Why Managing Multiple Vehicle Loans Can Kill Your Cash Flow
Why Managing Multiple Vehicle Loans Can Kill Your Cash Flow
Five trucks, five loans, five direct debits. Looks fine on paper, feels rough in the bank account. Here’s the short version of why — and what to do instead.
Most operators start simple: one ute, one loan. Then you add a rigid, then a prime mover, maybe a trailer. Each dealer flicks you “easy finance” and suddenly your asset finance is spread across a few different lenders.
Different dates. Different rules. Same bank account getting hammered at random times.
A proper fleet finance facility is just a cleaner way to organise it — the trucks don’t change, but how the money moves does.
🚧 The Problem: Loans All Over the Shop
Over a few years it’s normal to end up with a mix of loan types, balloons and terms that don’t talk to each other.
One truck’s on a chattel mortgage, another is on a lease, one has a balloon, one doesn’t. None of them care when your customers actually pay you.
- Repayments land on random days across the month
- Rates, terms and fees all slightly different
- No quick way to see what the whole fleet really costs you
Meanwhile you’re still buying fuel, tyres, servicing and all the other OPEX that keeps the wheels turning.
💸 How Multiple Loans Smash Cash Flow
Cash flow for truckies is about timing. Your fuel, rego, insurance and wages hit like clockwork. Your loan payments need to sit in that rhythm — not cut across it.
When five different lenders dip in on different days, even solid work can feel tight until invoices clear and GST is sorted.
| Setup | What It Feels Like |
|---|---|
| 5 separate vehicle loans with mixed terms | Money in, money out, no clear pattern. You’re checking the account every morning. |
| 1 fleet facility, 1 repayment date | You know what’s leaving and when, so you can line up fuel, wages and tax ahead of time. |
The ATO’s general cash-flow advice is simple: smoother, predictable outgoings make life easier. Random loan debits do the opposite. See more at ato.gov.au.
⚙️ The Fix: One Fleet Facility, One Plan
A fleet facility lets you roll multiple truck loans into one limit. Same trucks, just one clean structure behind them.
That can sit next to your Business Line of Credit, Working Capital Loan and Invoice Finance so repairs and short gaps don’t wreck your repayment schedule.
Whether you’re a sole trader with three rigs or a growing fleet with ten, the play is the same: less noise, more control.
- One repayment date – easy to match with your main debtor runs
- One lender and limit – add or upgrade vehicles inside the facility
- Cleaner balance sheet – debt for the fleet sits in one simple bucket
If you want the bigger-picture version, check our Business Cashflow System guide (LOC + Working Capital + Invoice Finance).
📊 Real Fleet Example (Quick Version)
John runs a courier fleet with eight vans. Over a few years he ended up with five separate loans across banks and dealer finance.
We moved him into a single fleet facility through our vehicle finance panel and lined the repayment up just after his biggest monthly debtor pays.
End result: repayments dropped by roughly $1,100 per month and he had enough breathing room to hire another driver for a new contract instead of saying no.
- 8 vans under one facility, one monthly date
- Extra cash for tyres, services and wages
- Less juggling, more focus on winning freight
💬 Why Truckies Use Switchboard Finance
Switchboard works with truckies and transport operators every day — from the first prime mover through to fleets cleaning up old messy deals.
Because we’re brokers, we can compare lenders, low-doc options and different structures to match how your fleet actually runs, not just what the dealership is pushing.
We also connect the fleet facility with your low doc vehicle finance, equipment upgrades and your overall plan in the Truckie Hub.
- Truck-focused lender panel with low-doc options for ABN holders
- Support for refinance, upgrades and adding units as you grow
- Simple, straight talk so you know the trade-offs before you sign
Want a simple starting point? Our Truckie Loan Pack sets out what lenders look for before we even touch an application.
❓ Fleet Finance FAQ
1. Can I roll my existing truck loans into a fleet facility?
Often, yes. We can look at refinancing your current truck and trailer loans into one consolidated fleet facility so you’ve got a single repayment instead of a bunch of random debits.
2. What’s the minimum number of vehicles for fleet finance?
Most lenders want at least two vehicles. If you’re still building up, we can look at low doc truck finance first, then roll things into a fleet facility once the numbers stack up.
3. How does fleet finance affect tax deductions?
It depends whether it’s set up more like a lease or loan. You may be able to claim interest and depreciation, but your accountant should call the shots on tax — we stick to the lending.
4. Can I get fleet finance with a newer ABN?
If your ABN is new but your driving or contracting history is solid, there can still be options, especially when paired with cash-flow tools like invoice finance.
5. Is fleet finance only for big transport companies?
No. Smaller operators with three or four trucks often feel the biggest difference, because it instantly simplifies repayments and makes growth decisions easier.
