What Is Fleet Finance and How Does It Work?
What Is Fleet Finance and How Does It Work?
What Is Fleet Finance and How Does It Work?
Fleet finance lets truckers and transport operators roll multiple vehicle loans into one facility, tidy up repayments, and keep cashflow free for fuel, wages, and growth.
Fleet restructure topic cluster
If you’re trying to consolidate repayments, fix a payout figure, or reset terms across multiple trucks, start with our guide to fleet restructure finance.
This page explains the fleet “facility” concept. The restructure guide shows the decision path (refinance vs restructure vs consolidate).
Running a fleet is expensive — fuel, tyres, rego and tolls all hit before customers pay.
Separate loans on every truck mean random debits and messy paperwork.
A fleet facility pulls those trucks into one simple plan so you always know what leaves the account each month.
🚛 What actually is fleet finance?
Fleet finance is a business facility that covers two or more vehicles under one agreement instead of separate loans.
You can use it for prime movers, rigids, trailers and even support utes when the lender is happy with the mix.
- Buy new or used trucks under one master limit.
- Refinance old loans into a cleaner structure.
- Add extra vehicles later without starting from zero.
Behind the scenes it might still use lease, hire purchase or chattel mortgage style docs — but you see one simple fleet facility.
💡 Key benefits in plain English
The big win is control — one predictable repayment is easier to plan around than six random debits.
Your accountant gets cleaner numbers and you keep more working capital for fuel, wages and repairs.
- Less admin: one application, one main facility, one renewal date.
- Cashflow-friendly: line repayments up with when your big customers pay.
- Tax effective: still uses normal asset finance rules.
- Room to grow: build in capacity for the next truck when the numbers stack up.
Keep your asset facility for the trucks, and use a separate cashflow buffer (like a Business Line of Credit) for fuel, tyres and repairs when needed.
⚙️ How a fleet facility works (simple steps)
The process feels like a normal truck loan — you just do it once for the fleet instead of once per vehicle.
- List the gear: trucks, trailers and support vehicles you want covered.
- Set limit and term: total amount, 2–7 year term and any final “balloon”.
- Lender signs off: they look at your ABN history, property position and bank statements.
- Draw down: each truck you add sits under the same fleet limit instead of a fresh loan.
📊 Fleet finance vs separate truck loans
Here’s the quick side-by-side view most operators find helpful:
| Feature | Fleet facility | Separate loans |
|---|---|---|
| Number of accounts | One main fleet facility | One per truck / trailer |
| Paperwork | One upfront application, simple add-ons | Repeat the same forms every time |
| Cashflow control | Single, predictable monthly repayment | Scattered debits across the month |
| Tax & reporting | Centralised and easier for your accountant | Messy to track and reconcile |
| Growth | Room to add extra units once approved | New application for every upgrade |
You can dig into depreciation and business-use deductions on the ATO website.
🔍 Real-world fleet example
Mark runs six delivery trucks out of a regional depot with multiple lenders and multiple repayment schedules.
Cash leaves the account on random days and he’s always guessing which debit hits next.
A fleet facility pulls repayments into one structure, cleans up bookkeeping, and leaves headroom for the next truck.
💬 Why truckers use Switchboard for fleet deals
Switchboard Finance is set up for operators who live in the cab, not behind a desk.
- We present fleet deals clearly to commercial lenders so your story makes sense.
- We place low-doc options for strong ABN holders (where policy fits).
- We map repayments around real-world cashflow, not neat textbook numbers.
You’ll speak directly with a broker who understands fleet and transport deals.
How many vehicles do I need for fleet finance to make sense?
Once you’re at two or more vehicles, a fleet facility can start to help. It usually sits under asset finance rules, but it’s managed as a single facility.
Can I mix different vehicles in one fleet facility?
Often yes — prime movers, rigids, trailers and support vehicles can be included when the lender is comfortable with the mix.
Do I need property as security for fleet finance?
Not always. Some limits use property backing; others rely mainly on the trucks and trading history. A broker matches policy to your profile.
Is fleet finance different to a chattel mortgage on a truck?
Many fleet facilities still use chattel-style docs under the bonnet. The difference is the master facility view and coordinated repayments. See: chattel mortgage.
What happens at the end of the fleet finance term?
You can refinance, pay out or trade out of older trucks and refresh the facility. If you’re doing a tidy-up across multiple loans, start with fleet restructure finance.
