Quick answer
Couriers mostly borrow to buy or replace a van, add a second vehicle and driver, or cover fuel, tolls and wages while customers pay on 14 to 45 day terms. Vehicle finance secured by the van, such as a chattel mortgage, is usually the cheapest fit. Courier companies with business clients can use invoice finance or a line of credit. Lenders look closely at how secure your runs or contracts are and how long you have held them.
Key points
- Lenders treat the van as security but judge the loan on the runs, contracts or platform work that keep it moving
- Fuel tax credits don't apply to vans of 4.5 tonnes GVM or less on public roads, so most couriers carry the full fuel cost
- Businesses that pay courier contractors report those payments to the ATO each year, which makes contractor income easy to verify
- A first minimum standards order for app-based food and grocery delivery took effect on 17 August 2026, with last-mile cases still before the Fair Work Commission
The depot manager rings on a Thursday: a second run is opening in the next suburb, it starts in a fortnight, and it’s yours if you can put another van and driver on it. That call is how most courier businesses grow, and it’s also the moment most owners first go looking for finance. Whether you can say yes depends less on the van you want than on how a lender reads the work you already have.
This page explains how lenders size up courier businesses, from single-van contractors to small fleets with their own business clients, and which kinds of finance fit which parts of the job.
What does a lender see when a courier applies?
Couriers come in a few shapes, and lenders treat each one differently:
- Contractors on a depot run. You drive for a parcel network or a larger courier company under a run or contractor agreement. The lender wants to see the agreement, how long you’ve held it, and whether it can be ended at short notice.
- App-based drivers. Work comes through one or more delivery platforms. Income can be steady, but because allocation is out of your hands, lenders often average several months and lean a little harder on your credit file.
- Courier companies with their own clients. You invoice businesses directly, such as pharmacies, labs, law firms or trade suppliers. Here lenders read your client list, your aged receivables and your payment terms, much as they would for any service business.
Across all three, the questions are similar. How long have you been doing this? Is the income regular? Who else is already owed money, including on the current van? And if the main contract disappeared, could the business keep the repayments going?
Which loans suit which courier costs?
| What you’re paying for | Finance that usually fits | Why |
|---|---|---|
| A van, new or second-hand | Commercial vehicle finance or a chattel mortgage | The van secures the loan, so the cost stays lower |
| An extra van to cover a new run | Vehicle finance, sometimes with a deposit | Lenders like seeing the run agreement before the van is bought |
| Racking, tail lift, refrigeration unit | Added to the vehicle contract, or equipment finance | Fitted equipment adds to the value of the security |
| Wages, fuel and tolls while clients pay | Invoice finance or a line of credit | Bridges the gap between delivering and being paid |
| Insurance premiums paid up front | Insurance premium funding | Spreads a large annual bill across the year |
| Unexpected repairs or a write-off | Short-term unsecured business loans | Fast when the van is off the road and runs are at risk |
A balloon at the end of a van contract lowers the regular repayment but leaves a lump sum to clear later. Our page on balloon payments explains the trade-off, and the equipment finance calculator shows the effect in dollars.
How do lenders view vans as security?
Vans are among the easier vehicles to lend against. The popular models have a deep second-hand market, so a lender can estimate what the van would fetch if it ever had to be sold. That cuts both ways, though. Courier vans rack up kilometres quickly, and a high-kilometre van that’s four or five years old may have only modest resale value left. Expect lenders to offer shorter terms on older vehicles, or to ask for a deposit.
Fit-outs matter too. Shelving and a bulkhead add little resale value, but a refrigerated body for pharmaceutical or food work can add a lot to the purchase price while being harder to resell. Some lenders will finance the van and the refrigeration as one asset; others treat the fit-out separately.
If you’re buying used, a PPSR search on the vehicle identification number confirms no earlier financier still has a registered claim on it. Skip that step and you can end up paying off someone else’s loan.
Why do couriers run short of cash even when they’re busy?
Couriers spend money every day and get paid in batches. Fuel goes in the tank each morning, tolls are charged within days, and staff are paid every week. A depot, by contrast, might pay contractors fortnightly or monthly, and business clients often settle on 30 day terms or longer.
A few things widen that gap:
- No fuel tax credits on most vans. The ATO doesn’t pay credits on fuel burnt on public roads by light vehicles, meaning anything with a GVM up to and including 4.5 tonnes. Unlike truck operators, most couriers wear the full price of diesel and petrol, so a fuel spike hits the margin directly.
- Growth. Adding a driver means paying wages for weeks before the extra invoices are collected.
- Peak season. The run into Christmas brings more parcels and more casual drivers, and the payments for that work arrive in January.
If a new run or client has just landed and you’re working out how to fund the first few weeks, a quick enquiry with us takes around sixty seconds, and your credit file isn’t touched for asking.
