Commercial Truck Financing
Financing Commercial Trucks is often a lot more complicated than financing a car or motor bike. With such a large and important investment you need to get the best balance to suit your situation.
Across the industry there is a wide range of specialised applications requiring trucks ranging from small tippers to large fleets of B doubles, and every situation is different. We find solutions to best suit your cash flow and business growth.
Do you qualify for commercial truck financing?
When applying for a traditional business loan there are factors that need to be taken into account. Some of these include personal credit score, the time you’ve been in business and the revenue of your business. However, applying for commercial truck finance is different as the lender’s risk is minimised as the truck is an asset. This means it can act as collateral for the loan.
A stronger financial position will allow you to finance 100% of the value of the truck for lower interest rates. Whereas a weaker one may require you to put more of a deposit down with slightly higher interest rates.
Commercial Truck Loan or Lease?
Commercial truck financing can be done via a lease or a loan. Which one is best for you depends on your circumstances. With a loan you make your repayments and once all is paid you will own your truck outright. This makes it similar to other forms of loans.
For commercial truck leasing options there are two main types of leases: operating leases and finance leases.
Operating Leases
An operating lease allows you to rent the truck for a lower monthly payment than if you were to take a loan on the truck. However at the end of the term of the lease you won’t own the truck. You can purchase it for the going market rate. This option is a good option for business owners needing to keep their cash flow in control. Also you can easily upgrade the truck and take a new lease at the end of the lease.
Finance Lease
A finance lease (also known as a capital lease) allows you to make monthly payments towards your truck. At the end you are able to own it for a nominal sum (such as $1). This is more like a loan but is called a lease for taxation purposes.
How we can help you
We assess your situation and the truck(s) that you’d like to finance. We then put together a commercial truck financing solution that works best for you. At the same time as organsing your finance we can arrange commercial truck insurance. This streamlines everuthing so you can start making money as soon as you take ownership of your truck(s).
Our team believe in having close customer relationships. As such we take the time to understand your business making it easier for you to upgrade and add more trucks to your business down the track as you grow.