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 truckies and transport operators roll multiple vehicle loans into one facility, tidy up repayments, and keep cash flow free for fuel, wages, and growth.
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.
- Cash flow 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.
You can keep a separate business loan or cashflow facility for fuel, tyres and repairs so the fleet loan just handles the trucks.
⚙️ 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.
At Switchboard Finance we push low-doc options for solid, established operators so you spend less time on emails and more time on the road.
📊 Fleet finance vs separate truck loans
Here’s the quick side-by-side view most truckies 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 |
| Cash flow 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 truck depreciation rules on the ATO website if you want the deep tax detail.
🔍 Real-world fleet example
Mark runs six delivery trucks out of a regional depot with three different lenders and six loan schedules.
Cash leaves the account on random days and he’s always guessing which loan hits next.
We help Mark refinance into one fleet facility and build in headroom for another prime mover. Repayments drop, his bookkeeping is cleaner, and truck seven is a simple add-on — not a new saga.
💬 Why truckies use Switchboard for fleet deals
Switchboard Finance is set up for operators who live in the cab, not behind a desk.
- We know how to present fleet deals to commercial lenders so your story makes sense.
- We work with lenders that understand low doc vehicle finance for strong ABN holders.
- We map repayments around real-world cash flow, not just neat textbook numbers.
If you’re already juggling multiple loans, read our guide on fleet cash flow with multiple loans. If you’re nearly ready to move, check the fleet approval checklist so you know exactly what’s coming.
No call-centre scripts. You’ll speak directly with a broker who actually understands truck and fleet deals.
How many vehicles do I need for fleet finance to make sense?
Once you’re at two or more trucks, trailers or support vehicles, a fleet facility can start to help. The more units you add, the more value there is in using a single asset finance limit instead of scattered individual loans.
Can I mix different vehicles in one fleet facility?
Yes. Many lenders will allow a mix of prime movers, rigids, trailers and support utes under the same fleet limit, as long as the overall age, condition and use of the gear fits their policy.
Do I need property as security for fleet finance?
Some facilities use property backing at higher limits, others lean more on the trucks and your trading history. We place the deal with lenders that match your profile so you’re not over-pledging.
Is fleet finance different to a chattel mortgage on a truck?
Under the bonnet, many fleet facilities still use chattel-style docs for each truck, but they’re managed under one master agreement. Our fleet leasing vs chattel comparison and chattel mortgage basics can help you and your accountant decide.
What happens at the end of the fleet finance term?
Near the end of the term we can help you refinance, pay out or trade out of older trucks and roll into a refreshed fleet facility, so any final amounts don’t crunch your cash flow all at once.
