The Australian food industry remains pivotal to the nation's economy and growth. Recognized as a priority in the Government's Modern Manufacturing Strategy, this industry continues to shape the landscape of the nation's manufacturing sectors.
Managing a business in the food sector is undoubtedly challenging. Primary producers often grapple with fluctuating prices influenced by seasonal changes and market dynamics. Fresh produce, ranging from fruits and vegetables to dairy, faces the brunt of these variable pricing patterns. These price variables, when combined with unforeseen challenges such as floods, droughts, bushfires, or unexpected trade disagreements, can make business planning immensely challenging.
Add into the equation flood, extended drought, bush fires or trade disagreements in your target export markets and your business planning becomes even more stressful and uncertain. Fortunately there is one area where food producers and distributors can receive a level of certainty and assurance – when securing their truck loans with Jade Truck Loans.
We take some of the uncertainty out of your business operations by including fixed elements in your truck loan:-
- Fixed Interest Rates: After rigorous negotiations, we ensure that our customers receive the cheapest truck loan rates which remain constant throughout the loan term.
- Fixed Loan Repayments: These are predetermined at the loan's inception and maintain consistency throughout the term.
- Fixed Loan Term: Customized to meet both borrower and lender requirements.
- Fixed Focus: Our unwavering commitment is to source our customers in the food sector with the most affordable truck loans.
Jade Truck Loans provides finance for the full fleet of truck types. But for many food producers and distributors, the essential vehicle is the refrigerated truck. A vehicle widely used by producers transporting their own produce to the markets, by transport operators delivering large orders to wholesalers and by retailers meeting the demand for customer-direct, online orders.
What’s critical to the refrigerated truck purchase is securing the cheapest finance which is fixed over the loan term to enable some level of business certainty through cyclical price fluctuations.
Refrigerated Truck Loan Options
We provide loan options for new and used refrigerated trucks with a finance type to suit most businesses.
The most popular truck loans are:-
Deciding which is most suitable for your individual business will require consideration of a number of factors in relation to your specific business structure and objectives. We highly recommend involving your accountant in the decision-making process as one of the key issues is the accounting method used by your business. Owner-operators, sole traders, SMEs and corporate fleet owners can all apply for their choice of loan type.
Rent to Own and Leasing are off balance sheet finance products while with Chattel Mortgage and CHP the truck is entered on yours, the borrower’s, balance sheet. If you are interested in taking advantage of the Instant Asset Write-Off measure currently on offer as a COVID-19 support program, then you will need the asset, the truck, to appear on your balance sheet. That is, you will require a Chattel Mortgage.
The IAWO offer expires on 31 December 2020 so you will need to get moving to secure your truck and arrange the refrigeration unit to be fitted and the vehicle in use in your business by that date.
Low Docs Refrigerated Truck Loans
For owner-operators and other businesses that don’t have full documentation to meet the bank requirements for a truck loan, Jade Truck loans may be able to assist with our Low Docs Truck loan option.
You will require a current ABN and preferably be registered for GST. We have access to non-bank lenders that are usually better placed to offer this type of loan, subject to you meeting their specific requirements. The requirements will vary depending on individual applicants and usually relate to the type and quantity of financial accounts and records provided.
The interest rate on a low docs truck loan will be higher than for a standard loan but it will still be fixed. The other components – repayments, loan term and any residual/balloon will also be fixed.
Check Out: Refrigerated Truck Market
The first choice for buyers will likely be new or used.
When purchasing new, most buyers will be looking at separate purchases – the truck and a custom or stock-standard refrigerated unit to be fitted. Although a quick browse of what’s currently on the market reveals a few brand new 2020 Isuzu models already fitted for sale.
In the light and medium duty sector the popular models include the Fuso Canter, Isuzu N Series, Iveco Daily Cab and the Hino 300 Series which is receiving massive praise and acceptance across many industries. These are the brands that are built to suit a wide range of applications including taking refrigeration bodies.
When arranging your refrigeration unit, speak with your Jade Truck Loans consultant about including both the truck and the body in the same loan. That will provide you with just the one fixed repayment to budget for each month. A degree of assurance and certainty for businesses operating in an environment of fluctuating conditions.
To discuss a loan for a refrigerated truck, reach out to Jade Truck Loans on 1300 000 003
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