The end of a calendar year and the start of a financial year are very popular times for change for both individuals and businesses. For employees in transport and many other industries, now may be the time you’ve made that decision to move to working for yourself. Whether choosing to operate as a self-employed owner-driver or setting-up an enterprise that requires vehicles, start-ups can require assistance in securing affordable new business truck loans.
Accessing workable finance in the initial stages of a business operation can not only be a challenge, but a major obstacle to getting operations underway. Many banks and other lenders have finance approval criteria which a new operation has trouble with or simply cannot meet. These can include having traded for at least 1-2 years and having a complete set of financial documentation. If you are only just setting up, 12-24 months’ worth of turnover figures and accounts would be available.
Overcoming this issue can require having access to lenders in the commercial lending market that do approve affordable financing for enterprises in those initial set-up phases. We can provide that access through our specialist lenders and our individual approach to lending. In this article, we answer a number of key questions which we are regularly asked by operators seeking new business truck loans.
What is a New Business Truck Loan?
Vehicle finance for new enterprises is not a distinct credit facility. The terminology refers to the enterprise and the requirement for approval based on minimal turnover and without the complete set of financials typically required for commercial finance approval. In the lending sector, these loans are known as low docs and no docs finance.
Once approved on this basis, new operators can choose their preferred credit facility from the same selection as well-established enterprises – Rent-to-Own, Lease, Chattel Mortgage and Commercial Hire Purchase.
What is required to apply for New Business Truck Loans?
The requirements to apply for and get approved for heavy vehicle finance as a new enterprise can vary with lenders and with the individual circumstances of the operator. Not all commercial lenders provide this credit facility, it is generally available through specialist lenders who primarily operate through brokers such as Jade Truck Loans.
Some of our lenders will approve truck finance for new operators with turnover covering 6 months. If the business is yet to start operating as the truck is needed for the operation, it is advisable to speak with us about applying to one of our lenders for approval based on no documentation.
Operators are usually required to also provide details of their personal financial position and may be required to provide extra collateral or personal guarantee. The credit profile of the business owner is typically reviewed as part of the approval process.
Applications can be submitted online, but due to the individual requirements of this type of finance, we recommend first speaking with one of our brokers. We can advise your options and what information the right lender will require for your application.
In addition to details on the business operation, details of the vehicle to be financed is also required. Details of the specifics and price of the vehicle and the loan amount required should be provided. If a buying decision is yet to be finalised, an indication of the vehicle can be provided. Details such as make, model, new or used, price, etc.
What vehicles can be financed with new business truck loans?
All types and sizes of trucks and heavy vehicles may be financed for new enterprises. These include heavy, medium and light duty models from all leading manufacturers including Kenworth, Isuzu, IVECO, Volvo, Fuso and others.
The loan amount approved may impact the choice of vehicle as lenders may set a maximum loan limit on loans for new businesses. It can be advisable to speak with us about getting pre-approved for finance before committing to a purchase.
New Business Truck Loans Interest Rates, Terms, Repayments
Interest rates on vehicle finance for new businesses can be affordable and workable terms approved. We focus on negotiating the best possible rates and terms, both of which are fixed, to provide a workable repayment schedule for the operator.
All rates are individually offered and based on specifics of the application.
Using Broker Services to Access Affordable New Business Truck Loans
Using a broker that specialises in financing heavy vehicles for new enterprises can be essential as many of the lenders offering this type of credit do not offer services direct to businesses. They can only be accessed through brokers. Jade Truck Loans provides access to specialist lenders to support start-up enterprises to secure affordable rates and workable terms on new business truck loans.
A referral is not required to use our services and contact can be made directly via phone or our online systems. Our brokers identify which of our 80+ lenders is a best match to the requirements of the operator. We then handle the entire process including negotiating on rates and terms, assisting with the paperwork, and handling settlement.
So if you’re making the move to self-employment and need finance for a vehicle, be assured that specialist services and support are available to source affordable credit.
To discuss your new business truck loan requirements, contact Jade Truck Loans on 1300 000 003 or connect online.
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.
