05 July

ABN-Only Truck Loans – A Reality!

  • Is it time for you to get moving on your own?
  • Ready to set-up your own trucking operation?
  • Have an offer for great work but only as a contractor not on an employee basis?
  • Time to take the step to sole owner-operator?
  • Interested in a change of career and want to own your own truck?
  • Starting up a business and need a truck for deliveries?
  • Want to set-up your own delivery business and need a truck?

BUT – you need a truck and all you have in the way of docs is your ABN.

How can you source a truck loan to get the truck to do the job without the docs?

You need to be working and trading to get the docs to get the truck loan to buy the truck in order to start to do the work. It can be a frustrating and seemingly endless catch-22 scenario. You have the initiative, motivation and prospects to get started in your own operation but the banks are preventing it all from happening because you don’t have all the docs to qualify for their truck loans.

Enter- Jade Truck Loans with our ABN Truck Loans to break that deal-breaking ‘no docs no truck loan’ circle.

An ABN Truck Loan is a type of loan which falls into the same category as No Docs Truck Loans and Low Docs Truck Loans. They share some similar features but also individual conditions. ‘Docs’ is the term used in the financial sector to refer to documentation, in most cases financials and proof of work and income.

ABN Truck Loans: Specs & Reqs

To secure an ABN Truck Loan, there are some essential requirements which are fairly standard. But individual lenders may also include their own terms and conditions on individual loan applications.

This is quite a specialist type of loan and all applications have their positives and negatives which need to be considered by the lender. Banks don’t usually offer ABN-only truck loans.

General requirements and conditions:-

  • ABN is essential of course. You must have a current ABN.
  • ID – as with opening any bank account and conducting any official business, you will be required to produce proof of your ID.
  • GST status. Some ABN holders are registered for GST and others are not. If your annual turnover is $75,000 or more, a business must be registered for GST. Some lenders may look more favourably on truck loan applicants that are registered for GST. If not registered, additional conditions or a higher interest rate may be applied.
  • Any financial documents that you may have, while not essential may be helpful to you securing a better loan. These may include bank statements, BAS docs, basic accounts that you may have prepared yourself.
  • A Business Plan is sometimes requested by some lenders and in some cases, this can assist your application.
  • ABN Truck Loans are considered a higher risk loan than fully documented applications and therefore a higher interest rate will usually be charged.
  • The truck will used as security for most ABN truck loans – noting that some lenders do not offer loans on very older models.
  • If no additional security/guarantee by way of business records are available to support the loan application and if you have only recently received your ABN, the lender may request a deposit be paid on the truck purchase.

As with all Jade Truck Loans, your Jade consultant will be sourcing you the best offer from our large lender panel and negotiating the cheapest interest rates and most favourable terms and conditions possible.

Truck Loan Types

The full range of commercial truck finance products is accessible for ABN-only loans, depending of course on the requirements of individual lenders.

Deciding which particular loan type is best suited to your business operation will depend on a number of factors: the accounting method you use; how tax deductions and GST are treated varies with the different loan types; balance sheet strategy – if you prefer an off-balance sheet option.

We advise customers to consult with their accountant in regard to the most suitable loan type for their business. You can check the specific details of each of these loan types on our web pages.

Then your Jade consultant can get to work to get you a quote.

If you’ve been rejected by the bank for a truck loan or hesitant to even approach a lender to ask, Jade Truck Loans may still be able to assist. We have contacts with specialist lenders that offer this type of loan.

The bottom line – if you’re setting up a new business, have an ABN and no other financials or very little, a cost-effective truck loan is a possibility. But the more documentation that you do have, the better your application is likely to be considered and hence the lower the interest rate and lower the loan.

To discuss your options for an ABN-only truck loan, contact Jade Truck Loans on 1300 000 003 and speak with one of our consultants

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