Bad Credit Truck Loans

Past problems don’t have to prevent business growth. Savvy has a range of bad credit truck finance options for business

Bad Credit Truck Loans

Get approved with past credit issues

Bad Credit Truck Loans That Deliver More

Bad credit truck loans are a commercial finance option that allows businesses to purchase vehicles when their credit history is less than ideal. Although you can expect to pay slightly higher interest rates, there are some excellent tax and GST benefits to counter that. Some specialist lenders will look beyond your credit rating and take other factors like your trading history along with your current financials into account when assessing a bad credit truck finance application. 

Savvy has More Bad Credit Truck Loan Options

Savvy helps thousands of Australian businesses and owner-drivers access specialist low doc and bad credit truck loans every single year. We partner with dozens of the country’s top commercial loan providers so we can provide access to more vehicle finance solutions and products. At Savvy, we like to offer you forward-looking loan options, so we base our approach on finding the best deal for your situation, business aims, and your current financials – not so much your history. 

Why Australians choose Savvy for Bad Credit Truck Loans

Less favourable credit history doesn’t have to mean fewer commercial finance options when you compare deals via Savvy 

Learn more about applying for a Bad Credit Truck Loan

Truck finance interest rates, deposits, what you can buy, and what tax you can claim with a bad credit truck loan

How do Bad Credit Truck Loans work?

Bad Credit Truck Loans work in the same way as any other truck financing option such as a chattel mortgage, hire purchase or lease, A bad credit option just provides more flexibility with credit policy to assist customers that would be rejected by main stream bank and lenders. Our commercial loan options are tax effective, allowing you to claim on interest, depreciation and GST. We can also assist with low doc truck options if up-to-date tax returns are unavailable.

Can I apply for bad credit truck loans with zero deposit?

The short answer to this question is that you can. Savvy partners with some commercial lenders who will consider bad credit applications for zero deposit equipment finance. However, with a less-than-perfect credit history, some equity goes a long way with loan providers. You should at least consider offering a deposit if you’re in a position to do so. 


Will I pay a higher interest rate with bad credit equipment finance?

At Savvy, we believe in finding the best finance solutions for every business, even if that’s one with a poor credit history. More often than not, companies and owner-drivers with bad credit scores get charged a higher interest rate. However, it’s important to understand that your credit rating isn’t the only factor on which a lender assesses your application.  

  • The type of asset you wish to buy is important – financing computers for the office, for instance, is higher risk for the lender – whereas vehicles are considered low-risk 
  • The age of the truck you’re buying has an influence – the newer the truck, the lower the rate.  


  • How long you’ve been trading can influence the lender’s decision on whether to approve or reject your application. The longer you’ve been trading, the more likely you’ll get a positive outcome. 


  • Equity in property is also a big sign to lenders that you’re a safer bet. That can be commercial or privately owned land or buildings and be mortgaged or unmortgaged. 


Using a broker like Savvy is a significant advantage when applying for any commercial finance, but it’s probably doubly important when you’ve had credit issues in the past. That’s because we work with so many trusted lenders, and we know their various conditions. We’ll look at your case on merit and select loan providers who suit. So, if we know your credit score is relatively low but you’ve been trading for a few years, for instance, we can start from there and work with that to get you a great deal. 

Can I buy trailers and other equipment with a bad credit truck loan?

You can. Bad credit truck loans are a type of equipment finance, and that umbrella covers everything from loaders and forklifts to utes and tankers, and even construction industry or farm plant. 

What are the tax implications of a bad credit truck loan?

Businesses that apply for a bad credit truck loan get some great taxation benefits. If you’re registered for GST, then things get even better. When you start a truck loan agreement, you find the truck you want to buy, and then as soon as the lender approves your application and forwards the funds, you buy the vehicle – but you’ll pay GST on the purchase price – and that represents a sizeable portion of what you’ve borrowed. In the case of a $50,000 truck, for example, the GST is over $4,500. 

  • With a bad credit truck loan, you get to claim back all of that GST as soon as you file your next business activity statement – it’s not a case of claiming it over the entire course of the loan because there is no GST on repayments.  
  • Not only that but because you’re the registered owner of the vehicle from day one (even though it has a mortgage on it until the loan term ends), you can claim depreciation. 


  • That’s not the only advantage to paying the full GST up front, though. If there’s a residual payment due at the end of your bad credit truck loan agreement, that’s GST-exempt too. 


  • Finally, although slightly higher interest rates are probably the one real downside of bad credit truck loans, you get to claim the interest portion of repayments as an operating expense. 

Can I get bad credit truck loans for used vehicles?

You can. Haulage and trucking demand flexible commercial lending solutions because trucks are a relatively major investment and often get refurbished several times before they’re decommissioned.  

How does a residual work?

When you borrow any amount, you pay it back, along with interest, over a fixed period. With bad credit truck loans, that can be anything between one and seven years. Without a residual, you’re paying down 100% of the amount you’ve borrowed during that time, divided up into a fixed amount of equal payments. If you have a residual that’s based on 25% of what you borrowed, then you’re only paying back 75% of that amount, so your repayments get lower. 


When the term ends, and the residual is due, you can either pay it off (if business is good) or refinance the amount. Refinancing a residual works particularly wellwith truck finance because rigs tend to last a long time and many companies and owner-drivers keep them for many years. Residual refinance might not work as well for computer equipment or electronics, for example, because technology changes quickly. Another potential plus if you did end up refinancing the residual on a truck loan is that by then, your bad credit experience would be maybe another seven years behind you – and you’d likely pay a lower rate. 

Brands you can trust

We are accredited with the most reputable lenders and insurers in Australia giving you a fair choice to compare

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy broker and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.