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NAVIGATING TRUCK FINANCE

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Trucks are the backbone of logistics and supply chains in Australia, and for many businesses having access to trucks is essential for their operations. 

Whether you’re a small business owner looking to buy your first truck, or a larger organisation seeking to expand your fleet, it helps to understand how a commercial finance broker can assist with making this process as easy as possible.

What is truck finance?

Truck finance, also known as asset finance or equipment finance, is a specialised type of business loan that is designed to help your business finance the purchase of a heavy vehicle or vehicles.  By spreading out the upfront costs over time, truck finance can enable businesses to acquire the vehicles they need to carry out their business operations, but without having to wear the full financial burden upfront.

We source commercial finance for trucks via our panel of 48 lenders, which includes both banks and non-bank lenders.

 

How financing your truck purchase can help your business

There are a number of business benefits to borrowing money to finance your truck purchase:

1.  Get the best – If you’re trying to finance the purchase of the truck from your own pocket or business profits, you may have to settle for less. Truck finance allows you to buy new, or buy bigger, if that’s what you need.

 2.  Maintain cashflow – Having the truck financed means that you can maintain cashflow within your business for other things you may need such as wages, paying suppliers, and more.

 3.  Flexibility – We can work with you to find a lender and a finance solution that is tailored to your needs and individual circumstances. For example, lower initial payments with balloon repayments at the end, or funding older assets that are a cheaper investment.

 4.  Business Growth – By investing in your first truck, or expanding your fleet, you enable yourself to grow your business by taking on additional or bigger contracts, and/or deliver on existing contracts quicker.

Different types of truck finance options

When it comes to financing a truck, there are a number of different options including Chattel Mortgages, Leases, and Small Business Loans.  There are pros and cons for each of the options available, and sometimes these can be hard to weigh up on face value, and lower interest rates doesn’t always equal the best deal.

Speaking with a commercial finance broker like Alegra Financial Solutions as early as possible in the process means that we can help to guide you down the correct path for your individual circumstances.

We’ll also work closely with your accountant to ensure that our recommendations are aligned with your business growth and tax strategies.

 

The information a finance broker will need

When seeking finance for the purchase of a truck, there are a number of pieces of information that a finance broker will need in order to seek out the best lender for your requirements.

Outside of your standard business information such as your trading name, ABN/ACN, and how long your business has been established, below a short list of the things relating to the asset (truck) that you’ll need to have ready:

  • Is this a private or dealer sale?
  • The make and model of the truck, including the age and weight
  • The intended usage of the truck – e.g. long or short haul, is it for moving equipment or dangerous goods?

These pieces of information are important as they also help us to determine which lender we will consider for your finance.  For example, prime movers and road trains are usually only financed by the major banks.

 

Ready to get finance for your truck?

Truck financing can be a complex process, but with the right information and strategies, businesses can make informed decisions that support their operations and financial goals.

Alegra Financial Solutions has assisted businesses across Australia with financing for their truck purchases in many varied types of industry including removalists, trades, manufacturing, food and beverage, hospitality, couriers, and more.

Contact us today to discuss your truck financing needs > Contact Us.