Grow your business with a truck loan
Growing your business is not easy. It’s not just the extra resources you require to service your new clients; it’s the financial resources you require to run your business on a larger scale. If you require a bigger vehicle(s) like a truck for your business, adding one, two or more to your business can be very expensive. Some businesses don’t always have the funds to pay out large capital outlays without affecting the running of the business. That’s why there is truck financing, so you can grow your business the prudent way.
How to apply for truck finance
So, you’ve decided you want to scale up your business, but you require truck finance to do so. Where to start?
Types of truck financing
Chattel mortgage finance refers to a financial loan for purchasing an asset. The buyer takes immediate ownership and the lender uses the truck or another asset as collateral to secure the loan.
The buyer is able to claim the GST content of the purchase price as well as depreciation.
As a business owner, you can enjoy the use of a truck without the expense and hassle of ownership. You pay a monthly rental or lease, and at the end of the lease period you can either return the vehicle, trade it in or lease another, alternatively, you can buy it outright by paying a residual value, final instalment.
This is like leasing but at the end of the hire period the client takes ownership of the truck after the final payment.
Negotiate your rates
All lenders offer different options and different rates on a variety of packages. Speak to your broker about the best rates offered.
Proof of income
There are a range of truck loans available from no and low doc products through to fully documented loans.
Your lender may want to look at your books or financial statements to make an informed decision on your potential reliability as a borrower. They will request certain documents and information which you can submit with your application form. There are several conditions under which no proof of income is required. In these cases, the lender will use the truck or other assets as collateral.
Depending on your circumstances and that of your business, you might be required to pay a deposit. This usually applies to new business owners.
· Meet with your broker or lender and determine what you want and what they need from you.
· Your broker will assess your suitability to repay the truck loan by looking at you and your business’s financials.
· Relevant documents are filled in and signed
· If all is approved – the supplier is paid and you get your truck
Contact us for truck finance and start growing your business.