Jade Truck Loans FAQs

As an owner-operator you have the choice of the full range of truck loan products including leasing, rent to own, Chattel Mortgage and CHP. To be eligible for business finance you will need to have a current ABN, ID and other financial documentation. The length of time you have been operating and the amount of financial documentation or docs that you can provide for your loan application will determine the terms and conditions of your truck loan offer. For businesses that operate as a sole trader with an ABN, have been trading for usually under 12-24 months and do not have the complete documentation requested by banks there are several options. These businesses can apply for an ABN only Truck Loa, a Low Docs or No Docs Truck Loan. These loans are usually not offered by banks but brokers have access to non-bank lenders that do offer such loans. The interest rate on these loans can be expected at the fully documented loan rate but additional conditions and criteria are usually applied by lenders. These conditions may include additional property being provided as security against the loan, a threshold on loan limits and other conditions. Refer to Low Docs Truck Loans web pages for full details.

The types of truck loans are the same regardless of where you are located or where the truck you are buying is located. The finance products for truck purchases include Chattel Mortgage, CHP, Rent to Own and Leasing. The interest rates on truck loans are not affected by location of the truck or the buyer. Lenders assess applications and prepare finance offers based on the credit profile and other aspects of the loan application and the age/condition of the vehicle if a used truck. Any loan you may be offered for your truck purchase should not be impacted by your location or the location in Australia of the truck. Some finance providers can arrange truck loans with a contactless process and provide a national service. If you require assistance with checking encumbrances and vehicle verifications on an interstate registered truck, your finance broker should be able to assist with those aspects for you.

In most cases that is possible. In the finance industry including the total amount of a purchase in the truck loan is referred to as no deposit finance. It allows the business to use their cash funds for other purposes rather than use funds to pay a deposit to the seller. No deposit finance is available from many lenders and is available for all finance products. This is distinct from any deposit that the truck dealer might ask you to pay to seal the deal. Often truck dealers will require some form of down payment before they will prepare a truck for delivery to the buyer. If that occurs, ask the dealer if they would return that deposit to you after the lender has settled payment for the full purchase price. If applying for a no docs, low docs or bad credit truck loans, some lenders may have thresholds and conditions as to the amount they will approve for the loan. In such instances, a lender may request the borrower to reduce the loan amount being requested.

Truck buyers can select from the full selection of commercial finance products for both new and used truck acquisitions. These include Chattel Mortgage, Leasing, CHP and Rent-to-Own. Chattel Mortgage is often referred to as Equipment Loan by some banks and lenders. The different loan types have differing features and approaches in regard to treatment of GST, entry of assets on the business balance sheet, the way income tax deductions are realised and their suitability to either the cash accounting method or the accruals accounting method. For example, with Leasing and Rent to Own the monthly payments are tax deductible but with Chattel Mortgage the tax deduction is realised through depreciation of the asset when the end of year accounts are prepared. It is advisable to refer to your accountant in selecting the truck loan product.

Interest rates will vary across the different types of truck loans and from lender to lender. Truck loan interest rates are set by individual lenders based on a range of factors including the official cash rate, their costs of acquiring funds, exposure to the trucking and transport sector and their assessment of individual applications. To make it easy to see the different rates we are currently achieving, we’ve set up an interest rate comparison calculator. It shows the rate across the different loans we offer and will apply to most applicants. If you don’t have all the docs for a loan application or you have credit issues, the interest rate on your loan should be as shown but additional conditions may be applied to the loan. Finance is usually arranged at a fixed interest rate so once you have secured your finance contract, the rate and the repayments will remain constant for the loan term.