There are key times in the lifecycle of a business that an owner will revisit and reassess their financial requirements. Currently, that timing may be brought on with the start of the new financial year or the ongoing and seemingly never-ending COVID-19 situation. The start of a new financial year is a good time to reflect on how current loan commitments are or are not working for the business. The business may have expanded or contracted over the past year(s) and the current loan deal is no longer fit for purpose moving forward.
The business may be embarking on a significant expansion with the purchase of new vehicles to cater for emerging business opportunities. The ideal time to take a whole-of-business view of finance commitments.
Then there is COVID. After several months of reasonably good times, minimal locally acquired transmissions and many businesses returning to a more regular operating format, a major outbreak has occurred. The June 2021 outbreak is quite widespread, though not all are connected. A situation that brings into sharp focus the repeated messaging that this could go on for some time to come. Businesses that have ‘made it through’ to now based on existing financial set-ups may consider now is the time to make permanent adjustments to their truck financing arrangements.
Click here to read more on COVID-19 outbreak in Australia.
Other permanent changes may involve a driver choosing to move to owner-operator, self-employed status with their own truck.
Truck finance is a major part of our business and our team of licensed finance professionals is well-equipped to assist both new and existing customers to refocus, reassess and restructure their truck loans. We offer a range of truck loan options and tailored solutions to suit individual needs. The solutions will vary depending on need but are all priced at our cheap interest rates.
Refinancing Existing Loan Arrangements
One of the most popular ways to address changed business circumstances is to refinance existing loan arrangements. Truck loans can be sourced for up to 7-year loan terms and a lot can happen and change in that timeframe. One thing that has definitely happened over recent years is that interest rates on lending have been cut significantly. A loan sourced today will likely be priced at a much lower interest rate than the same loan sourced a few years ago.
Truck loan refinancing involves sourcing a completely new loan arrangement to replace the current loan. The new loan would cover all outstanding repayments, balloon/residual and the payout fees and costs involved in finalising the current loan. Refer to our article on truck finance payout and break fees as a reference. The standard fees would also apply to setting up the new loan so all these costs should be taken into account when considering refinancing.
A loan can be refinanced with a different financial product to the current loan. That could mean changing from Rent to Own to Leasing, or Leasing to Chattel Mortgage or any other variation. As you can see from our Truck Loan Interest Rate Table, the interest rates vary across the loan types. So refinancing at a cheaper interest rate loan may be of benefit to a business.
The process also presents the opportunity for a business to establish a more workable repayment schedule – either higher or lower monthly payments. If the business is doing exceptionally well, a higher repayment and shorter time to own the vehicle may be seen as highly beneficial. If the business has been impacted by the recent economic conditions, reducing monthly outgoings with a lower repayment could ease cash flow.
Whatever your objectives, your consultant will work through the options and source the cheapest and most appropriate refinancing deal.
Combining New Purchase with Existing Truck Loan
If a business is considering expanding its fleet to take on new work, the option may exist to combine the new truck loan with existing loans on other vehicles. This would involve refinancing the current loans but would deliver a single monthly repayment which may streamline the business accounting systems.
Options Moving Forward with New Truck Finance
If the reassessment process identifies the need for new or additional trucks for the business, there is a range of truck loan products available to finance the acquisitions:-
- Truck Leasing
- Truck Rent to Own
- Chattel Mortgage or Heavy Equipment Loan
- Commercial Hire Purchase or Hire Purchase
All these loan types include tax-deductible elements but vary in the treatment of GST, suitability to the cash or accruals method of accounting and in whether the lender or borrower holds ownership of the truck over the loan term. Regardless of the loan differences, all are priced at our cheap interest rates, have a fixed interest rate, fixed loan term up to 7 years and fixed repayments.
Low docs and no docs truck loans are available across our portfolio.
Calculating Truck Finance Alternatives
If you’re weighing up options and alternatives to your current finance deals or considering taking on new truck loans, our truck loan repayment calculator can be of great assistance in your planning.
Great tools for planning your moves forward and clarifying finance reassessment and restructuring plans. Or simply call Jade Truck Loans and let one of our consultants do the hard work of sourcing and structuring a loan to suit you.
Whatever the changed circumstances you may be confronting, we can assist with the lending side of those changes.
Contact 1300 000 003 for a quote on a truck loan.
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