Commercial trucking equipment can be an extremely costly yet
vital component of many businesses. Whether you are in need of dump, long haul
or other trucks, you may find that truck loans can be challenging.
Understand the Basics:
While you may consider truck finance to be simply another form
of loan, this is an oversimplification. It is vital to have an understanding of
the basics of truck loans and other finance options to not only improve your
chances of approval but obtain the best deals.
The most important aspect of truck finance, Melbourne business
owners should be aware of is the credit criteria. Most finance companies have
their own set of truck loan criteria to determine whether the loan will be
satisfied in a timely manner. Generally, this includes factors such as how long
the company has been established and if the business has a strong financial
history. It is a good idea to prepare your financial records before applying
for any type of truck finance. You are likely to need to present income and tax
documentation including a history of your profits, which will demonstrate that
you are a low credit risk for the lender. Other considerations for the lender
include the type of truck finance
requested and the exact equipment you wish to finance.
Assess Affordability:
Of course, the lender will assess your financial information to
determine the level of risk. However, you should be aware that many finance
companies look less favourably on applications for longer loans. The reason for
this is that a longer term loan tends to present a greater risk for the lender.
Therefore, it is well worth assessing your capital and income to determine if
the business can afford to finance larger equipment on a shorter loan. Although
this will increase the cost of the repayments, it is more likely that you will
obtain approval and you are likely to save a great deal on interest payments
over the full term.
Choose a Specialist:
In these challenging economic times, you are unlikely to
receive approval for truck finance from any lender. High street lenders and
other generic finance companies are not particularly familiar with the costs
and benefits of this type of equipment, so it can be difficult to obtain
approval. Therefore, it is a good idea to look for a specialist in truck loans and finance.
Specialist companies are familiar with the industry and are able to more
accurately assess loan risks. This typically results in lower rates and
specific support such as lists of brands and equipment which are supported, for
ease of application. It may also increase your chances of approval by choosing
a pre-owned truck or less expensive model. This will enable you to borrow less
and pay it off more quickly, further improving your credit history and
relationship with the lender.
If you are in need of truck finance, contact us. We are a
specialist broker with access to a wide selection of lenders offering truck
loans and commercial finance. Our team of advisors would be delighted to assist
you in obtaining the best deals.
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