is reasonably quick, easy and inexpensive to set-up and run a business. But whether just starting or operating under this structure for a while, sourcing affordable financing can be a challenge. To support small-scale operators, Jade Truck Loans provides access to lenders that offer affordable ABN truck loans at workable rates and terms.
Securing affordable funding to purchase the necessary vehicles may present small sole traders with exactly the opportunity they need to achieve profitability in the short-term and sustainability over the long-term. Operators planning to run a business under this structure may refer to the ATO site for what it entails and the other options available.
So what is required to secure affordable vehicle credit with an ABN, what issues may present and how can Jade assist you to make it happen? We outline the options available for sole trader vehicle funding, the tax benefits and how our expertise and specialist skills assist with access to the right lenders and workable outcomes.
Eligibility and Requirements for ABN Truck Loans
Sole Traders and small-scale operators with an Australian Business Number are eligible to apply for commercial credit, including for heavy vehicles. This structure does not require the business to be registered for GST. However, if the business has a turnover in excess of $75,000 pa or wants to claim fuel tax credits, then it must register for GST.
Beyond these basic requirements, a commercial credit application includes providing a range of documents and records pertaining to the financial position, turnover and operating history of the business. These documents and records can include the annual tax returns, the profit and loss records and annual accounts, cash flow and turnover records and bank statements.
Under ATO rulings, sole traders report their income in their individual tax return. When applying for credit as an ongoing business, these tax returns would be required. The personal credit history and assets of the business owner would also typically be included in the application.
Types of Eligible Vehicles
In general terms, all types of vehicles to be used in a business, including a sole trader entity, can be purchased with commercial financing. That includes heavy, medium and light duty vehicles with all types of trays and trailers. Vehicles may be being purchased as cab only with trailer to be purchased separately; as a vehicle with trailer; and as a complete unit from the Isuzu’s Ready-to-Work and Hino’s Built to Go models.
Eligible vehicles include all fuel system vehicles – diesel, hydrogen and electric from all leading manufacturers. New and used vehicles can be financed but the financing options can vary with the age and condition of the vehicle. Eligible vehicles can be purchased from a dealer, private seller or at auction.
ABN Truck Loans Products
Commercial vehicles can be financed with the operator’s choice of Truck Leasing, Rent-to-Own, Chattel Mortgage and Commercial Hire Purchase. These products have differences in regard to suitability to either the accruals or cash methods of accounting; the ownership of the vehicle through the credit term; how tax deductions are realised; and the interest rate.
Sole traders can be eligible for their choice of commercial credit product and it is advisable to speak with an accountant to confirm which will suit the entity’s structure and deliver the most effective outcomes.
Securing the Best ABN Truck Loans Rates
Achieving affordable interest rates can be an issue faced by many small businesses, especially sole traders. Banks and lenders have their own individual criteria for approving applications and in arriving at rate offers. Sole traders can face issues meeting that criteria if they have low turnover and new operators may face issues in not meeting the trading period minimum.
But there are lenders that do approve sole trader vehicle credit applications and will make offers with workable interest rates. We assist business owners to connect with those lenders as we are accredited with a vast selection of lenders including these specialist non-bank lenders.
Your Jade consultant handles matching your profile with one of our lenders and negotiating a rate and credit terms that will deliver affordable repayments and a viable solution. All you need to do is prepare your documents and connect with us online or by phone.
Estimating ABN Truck Loans
Most operators will want some idea of possible credit repayments before committing to buying a specific vehicle or before even requesting a quote. Our Truck Finance Calculator can be used for that purpose. Estimates on repayments on different finance amounts with the rates applicable to the different credit products, can be calculated quickly and easily to use as a guide.
If you’re starting small and/or staying small and need vehicle funding, we have options and opportunities to assist.
Contact Jade Truck Loans on 1300 000 003 to discuss the ABN Truck Loans options to suit your specific set-up.
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.