The sole trader structure is a very convenient way to set up a business and offers many business owners a more cost-effective way to operate their truck business than a pty ltd set-up. The sole trader set-up does allow businesses to employ others, but not themselves; you only have to be registered for GST if turnover exceeds $75,000; you essentially only need to get an ABN to start operating, and you don’t have some of the costs and reporting requirements associated with incorporation.
Being a ‘one’ can be a great way to operate, creating flexibility to adapt quickly to changing market and customer conditions and to capture opportunities as they present without having the reference to others to discuss. It can present a very viable option for those looking to transition from employee to self-employed.
There are of course responsibilities and obligations in regard to tax and other regulations and there can be downsides when you apply for finance. The entire loan application process itself can be time-consuming and the response from banks and finance companies to small sole trader applicants can be disappointing.
Jade Truck Loans provides specialist lender services to ensure sole trader truck owners don’t have to face the finance challenge on their own.
Sole Trader Truck Loan Service
One of the first issues sole traders often realise when they start the loan search process is how much time they are going to need to set aside to do the task thoroughly. For most business owners, time is money! Contacting sufficient banks and finance companies to get enough quotes to be confident you’ve found the cheapest can take some time.
Jade gives you back that time by handling that stage completely. Accredited with a vast number of lenders and with access to industry-level intelligence, we know which lenders will best suit the individual requirements of our customers, especially sole traders.
At the same time, we negotiate your application through the sometimes difficult conditions that some lenders often attach to sole trader loans.
Even sole traders who have a long trading history can still be confronted by demanding lenders creating an obstacle course of hoops for applicants to navigate their way through. In using our broker service, many of those issues can be resolved by your Jade consultant. Saving you the frustration.
We offer sole traders the same range of truck loan products that we offer to large companies. The sole trader status doesn’t of itself determine which is the better loan product. That decision should be arrived at based on consideration and assessment of the features and benefits of each loan products in the context of the business operator’s objectives.
The selection of loan types include:-
- Truck Chattel Mortgage or Heavy Equipment Loan
- Truck Leasing
- Commercial Hire Purchase
- Truck Rental or Rent to Own
There numerous differences between these loan types including how GST is treated, what elements of the loan repayments are tax-deductible, if the truck can be depreciated, balance sheet approach which relates to the ownership of the truck during the loan term and the suitability of the loan type to either the accruals method of accounting or the cash accounting method.
Business owners are strongly advised to consult with their tax agent or accountant in making this decision.
One key point to note is in regard to IAWO – Instant Asset write-Off. This was introduced as part of the stimulus package by the government and tweaked in the October 2020 Federal Budget. IAWO has been widely promoted by finance companies and truck dealers over the past 12 months so most operators are well aware of what is involved.
Subject to meeting the criteria (refer to ATO for details) sole traders can take advantage of the measure. But in order to do so, businesses need to acquire the truck with suitable finance and that would be Chattel Mortgage.
New Business Sole Trader Loans
Where a sole trader is in the early stages of starting the business and as such does not have the full documentation as in financial records required by some lenders such as banks, we have solutions!
- Low Docs Truck Loans
- No Docs Truck Loans
Not all banks will offer this type of loan as they have pretty strict loan guidelines which they must adhere to. We source these loans through specialist lenders who make low doc loans an integral part of their business. If approved, low doc loan applicants can select from the full range of loan products as listed above.
Contrary to what many think, the interest rate on truck loans is not determined by the size of your business. Sole traders and SMEs are entitled to the same cheap interest rate as we achieve for large corporations with significant backing. Compare our truck loan interest rates here.
Jade Truck Loans can effectively become your lending partner and contribute exceptional expertise and professional insights into your sole traderership, with no obligations attached. Going alone in the lending scene can be a brave move. The bold move is to partner with Jade to ensure a streamlined process and a cheaper truck loan is secured.
Contact us on 1300 000 003 to discuss your lending 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.