Get your business on the move with the right lorry loan

Published on November 25th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.

What is a lorry loan?

A lorry loan is a commercial loan that is specifically designed to take care of your truck needs at an affordable rate. Lenders offer competitively low rates that differ from one lender to the next to help fund small and large business owners purchase a lorry without making their budget go bust. It is vital to know how to navigate your way to finding a business loan by looking at its features and whether it will be suitable for the type of business you are running.

Finding a loan that suits your business

Before heading out to find a loan that comes with the best interest rates, you need to consider the type of business you are running. The needs of a person who is self-employed compared to a business that owns multiple trucks and is looking to upgrade their equipment will differ.

Knowing why you need a loan to finance a truck will help you narrow down the type of financing you will need to get your business on the move. This will help you know whether leasing or purchasing a lorry outright will be suitable for your finances.

You will also have to consider a loan that will work with your cash flow, which means choosing a loan that will work for your business if it is seasonal or operates on a full-time basis. Commercial loans give you the option of making repayments weekly, fortnightly, or monthly to find something that works with your finances.

Comparing your options can save you

Having a strong credit record can give you access to a diverse range of loans that come with features that blend well with your trucking needs. When it comes to comparing, checking the comparison rate will help you know whether a loan will be suitable for you in the long run. For instance, one $10,000 business loan could cost hundreds more than another because of interest and fees.

The comparison rate is the true cost of the loan and is slightly higher than the interest rate. It also takes fees and charges that come with the loan into account. It is important that you read the fine print of your loan before signing. Check to see if it allows you to pay off your loan early without attracting a penalty fee.

Reaping tax benefits

Being financially savvy is important for any businesses sustainability. Therefore, it is important to choose a loan option that will help you keep your lorry’s from becoming obsolete and helps you save when it is tax time.

The big debate is always between whether purchasing your lorry outright or leasing it will work for your business. This will be settled by what will work for your business, which also means that you need to speak to a financial advisor and your accountant to find something that is suitable for you.

Thankfully, both purchasing and leasing have tax benefits that can help your business. If you purchase your lorry your business can deduct depreciation and mileage expenses from taxes. Leasing your lorry allows you to deduct mileage from its taxes which can work for your business.

Always keep in mind that making claims on expenses when it comes to purchasing a vehicle will vary. The type of financing you choose will also affect the type of tax benefits you will have access to.

Did you find this page helpful?

Thanks for your feedback!

This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for commercial loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

In this article

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on pinterest

Looking for a commercial loan quote?

Compare with Savvy and save on your next commercial loan.

* Terms and conditions and lending criteria apply.

Smart money saving tips

Subscribe to our newsletter.

By subscribing you agree to our privacy policy

Related articles

Looking for a commercial loan?

All equipment, aircraft, technology, agriculture, plant & machinery and truck finance. See how you can compare and save with us.

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.