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Dealing with More Border Closures and Restrictions

The freight and general transport sector is once again dealing with the frustrations of new border closures and tightened restrictions as a result of COVID-19 outbreaks in several states. After being acknowledged as the heroes that are keeping Australia supplied through the pandemic, truck owners and operators are sadly some of the most seriously affected when state borders are closed. Permits need to be sought, regular COVID tests done and other compliance issues adhered to. All factors that can cause delays, incur additional time for operators and in transport that usually means loss of income or productivity. Containing or reducing outgoings is always important but more critical than ever right now.

Moves have been made in several circles to work towards improving protocols and procedures for interstate freight operators. Opportunities to reduce costs can also be considered to ease the burden of outgoings such as truck loans, in what could be an ongoing scenario for some time.

State border closures are implemented by individual state governments, but in a recent press conference, the Prime Minister called for transport minister to get the situation sorted. Mr Morrison acknowledged the great job being done by truckies and the need to minimise inconvenience for the sector.

The trucking and transport associations have been making efforts to improve the situation for their members. Several associations are working with authorities in the areas of getting quick response tests, more drive through testing centres in key transport hubs and pushing for use of self-tests.

Current Restrictions: NHVR

As a result of the growing outbreak in NSW, changed border conditions and additional restrictions and protocols have come into effect from 23-24 July. Complete and latest details can be sourced at https://www.nhvr.gov.au/about-us/coronavirus-response the NHVR recommends drivers bookmark this page for quick access to the latest updates.

Overview:-

  • In the Greater Sydney hot spot LGAs, those truck drivers identified in critical industries and leaving the LGA for work, are required to undergo regular surveillance testing for COVID-19 every 3 days.
  • NSW heavy duty testing centres to be manned 24 hours.
  • The Queensland border is shut to NSW and mandatory coronavirus testing comes into effect from 30 July.
  • Changed freight protocols in place for entering Queensland.
  • South Australia requirements for the heavy vehicle sector involving essential travellers is now once per week testing rather than every 48 hours.
  • Special permits required to enter Victoria.
  • WA mandatory tests when entering from restricted zones.

Refer to the state you will be travelling to/through for the latest details on protocols.

Reducing Outgoings: How we can assist

Maintaining supply chains is critical to the nation but for individual business operators, maintaining their own business viability and profitability is equally critical. If transport operators and truck owners can’t achieve sustainable financial positions, the disruption to the national supply chain could be disastrous.

While associations continue to lobby and work with the authorities to ease border protocols, Jade Truck Loans can work with individual operators to achieve a manageable and workable truck finance situation.

Truck loans arranged several years ago, pre-COVID, may have been secured at higher than current truck finance interest rates or based on income/business projections which are no longer achievable under the current situation. If existing truck loan repayments have become a major burden on the business, refinancing may present a suitable solution.

Our consultants work with individual businesses to source and structure refinancing deals to specifically suit requirements. Refinancing trucks can involve a cost element in regard to fees attached to paying out the existing loan early and establishing the new loan. These are to be considered against the savings made on achieving a cheaper interest rates and/or the benefits of lower loan repayments on cash flow.

Easing pressures on cash flow over the term of the loan with lower fixed repayments, taking into account the uncertainties of the coronavirus situation, may be key to achieving improved productivity for the business.

Truck loans can be refinanced with the same or a different loan product to the existing loan. Providing business owners with the opportunity to take advantage of any additional tax benefits from changing loan types.

Refinanced truck loans can attract our same cheap interest rates as new loans. Refer to our Interest Rate Comparison Chart to see what repayments you may achieve with a refinanced deal. Refinancing can be done for all types of loans for all types of vehicles including low docs, no docs and bad credit loans.

While refinancing may sound like a time-consuming and involved process, especially at a time when truck operators are under enough time pressures, don’t worry. We will allocate you a Jade consultant to handle the entire process for you. Our services are provided in a contactless manner via email and phone. So the refinancing procedure can proceed while you are on the road working – no problem.

Proceeding with Truck Loan Deals

While the latest border restrictions and protocols may cause disruption to your scheduling, they should not impact truck loan deals currently underway with Jade Truck Loans. We know that many business owners have been or are planning to take advantage of IAWO and temporary full expensing with new truck purchases at this time. Be assured that finance deals are still proceeding, regardless of the evolving coronavirus situation.

If in the process of applying or commencing a new application for truck finance with Jade to purchase a new truck, the latest restrictions will not impact that process. We continue to assist our customers to achieve a workable truck loan to maintain and sustain their business over the coming years and beyond.

Contact US on 1300 000 003 to discuss your  financing and refinancing requirements.

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.

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