Car Loans With a Newer ABN
A two year trading history is a common lender requirement, not a universal one. We compare eligible options from our panel of 50+ lenders, including specialist lenders that may consider a newer ABN, and explain how they differ.
Australian Credit Licence 509582. Lender fees may apply. Lender criteria apply.
Can you get a car loan with an ABN held under two years?
Yes, you can apply. Many lenders ask for two years of trading history, but some specialist lenders on our panel may consider a newer ABN, depending on your income evidence and circumstances. Approval, rate and loan amount depend on the lender's assessment.
- Some specialist lenders may consider an ABN held for less than two years, and each sets its own minimum
- A chattel mortgage is a business loan where the business owns the vehicle and the lender takes security over it
- How any business loan is treated for tax depends on your business, so check with your accountant or a registered tax agent
- Some loans offer an optional balloon payment, which lowers regular repayments but leaves a lump sum owing at the end
- No upfront assessment fee. Lender fees may apply, and we may receive commission if your loan settles
Reviewed by Simple Loans Editorial Team · Last reviewed
The Simple Loans Editorial Team researches and reviews every car finance guide published on simpleloans.au. Simple Loans holds Australian Credit Licence 509582 and is a member of AFCA.
Why choose Simple Loans.
Newer ABNs Considered
Some specialist lenders may consider an ABN held for less than two years.
Business Ownership
With a chattel mortgage your business owns the vehicle and the lender holds security.
Talk to Your Accountant
Tax treatment depends on your business, so we keep the finance and the tax questions separate.
Fixed Repayments
Many business loans have fixed repayments, which can make budgeting easier.
Balloon Option
An optional balloon lowers regular repayments but leaves a lump sum owing at the end.
No Upfront Fee
No upfront assessment fee. Lender fees may apply.
Financing with an ABN under two years
A common obstacle for a newly registered business is the two year trading history many lenders expect. It is a lender policy rather than a rule of the market, and some specialist lenders may consider a newer ABN. If your business has traded for longer, see self employed car loans.
Where they do, they look at the business as it stands today, the asset being financed and your overall financial situation, including credit history, business age and income. Approval, rate and loan amount depend on the lender's assessment.
How a chattel mortgage works
A chattel mortgage is a business loan used to buy a movable asset such as a car, ute or van. Your business owns the asset, and the lender takes a security interest over it, usually registered on the Personal Property Securities Register.
The usual steps are an application and assessment of your business and financial history, a quote, approval and loan documents, then the purchase, followed by regular repayments. Once the loan is repaid, the security interest is released.
What to weigh up
- Ownership: with a chattel mortgage your business owns the asset, and the lender holds security over it until the loan is repaid.
- Tax: how the loan and the vehicle are treated for tax and GST depends on your business, so check with your accountant or a registered tax agent.
- Repayments: many business loans have fixed repayments, which can make budgeting easier.
- Balloon payments: a balloon lowers regular repayments but leaves a lump sum owing at the end of the term.
- Cash flow: financing the asset keeps your savings available, but adds a repayment commitment.
Chattel mortgage compared with other options
Finance lease: the lender purchases the asset and your business leases it for a set period, with options to purchase, re lease or return at the end. Ownership generally remains with the financier until the end of the term.
Hire purchase: similar to a chattel mortgage, but the lender owns the asset until the final payment, at which point ownership transfers to your business.
Commercial loan: a general business loan may not be secured against a specific asset. A chattel mortgage is specifically tied to the asset being financed.
Be aware of potential establishment fees, ongoing administration fees and early repayment fees, and note that the interest rate depends on your business's financial profile, the asset and market conditions. Simple Loans holds Australian Credit Licence 509582 and is a member of AFCA. This page is general information and does not take your personal circumstances into account.
How it works.
Apply Online in Minutes
Fill out our simple online form, no paperwork, no obligations, and zero upfront fees. Lender fees may apply.
We Compare 50+ Lenders
We search our panel of banks and specialist lenders to compare eligible options for your situation.
Drive Away Happy
Once approved, we arrange settlement with the lender and the seller. You drive away with finance sorted.
Frequently asked questions.
Do I need two years of ABN history for a car loan?
Not always. Many lenders ask for two years of ABN history, and some specialist lenders on our panel may consider a newer ABN, depending on your income evidence and circumstances. Approval depends on the lender's assessment.
What is a chattel mortgage?
A chattel mortgage is a business finance product for the purchase of a movable asset, or chattel. Your business owns the asset and the lender takes a security interest over it, usually registered on the Personal Property Securities Register. Once the loan is repaid, that security is released.
How is a chattel mortgage treated for tax?
That depends on your business, whether it is registered for GST and how the vehicle is used. Speak with your accountant or a registered tax agent before you decide.
Can I get finance with a new ABN and bad credit?
Different lenders use different credit criteria. We can check whether options on our panel may be worth discussing, but approval, rate and loan amount depend on the lender's assessment and responsible lending requirements.
Do I need a deposit?
Some lenders may ask for one, particularly for a newer ABN. A deposit reduces the amount you borrow. Requirements depend on the lender and your business's financial profile.
What assets can be financed?
Lenders may finance a range of business assets, such as cars, commercial vehicles, trucks and trailers. What a lender will finance depends on its policy and the asset.
Is a chattel mortgage the same as a car loan?
For businesses, a chattel mortgage is a common type of car loan. A personal car loan is for individual use, while a chattel mortgage is structured for business use. Ask your accountant how each would be treated for your business.
Ready to get started.
No upfront assessment fee. Lender fees may apply. We compare eligible options from a panel of 50+ lenders.
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Simple Loans is a finance comparison tool. Holder of Australian Credit Licence No. 509582. All applications are subject to lender approval. Terms, conditions, fees and charges apply. This information is general in nature.