Navigating Truck Finance Challenges Amid Building Company Collapses
The news that several building companies have collapsed in recent weeks will be impacting many sub-contractors and truck owners that operate in the sector. Most truck owners and operators will have vehicles under truck finance and may be facing issues around meeting their commitments. Operators requiring truck finance relief resulting from customer business collapses may speak with Jade Truck Loans about refinancing and other options.
The Current Landscape and Its Impact on Sub-contractors
Reports have liquidators appointed to a large home building company that operates in Victoria and Queensland and the stop work on around 1700 new homes. Another building that specialises in school building has also gone into administration, leaving reportedly 59 projects in limbo. Both events leaving many sub-contractors and other suppliers also in a state of limbo and potential financial difficulty.
When matters such as these occur, they usually come quickly and without warning, especially to sub-contractors who may not have any knowledge of their major client’s financial position. The process of having administrators or liquidators appointed is a set procedure with certain steps to be followed. The administrators need the time to assess the position and make decisions around whether the situation can be resolved, a buyer found to take over or other options considered.
Creditors can source more information on the process at the ASIC website so they have a better understanding of what may lay ahead.
It can be time-consuming and with accounts usually frozen, those owed money may face a wait to get payment of their outstanding invoices and for how much. This then flows through to those impacted potentially facing their own immediate cash flow problems. In addition, those impacted may face medium to longer term issues with finding new work to replace that major client.
We provide some information of both short and longer term options that operators may consider if facing issues meeting their truck finance repayments as a result of the collapse of one of their major customers.
Repayment Relief
If facing issues in meeting truck finance repayments it is important to act quickly. Contact the lender as a matter of urgency if facing cash flow issues and the inability to meet the monthly commitments. It is up to individual lenders what approach they take to individual requests.
During the pandemic crisis the banks and other lenders established deferred payment arrangements for many of their customers. Similar arrangements may be possible where businesses are facing issues as a result of a major customer collapse.
If the lender is not advised of the problem and payments are missed, this can lead to a downgrade of the credit rating and if the missed payments continue, repossession of the vehicle. Having a bad credit rating can mean serious obstacles to overcome when applying for new credit and loans.
This should be avoided by quick action.
Refinancing
Refinancing an existing truck loan may be a viable option in certain circumstances. This involves replacing the current loan with new truck finance. If the objective of the business owner is to reduce their monthly repayments to better suit changed income circumstances, then refinancing may be an effective solution. Truck Finance Australia can help you find the best refinancing options across the country.
The refinanced loan would be based on current interest rates, which may be higher than the rate achieved on the original loan. Since the vehicle would be considered used goods, the relevant rate would apply, and fees would apply for finalizing an existing loan before the end of the term.
Our consultants will work with you to achieve an outcome that works for you, which may include restructuring the refinanced loan over a longer term to reduce repayments or with a different balloon or residual amount.
Refinancing
Refinancing an existing truck loan may be a viable option in certain circumstances. This involves replacing the current loan with new truck finance. If the objective of the business owner is to reduce their monthly repayments to better suit changed income circumstances, then refinancing may be an effective solution. Truck Finance Australia can help you find the best refinancing options across the country.
The refinanced loan would be based on current interest rates, which may be higher than the rate achieved on the original loan. Since the vehicle would be considered used goods, the relevant rate would apply, and fees would apply for finalizing an existing loan before the end of the term.
Our Consumers Individual Lending Professional consultants will work with you to achieve an outcome that works for you, which may include restructuring the refinanced loan over a longer term to reduce repayments or with a different balloon or residual amount.
Cash Flow Support
Although Jade primarily specializes in finance for the acquisition of trucks, we also offer a range of other business finance products. If cash flow is an issue, an overdraft may be an effective solution. Truck Finance For Poor Credit options are available for those who face credit challenges.
An overdraft may cover expenses while the liquidators recover funds for creditors and/or while the operator secures new work contracts from new customers. Our consultants are available for confidential, no-obligation discussions about what solutions we can source to meet your needs.
Refinancing
Refinancing your existing truck loan with new Truck Finance Australia may be an option if you're looking to reduce your monthly repayments to better suit changed income circumstances. At Jade, our consultants can work with you to achieve an outcome that works best for you, including structuring the refinanced loan over a longer term to lower repayments or with a different balloon or residual amount. However, it's important to note that the refinanced loan will be at current interest rates, which may be higher than the rate you received on the original loan. Additionally, as the vehicle will be considered used goods, the relevant rate will apply, and fees will apply for finalizing an existing loan before the end of the term.
Cash Flow Support
We understand that cash flow can be a significant issue for many businesses. That's why we provide more than just financing options for truck acquisition; we also offer a range of other business finance products, including overdrafts. An overdraft can help cover expenses while liquidators work to recover funds for creditors, or while you secure new work contracts from new customers. Our consultants are available for confidential, no-obligation discussions around what solutions we may be able to source to meet your requirements.
Pre-Approved Truck Finance
If you're planning to purchase a new truck at an upcoming expo, show, auction, or from a dealer, you may already have pre-approved truck loans through Jade. This option allows you to meet end-of-financial-year deadlines without committing to a loan. Should you choose not to use the pre-approved loan, the offer simply expires, and there are no obligations to fulfil. If a new truck has been ordered, and delivery is imminent, operators would need to speak with the dealer or manufacturer to discuss suitable arrangements. At Jade, we have extensive resources to draw on to source solutions to your truck financing needs.
No Deposit Financing Limitations
It is important to note that No Deposit Financing Does Not Apply to a Dealer Deposit. Although no deposit financing can be an attractive option for some, it may not cover the entire cost of the dealer deposit. Before committing to a no deposit truck loan, be sure to understand its limitations and how it may impact your overall financial situation.
In conclusion, Jade offers a variety of truck financing solutions to meet the diverse needs of our clients. Whether you're in need of refinancing, cash flow support, Truck Loan Services for Consumers, or guidance on no deposit financing, our experienced consultants are available to assist you in finding the best solution for your situation. Don't hesitate to contact us for a confidential, no-obligation discussion about your truck financing needs.
Contact Jade Truck Loans on 1300 000 003 to discuss solutions around truck finance for businesses impacted by the collapse of their major customer.
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.
