Trailer Finance Broker vs Going Direct to a Bank
You can apply for trailer finance at your own bank or go through a broker. Both can work. Here's an honest look at the trade-offs.
Going direct to your bank
If you already bank with a major lender, asking them for trailer finance is a natural first step. They know your account history, and some offer good rates to existing customers.
The limits show up with less standard deals. Banks tend to have firm policies on trailer age, private sales, new ABNs and low doc applications. If your deal falls outside their box, the answer is often simply no, and that declined application stays on your credit file.
Using a broker
An asset finance broker works with a panel of lenders, including banks, specialist equipment lenders and non-bank lenders. Their value is knowing which lenders are comfortable with your type of trailer and your situation before anything is submitted.
- Fewer credit enquiries. A good broker assesses your deal first and applies to the lender most likely to approve, instead of you applying at several places.
- Access to specialist lenders that don't deal with the public directly.
- Help with the paperwork, which matters more for business and low doc applications.
- Comparison of rates, fees and structures across lenders.
Talk to a Specialist
Tell us about the trailer and we'll pass your enquiry to a broker who works with it regularly. Free, and enquiring doesn't affect your credit score.
Send an Enquiry →How brokers are paid
Most asset finance brokers are paid a commission by the lender when your loan settles, and some also charge a brokerage or establishment fee. Either way, they must tell you how they're paid. For consumer loans, they must give you a credit guide and disclose fees and commissions before you proceed. It's reasonable to ask a broker what they'll earn from your deal and whether a fee applies.
Worth knowing: a broker should be licensed to provide credit assistance, either holding an Australian Credit Licence or acting as an authorised credit representative. You can check a licence number on ASIC's professional register.
When going direct can make sense
- You have a strong, long-standing relationship with your bank.
- The trailer is new, from a dealer, and a straightforward deal.
- Your bank has made you a pre-approved offer.
Even then, it can be worth comparing the bank's offer with what a broker can find. If your situation is less standard, such as an older trailer, private sale, new business or past credit issues, a specialist broker usually saves time and avoids unnecessary declines.