A refrigerated van is financed much like any work van, usually with a chattel mortgage on your ABN, with the key difference that the refrigeration unit is funded as part of the vehicle. You repay over a term suited to your cash flow and may claim the business-use portion at tax time. Overdrive compares more than 80 banks and non-bank lenders in one application, helping food, floral and pharmaceutical operators finance a factory-built or retro-fitted reefer van competitively.
Financing the van and the fridge together
A refrigerated van is more than a vehicle — the refrigeration unit, insulation and lining add significant value, and lenders finance the complete unit as one asset. With a chattel mortgage, the lender advances the total price and holds the van as security until the loan is repaid, while you own it throughout. This usually allows a claim for interest and depreciation on the business-use portion, which your accountant should confirm. Whether the van left the factory as a reefer or was retro-fitted by a specialist, the finished, roadworthy unit is what lenders assess. Terms typically run one to seven years, with balloon options available.
Factory-built versus retro-fitted
Some refrigerated vans come purpose-built from the manufacturer, while others are standard vans converted by a refrigeration specialist. Both can be financed. For a retro-fit, lenders like to see the conversion completed by a reputable installer and documented on the invoice, so the fridge value is clearly part of the purchase. If you are converting a van you already own, some lenders can fund the upgrade separately, though structuring the whole unit together is often simpler.
What lenders consider
Lenders weigh your ABN trading history, credit profile, the van's age and value, and the specialised nature of the refrigeration. Because reefer vans serve specific trades — food distribution, catering, florists, pharmacy — showing steady demand for your service helps. Newer units in good condition attract the strongest pricing. Used refrigerated vans are financed too, though the age and condition of both the vehicle and the fridge unit are assessed, and older units may be priced higher.
Rates and structuring the loan
Refrigerated van finance starts from around 7.20% p.a. for strong, asset-backed deals, with lower-doc, older or cheaper units and weaker credit priced higher — indicative and subject to lender assessment. Because the fridge is critical to your income, match the loan term to the working life of both the van and the refrigeration. Comparing lenders side by side lets you weigh rate against fees, balloon flexibility and each lender's comfort with specialised vehicles.
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