What paperwork and rules affect courier lending?
Some of the rules around courier work actually help with a loan application.
Taxable payments reporting. Businesses that pay contractors to deliver on their behalf generally have to list what they paid each contractor in an annual TPAR lodged with the ATO, normally by 28 August. If you’re the contractor, it means your income is already on the ATO’s record, which supports what your bank statements show. If you run a fleet using subcontracted drivers, it’s one more lodgement to keep up to date, because lenders check your ATO standing.
Gig delivery standards. The Fair Work Commission’s first minimum standards order for app-based delivery, covering workers who mainly deliver food, drinks and groceries, took effect on 17 August 2026. Separate applications covering last-mile parcel delivery and light vehicle road transport contractors were still being worked through as at October 2026. If you engage drivers, a lender may ask how changes to minimum pay could affect your margins, so it pays to have thought it through.
GST and BAS. Once your turnover reaches $75k you need to be registered for GST. Lenders read your BAS lodgement record as a sign of how organised the business is.
What could make a lender nervous?
- One contract carrying everything. If a single depot or client supplies nearly all your income, the lender’s question is what happens if that contract ends. Having the agreement in writing, with a notice period, makes a real difference.
- Thin margins. Many courier rates leave little room once fuel, tolls, insurance and repairs are counted. Lenders work out whether the extra repayment fits.
- Vehicle damage and claims. Frequent claims raise premiums and can suggest the van will lose value quickly.
- Existing online loans. Several short-term loans on the statements, each taking automatic repayments, can sink an otherwise sound application. If that’s you, read about refinancing expensive short-term debt.
Documents to have ready
- Your run or contractor agreement, or platform earnings statements for recent months
- Business bank statements, ideally six months or more
- Driver’s licence, ABN details and, for companies, the ACN
- The vehicle quote or listing, including kilometres and any fit-out
- A list of existing vehicle loans and leases with balances
- For courier companies, your aged receivables and largest client contracts
- Your ATO portal statement showing BAS lodged
An example: a sole trader adds a second van
Illustrative only, figures invented. A sole-trader courier in western Sydney has driven a depot run for two years in a van with about 18 months left on its finance. The depot offers a second run starting in three weeks.
The owner finds a three-year-old van with a shelving fit-out for $38k. Their bank is interested but wants updated tax returns, and the accountant is a month away from finishing them. A specialist vehicle lender approves a chattel mortgage on the strength of the run agreement, two years of steady deposits and a $4k deposit, with the van as security.
The bigger squeeze turns out to be the first six weeks: a new driver’s wages, fuel and tolls go out before the depot’s monthly payment for the second run arrives. A modest line of credit covers that, and the owner plans to clear it once both runs are paying regularly. If you’re in a similar position as a sole trader, our guide to sole trader business loans covers how lenders read personal and business income together.
Got another run on offer?
Courier work rewards the operators who can put a van on the road when a run comes up. We look at vehicle finance, early-stage courier businesses and cash flow gaps regularly, including after a bank has said no or simply needs longer than the depot will wait.
Our form asks a handful of questions and is done in roughly a minute. Nobody pulls your credit report when it arrives, and we don’t hand your enquiry out to a queue of finance companies. A person who knows vehicle and transport lending reads what you’ve written, then rings you. Give us honest figures on your runs, earnings and existing van finance, because accurate answers are what let us point you at a workable option the first time round.
Frequently asked questions
Can a contract courier with a new ABN get van finance?
Often, yes. Some vehicle lenders will finance a van for a new ABN if you have a signed contract or run agreement, driving experience, a clean credit file and ideally a deposit. Unsecured working capital is harder until you have six to twelve months of business bank statements.
Do I need a business loan or a car loan for my delivery van?
If the van is used mainly for your courier business, a business vehicle loan or chattel mortgage is usually the right structure. It is assessed on business use, and the interest and depreciation may be claimable. A personal car loan is assessed on your household income instead and can complicate tax.
Will a lender accept income from delivery apps?
Many will, provided the platform statements match deposits in your bank account and you have a steady history. Lenders may average several months of app income and treat it more cautiously than a fixed depot contract, because the platform can change how work is allocated.
Can I claim fuel tax credits on my courier van?
Not usually. On public roads, the ATO rules out credits for any vehicle with a GVM of 4.5 tonnes or under, and that takes in most vans and utes. Larger rigid trucks above that mass can claim the heavy vehicle rate. Check with your accountant for your vehicles.
How can a courier company cover wages when clients pay late?
Invoice finance lets you draw a share of what business clients owe you before they pay. A business line of credit is another option for smaller fleets. Both work best when your clients are established businesses with a record of paying, even if they pay slowly.