The acquisition of a heavy duty truck is a major investment for any business and the financing arrangements can be key to achieving the return on investment that you are expecting to meet your budget projections. Your truck loan needs to be structured to work with your monthly cash flow, with fixed components to give you certainty in moving forward with other business decisions. To achieve your objectives around truck finance for heavy vehicles, a key decision is considering which type of finance will best meet your requirements.
The decision around which type of finance to select takes into consideration:-
- Accounting method used by the business. Different finance products are better suited for either the cash accounting method or the accruals method of accounting.
- Financial objectives of the business. In particular in regard to the balance sheet. If the business chooses or not to have the vehicle entered as an asset/liability on their balance sheet.
- Ownership of the vehicle over the finance period. While the borrower has full use of the heavy vehicle from time of settlement with all finance types, the ownership of the truck during the finance term remains with the lender for some types of finance. This reflects the balance sheet entry.
- Tax benefits can be realised by businesses with all types of commercial finance. But the way that benefit is derived and at what time in the financial year and finance cycle varies.
- The treatment of GST varies with different finance types. GST does not apply to the interest component of any loan type. With some loans, GST is applied to the repayments while with others, the full amount of GST on the purchase price of the truck can be claimed ‘at time of purchase’ of the truck – on the next BAS return.
- Utilisation of taxation measures. If a business chooses to take advantage of taxation measures as introduced at times by the government, such as IAWO, different finance arrangements may be better suited than others for this purpose.
- The interest rate varies across the range of finance products. While securing the cheapest interest rate truck loan is a major objective of most business operators, the loan type with the cheapest overall interest rate may not completely suit the business. Other factors may influence the decision
Given that these considerations primarily pertain to accounting matters, it’s our consistent advice for our customers to engage in discussions with their accountants or financial advisors. These professionals possess a deeper insight into your individual business circumstances and are better equipped than your Jade Truck Loans consultant to provide guidance on these matters.
Truck Finance Products
Jade Truck Loans provides a full portfolio of finance products for our heavy vehicle customers to select from. These products include:-
- Chattel Mortgage, most commonly used type of finance and also known as Heavy Vehicle Loan or Equipment Loan by some banks.
- Truck Commercial Hire Purchase, also known as Hire Purchase
- Truck Rent-to-Own, also referred to as Rent-to-Buy and is different from truck hire.
- Truck Leasing, an off-balance sheet finance facility.
These finance options adhere to standard formats commonly provided by both banks and non-bank lenders. Nevertheless, the conditions imposed, the eligibility criteria for loan applications, and the interest rates extended for each loan type and individual applicants will invariably differ from one lender to another.
Jade Truck Loans boasts accreditation with numerous lenders, positioning us optimally to secure the most competitive offer for you across a wide array of lending options available in the market.
Prime Mover, Truck Trailer and Combination Loans
Finance is available for either single prime movers or for truck and trailer combinations or where the truck and the trailer are purchased at the same time but from different sellers. The purchase of the two assets can be included in the one loan through selected lenders. Your Jade consultant can pursue a quote for no deposit truck finance and structure your loan to best meet your requirements.
Single Truck and Fleet Finance Options
As experts in heavy vehicle finance, Jade Truck Loans excels in crafting tailored finance solutions for fleet purchasers. Whether you require financing for a single truck or multiple vehicles within a fleet, we are well-versed in securing the optimal fleet finance arrangement for your needs.
Specialist Loan Options
For operators that do not meet all the borrower criteria as required by some banks and lenders, Jade has the connections to source Low Docs, No Docs and Poor Credit Truck Loans. These are specialist loan categories which are best individually negotiated to ensure the most suitable and workable loan conditions are achieved.
Advantages of Using Jade
As specialists in truck loans, Jade offers heavy vehicle operators a distinct array of advantages when it comes to obtaining finance, as compared to managing the financing process independently. Our extensive accreditations enable us to swiftly evaluate a broad spectrum of the truck lending market. Moreover, we can tap into exclusive industry-specific contacts, facilitating access to unique opportunities. Through our professional representation, we engage in personalized negotiations on your behalf, ensuring the most advantageous terms for your financing needs.
To discuss your heavy vehicle finance requirements, contact Jade Truck Loans on 1300 000 003.
DISCLAIMER: THIS ARTICLE IS PREPARED AND POSTED WITH THE INTENTION OF PROVIDING GENERAL INFORMATION AND NOT WITH THE INTENTION THAT IT BE THE ONLY SOURCE OF INFORMATIONON WHICH TO MAKE FINANCIAL DECISIONS. THOSE REQUIRING FINANCIAL ADVICE AROUND THEIR INDIVIDUAL SITUATIONS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPT FOR ANY MISREPRESENTATIONS OR ERRORS IN THE CONTACT AS SOURCED, IN GOOD FAITH, FROM A RANGE OF SOURCES.