Key highlights
- Chattel mortgage and lease options both suit work vans
- Low-doc applications available for many established ABN holders
- Terms typically one to seven years with balloon options
- New, used and private-sale vans can all be financed
A van is usually financed for business with a chattel mortgage or a lease, secured against the vehicle and repaid over a term that suits your cash flow. ABN holders, including sole traders, can often apply with minimal paperwork. Whether you need a compact courier van or a large panel van, Overdrive compares more than 80 banks and non-bank lenders in one application, so you find a structure that fits how your business earns and spends.
Choosing a finance structure for your van
The most common way to fund a work van is a chattel mortgage, where you own the van and the lender holds it as security until the loan is repaid. This structure often lets you claim interest and depreciation for the business-use portion — confirm with your accountant. Some businesses prefer a lease, where repayments can be treated differently again. Terms typically span one to seven years, and a balloon or residual at the end can trim your monthly outlay. The right choice depends on how long you plan to keep the van and how you want it to appear on your books.
What lenders look for
Lenders weigh your ABN trading history, credit profile, the van's age and value, and the loan amount against your capacity to repay. Established businesses with clean credit and a newer van tend to see the sharpest pricing. Newer ABNs or lower-doc applicants can still be approved, often with a slightly higher rate or a deposit. Having your invoice, identification and any requested financials ready helps keep the process moving.
New, used and specialist vans
New vans are straightforward to finance and attract competitive rates thanks to their clear resale value. Used vans are widely funded too, which can suit tighter budgets, though very old or high-kilometre vehicles may be priced higher or carry shorter terms. If you need a fit-out, refrigeration or a custom body, some lenders will fund the modified vehicle as a package, subject to assessment. Private-sale vans can usually be arranged with the finance paying the seller.
Rates, fees and speed
Van finance rates start from around 6.55% p.a. for strong, asset-backed deals, with lower-doc, older or cheaper vans and weaker credit priced higher — indicative and subject to lender assessment. Beyond the headline rate, compare establishment and account fees, balloon flexibility and early-payout terms. For eligible applicants, same-day pre-approval and settlement within 24 to 48 hours may be possible. Comparing many lenders at once helps you balance cost against the flexibility your business needs.
Want to know what your van will cost to finance? Request a free quote and let Overdrive compare 80+ lenders to find a repayment structure that keeps your business moving.
Frequently Asked Questions
Can I finance a van with a new ABN?
Often, yes. Some lenders accept ABNs registered only recently, especially where you have prior industry experience, a deposit or a strong credit history. Terms may be a little higher than for established businesses. A broker can identify which lenders are comfortable with newer ABNs, subject to their individual criteria.
Is a chattel mortgage or lease better for a van?
It depends on how you want the van treated on your books and at tax time. A chattel mortgage means you own the asset and may claim interest and depreciation, while a lease can offer different accounting treatment. Your accountant can advise which suits your business best.
Can I finance a van with a fit-out included?
Frequently, yes. Many lenders will finance a van together with shelving, refrigeration or a custom body as a single package, provided the total is supported by the deal. The vehicle and fit-out are assessed together. Availability and limits vary by lender and the nature of the modifications.
How quickly can van finance be approved?
For eligible applicants with complete documents, pre-approval can sometimes be issued the same day, with settlement in 24 to 48 hours. Timing depends on the lender, the complexity of the deal and how quickly you supply information. Low-doc applications from established ABN holders often move fastest.
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