Low Docs Truck Loans in Lockdown: is now the time to apply?

It does not seem that long ago that the Federal Treasurer Josh Frydenberg and the various State Treasurers were announcing 2021/22 budgets full of optimism for business. The Australian economy had been out-performing the growth forecasts, unemployment figures showed a decline over several months and Australians were seriously contemplating and even planning their return to life and business as semi-usual.

Many determined individuals are currently pursuing plans to launch their own businesses, and for many of them, this involves acquiring a truck. The decision to buy a truck could be driven by various factors, such as establishing oneself as an owner-driver or contractor in the general freight or agricultural sector. Alternatively, it could be aimed at supporting a new business with in-house deliveries and operations, tapping into the growing trend of online shopping and home deliveries, or even acquiring construction trucks to work as a contractor and leverage the opportunities presented by ongoing infrastructure projects across the nation.

Then Delta arrived, uninvited and unwelcomed. The scenario seemingly changed in an instant. Raising serious questions around whether or not NOW the time to proceed with the truck purchase plan. Especially when a no financials truck finance application is needed for most new businesses.

New businesses face a significant difference compared to established operations when it comes to securing financing. One major challenge is often the absence of the extensive financial documentation typically required by banks to meet their business loan criteria. Start-ups and relatively young businesses often lack the trading history necessary to provide the data traditionally needed to complete a loan application.

In light of the evolving lending landscape, is now an opportune time to pursue a low documentation (low docs) truck loan application? How have lending conditions changed recently, and what potential shifts might lie ahead? What pathways are available for prospective borrowers in these circumstances?

We offer insights into a variety of aspects related to lending, aiming to support individuals who currently seek access to a low documentation or no documentation (no docs) truck loan.

Interest Rates For Truck Loans

It's widely recognized that interest rates are currently at historically low levels. The Reserve Bank of Australia (RBA) responded to the economic repercussions of the pandemic by reducing the official cash rate throughout 2020, ultimately reaching the current rate of 0.1%. This reduction has generated a climate of intense competition in various lending sectors, resulting in attractively competitive interest rates.

One notable consequence of these low rates has been the notable surge in the housing market, largely driven by the availability of low mortgage rates. Consequently, some economic experts have voiced concerns about the need for the RBA to increase rates in order to temper the booming housing market.

However, the question remains: how long will the current environment of low interest rates endure? The Governor of the RBA has emphasized on multiple occasions that the central bank is looking to achieve an inflation rate within the range of 2-3%, coupled with unemployment sustained below 5%, before considering any rate adjustments. Although the unemployment rate recently dropped to 4.9% in June, it's improbable that this alone will trigger a rate hike. Inflation remains relatively low at around 1%, and the ongoing impact of the Greater Sydney COVID-19 outbreak could potentially have a negative effect on July's unemployment figures.

Our current interest rates on truck loans are at our trademark cheap levels across our loan portfolio. Under the current RBA indicators and subject to individual lender decisions, this situation could be expected to continue in the near future. For an in-depth understanding of these rates and to assess potential cost savings, we invite you to explore Truck Loan Rates – See How Different Loan Products Compare. This resource allows you to gauge the competitive landscape and make well-informed decisions regarding your financing choices.

Advertised lending rates generally reflect the rates applicable to applicants with a favorable credit profile and well-prepared applications. However, individuals seeking low documentation (low docs) or no documentation (no docs) loans can still access loans at competitive interest rates, contingent on individual circumstances.

In summary, it's unlikely that the current short-term lockdowns occurring in various parts of the country, or any potential future lockdowns, would independently prompt an alteration in interest rates.

Tax Measures

Business borrowers are heavily focused on capitalizing on existing taxation advantages offered through Immediate Asset Write-Off (IAWO) and temporary full expensing. These initiatives have been accessible since April 2020 and were further refined in the 2021/22 Federal Budget. They facilitate appealing tax deductions for qualified businesses that procure eligible assets within the stipulated timeframe. To leverage these benefits, the suitable financial solution is Chattel Mortgage.

As long as the business and the asset meet the eligibility criteria, low docs truck loan recipients should be in a position to take advantage of these measures. In deciding on a truck loan product, business owners are strongly advised to consult with their accountant to ensure the loan meets the individual target objectives for the business.

All business finance products offer tax deductible elements and once a loan is secured, these benefits can be realised with low docs truck loans.

Access to Transport Lending Sources

The extended lockdown in Sydney has raised a significant apprehension for businesses contemplating finance, centring on the stance of banks and lenders. Given that NSW is undeniably the economic engine of the country, the business disruptions stemming from the lockdown could potentially trigger far-reaching adverse consequences.

Banks tightened their lending for a time during the 2020 pandemic crisis and both banks and non-bank lenders are currently offering support by way of repayment deferrals and other relief to customers suffering financial hardship as a result of lockdowns. How this flows through to lender attitudes to new loan applicants will depend on individual lenders and the business applying for the truck loan.

When it comes to low docs loans, traditional banks aren't typically inclined to approve such financing due to their strict lending criteria. Instead, non-bank lenders are the primary sources for these loans, and Jade Truck Loans is affiliated with numerous non-bank lenders that offer this type of financing.

By choosing Jade as your lender, you gain access to these lenders for securing low docs truck loans with competitive interest rates. Additionally, our Jade consultants can provide invaluable assistance in structuring your low docs loan applications, along with our well-known negotiation skills to secure favorable loan terms.

Another significant factor to consider is the potential impact on your credit report when applying for loans from multiple banks and lenders. When you utilize our services to explore the market on your behalf, it won't have any adverse effects on your credit profile. Particularly for new businesses, establishing a positive credit history is crucial for future credit and financing applications.

All loan applications, including low docs and no docs loans, are individually evaluated by our lenders based on the quality of the application. Requesting a quote from us carries no obligation.

We hope this information aids your decision-making process in reaching out to us for inquiries about a low docs truck loan at this juncture.

Contact US on 1300 000 003 for a quote on a truck loan.