After a period of some form of ‘new normal’ business operations, the majority of Australian states are concurrently experiencing serious COVID-19 outbreaks, some of the more concerning Delta variant. Situations that have resulted in a lockdown and stay at home orders being put in place from coast to coast. The situation is extremely fluid and volatile with uncertainty prevailing as to whether these lockdowns will need to be extended and expanded or if they will be effective in containing the outbreaks.
Many businesses are being impacted by the health orders to varying degrees but support is available for eligible operations from both the federal and state governments and from lenders. While the situation is unfolding and changing on a daily and pre-press conference basis, we have swiftly compiled this information as it stands to assist our truck loan customers with the initial planning. We will stay across developments especially from our lenders and our Jade Truck Loans team is available to take your call with any specific queries in relation to your existing, in process or upcoming truck loan.
Support from Lenders
While our specific individual banks and lenders are yet to advise us of their arrangements in regard to support, the major banks are already, according to reports, pledging their support for loan customers that are faced with hardship as a result of the lockdown orders.
CBA, Westpac, NAB and ANZ are the first to issue statements in regard to their intentions to discuss tailored individual solutions for their loan customers. The relief available will vary and be subject to criteria but may include being able to defer to reschedule payments such as on truck loans and possible reductions and even waivers of some fees.
We would expect other banks and our non-bank lenders to also announce support packages as the current lockdown is affected such a large part of the country especially millions of people in Greater Sydney.
Government Support Measures
Individuals suffering hardship due to COVID-19 lockdowns can access support payments via the My Gov system, subject to criteria. These payments fall under disaster payments similar to those in the event of floods, bushfires and other disasters.
State governments typically issue support for businesses in areas subject to individual lockdowns. With Greater Sydney in a 14-day lockdown, the NSW Government has announced business support measures in grants based on turnover reduction available from 19 July. This support is available across NSW not just for businesses in hot spots.
WA and NT have also entered short-term lockdowns and businesses located in those states should check the website for their authority in regard to specific support.
Payments of this nature, both for business and individuals, need to be applied for. Some business supports are as grants which are cash payments and some in loan form.
Current Truck Loan Holders
If your business is impacted negatively by the lockdown orders and you currently have a truck under finance and are confronted with hardship, contact your lender in the first instance. Simply ignoring loan repayments and hoping ‘it will all sort itself out’ may result in negative outcomes and especially to a borrower’s credit profile. A scenario that can have long-term effects for a business.
If the situation is addressed with the lender immediately and directly, such outcomes may be averted. During the 2020 crisis when banks deferred many loans, it was noted that loan deference would not be listed as a negative on a credit profile.
Another scenario may be uncertainty around the future in light of the ongoing COVID-19 pandemic. If your business is constantly being impacted by these seemingly rolling lockdowns, you may wish to review your current truck loan. Specifically, you may seek to reduce your monthly finance payments to reduce the pressure on cash flow and provide breathing space for your business.
A restructuring of an existing loan can be achieved through refinancing your truck loan. This involves us establishing a new loan to replace the existing truck loan. It can be with the same type or different finance product and at a different repayment level and over a different loan term. Cheap interest rates still apply. While loan establishment and payout costs would apply, the longer-term benefits may be positive for your business. If this is of interest to you, speak to us about a quote.
New Truck Loan Applications
Jade Truck Loans continues to operate, business as usual, during lockdown periods as we did through the coronavirus crisis in 2020. Operating on a contactless, fintech business model, we continue to handle truck loans of all types.
- If you have recently requested a truck loan quote or submitted a loan application to Jade Truck Loans, your loan will be processed as per our normal procedures. Settlement is handled on a contactless basis so delivery of your new truck should not be delayed by the loan process.
- If the lockdown circumstances raise the necessity to reassess a loan application, contact us to discuss pausing or postponing your application.
- If you have plans to purchase a new truck, our truck loan services are available. Contact us via phone or online for a quote.
- You can also use our online truck loan calculator to compare repayment options.
Support from Jade Truck Loans
Our team continue to deliver cheap truck loan deals in and out of lockdown scenarios, Australia-wide. If you are in lockdown and considering a new truck purchase, use the truck finance interest rate table to help assist with comparing different options across multiple banks and lenders.
We continue to stay across this crisis situation and will advise regular updates.
Contact 1300 000 003 for a quote on a truck loan to suit your business situation.
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.