The construction industry in NSW is set to take a massive financial hit with the Premier Gladys Berejiklian calling a pause on all sites and works in the Greater Sydney lockdown area until 30 July 2021. The decision was taken as a further measure to limit mobility and curb the current coronavirus outbreak. The decision appears to have come as a shock to the sector with a fleet of construction truck owners and drivers staging a protest drive through the city on Saturday afternoon. Throughout previous lockdowns in 2020, most construction works both on large and small projects were permitted to continue. The sector was hailed as a major lifesaver to the economy as governments ploughed more stimulus funding into infrastructure and the home building sector.
We fully recognize the pivotal role that trucking businesses play in the construction sector, and our team is committed to supporting our customers during this crucial period. Estimates suggest that the economic cost of the construction pause could range from $1.4 billion, but some analysts speculate that the impact might be even greater. These figures represent significant numbers with considerable repercussions.
For our customers who have taken out truck loans, the important question arises: how does this situation affect you, your business, and your truck loan? If you're currently in the process of purchasing a new truck and arranging your finance, we've gathered a comprehensive range of information to aid business owners and sole traders in navigating the available support and relief packages.
Bank and Lender Support
If you currently have a truck loan and the construction pause is causing financial challenges for your business, it's highly recommended that you promptly reach out to your lender. Both the banking and finance industry associations have issued statements outlining various measures available to support their business customers during this period.
These relief measures can include options like loan deferrals, fee waivers, and refinancing, tailored to individual circumstances. It's crucial to take proactive steps rather than simply missing loan payments. Neglecting repayments could lead to a negative impact on your credit rating, potentially affecting your ability to secure affordable interest rates for future financing needs.
NSW Government Packages
The New South Wales Treasurer, Dominic Perrottet, has unveiled a series of relief packages catering to businesses of various scales. These packages, accessible through Service NSW, encompass a variety of support measures such as one-off grants and regular payments, contingent on the business size. A fundamental requirement for eligibility is experiencing at least a 30% reduction in turnover during the period from 26 June to 26 July 2021, compared to the equivalent period in 2019.
Business owners, even micro-businesses, should refer to the details at https://www.service.nsw.gov.au/covid-19 to see what is available for their circumstances. Business concierges are available to assist.
Refinancing Existing Truck Loans
If the pause has you considering your existing truck loan commitments in the light of what may or may not lay ahead in regard to coronavirus, we may be able to assist you with refinancing your existing truck loan. Our team are specialists in refinancing truck loans and can swiftly respond to requests for quotes. Better Interest Rate Refinancing is one of the potential advantages we offer, enabling you to optimize your loan terms, potentially reduce monthly payments, and navigate these uncertain times with greater financial flexibility.
Refinancing entails securing a fresh loan arrangement to settle the outstanding balance of an existing loan. Commonly, any fees, charges, or penalties from the current loan's early repayment can be included within the new loan amount.
The refinanced loan maybe with the same or a different finance product than the existing loan. That means if you currently have a Truck Rental you may consider refinancing with say Leasing or Chattel Mortgage Truck Finance and vice versa. Being mindful that even if you purchased your current vehicle brand new, the refinancing quote will reflect that the vehicle, after several years of service, would be considered a used truck.
With interest rates currently at historic low levels, refinancing to achieve a lower repayment level may be an astute move. Our truck loans are arranged at fixed interest rates so the cheap rate we source for you on a refinanced deal will remain in place over the full term of the new truck loan.
Refinancing provides a chance to strategically rearrange business finances to align with future goals. Feel free to reach out to us to explore various options and let us manage the entire process on your behalf. Alternatively, you can start by contacting your current lender to obtain a pay-out amount for your existing loan and utilize our truck loan calculator to estimate potential repayments for a new loan agreement.
New Truck Loan Applications
Amidst the enticing EOFY offers and the unveiling of new vehicle models, we understand that many of our valued customers are actively engaged in acquiring their new vehicles. If we are currently in the process of handling your truck loan – whether it's providing quotes, progressing your application, or nearing the settlement phase – please rest assured that our efforts will remain steadfast and continuous. Of course, you have the freedom to decide if you wish to proceed or take a pause based on the evolving situation.
Our dedicated team at Jade Truck Loans remains fully operational and committed to assisting both our existing and new customers during this dynamic period.
Contact 1300 000 003 to discuss all issues around new and existing truck loans.
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.