If you are interested in applying a trailer loan, please contact us

What do you need for a trailer loan?

Before the application process can even commence, you must meet base minimum lending requirements in order to obtain a trailer loan. For banks and lenders, this generally includes being aged over 18, have Australian citizenship (or permanent residency), and earning a significant income.

​trailer loan documentation

​Personal information and identification forms

Personal information and identification documents include:

1. Your full name.

2. Your age.

3. Your date of birth.

4. Citizenship information.

5. A list of dependants (children, elderly or sick relatives you care for etc.).

Banks and lenders require a driver’s license, which will be electronically verified or certified. In some cases, we may require additional forms of identification such as your Passport and Medicare Card.

Proof of income

Arguably the most important element for a lender when assessing a loan is your ability to sufficiently repay the loan. This is because the money being lent to you is not ‘yours’, it belongs to the bank, that you are repaying with interest. As such, banks or lenders will ask for each of the following:

1. Two most recent pay slips.

2. Bank statements for the last three months showing your incoming and outgoing expenses.

Generally you will also be asked to provide a detailed list of your current living expenses, such as rent or mortgage repayments.

Banks and lenders generally define income as money earned from employment, rental or investment sources. However, not all income is derived from employment. Retirees, for example, may receive income from superannuation or investments, while others may receive government benefits or disability payments. Some lenders may not recognize Centrelink payments as income, while others will do so based on specific trailer finance eligibility criteria.

Regular fixed payments from Centrelink, such as Veterans payments, the age pension, family tax benefits, rent assistance, and National Disability Insurance Scheme (NDIS) payments, can be considered as income. However, temporary or supplemental measures like Youth Allowance payments are typically not considered as income.

Proof of assets and liabilities

You will also be required to provide documentation detailing your assets and liabilities to provide a broader view of your overall financial strength. Depending on your employment and personal situation, we may also ask for some or all of the information below:

1. Information on any other loans you have, such as mortgage and personal loan documents.

2. A summary of your share portfolio if you have one, or a portfolio of other investments such as bonds.

3. A summary of your superannuation.

Information about your trailer

We need to know the details of the trailer you wish to buy, so we know how much it will cost and how much you’ll need to repay.

When purchasing a trailer, you will generally need to supply the following:

1. A dealer invoice or contract of sale (contains address, contact numbers and ABN).

2. The vehicle chassis number.

3. The year, make and model of the trailer.

Determining your borrowing power

Put simply, your borrowing power is the maximum amount that can be approved for a trailer loan. This is a combination of your credit score, credit history, income, expenses, assets and liabilities. Banks or lenders use this measure to ensure that you can make repayments without experiencing financial hardship. Under responsible lending laws, banks and lenders are not to approve amounts that exceed this threshold.

To estimate borrowing power, take your total income from all income streams and subtract all your expenses including loan or credit repayments, rent, utilities, and discretionary items. The number of dependents or children may also impact borrowing power. Additionally, the borrower should consider the ongoing cost of trailer ownership, including maintenance and running costs, to ensure they can meet repayment obligations.

More precise calculations can be made by taking into account the approximate interest rate and loan term. Lenders may also consider whether the borrower is applying individually or as part of a joint application, although this is not a factor in determining your individual borrowing power.