Commercial loans for costs of regulation and compliance for the trucking industry are available for adviser fees, consultants, licenses and vehicle upgrades. The road transport sector is one of the most highly regulated in the Australian industry landscape. Compliance for vehicles, drivers, operators and other aspects of the business must be met for the operation to be able to trade and vehicles approved for work. With new emissions targets being established by government, the regulations could expand even further.
In order to meet the requirements for their specific area of work, industry sector, or vehicles, operators may face hefty expenses. These may be to cover the fees of engaging external consultants to advise and prepare submissions and applications, for the costs of certifications and accreditations, and for upgrading vehicles to meet safety and other compliance rulings. Special applications for licenses may be required to transport certain types of goods. Significant fees may be incurred for inspections by specialist authorities and consultants. Expenses may also be incurred by the business in meeting tax obligations, business activity compliance, and reporting requirements when new rulings are introduced by the ATO.
Many regulations are initiated for better road safety, to reduce heavy vehicle emissions and to provide increased protections for drivers, operators and other road users. The expenses entailed in engaging external experts to advise on key aspects, handle issues on behalf of the business and carry out work on vehicles can be significant. Deadlines to meet new rulings may be tight. Businesses may not have time to budget for the costs involved.
Access to cost-effective finance to fund these types of expenses may provide many operators with a workable solution to meeting their obligations.
Loans for Costs of Regulation – Fees, Advice, Licenses
The expenses involved in meeting compliance and regulatory obligations may be one-off costs or in some cases, an ongoing monthly or annual fee. Funding for expenses such as fees for specialist consultants to prepare submissions and applications and accountants, to pay licences and other certification are considered as non-asset expenses.
When setting up a new business in the transport industry, operators may need to engage specialist advisors to assist in the structure of the operation, to advise on what licenses and accreditation are required, and to prepare any paperwork.
Funding for non-asset, general costs to business that are not suitable as loan collateral, may be funded with unsecured credit facilities. These include Unsecured Business Loans, and lines of credit such as a Business Overdraft. The decision as to which is most suitable may depend on the size of the loan, and the timeframe over which it is required.
Unsecured business loans may be arranged for a fixed funding amount over a fixed term with fixed monthly repayments. This type of credit may best suit large one-off expenses. Overdrafts can be arranged over more flexible timeframes, with interest only charged on the funds used. The business can pay down the loan as cash flow allows.
To assess options for specific requirements, contact us for quotes.
Loans for Costs of Regulation – Changes to Vehicle
When compliance requires changing vehicle set-ups and systems, the cost may involve parts and labour. The type of upgrades may include installation of new engines or parts to reduce emissions, conversion to low emission fuel systems, noise reduction systems, and installing new safety systems as introduced by the vehicle manufacturer. The work may involve repairs which mean a vehicle is not roadworthy or does not comply with new regulations.
Where the parts are considered as suitable for loan collateral, the cost may be funded with a secured credit facility. The labour and consumables would not be considered suitable collateral and would require an unsecured credit facility – unsecured business loan or overdraft. Funding to cover the entire cost of vehicle upgrades can be individually sourced and structured to meet the specific expenditure and business requirements.
Securing Workable Operational Funding
As specialists in all areas of commercial finance, we provide operators with direct access to a wide selection of business funding facilities and a large range of lenders. While many operators will typically approach their bank for funding, we provide funding through banks as well as non-bank lenders. Many non-bank lenders can be more competitive and flexible than banks and can offer solutions for smaller operators that do not meet bank approval criteria.
Working with our specialist brokers is straightforward. You do not need a referral, just call or email us to brief us on your requirements. We will handle sourcing you the best quote, best rates, and structuring the finance to best meet the individual needs of your business operation.
All types of business operations can directly access our services – large transport operators, sole traders, SMEs, partnerships, contractors, new businesses, and family operations. If the costs of regulation and compliance are pressuring you and your cash flow – speak with us about funding solutions.
If you need finance for compliance, contact Jade Truck Loans on 1300 000 003 to discuss loans for regulation costs and vehicle upgrades.
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.
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