck and your business together. For the asset, they consider make, age, kilometres and body type, whether it is a tray, pantech, tipper or refrigerated unit, since a newer, versatile light truck holds value well. On the business side, they review your ABN and GST registration, time trading, and your credit history. Established operators may access low-doc finance without full financials. Because light trucks are lower in value, newer businesses and sole traders often find approval more accessible, though a deposit or added security can still help sharpen the rate where trading history is limited, subject to lender criteria.
Deposit, balloon and repayments
Light truck finance is flexible, which suits smaller operators. A balloon of 20 to 40 per cent lowers your monthly repayments, freeing up cash for tools, stock or fuel, and payments can be set weekly, fortnightly or monthly to match income. No deposit is common for strong applicants, while a deposit or trade reduces the amount financed and can improve the rate. Because the amounts are smaller, repayments are often very manageable for an established trade or delivery business. Indicative rates start from around 7.20% p.a. for strong, asset-backed deals; older trucks or weaker credit are priced higher, subject to lender assessment.
Getting pre-approved
Pre-approval sets your budget and lets you negotiate as a cash buyer at a dealer, private sale or auction. Because light trucks are popular, a clean unit at a good price can move quickly, so having finance ready helps. Have your ABN, GST and licence details, a rough idea of the truck and price, and recent bank statements ready. A broker lodges one application and compares lenders behind the scenes, so you avoid repeating paperwork. For eligible applicants, same-day pre-approval and 24 to 48 hour settlement may be available, letting you get on the road sooner.
Ready to finance a light truck? Simon Kendrick at Overdrive can compare 80+ lenders and structure repayments around your trade or delivery income. Request a free quote for an indicative rate and pre-approval.
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