Best Business Car Loans in Australia
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Applying for a business car loan
Meet the eligibility criteria
You must be an Australian citizen or permanent resident, over 18 years, with an ABN/ACN, be registered for GST and have been trading for at least six months with sufficient revenue to cover the loan repayments.
Compare rates
Look at as many lenders as you can. Working with a broker like Lend will help you compare options without it impacting your credit report. We’ll also be able to guide you on lender’s credit criteria and which ones are most likely to approve you.
Get ready to apply
You’ll need to provide the lender with information on your business, your preferred loan amount, duration and repayment structure, plus info about the vehicle you want (age, purchase price and where you plan to buy it).
Submit business documents
To assess your business car loan application, the lender will want to see the last six months of your bank statements, a Business Activity Statement (BAS) and your most recent tax return.
Credit check
The lender will also perform a credit check to ensure there are no serious outstanding credit infringements.
Advantages and drawbacks of financing a business vehicle
Advantages
• Improved cashflow
Spreading the cost over time means you don’t have to outlay a large amount upfront, keeping more working capital in your business.
• Faster access to vehicles
Finance allows you to acquire the vehicle sooner, so you can take on new jobs or boost productivity without delay.
• Full ownership and control
You own the vehicle from day one, which gives you complete control over how it’s used, maintained, and modified.
• Potential tax benefits
Some finance costs, including interest and depreciation, may be tax deductible, helping to reduce your overall tax bill.
• Flexible repayment options
Loan terms can often be structured to match your cashflow, with options like balloon payments or seasonal repayments.
Drawbacks
• Higher total cost
You’ll likely pay more over time compared to buying the vehicle outright, due to interest and possible fees.
• Complications with early sale
If you want to sell the vehicle before the loan is paid off, there may be extra steps or penalties involved.
• Personal financial risk
Some lenders may require a personal guarantee, meaning your own assets could be at risk if the business can’t repay the loan.
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See your best business car loan options
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