Getting Truck Finance
Getting Truck Finance and other truck finance products approved, can be a challenge for any individual. Luckily, many finance companies are more than willing to work with a future owner/operator or fleet manager in order to secure the right finance, loan, lease or rental agreement for your needs.
Start With A Plan
While there are varied requirements for Truck Finance in Australia, most companies adhere to certain guidelines concerning what they expect. To help meet those guidelines, it is best to develop a business plan or strategy. This is something vital a finance company will be looking for in order to provide commercial truck loans.
A business plan and realistic cash-flow projection show the financier you have given serious thought to getting into business for yourself.
Not everyone who is new in business will qualify for a Business Truck Loan (Chattel Mortgage) This truck finance product is the first choice of Accountants and is normally the cheapest.
Many however will need to enter into a Rent or Lease to Buy agreement. These are not the end of the world, For the non finance expert the finance will feel the same as a Chattel Mortgage. You will make payments weekly, fortnightly or monthly. In most cases you will be advised a payout figure. Some for the end of the agreement, some will give you annual payout figures. These agreements are used as stepping stones to get you to the optimum Chattel Mortgage. Rent to Buy Agreements are on the increase in Australia.
Getting to a main stream Truck Finance Chattel Mortgage is simple, make your payments on time, after 12-18 months look to refinance out of your rental agreement.
You still get good Tax Benefits, You get back the GST on each payment and you clain your rental payments as a Taxable Expense.
Develop The Partnership
Both the owner/operator and the finance company are in a partnership. The finance company is there to help you succeed. It is in their interest, as well as yours, that the overall company is a success. Be willing to work with the partnership to make the most of the good situation even better. Working together, both you and the finance company can be a great team.