Key highlights
- A recently registered ABN doesn't rule out car finance
- Some lenders cater specifically to newer businesses
- Owner's personal credit may carry more weight
- One broker checks which of 80+ lenders may consider you
Newly established businesses often need a vehicle before they have built up years of financial records. That raises a fair question: can a new business actually finance a car? In many cases the answer is yes, with some considerations. Here is how it works.
Can a new business finance a car?
Having only recently registered an ABN does not automatically prevent a business from financing a car. Some lenders cater specifically to newer businesses, assessing the application on a broader picture that includes the owner's background, personal credit history and any deposit. Eligibility is subject to lender criteria, and a limited trading history simply means the assessment leans more on other factors.
How is limited trading history handled?
Where a business cannot show years of financials, lenders may consider low-doc pathways or place more weight on the director's or owner's personal position. Industry experience, a realistic business plan and evidence of early income can all help. Contributing a deposit or trade-in may also strengthen a new business application, as it reduces the amount being financed relative to the vehicle's value.
How should a new business set up finance?
For a new business, choosing the right finance structure early can save complications later. A chattel mortgage is a common choice, but the treatment of GST and depreciation for a newly registered business is best confirmed with your accountant or registered tax adviser, particularly where the vehicle will have a mix of business and private use.
How does a new business get a quote?
Overdrive Business Vehicle Finance regularly helps newer businesses and can check which of its panel of more than 80 lenders may consider your application, all through one broker, Simon Kendrick. Ask for an obligation-free quote. The initial check is a soft enquiry that does not affect your credit score, with no obligation to proceed.
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