The years 2020 and 2021 have undoubtedly posed formidable challenges for numerous businesses due to the far-reaching impacts of the COVID-19 pandemic. Some enterprises have navigated their way through trying economic circumstances in their industry, while others have been operating at full tilt amidst the backdrop of border restrictions and demanding schedules. For many, these conditions have engendered the prospect of change. This could encompass the establishment of their own trucking enterprise, either as an independent contractor or as an owner-operator with a small fleet of trucks. These nascent ventures require financial support, and new businesses often necessitate Low Docs Truck Loans to secure the necessary vehicles and commence operations.
As a specialist in truck finance, Jade Truck Loans offers Low Docs and No Docs Truck Loans in our portfolio and can assist new business operators to achieve a workable loan at better interest rates.
Criteria for Low Docs Loans
Low Documentation and No Documentation are classifications of truck loan seekers, rather than being loan types in themselves. The term 'docs' pertains to the limited quantity and/or quality of paperwork that applicants have available for their loan applications.
Standard business finance requests necessitate an array of financial documents, potentially encompassing BAS statements, annual business accounts, tax returns, profit and loss statements, and similar records. Newly established enterprises often lack the trading history required to compile such documentation.
Another challenge revolves around trading history, as numerous banks mandate that businesses must have operated for 12, 18, or even 24 months to qualify for a truck loan. This prerequisite renders newly launched enterprises ineligible.
Low Documentation and No Documentation Truck Loans are meticulously tailored to offer affordable financing options for new operators who lack comprehensive financial documentation and records. This specialized financing isn't universally available through all financial institutions. Jade has access to specialized lenders that provide these services at competitive interest rates.
To be eligible for this type of loan, businesses must have at a minimum a current ABN and ID. Being registered for GST is not a requirement but can be viewed favourable. If a business has income in excess of $75,000 pa it must be registered for GST.
Small, new businesses may also be assessed for their loan on their individual/personal financial situation. So ensuring your credit profile and credit score are in good order can be important.
Generally speaking, providing greater financial information as support for your low documentation application can be advantageous for a new business. However, don’t be discouraged from applying if you have limited information. Your dedicated Jade consultant will manage the loan process and guide you through these prerequisites to ensure the completion of your loan application.
Finance Products Available
As previously mentioned, Low Documentation and No Documentation Truck Loans pertain to the standing of the applying business rather than being categorized as loan products. Once endorsement is secured for a Low Docs or No Docs truck loan, enterprises have the flexibility to opt for the financial product that aligns most effectively with their fiscal goals.
The full selection of truck loan products includes:-
- Chattel Mortgage which is also referred to simply as Equipment Loan
- Truck Lease
- Truck Rental or Rent to Own
- Commercial Hire Purchase or Hire Purchase
Chattel Mortgage and Leasing stand out as two of the more favored forms of business financing, and they offer the flexibility to fund a diverse array of assets, including trucks and equipment. What sets them apart is their alignment with distinct accounting methods - cash and accruals.
Chattel Mortgage is regarded as ideally suited for cash accounting, while Leasing finds its synergy with businesses employing the accruals method. Therefore, new enterprises would benefit from collaborating with an accountant or bookkeeper to establish their accounting system and determine the preferred method. It's important to note that a business can transition between accounting methods only at the onset of a new financial year.
Moreover, disparities exist in terms of when GST payments and claims are made, as well as which components of the loan are eligible for tax deductions and the juncture at which these deductions are realized.
The Truck Finance & leasing interest rates also vary across the selection of loans. It’s worth noting at this point, that just because you are a new set-up business, it doesn’t mean you will automatically be offered a much higher interest rate. We can achieve cheap and workable interest rates for our low docs and no docs truck loan customers.
How to Apply
Initiating an application for a Low Documentation Truck Loan through Jade Truck Loans is a simplified procedure. The process can commence via a phone call, online contact form, or online application submission. You will be assigned a dedicated Jade consultant who will guide you seamlessly throughout the entire procedure.
So, if the upcoming year '22 signifies new beginnings for you, reach out to Jade to obtain a quotation for a low documentation truck loan, facilitating the acquisition of your vehicles.
Contact Jade Truck Loans on 1300 000 003 for a low docs truck loan.
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.