The last few months of the year are a popular time for many people to re-evaluate the way they work and make plans to implement changes in the new year. Many individuals will make 2025 the year that they make the move from employee status to self-employment by setting up their own venture. In the transport sector that can typically involve buying a vehicle and working as a contractor, an owner-driver, or establishing a small company on their own or with a business partner. If that is your plan or you intend to set up another operation that requires vehicles to make it a reality, then now could be the ideal time to consider your new business truck loan options.
Securing affordable financing can be a major obstacle to setting up a new enterprise. But it is not a problem that can’t be solved. There are lenders that do offer workable asset financing for start-ups. Operators just need to know how and where to get access to the right lenders and the right type of credit.
Having a good understanding of what is available, what the requirements are for getting start-up finance approved, and utilising the resources available, may be invaluable in preparing for vehicle acquisitions and getting a good start to a new operation. We share our extensive knowledge and experience in commercial lending by covering off on some key issues to assist start-ups better prepare to secure the financing they need.
What is a new business truck loan?
Heavy vehicle finance for new operators is asset acquisition credit approved to businesses that do not have all the business financial records that are required in the standard commercial credit application. These records are generally referred to as docs and the category of applicants referred to as low docs or no docs. Another issue that may be included in this category are enterprises that have been in operation for less than a lender’s minimum trading period. This minimum may be 12 months or 24 months.
So what lenders approve this type of finance application? Most banks and traditional lenders have strict criteria for approving finance applications and generally do not offer this type of credit. This type of credit can be approved through specialist non-bank lenders. These types of lenders do not always offer services directly to commercial operators but work through they selected group of finance brokers. Using a broker such as Jade Truck Loans, can provide access to these lenders and a channel to affordable finance for start-ups.
New Business Truck Loans – Eligible Vehicles
Finance for start-up operators may be used to acquire all types of assets including the full selection of heavy vehicles, new and used. These may include prime movers, semis, light and medium-duty, truck trailers, ready to work and other variations.
Vehicles from all manufacturers can be financed for start-ups including from the big names – Kenworth, Mack, Isuzu, Fuso, Volvo, Scania and many others.
New Business Truck Loan - Credit Facilities
Start-up operators can use their choice of credit facility – Rent-to-Own, Lease, Chattel Mortgage or Commercial Hire Purchase. One of the key deciders as to which is the most suitable facility can be the accounting method used by the business.
When setting up the operation, most operators will consult with an accountant. The accountant should advise the most appropriate method of accounting for that business – either cash or accruals. Once established, the business must use that method for the entire financial year. The method can only be changed at the start of a new financial year.
Chattel Mortgage is suited to the cash method, Lease and Rent-to-Own to the accruals method, and CHP can suit both. Confirm this aspect with your accountant to streamline the application process.
Low Doc and No Doc Loans – Key Features
Key differences for fully documentation and low document credit can include:- requiring additional collateral; having limits on the credit total; different interest rates; and having the owner’s credit profile and financials form part of the application assessment. Personal guarantees may be required.
Assistance to Secure Affordable New Business Truck Loan
Individuals planning to move from employee to self-employment with their own vehicle, can use Jade Trucks Loans to secure a workable new business truck loan. We are specialists in commercial lending and have access to lenders that approve start-up asset financing. No referral is required to use the services of a finance broker. Individuals can contact us directly to apply or for a no-obligation discussion on the opportunities we may provide.
Tools for Planning and Budget Prep
To start the planning process, use our Truck Finance Calculator to work up initial budgets as a guide. Be mindful that the interest rate offered can be different from our current best advertised rates. But using this finance tool can be extremely helpful in quickly obtaining estimates to start planning your move to your own business. More information is available on our website to assist operators to be better-informed when taking on start-up vehicle finance.
2025 is fast approaching. Start considering your finance options now so you’re ready to transport your first load or take on your first contract asap.
To discuss your new business truck loan options with one of our experts, contact Jade Truck Loans on 1300 000 003.
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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