The construction industry in NSW is set to take a massive financial hit with the Premier Gladys Berejiklian calling a pause on all sites and works in the Greater Sydney lockdown area until 30 July 2021. The decision was taken as a further measure to limit mobility and curb the current coronavirus outbreak. The decision appears to have come as a shock to the sector with a fleet of construction truck owners and drivers staging a protest drive through the city on Saturday afternoon. Throughout previous lockdowns in 2020, most construction works both on large and small projects were permitted to continue. The sector was hailed as a major lifesaver to the economy as governments ploughed more stimulus funding into infrastructure and the home building sector.
We are well aware that trucking businesses are fundamental and essential to the construction sector and our team is on hand to assist our customers during this most critical period. It has been suggested that the cost to the economy of the construction pause could be in the range of $1.4 billion. But some analysts say it could be significantly more. Big numbers and big impacts.
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But for our truck loan customers, the real question is what does it mean for you, your business and your truck loan? What if you’re in process of purchasing a new truck and sorting your finance at the moment? We have sourced a range of information to assist business owners and sole traders to navigate the support and relief packages available.
Bank and Lender Support
If you have a truck loan and this pause creates financial difficulties for your business, you are urged to contact your lender as a matter of urgency. Both the banking and finance industry associations have issued statements stating a range of measures available to their business customers at this time.
Relief includes loan deferrals, fee waivers and refinancing but will be dependent on individual circumstances. It is imperative that loan holders address any issues rather than simply missing loan payments. By missing repayments, the business runs the risk of acquiring a poor credit rating which could have long term impacts on sourcing cheap interest finance in the future.
NSW Government Packages
The NSW Treasurer, Dominic Perrottet has announced a range of relief packages for businesses of many sizes. There are a number of packages available through Service NSW which include one-off grants and fortnightly payments depending on the size of the business. One of the basic criteria is to have experienced a minimum of 30% decrease in turnover in the period 26 June to 26 July 2021 compared with the same period in 2019.
Business owners, even micro-businesses, should refer to the details at https://www.service.nsw.gov.au/covid-19 to see what is available for their circumstances. Business concierges are available to assist.
Refinancing Existing Truck Loans
If the pause has you considering your existing truck loan commitments in the light of what may or may not lay ahead in regard to coronavirus, we may be able to assist you with refinancing your existing truck loan. Our team are specialists in refinancing truck loans and can swiftly respond to requests for quotes.
The refinancing process involves sourcing a new loan deal to cover the payout on an existing loan. Any lender fees, charges and penalties associated with paying out the existing loan early can typically be incorporated into the loan amount.
The refinanced loan maybe with the same or a different finance product than the existing loan. That means if you currently have a Truck Rental you may consider refinancing with say Leasing or Chattel Mortgage Truck Finance and vice versa. Being mindful that even if you purchased your current vehicle brand new, the refinancing quote will reflect that the vehicle, after several years of service, would be considered a used truck.
With interest rates currently at historic low levels, refinancing to achieve a lower repayment level may be an astute move. Our truck loans are arranged at fixed interest rates so the cheap rate we source for you on a refinanced deal will remain in place over the full term of the new truck loan. Click here to view our truck loan interest rates table.
Refinancing can be an opportunity to restructure the business finances to better achieve objectives in the future. Contact us to discuss the options and allow us to handle the entire process for you. Or as a starting point, call your lender for a payout figure on your existing loan and use our truck loan calculator to work up possible repayments on a new loan deal.
New Truck Loan Applications
With many great deals on offer with EOFY and new models recently released, we fully appreciate that many of our customers are in the process of purchasing their new vehicles. If we are currently working on your truck loan – quoting, processing the application or approaching settlement, we assure you that that process will continue. That is of course unless you choose to pause or rethink the deal in response to the current changing landscape.
Our Jade Truck Loans team will not be paused at any time and we are available to assist our existing and new customers through this period.
Contact 1300 000 003 to discuss all issues around new and existing truck loans.
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.