For a Pty Ltd business, financing a work ute is a straightforward part of running operations, and there are structures tailored to companies. How the loan is set up affects everything from approval to tax. Here is what company directors should know.
Can a company finance a ute in its name?
When a company borrows, the ute is usually held in the company's name, with directors often providing a personal guarantee. Lenders assess the company's financials, trading history and credit, alongside the directors' personal position. A well-established company with clean books tends to have strong options across Overdrive's panel of 80+ lenders, subject to lender criteria.
What loan structure suits a company ute?
Companies commonly use a chattel mortgage, where the business owns the ute and finances it against the asset. Other structures exist depending on your accounting preferences and cash-flow goals. Because the right choice affects your balance sheet, it is worth discussing options before you commit.
How is a company ute treated for tax?
GST, depreciation and interest treatment differ for companies, and the details depend on your circumstances. Check with your accountant or registered tax adviser to confirm how the finance and the vehicle fit your company's tax position.
Financing a ute through your company? Simon at Overdrive can compare lenders and structures, and provide an obligation-free quote. It is a soft check that won't affect your credit score.
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