Transport and logistics loans secured on property

A transport business can be busy and short of cash at the same time. Fuel is bought today. Drivers are paid this week. Tyres, registration and insurance arrive as lump sums. The customer, often a much larger company, pays on its own terms, and those terms can stretch well past a month.

Owner-operators and fleet owners typically hold two kinds of assets: vehicles, which are usually already financed, and property, such as a depot, a hardstand yard, an industrial unit or the family home. The vehicles are rarely spare security. The property often is.

Why borrow against property instead of the trucks?

Trucks, trailers and forklifts are personal property, not land. When they are financed, the financier normally registers a security interest on the Personal Property Securities Register (PPSR). The PPSR explains that any high-value goods that are not land, fixtures or fittings can have a security interest registered against them, and a search shows whether money may still be owed.

That has practical consequences:

• Your fleet is usually spoken for. A second financier rarely wants to stand behind an equipment lender on a depreciating asset.
• Property holds its value differently. Land and buildings don’t wear out with every kilometre, which is why a property lender can move faster and lend more against the same equity.
• The two loans stay separate. A mortgage over your yard doesn’t touch the equipment finance contracts, so you aren’t renegotiating the fleet to raise working capital.

What cash-flow pressures hit transport operators hardest?

Pressure	Why it bites	How property equity helps
Customer payment terms	Work is done weeks before the invoice is paid	A short loan carries the gap until receipts arrive
Fuel and fuel tax credits	Fuel is paid at the bowser; credits come back through the BAS later	Equity funds the outlay until the credit is received
Payday Super	Super must reach each driver’s fund within 7 business days of payday since 1 July 2026	A buffer while the business adjusts its cash cycle
Annual registration and insurance	Large bills land on fixed dates	Funded once, repaid from trading over the term
New contract start-up	Extra trucks, drivers and fuel before the first payment	Covers deposits and start-up costs
ATO arrears	Debts keep accruing interest while unpaid	Clears the debt in one payment

Fuel tax credits deserve a closer look. The federal government cut fuel excise for three months from 1 April 2026 and set the heavy vehicle road user charge to zero for the same period, which changed the credit heavy vehicle operators claim through the BAS. Changes like that move the size and timing of money you were counting on. Your bookkeeper should check each claim, because an error delays the refund.

What do transport businesses use secured loans for?

• Buying the depot or yard. Many operators pay rent for years on a site they could own. A commercial property first mortgage can settle the purchase quickly, with a bank refinance once the title is in your name.
• Winning a big contract. A new distribution contract may need extra trucks, drivers and fuel before the first invoice is paid. See funding a big contract with property security.
• Fleet deposits. Equipment financiers usually want a deposit. Property equity provides it without draining operating cash.
• ATO debt. Freight margins are thin, and a bad year can leave BAS and PAYG withholding arrears. Read paying an ATO debt with property equity.
• Buying out a partner or a competitor’s run. A defined price on a defined date suits a short-term secured loan.

What property do transport operators typically offer?

• Industrial depot or warehouse. Commercial or industrial security, often the operator’s main store of equity.
• Hardstand yard or vacant industrial land. Considered case by case. Zoning, access and services matter. Our vacant land loans page explains what the lender looks at.
• The family home. Common for smaller operators. Every owner signs, and an existing bank loan stays first.
• Rural property. Some operators run from a rural block. Rural property is also assessed case by case.
• Property in a company, trust or family name. Common in family transport businesses where the yard sits in a separate entity. It works with the right signatures; see company or trust owned property.

There is no formal valuation required. The lender assesses the property directly, which removes a step that often adds a week or more to a bank deal.

How does it work for a transport business, step by step?

1. Enquiry: property address, amount owing, the amount you need and what it is for.
2. Specialist call: structure, term, interest handling and the exit.
3. Letter of Offer: pricing, fees and conditions in writing; your solicitor reviews it.
4. Documents: ID, entity details, title information, loan statements, and the contract or invoices behind the purpose.
5. Settlement: the mortgage or caveat is lodged and funds are released.

Illustrative example: a Melbourne interstate carrier wins a three-year contract that needs four extra prime movers and trailers. The equipment financier will fund the units once it receives a $280k deposit. The carrier also expects about $220k of fuel, wages and super before the customer’s first payments arrive on 45-day terms. The owners hold an industrial yard worth about $2.4m with $900k owing to a bank. A $500k second mortgage over the yard funds the deposit and start-up costs, with interest capitalised for 12 months. Once the contract has six months of receipts, the carrier refinances with its bank and the private loan is repaid.

That’s a typical shape for a contract-driven loan. If yours looks similar, get a quick read on your depot’s borrowing power.

What documents does a transport lender want?

Your accountant or bookkeeper will usually have these on hand:

• ID for each borrower, director and guarantor, and ABN or ACN details;
• trust deed if a trust owns the yard or runs the business;
• title details and a statement for each loan secured on the property;
• the customer contract, recent invoices or an aged debtors report if the exit relies on receipts;
• recent BAS, including fuel tax credit claims;
• equipment finance quotes if the loan is funding a deposit.

The full list is in the private mortgage documents checklist.

What does it cost, and what can go wrong?

Pricing is set on each deal’s security, LVR, term and exit, and we aim for the sharpest price your situation allows. A first mortgage generally costs less than a second mortgage or caveat. A small assessment fee applies, varies per loan and is shown on the Letter of Offer. Interest can be prepaid or capitalised, so there may be no monthly repayments while a new contract ramps up.

The risks to watch:

• A contract ends early. Don’t rely on one customer for the whole exit. Keep a fallback such as selling a surplus trailer or a second property.
• Repayments stack up. New equipment finance plus a private loan can strain cash flow once both are due. Map the months ahead.
• Tax slips. Late BAS lodgements make a bank refinance harder.

Manufacturers face a similar invoice-to-cash gap: see manufacturing and industrial and the full industries list.

At a glance

• For: freight, haulage, courier, removals, logistics and warehousing operators
• Security: depot, yard, warehouse, home or investment property
• Structures: first mortgage, second mortgage or caveat
• Interest: can be prepaid or capitalised
• Lender: fundU, a direct private lender, not a broker panel

Does your transport business qualify?

You can enquire without a credit check, and the details you send stay with one direct lender instead of going out to a long list. A credit specialist reviews it and calls you.

Be exact about the property, the loans already on it, the amount and the purpose. Getting those right from the start is what gives you a firm answer quickly. Start the 60-second enquiry.