INTRODUCTION

Not every truck finance offer is as good as it looks on paper.

A long-haul transport operator came to us after being offered finance through a dealer at a 20% interest rate. On top of that, the deal included a balloon payment, which meant her total cost over the loan term would be much higher.

There was another challenge too. Her trade-in carried more than 30% negative equity, which is something most lenders would see as a major risk.

She had already been through two trucks that turned into expensive problems. The last thing she needed was another poor finance decision.

She did not just need truck finance. She needed the right structure, the right lender and someone willing to look at the full picture before saying yes or no.
Let’s break down why most lenders would have declined this deal and what we did differently.

DEAL SNAPSHOT

Loan Amount	Truck purchase (2015 model)
Asset	Commercial Truck
Industry	Transport / Long Haul Logistics
Business Stage	ABN 2+ years, recently GST-registered
Key Challenge	20% dealer rate, 30%+ negative equity on trade, complex income structure
Solution	Dual income (PAYG + business) application to a major bank
Outcome	Approved ~7% rate, no balloon payment, major bank lender
Client Impact	Saved thousands in repayments and long-term interest costs

01 – CLIENT SCENARIO

A long-haul transport business owner came to us at a point where one more wrong decision could have cost her heavily. She already had two trucks that had turned into expensive problems. Now, she was looking at purchasing a 2015 truck through a dealer. The dealer offered finance on the spot, but the offer came with a 20% interest rate and a balloon payment at the end.

She was close to accepting it.

Her situation was not straightforward. Her ABN had been active for over two years, but she had only recently registered for GST. She was also working PAYG while running her transport business on the side.

To most lenders, that could look complicated.

But when we looked deeper, we saw a stronger picture. The income was there. The business had potential. The deal just needed to be presented the right way.

02 – THE CHALLENGE

Multiple risk flags hit at once. Any one of them could’ve ended the deal. Combined, they made this a difficult placement:

• 20% dealer rate with a balloon payment: The offer looked quick, but the total cost over the full loan term would have been much higher.
• Over 30% negative equity on the trade-in: Most lenders treat this as high-risk because the client owes much more than the asset is worth.
• Recent GST registration: Even though the ABN had been active for over two years, the short GST history made the business look newer in lender assessments.
• Dual income structure: The client had both PAYG income and business income. If only one income stream was presented, the application would have looked weaker.
• Previous trucks proving costly: Her asset history added another layer of complexity to the overall credit picture.

In lending terms, a deal with more than 30% negative equity and a short GST history is often declined before it is fully understood.

The key was not just finding a lender. It was knowing how to frame the application, how to present the full income position and where to send the deal.

03 – THE APPROACH

We didn’t rush the application. We sat down and looked at the full financial picture.

The first move was identifying the income strategy. She was earning PAYG income alongside her business revenue. Most applicants and many brokers present only one. We recommended keeping the vehicle under the business name but using both income streams to service the loan. This immediately presented a stronger, more balanced borrower profile.

The second move was lender selection. With 30%+ negative equity on the trade, we needed a lender who could assess the deal on its merits not just run it through a standard filter. We targeted a major bank with the right product and the right appetite for this profile.

The third move was structuring away from the balloon. A balloon payment can reduce monthly repayments but inflates total cost significantly. We built the application around a clean, full-repayment structure that a major lender would approve and that actually made financial sense for her.

This is the difference between a broker who lodges applications and one who builds cases.

04 – THE OUTCOME

Approved. Major bank. ~7% rate. No balloon.

The dealer was offering 20%. We delivered roughly 7% through a major bank. No balloon payment, no hidden traps. The difference in total repayment cost over the loan term runs into thousands of dollars.

She was approved. The truck was hers. And for the first time in the process, she felt like someone was actually in her corner.

Result: Truck finance approved through a major bank at a competitive rate, with no balloon payment, for a transport operator with dual income, recent GST registration and 30%+ negative equity on trade.

CLOSING

Dealer finance is fast and easy to say yes to. That’s the point.

But easy isn’t always smart. A 20% rate with a balloon doesn’t just cost you in repayments. It compounds over years and locks you into a position that’s hard to get out of.

At Xpress Finance, we don’t just get deals done. We make sure the deal is the right one. We look at the full picture, your income, your liabilities, your goals and we find a structure that actually works for your situation.

If you’re looking at a finance offer and something doesn’t feel right, talk to us before you sign. It could save you thousands.

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