What Is a Master Facility Agreement in Asset and Truck Finance?

Truck & Trailer Finance Australia

In asset and truck finance, a Master Facility Agreement (MFA) is an overarching lending arrangement between a borrower and a financier. It sets up a pre-approved facility that allows multiple asset purchases under one agreement.

Instead of applying for a new loan each time you buy a truck, trailer, or piece of equipment, the MFA provides a single framework you can draw down from as needed.

Why a Master Facility Agreement Helps

A Master Facility Agreement gives a business pre-approved access to funds. Once the facility is set up, new finance contracts can be issued quickly under that same agreement.

This gives transport and logistics operators more agility, control, and confidence when expanding or replacing fleet assets.

Key Benefits for Business Owners

• Speed: No need to start from scratch for each purchase. Simply draw down on your pre-approved facility.
  • Consistency: The same terms and conditions apply to all assets financed under the facility.
  • Scalability: Add new trucks, trailers, or machinery as your business grows without reapplying each time.
  • Flexibility: Many lenders offer more lenient asset age and loan term options within a master facility.

Mini Case Study

A national freight operator we worked with needed to acquire several trailers and prime movers over a six-month period. Instead of lodging multiple finance applications, we helped them establish a $5 million Master Facility Agreement with one of the major banks.

As a result, each new asset could be financed within days rather than weeks. The lender applied consistent rates across all purchases, and the business saved thousands in fees and administration time. Most importantly, the operator could act quickly on available trucks without waiting for new approvals.

Is a Master Facility Agreement Right for You?

If your business frequently purchases or upgrades trucks, trailers, or other equipment, an MFA can streamline your funding process and improve cash flow management. It’s ideal for established transport businesses that require flexibility and certainty around their finance options.

Key Takeaway

A Master Facility Agreement is designed to help transport and logistics businesses grow efficiently. By setting up a single facility for ongoing purchases, you gain faster access to finance, better pricing, and simpler administration.

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