A donut is not generally considered as 'good' if you're dieting or sought after if you're playing tennis or cricket. But in today's coronavirus climate, a donut and even better, a double donut day, is sweet as. Not only is it great news that no new locally transmitted cases of COVID-19 and no deaths from COVID-19 have been recorded in that jurisdiction, it represents great news for business.
Double donut days are an indication that the economy can reopen and fire up, meaning more businesses open and operating and, in general terms, more work for truck operators. At Jade Truck Loans, we stay across the economic indicators and bring you a brief overview of what options, opportunities, and openings double donut days may present for your business, especially in the realm of Used Truck Finance - Old Trucks Loans.
Business Outlook
After months in a second wave lockdown, Victoria emerged to finally start recording those highly prized double donuts. While the rest of the country was already showing positive signs of recovery, post-COVID with consumer confidence figures and other indicators on the up, it is expected that the state will be take longer to recover economically.
While Australia remains closed to international travellers, trade with our Indo-Pacific partners received a boost in mid-November with a new trade deal. In a joint statement, the Prime Minister Scott Morrison and Trade Minister Simon Birmingham announced the signing of the Regional Comprehensive Economic Partnership (RCEP) Agreement. The agreement is between Australia and 14 other countries in our Indo-Pacific region and is set to present better export opportunities especially for Australian farmers.
Encouraging news for businesses in the agricultural sector and in particular, truck operators that specialise in transporting farming produce and supplies.
All eyes are now on the individual states which are bringing down their annual budgets which were postponed from earlier in the year. In the pre-budget announcements, several states are supporting businesses by way of payroll tax relief amongst other cost reductions and there is a big push in infrastructure projects, setting up excellent opportunities, especially for Australian farmers who rely on transport – a sector where Using Jade Truck Lending can be a significant advantage.
Interest Rate News
Sweetening those double donuts even more was the RBA’s decision to cut interest rates at its 3 November meeting. The RBA cut the official cash rate from .25% to .1% which should see a flow-on in even lower interest rates for borrowers across several sectors.
An interest rate cut in conjunction with economies reopening should be a massive boost for many business operators. For specialist truck and transport operators that should mean more goods to be moved and that’s always good news.
Cheap Interest Rate Truck Loans
Bringing the positive signs and announcements together and adding in the Federal Budget investment incentives of Instant Asset Write-Off and temporary full expensing, and conditions could be ideal for a truck purchase. It could be time for you to move that new truck purchase decision from the back burner to the hot plate and start organising your finance.
Jade is renowned for a better interest rate truck loans and with the official rate reduced to a new historic low, we can likely sweeten our deals even more.
Our truck loan options include:-
- Chattel Mortgage: this suits businesses that use the cash accounting method and suits those wanting to depreciate their truck with the IAWO or full expensing measures. Often referred to as an Equipment Loan by some banks.
- Truck Leasing: an off-balance sheet finance facility which is considered as a strategy to improve the balance sheet. Repayments are treated as an operating expense and tax deductible.
- Rent to Own: another off-balance sheet and popular option for businesses that don’t want the added burden of a major asset on their books.
- Commercial Hire Purchase: not the same as ‘hiring a truck’ this is a finance product for asset acquisition.
Speak with your accountant if you have queries around which loan type is best suited to your business. If you already know, then give Jade a call for a quick loan quote.
Low Docs and Bad Credit Options
For many businesses, 2020 has seen donuts of the negative type. Zero, zilch, nothing in terms of work or new prospects. The border restrictions have created havoc for many truck operators and for some that much-needed new truck purchase may not appear to be possible.
Before you discard your plans, have a chat with a Jade consultant. Unlike banks and some finance companies, we don’t immediately dismiss finance applicants when they don’t meet all the loan criteria.
At Jade, we are accredited with many non-bank lenders that are more flexible when it comes to loans for businesses with less financial documentation and for those with credit issues. Your consultant will discuss your particular circumstances and present the possible options we can pursue on your behalf.
Moving Forward
As the country aims for a consistent and permanent run of double donut days, there are positive signs for businesses looking to invest in new trucks and equipment. To move forward with your plans, contact us for an obligation-free discussion.
To discuss your options for a truck loan contact Jade Truck Loans on 1300 000 003
DISCLAIMER: THIS ARTICLE INCLUDES SPECS, DETAILS, DATA, POLICIES AND MATERIAL WHICH HAS IN THE MOST PART, BEEN SOURCED FROM THIRD PARTY SOURCES. NO LIABILITY IS ACCEPTED FOR ANY MISINTERPRETATION OF THAT MATERIAL OR ERRORS IN PRESENTATION. THE ARTICLE IS PROVIDED AS GENERAL INFORMATION FOR READERS AND IS NOT PROVIDED WITH ANY INTENTION THAT IT BE USED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. IT IS NOT OFFERED AS FINANCIAL ADVICE AND IS NO WAY INTENDED AS SUCH. THOSE THAT REQUIRE ADVICE AROUND THEIR INDIVIDUAL FINANCIAL SITUATION SHOULD SEEK CONSULTATION WITH A FINANCIAL ADVISOR
