Whether it’s a major scheduled service, an engine reconditioning, or unexpected repairs due to a breakdown or accident, a large vehicle maintenance bill can be a major worry for many business operators. The cost of the repairs plus the losses incurred in having the vehicle off the road and unserviceable can be significant plus the possibility of having to hire replacement vehicles. Costs which can seriously stress cash flow, result in loss of income, reduced profit, pose a risk of losing customers and reputational damage, and impact achieving key business objectives. Affordable options for covering these costs are available with truck repair finance.
To cover costs of heavy vehicle repair and maintenance costs, Jade Truck Loans provides truck repair finance with overdrafts and secured and unsecured loans. The choice of the most suitable credit facility may depend on the amount and repayment period required, cash flow and financial objectives. Consider this general overview of the options and discuss your specifics with one of our brokers.
Types of Work Covered by Truck Repair Finance
At some stage in the working life of most heavy vehicles, major mechanical or body work will be required which is not covered by warranty or insurance. Financing is available to cover a wide range of these types of expenses. The work covered may include:- major services not covered by warranty; engine reconditioning; smash repairs as a result of an accident and not covered by insurance; the cost to convert to a more efficient fuel system; the replacement of major parts; upgrading safety and technical systems; and the installation of new features and systems to meet new compliance regulations. Loans may be arranged to include the cost of both parts and labour. Or if carrying out the work in your own service department, financing for parts only can be arranged.
Financing is available for service and maintenance work on all major heavy vehicles – light, medium and heavy-duty from the major manufacturers including Mack, Kenworth, Scania, Volvo, Isuzu, Hino and others.
Credit Facility Options for Truck Repair Finance
Operators may consider a number of credit facilities to cover the cost of their vehicle maintenance expenses. The choice will depend on the specific requirements, the total amount of credit required, and the timeframe preferred to repay the loan.
A Business Overdraft can be a versatile facility to cover the cost of repairs where the operator seeks flexibility with repayments, and for smaller loan amounts. Overdrafts are used for a wide range of business expenses and are extremely popular as interest is only applied to the amount of the funds used over the time period used. Overdrafts can be paid down in a timeframe that suits cash flow. Providing operators with a highly flexible choice.
Vehicle repairs would be treated as a non-asset business expenditure. But a Secured Business Loan may be secured for the purpose, with property, vehicles or other assets as collateral. This type of credit is arranged with a fixed interest rate and over a fixed term. Making a Secured Loan suited to high-cost maintenance work. Rates are lower than for Overdrafts, making this an affordable option worth considering.
Where collateral is not available for secured credit, operators may consider an Unsecured Business Loan. This can be arranged with fixed or variable rates, and over a fixed term. With no collateral required, rates are higher than for Secured Loans.
To compare the options using the figures required for your repair costs, calculate estimates using our Truck Loan Calculator.
Businesses Eligible for Truck Repair Loans
To be eligible for financing to cover vehicle repairs and maintenance, businesses will need to meet the criteria for commercial credit. Applying for financing involves providing a range of financial documentation and credit scores are reviewed by lenders. Operators with no or little financials or who have been trading for less than 12 months, we can source quotes for financing on a low doc basis.
All types of business structures may be eligible including SMEs, sole traders, owner-drivers, fleets, partnerships, family enterprises, and companies.
How to Fast Loan Approval - Get Vehicles Back on the Road ASAP
Where repairs are required due to an unexpected breakdown, making the vehicle completely unworkable, time will be a critical factor. We assist operators to quickly source the most suitable financing option at the best interest rates, to ensure the repairs can get underway asap.
With our experts handling your financing requirements, approvals can be obtained within 24 hours with prompt settlement to ensure the funds are quickly available to order the work required. To get your unserviceable vehicles back on the road faster and ease pressure on your cash flow, speak with us about vehicle repairs loans.
To discuss the truck repair finance options to suit the specific work required on your vehicle, speak with one of our Jade Truck Loans brokers on 1300 000 003.
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.
