Most business owners know that property can be used to secure a loan. Fewer realise that a vehicle, whether a truck, a high-value company car, or another registered vehicle, can also form part of the security picture. For businesses that have significant value tied up in vehicles but limited property equity, this opens up a funding path that is often overlooked. Here is what you need to know about using vehicle assets to secure a business loan in Australia.
Can a Vehicle Really Be Used as Loan Security?
Yes. Strive Financial accepts vehicles as security for business and investment loans. A vehicle can serve as standalone security for a loan, or it can be offered alongside a property mortgage as additional security. Which approach applies depends on the specifics of each deal and is assessed on a case-by-case basis.
This is not the same as a standard vehicle finance or chattel mortgage product. The loan is still a business or investment loan, and the funds can be used for any legitimate business purpose. The vehicle simply provides the asset backing that supports the lending decision.
As with all Strive lending, every application is assessed as a whole: the purpose of the loan, the exit strategy, the security, and the loan amount together. The vehicle is one part of that picture, not the entire story.
How Is the Vehicle Valued?
Strive Financial uses the trade-in value listed on redbook.com.au as the valuation basis for vehicle security. The loan is calculated at up to 50% of that trade-in value.
This is a conservative approach, and deliberately so. Trade-in values represent what the vehicle could realistically sell for in a short timeframe, which gives both the borrower and the lender a reliable, verifiable figure to work from.
For example, if a commercial vehicle has a redbook trade-in value of $200,000, the maximum security contribution from that vehicle would be $100,000. If that is sufficient to support the loan amount being sought, the vehicle may work as standalone security. If additional coverage is needed, property security can be added alongside it.
What Vehicles Are Eligible?
Strive Financial applies the following criteria to vehicle security:
- Age: The vehicle must be 5 years old or newer.
- Ownership: The vehicle must be owned by the borrowing company or its directors or shareholders. There is no lending against vehicles owned by third parties.
- Insurance: The borrower must maintain comprehensive insurance over the vehicle for the life of the loan. This must be in place before settlement, with Strive Financial's interest noted on the policy, and it must remain in force throughout the loan term.
- PPSR registration: Strive registers its security interest on the Personal Property Securities Register (PPSR) to protect the position of the loan.
What About Possession of the Vehicle?
For loans under $100,000, the borrower keeps possession of the vehicle throughout the loan term. For loans of $100,000 and above, possession is decided on a case-by-case basis depending on the nature of the deal and where the vehicle is located. Your Strive Financial contact will walk you through what applies to your specific situation.
Who Is This Useful For?
Vehicle security tends to be most useful in a few specific situations:
Businesses With High-Value Vehicle Assets
Transport, construction, mining services, and agricultural businesses often carry significant value in their vehicles and fleet. If that value is sitting dormant and the business needs working capital or a funding injection, vehicle security can unlock it without requiring property equity.
Businesses Needing a Top-Up on Property Security
Sometimes the property equity available covers most of the loan amount needed, but not all of it. Adding a vehicle as additional security can bridge that gap and allow the full loan to proceed without requiring a separate facility.
Companies That Need to Move Quickly
Because Strive Financial does not require financials or credit checks, and because vehicle valuations can be obtained quickly using redbook.com.au, vehicle-secured loans can often be assessed and funded faster than deals requiring full property valuations. In the right circumstances, funding within 24 hours is possible.
How Does the Loan Work?
Strive Financial offers both term loans and a line of credit for business and investment purposes. Both products are available where vehicle security is accepted as part of the deal. Loan amounts range from $25,000 to $2,000,000, and terms typically run from 1 to 36 months.
There are no financials required, no credit checks, and no upfront fees. Companies of any age can apply, including those incorporated recently. If your company is less than 12 months old, you will need to provide evidence that supports the stated purpose of the loan.
Every borrower is also required to have a clear exit strategy. Whether you plan to refinance, sell the vehicle or another asset, or use incoming funds from a confirmed source, Strive Financial needs to see a realistic plan for repaying the loan at maturity.
Speed and certainty are often what matter most when a business opportunity is on the table. Strive Financial is built to move quickly and assess deals on commercial merit, not rigid bank criteria.
Find Out If Your Vehicle Can Help Secure Funding
If your business has a newer vehicle and a legitimate funding need, it is worth exploring whether vehicle security could work for your situation. Strive Financial lends Australia-wide and can give you a fast answer without charging upfront fees or running a credit check.
Call 1300 478 748 or apply online today to get the conversation started. You can also get in touch with our team directly if you have questions about whether your vehicle qualifies.