A quick guide to trailer finance
If your business requires a trailer for its operations, trailer finance can provide the funding you need to acquire the necessary equipment. Trailer finance offers businesses a convenient way to access the capital required to purchase trailers without putting a strain on their cash flow. Whether you need a utility trailer, flatbed trailer, or specialised trailer for your business needs, trailer finance options are available to suit different budgets and requirements.
With flexible repayment terms and competitive interest rates, trailer finance allows businesses to acquire the trailers they need while preserving their working capital for other essential expenses. Whether you're in the logistics, construction, or any other industry that relies on trailers, exploring trailer finance options can help your business grow and operate efficiently.
Here's an overview of what a trailer finance typically offers:
- Loan amounts from $8,000
- Flexible loan terms: 1 to 7 years
- repayment frequency: weekly, fortnightly, or monthly
- Fixed interest rates from 7.44%
- Interest rates customized to your financial profile
Want to skip ahead?
This guide is broken down into the following sections. Click a link if you want to skip ahead.
- 1.What can I use a trailer finance loan for?
- 2.How much can I borrow for a trailer finance loan?
- 3.trailer finance Loan Repayment Calculator
- 4.Am I eligible for a trailer finance loan?
- 5.How to apply for a trailer finance loan?
- 6.How to get the best trailer finance loan for you?
- 7.Frequently Asked Questions
What can I use trailer finance for?
Australian businesses in various industries can benefit from van finance to acquire essential vehicles for their operations. Whether it's for logistics, deliveries, or transporting goods and services, van finance offers a flexible funding solution. With access to competitive interest rates and flexible repayment options, businesses can obtain the right vans they need to support their daily operations and expand their reach. Van finance enables businesses to preserve their cash flow while acquiring the necessary assets to enhance productivity and efficiency in their operations.
Logistics and Transport Services
Businesses in the logistics and transport industry often use trailer finance to acquire trailers for hauling goods and materials.
Event Management and Exhibition
Event management companies rely on trailer finance to acquire trailers for transporting event equipment, displays, and supplies to different venues.
Landscaping and Gardening
Landscaping and gardening businesses utilise trailer finance to purchase trailers for transporting gardening tools, plants, and landscaping equipment to customer locations.
Waste Management and Recycling
Waste management companies often require trailers to transport waste, recyclables, and equipment. Trailer finance helps them acquire the necessary trailers for their operations.
Equipment Rental
Equipment rental businesses often use trailer finance to expand their fleet of trailers, which they can then rent out to customers for various purposes.
Construction and Building
Construction companies frequently utilise trailer finance to purchase trailers for transporting construction materials, equipment, and tools to project sites.
Agriculture and Farming
Farmers and agricultural businesses often use trailer finance to acquire trailers for transporting livestock, crops, and farm machinery.
Mobile Food Services
Food truck operators and mobile food businesses use trailer finance to acquire trailers for setting up mobile kitchens and serving food at different locations.
Moving and Storage
Moving companies and storage facilities utilise trailer finance to acquire trailers for transporting and storing customers' belongings during relocation.
Retail and Distribution
Retailers and distributors utilise trailer finance to acquire trailers for transporting products from warehouses to retail locations or distribution centers.
How much can I borrow for trailer finance?
When it comes to trailer finance in Australia, the amount you can borrow depends on various factors such as the type of trailer, its value, and your business's financial situation. Typically, lenders offer trailer finance ranging from a few thousand dollars up to hundreds of thousands of dollars.
The loan amount is determined based on the value of the trailer you intend to finance. Lenders may finance a percentage of the trailer's value, typically ranging from 70% to 90%. For example, if the trailer is valued at $50,000 and the lender offers 80% financing, you could borrow up to $40,000. However, keep in mind that the loan amount is subject to your business's financial health and creditworthiness.
Lenders will consider factors such as your business's cash flow, profitability, credit history, and ability to make repayments. Additionally, the loan term will also affect the borrowing amount. Typically, trailer finance loans have terms ranging from 1 to 7 years. Longer loan terms may allow for higher borrowing amounts but can also result in higher interest costs over time.
It's important to carefully assess your business's financial needs and repayment capacity before determining the loan amount you require. Consider factors such as the cost of the trailer, any associated running costs, and how the acquisition of the trailer will benefit and contribute to your business operations and growth.
Business Loan Repayment Calculator
To estimate your monthly repayments and the total cost of the loan, input the loan amount, loan term and interest rate into the calculator below. This helps you plan your budget and choose the most suitable loan terms.
Total amount to repay
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Your repayments
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Your repayment chart will appear here after calculation.
Am I eligible for a trailer finance loan?
Understanding your eligibility can help you make informed financial decisions.
Lenders consider several factors when assessing your eligibility, including your credit score, income, debt-to-income ratio, age, residency, and required documentation.
While meeting the eligibility criteria doesn't guarantee loan approval, having a good credit score, stable income, and a positive financial profile significantly improve your chances.
You are eligible to apply for a trailer finance loan if you:
- ✔Are over the age of 18
- ✔Are an Australian citizen or permanent resident
- ✔Have a regular source of income sufficient to meet the repayments
How to Apply for a trailer finance Loan
Applying for a trailer finance loan is straightforward and takes only a few minutes. Simply fill out our online form with some basic details, and you'll be on your way.
Once we receive your information, a representative will reach out to help you explore loan options from over 50 trusted Australian lenders.
If you're eligible for a trailer finance loan and are satisfied with the initial quote, here's what you’ll need to prepare:
- ✔ Passport or driver’s licence
- ✔ Proof of income and expenses (e.g., payslips, bank statements)
- ✔ Details of any current debts or loans
How to Find the Best trailer finance Loan for Your Needs
Choosing the right trailer finance loan involves understanding key factors like interest rates, fees, and repayment terms. Each aspect can impact the total amount you'll pay, so it's vital to make an informed decision.
Interest Rate
Lower interest rates reduce the total cost of the loan. Take time to compare rates from various lenders to secure the best deal.
Comparison Rate
Unlike the interest rate alone, this includes fees and charges to give you a clearer understanding of overall costs.
Early Payout
Find out if your loan allows early repayments without penalties, as this can save you significant interest costs.
Fees
Pay attention to application, ongoing, and early repayment fees. Opt for a loan with competitive and transparent fee structures.
Loan Term
Shorter terms mean higher monthly payments but less interest overall, while longer terms reduce payments but increase total costs.
Still have questions about trailer finance loan?
These helpful FAQs will help you find the answers you need. If you can’t find what you’re looking for, you can request a callback below.