SME Lorry Financing in Singapore
For SMEs in Singapore, lorry financing is available with loan amounts typically between S$60,000 and S$90,000, at interest rates ranging from 3.5% to 5% per annum over tenures of 36 to 60 months. Lorry financing is structured similarly to other commercial vehicle loans, but lenders examine the business’s financial health more closely given the higher loan quantum and the vehicle’s role in revenue-generating operations.
Typical Loan Parameters for SME Lorry Financing
The table below summarises the common loan parameters for SMEs financing light to heavy lorries in Singapore.
| Lorry Type | Loan Amount | Interest Rate (p.a.) | Typical Tenure | Down Payment |
|---|---|---|---|---|
| Light Lorry (< 3.5 tonnes) | S$50,000–S$70,000 | 3.5%–4.5% | 36–60 mo | 30% |
| Medium Lorry (3.5–7 tonnes) | S$60,000–S$80,000 | 3.5%–5.0% | 36–60 mo | 30%–40% |
| Heavy Lorry / Prime Mover (> 7 tonnes) | S$80,000–S$150,000 | 3.0%–4.5% | 48–60 mo | 30%–40% |
| Refrigerated Lorry | S$70,000–S$100,000 | 3.5%–5.0% | 36–60 mo | 30%–40% |
Rates are indicative and subject to lender assessment. Actual rates depend on credit profile, vehicle age, and loan amount. Updated June 2026.
Single vs Fleet Lorry Financing
SMEs purchasing a single lorry can expect standard commercial vehicle loan terms. Fleet purchases (three or more vehicles) may qualify for volume-based pricing with lower interest rates.
- Single lorry — Standard rates (3.5-5%), individual assessment, per-vehicle documentation
- Small fleet (3-5 vehicles) — Negotiated rates (3.0-4.2%), consolidated application, combined loan quantum
- Large fleet (6+ vehicles) — Wholesale rates (2.8-3.8%), dedicated account management, flexible contract terms
For a detailed rate comparison, see our commercial vehicle loan interest rates guide.
Documents Required for SME Lorry Financing
Lenders will typically request the following from SME borrowers:
- Business registration — ACRA business profile (valid within 30 days)
- Financial statements — 1-2 years of audited or management accounts
- Bank statements — 6-12 months of the company’s operating account
- Directors’ particulars — NRIC and proof of address for all directors
- Guarantor details — Personal guarantees from directors are standard for SME loans
- Vehicle proforma invoice — From the dealer or importer
- Existing loan schedule — If the company has other outstanding credit facilities
Interest Rate Trends for Lorry Financing in 2026
Commercial vehicle interest rates in 2026 remain competitive. For SMEs, the key factors influencing your rate are the company’s years in operation (lenders prefer 2+ years), annual revenue stability, and the directors’ personal credit scores. Newer lorries with longer COE tenure attract lower rates, while older or specialised vehicles (refrigerated, tipper, tanker) may command a premium of 0.5-1% above the base rate.
Tips for SME Lorry Buyers
- Prepare financials in advance — Clean, organised financial statements speed up approval
- Compare multiple lenders — Loan terms vary significantly between banks and licensed moneylenders
- Consider total cost of ownership — Factor in road tax, insurance, maintenance, and COE when budgeting
- Use a broker — CoeLoans can help you compare offers from multiple lenders without multiple applications
Frequently Asked Questions
Some lenders accept applications from companies operating for less than 2 years, but they typically require stronger director guarantees, a higher down payment (40-50%), or a proven revenue stream from existing contracts.
Most lenders require directors to provide a personal guarantee for SME commercial vehicle loans. This is standard practice and applies even for incorporated companies.
The maximum loan tenure for commercial vehicles in Singapore is typically 60 months (5 years) for new vehicles and up to 48 months for used vehicles. Terms may vary by lender.
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