Quick answer
If your company owns a vehicle outright, with no finance or loan owing, it can be offered as security for a business loan. Company Cash can lend up to 50% of the vehicle's sale value, within our $20,000 to $50,000 range, without needing evidence of cash flow.
Key points
- The vehicle must be owned by the company with nothing owing on it.
- Lending is up to 50% of the vehicle's sale value.
- Loans range from $20,000 to $50,000, the same as our property loans.
- No evidence of cash flow is needed; the vehicle and its value do the work.
- Security
- Company vehicle owned outright, nothing owing
- Lending limit
- Up to 50% of the vehicle's sale value
- Loan size
- $20,000 to $50,000
- Repayments
- Up to three months of prepaid interest, then weekly
Plenty of companies that cannot get a cash flow loan are sitting on something a lender can actually use: a fleet of utes, a delivery van, a prime mover, or a clean late-model car the business owns outright. Most owners never think of those vehicles as security, because the bank has only ever asked about profit, turnover and account conduct. Company Cash looks at it differently. If your company owns a vehicle and nothing is owing on it, that vehicle can support a fast business loan.
How borrowing against a company vehicle works
The idea is the same as our property loans, just on a smaller scale. The company offers an asset it owns. We lend a portion of what that asset would sell for, and register our security over it. Because the loan is backed by the asset, we do not need the evidence of cash flow a conventional lender would ask for.
The numbers are straightforward. We can lend up to 50% of the vehicle’s sale value, and loans run from $20,000 to $50,000. A van that would realistically sell for $60,000 could therefore support a loan of up to $30,000. A truck worth $100,000 could support the top of our range, $50,000.
The vehicle must be owned by the company with nothing owing. If there is an existing finance contract, a lease or a loan registered against it, it will not qualify on its own, although the equity may still help if you also have property to offer.
Why the limit is 50%
A property tends to hold its value and can be sold through well-established channels. A vehicle usually loses value each year, and the buyer pool depends on the type, age and condition of the vehicle. Specialist equipment can take months to move at a fair price. Lending up to half of the realistic sale value leaves enough room for those realities, and for the cost of recovering and selling the vehicle if a loan ever went wrong.
That is also why we describe the limit in terms of sale value rather than what you paid. The question is always what the vehicle would fetch today, not what it cost when new.
What we look at
We keep the process short, because speed is the point. Expect us to ask about:
- the vehicle’s make, model, year and approximate kilometres or hours;
- its condition, and where it is kept;
- confirmation that the company owns it and nothing is owing;
- the registration details, so the security can be registered correctly; and
- what the money is for and how you plan to repay.
Security over vehicles is normally registered on the national Personal Property Securities Register, which is how lenders and buyers see that a vehicle is encumbered. It also means you should check your own vehicles are free of any existing registrations before you apply.
Who this suits
Vehicle security tends to suit companies in trades, transport, construction, hospitality and delivery, because those businesses own vehicles that matter. It also suits owners who have no property, or whose property is already fully borrowed against, but who need a faster and simpler answer than a bank will give.
Typical reasons for borrowing include:
- covering a tax or supplier bill that has fallen due;
- bridging a gap between a large job and its payment;
- wrapping up several smaller cash flow loans into one;
- buying stock or materials for a contract; and
- getting through a quiet season without missing payroll.
Repayments and flexibility
Our standard structure is the same on vehicle loans as on property loans: up to three months of prepaid interest, then weekly repayments. The loan is typically repaid from the company’s cash flow, or you can refinance the vehicle or another asset. There is more detail on how this works on our prepaid interest and weekly repayments page.
If you also own property, it may make sense to look at the fast property-secured option first, since the lending limit there is higher, up to 80% of residential value and 70% of commercial value, and no formal valuation is needed.
Before you apply
Gather the registration papers, a recent photo or two of the vehicle and the ABN and ACN details for the company. If the vehicle has any finance on it, let us know at the start. Then use the application form. A real person reviews each enquiry, and if the vehicle fits you will hear what the next step is without a long list of paperwork requests.
Lending is subject to assessment, and the company must be able to show how the loan will be repaid. Nothing on this page is an offer of finance.
Frequently asked questions
Which vehicles can be offered as security?
Vehicles owned by the company with no finance, lease or loan owing. Utes, vans, trucks and cars used in the business are the usual examples. Tell us what you own and we will say whether it fits.
Why is the limit 50% of the sale value?
Vehicles lose value and can be harder to sell quickly than property. Lending up to half of what the vehicle would realistically sell for leaves a buffer, which is why vehicle loans sit below our property limits.
Can I use a vehicle and a property together?
Yes. If the loan you need is larger than one asset supports, offering both can lift the amount, up to the $50,000 ceiling. Ask when you apply.
Do I need to show cash flow to borrow against a vehicle?
No. The loan is secured on the vehicle, so we do not need bank statements or profit and loss records to assess your cash flow.
Do I keep using the vehicle?
Yes. The vehicle stays with your company and keeps earning. The security is registered against it, and is removed when the loan is repaid.