Prime mover finance from 48+ Australian lenders.

Yes. Owner-drivers are a large part of the prime mover market, and lenders finance them on the strength of a subcontract or carrier agreement, driving history and a clean credit file. New ABNs typically need a deposit of 10 to 20 per cent and a used truck within age limits; established operators with a good asset finance history are often approved with no deposit on low documentation.

Yes. A prime mover and its trailer or B-double set can go on one contract when bought together, or on separate contracts with different terms because trailers last longer than trucks. A broker structures the split so the repayment reflects each asset’s life and the combination’s earnings.

Mainstream lenders generally accept prime movers up to about 12 to 15 years old at the end of the term, so a five-year-old truck with 500,000 kilometres can still get a five-year term with the right lender. Kilometres, engine hours, brand and service history matter as much as age, and specialist lenders take older trucks on shorter terms.

Balloons of 20 to 30 per cent over four to five years are common on new prime movers from strong brands, keeping the monthly repayment in line with the truck’s earnings. High-kilometre linehaul work argues for a lower balloon because the truck depreciates faster. Your broker shows the repayment with and without a balloon.

Often no deposit is required, particularly for established businesses buying standard assets from a dealer. A deposit is more likely where the business is new, the asset is older or specialised, the credit profile is weaker, or the amount is large relative to turnover. Deposits typically range from around 10% to 30% in those cases. Putting money in reduces the amount financed and can improve the terms offered, but it is not always necessary.

The common ones are an establishment or documentation fee charged at settlement, a monthly account-keeping fee, and a PPSR registration fee for recording the lender's interest in the asset. A brokerage fee may also apply, which we disclose to you in writing before anything is submitted. Some agreements include an early termination or break cost. Fees vary by lender and are typically a modest part of total cost compared with the interest, but they should still be compared.

Lenders publish maximum residual or balloon percentages that fall as the term lengthens, because the asset is worth less at the end of a longer term. For a vehicle, a common pattern is up to roughly 50% on a two-year term, reducing to around 20% to 30% on a five-year term. The ATO also sets minimum residual values for finance leases. A larger balloon lowers monthly repayments but increases total interest and leaves a lump sum to deal with at the end.

It is far less common than it once was. Under hire purchase the financier owns the asset and you hire it, with ownership transferring automatically after the final instalment. Since the GST changes that made chattel mortgage more attractive for businesses accounting on a cash basis, most equipment lending is written as a chattel mortgage or lease instead. Some lenders still offer commercial hire purchase, and your accountant can advise whether it suits your circumstances.

The Personal Property Securities Register is the national register of security interests in personal property, including vehicles and equipment. When a lender finances an asset, it registers its interest so the security is publicly recorded and its priority is protected if the asset is sold or the business fails. It also means a buyer searching the register will see the finance. The registration is released once the contract is paid out, and a small registration fee is usually passed on to you.

A balloon is a lump sum left to pay at the end of a chattel mortgage, which lowers the regular repayments during the term. For example, a 30 per cent balloon on a $100,000 vehicle leaves $30,000 to pay at the end, so the monthly amount is calculated on $70,000 plus interest on the full balance. Balloons are commonly set between 0 and 40 per cent depending on the asset and term, and at the end you can pay it out, refinance it or sell the asset to clear it. A balloon reduces monthly cost but increases total interest, so your broker shows both figures side by side.