As the new financial year begins, it presents an ideal opportunity to establish business goals and develop action plans to realize those objectives. Many businesses may aim to expand their operations, enhance productivity, increase profitability, or improve competitiveness in bidding processes. Investing in new vehicles, such as trucks, can play a crucial role in achieving these targets. For businesses seeking to acquire new trucks to meet their financial year goals, affordable truck finance with favourable interest rates is readily accessible to provide the necessary support in reaching these ambitions.
Securing workable and cost-effective truck finance may be the critical element in achieving or missing those targets. That is the objective but how can it be achieved? Can small and new operators access the same opportunities for cheap truck finance as large businesses? Where can business owners find the time and resources to source the cheapest truck loans?
Jade Truck Loans supports businesses by providing a comprehensive broker-style service to source, negotiate and structure workable truck finance at the cheapest truck loan interest rates for all types of businesses.
While we provide this support, there are a number of issues that operators can address in the quest to cost-effective truck finance:-
- Seek access to suitable lenders
- Ensure the type of truck loan works with the business structure
- Structure the truck finance so the loan works towards achieving the established goals
- Source the cheapest truck finance interest rates
- Consider the tax deductions and what additional benefits are available in the current financial year
Consideration of all these issues can provide a clear pathway and plan towards achieving workable truck finance which supports the business through the financial year.
Seek Access to Suitable Lenders
Reviewing truck finance details via an online search can only reveal basic details about the loans available through a particular source. Usually easily sourced is an interest rate, a list of loan types and the basic eligibility criteria for approval through that lender.
In addition to the easily-accessible lenders – banks, finance companies and dealer/manufacturer finance, are specialist non-bank lenders. Lenders that specialise in finance for different industries, asset acquisitions and for different types of businesses such as new and small operators.
What differentiates these specialist non-bank lenders can be their flexibility to negotiate on many aspects of a loan where other lenders may not and also how they can be accessed. Many only operated through their own selected network of finance brokers. Jade Truck Loans has accreditation with specialist lenders and provides this privileged access for our customers.
Access which may include negotiable cheaper interest rates, flexibility on tricky finance terms and conditions and availability of No financials truck finance and Bad Credit Truck Finance.
Selecting the Most Suitable Truck Loan Product
Integral to achieving truck finance that will deliver productivity and profitability is first ensuring that the features and benefits of the loan type will suit to the individual business structure and its goals for the new financial year.
The choice of truck finance includes:-
- Truck Leasing
- Chattel Mortgage Truck Finance
- Commercial Hire Purchase for Truck Finance
- Rent-to-Own Truck Finance
These have differences in which accounting method each is suited to; how the GST is treated; what elements of the loan are a tax deduction at what time; how the truck is treated as an asset on the balance sheet; and with interest rates.
As many of these factors relate to accounting measures, it is strongly advised that operators discuss the options with an accountant or financial advisor. While our role is to source the cheapest truck finance, an accountant with knowledge of the business accounts and objectives is best-placed to assist with this decision.
Structuring Truck Finance to Work Towards Goals
The structure of the truck loan can contribute or obstruct the path to business targets. If the repayment amount is not workable and puts excessive pressure on business cash flow it is unlikely to positively support the business.
Achieving a workable repayment structure involves negotiating on the individual finance elements – interest rates, finance term and balloon/residual. To assist in establishing a finance structure that is workable, refer to our Truck loan repayment calculator. Changing the term and balloon while keeping the rate consistent clearly demonstrates how the monthly repayment estimate changes.
Banks and lenders can have strict criteria around what they will and won’t approve in regard to finance structure. Our consultants assist business owners in this regard by negotiating with lenders to achieve the outcome that best suits the business.
Achieving the Cheapest Truck Loan Rate
Finance interest rates are key to achieving the cheapest loans. Coming into this 2022/23 financial year interest rates have become even more significant. Coming off the back of historic lows since November 2020, rates are now creeping up as the RBA enacts monetary policy to address surging inflation.
We have already seen several hikes in the cash rate and more are set to come. This places even greater importance on achieving the cheapest truck finance rate possible. Not only to ensure the repayments are workable but to ease cash flow pressure as other costs in the business may also be on the rise.
Our consultants handle the sourcing and negotiating for the cheapest interest rate truck finance from across our lender panel. This is a key area where having a vast choice of lenders is a distinct advantage.
Taxation Benefits
Evaluating the benefits available through the tax deductibility of different truck finance products is another important part of achieving key targets. Tax deductions can represents essentially a savings which make the truck finance more cost-effective.
Tax measures available in a financial year can vary depending on Government measures. In this 22/23 period, temporary full expensing is still available and Chattel Mortgage Truck Finance is best-suited to realising the benefits on offer.
While the tax benefits would not be realised until the annual accounts are prepared after 30 June 2023, the plans need to be put in place when the truck finance is established.
Jade Truck Loans consultants diligently collaborate with individual businesses on all these dimensions of a truck loan, encompassing everything from loan structures to interest rates. This meticulous approach guarantees an outcome that is not only feasible but also cost-effective, aligning harmoniously with the broader objectives of optimizing business finances. By opting to partner with Jade, you're effectively engaging in a strategic plan for positive action in this financial year and beyond, leveraging the expertise in Commercial Heavy Vehicle & Truck Loans for lasting benefit.
Contact Jade Truck Loans on 1300 000 003 for workable truck finance to achieve real business goals.
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.
