Trailer Finance, Sorted Quickly

How trailer finance works

Trailer finance is secured against the trailer, whether it's a tipper, a curtain-sider, a flat top, a plant float or a box trailer. Trailers hold their value and have few moving parts, so lenders generally see them as low-risk security.

Most are funded through the business with a chattel mortgage or finance lease, either on their own or alongside the truck that pulls them.

Who trailer finance suits

What we fund

Trailer on its own, or with the truck

Funded with the truck

Buying a prime mover and trailer together? One loan covering both is usually simpler. See truck loans.

Funded on its own

Adding a trailer to a truck you already own is straightforward, and a clean repayment history on the truck helps.

Several trailers at once

If you're growing the fleet, a facility with a limit can be simpler than applying for each trailer separately.

Typical terms

Common ranges, not promises. Every lender sets its own policy.

• Term: often one to seven years. Trailers last, so a longer term is common, though older trailers may be capped by age at the end of the loan.
• Balloon: available with many lenders. Trailers tend to hold value well, but set it against a realistic resale figure.
• Deposit: not always needed for established businesses. Newer operators and older trailers are more likely to need one.
• Structure: chattel mortgage is the most common, with finance leases and rentals also available.
• Paperwork: low doc on ABN, BAS and bank statements for established operators, full doc for larger amounts.

An example repayment

What lenders look at

Time in business

Many lenders prefer around two years of ABN history, though newer operators with industry experience can still be approved.

The trailer

New or used, age, make and condition. Older trailers may need a deposit or a shorter term.

Your financials

Full doc, or low doc on your ABN, BAS and bank statements.

The work behind it

Contracts, regular customers or a steady run of work all help show the trailer will pay its way.

Registration and compliance

Heavy trailers come under heavy vehicle rules, and the lender will want the VIN, compliance details and registration, or a clear path to it, before it settles.

Buying a used trailer privately

Used trailers change hands privately all the time. The seller has to be the owner, the lender pays the seller directly, and a PPSR search on the VIN shows whether money is still owing against it. Run that search yourself before you pay a deposit, and match the VIN on the paperwork to the one stamped on the trailer. See what a lender checks on a private sale.

What to have ready

• ABN, entity details and GST registration status
• Recent BAS lodgements and business bank statements
• Financials and tax returns if you are going full doc
• Director ID and a current address
• A quote or tax invoice for the trailer and anything fitted to it
• The VIN, compliance details and registration papers on a used trailer
• Details of the truck that will tow it

Trailer finance questions

Moving machinery? A plant float often goes hand in hand with excavator and yellow goods finance.

Guides worth reading

• Buying used gear at auction or privately: the checks that matter
• Truck finance: what lenders look at for heavy vehicles
• Chattel mortgage, hire purchase, lease or rental
• Balloon payments explained
• Equipment finance for tools, machinery and vehicles
• Five things that quietly wreck a loan application