The sole trader structure is a very convenient way to set up a business and offers many business owners a more cost-effective way to operate their truck business than a pty ltd set-up. The sole trader set-up does allow businesses to employ others, but not themselves; you only have to be registered for GST if turnover exceeds $75,000; you essentially only need to get an ABN to start operating, and you don't have some of the costs and reporting requirements associated with incorporation.
Embracing a 'solo' approach can indeed offer numerous advantages, enabling the swift adjustment to evolving market dynamics and customer demands. It provides the freedom to seize opportunities without the need for extensive consultations. This route can prove highly feasible for individuals seeking to shift from being employed to self-employed.
Of course, there are associated duties and commitments related to taxation and regulatory compliance. Moreover, drawbacks can emerge when pursuing financing. The process of securing a loan can be time-intensive, and financial institutions may offer less favourable responses to applications from small-scale sole traders, which can be disheartening.
Jade Truck Loans provides specialist lender services to ensure sole trader truck owners don’t have to face the finance challenge on their own.
Sole Trader Truck Loan Service
The loan search process can be a significant time commitment for sole traders entering the market. The realization that substantial time is needed for comprehensive research is a common occurrence. For business owners, time holds great value, directly translating to money. Engaging with numerous banks and finance companies to gather enough quotes for confidence in securing the best deal can be quite time-consuming.
Jade Truck Loans addresses this concern by streamlining the process entirely. Our accreditation with a wide array of lenders, coupled with our access to industry insights, empowers us to match individual customer needs, particularly those of sole traders, with the most suitable lenders.
Moreover, we handle the negotiation of your application, even when dealing with lenders known for stringent conditions that can pose challenges for sole trader loans. These hurdles, which some lenders present, can create a complex pathway for applicants to navigate. Our broker service, however, alleviates much of this frustration.
Loan Products
Sole traders are provided with the same comprehensive array of truck loan products that we extend to large corporations. The status of being a sole trader doesn’t inherently dictate the optimal loan product. The selection should be determined through careful examination and evaluation of the attributes and advantages inherent in each loan product. This assessment should be made with respect to the specific objectives of the business operator.
The selection of loan types include:-
- Truck Chattel Mortgage or Heavy Equipment Loan
- Vehicle Lease for Trucks
- Commercial Hire Purchase
- Truck Rental or Rent to Own
There are numerous distinctions between these loan types, encompassing aspects like the treatment of GST, the tax-deductible components of loan repayments, potential truck depreciation, the balance sheet approach linked to truck ownership throughout the loan tenure, and the compatibility of the loan type with either the accruals or cash accounting method.
Business proprietors are strongly recommended to seek advice from their tax agent or accountant while making this determination.
One key point to note is in regard to IAWO – Instant Asset write-Off. This was introduced as part of the stimulus package by the government and tweaked in the October 2020 Federal Budget. IAWO has been widely promoted by finance companies and truck dealers over the past 12 months so most operators are well aware of what is involved.
Subject to meeting the criteria (refer to ATO for details) sole traders can take advantage of the measure. But in order to do so, businesses need to acquire the truck with suitable finance and that would be Chattel Mortgage.
New Business Sole Trader Loans
Where a sole trader is in the early stages of starting the business and as such does not have the full documentation as in financial records required by some lenders such as banks, we have solutions!
- Low Docs Truck Loans
- No Docs Truck Loans
Not all banks provide this kind of loan as they typically adhere to strict loan criteria. We procure these loans from specialized lenders who prioritize low doc loans as a fundamental aspect of their operations. If given the green light, low doc loan applicants have the option to choose from the complete array of loan products as previously mentioned.
Contrary to what many think, the interest rate on truck loans is not determined by the size of your business. Sole traders and SMEs are entitled to the same cheap interest rate as we achieve for large corporations with significant backing. Compare our truck loan interest rates here.
Lender Partners
Jade Truck Loans can become your reliable lending partner, offering expert guidance and valuable insights into your sole trader business, without any obligations. Venturing into the lending landscape on your own can be a courageous step. However, the smarter choice is to team up with Jade to ensure a seamless process and secure a more affordable truck loan.
Contact us on 1300 000 003 to discuss your lending requirements.
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.
