Apply for a Truck Loan
Are you looking to purchase a new truck or add another truck to your fleet? Consider apply for finance through Braid Finance and save yourself time and money searching for potential lenders.
Our service will ensure you have complete transparency and communication from start to finish. Our team of finance professionals are here to find you suitable lenders with the best interest rates.
There are plenty of truck finance products available to suit different financial situations. So if you have been rejected for a truck loan before there is no need to worry. We have help hundreds of Aussies with a second chance at truck finance.
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Truck Finance Options
When comparing your options, be on the lookout for the following.
- Interest rates. The interest rate charged on your loan determines how much you will end up paying at the end of the loan term. Always be aware of the rate you are being offered.
- Loan term. Loan terms can be set for short periods of time such as 6 months to a year or longer periods such as 5 years and above. Going for a shorter term means your interest rate will be lower but monthly repayments will be higher whereas for longer terms, your interest rate will be more but less monthly repayments.
- Minimum repayments. It is important for you to be aware of what your minimum repayments are for your loan and whether it fits well with your income and budget.
- Fees you will be charged. There are lenders who charge a monthly account fee on top of your loan or early repayment fee. Make sure you are aware of any fees that are applicable to avoid having to pay more money than you had expected.
A Chattel Mortgage is a financing option where a lender will provide the funds for you to purchase the truck which you will take ownership of immediately and make payments regularly to pay off the loan. The financier places a mortgage on the machinery whereby the item acts as security against the loan. Though once the contract ends and you finish paying off the loan, you take complete ownership over the machine. You can pay back the loan installments on a monthly, fortnightly or weekly basis as it all depends on the arranged agreement. For this loan, you can choose to pay a lump sum amount to reduce the amount you owe which is normally referred to as a Balloon Payment.
A Commercial Hire Purchase Loan is a finance product used by business owners where they get to hire the truck from the lender for a fixed monthly repayment over an agreed period of time. Note that your business does not own the vehicle.The Lender may agree to purchase the machinery on your behalf then hires it back to you over a set period of time. Once you complete making the repayments in full as per the contract including any interest fees, that’s when ownership is transferred to you. As much as the lender is the one who fully owns the assets at the moment, you still have access to use the truck for your own benefit. Also for this financing option, a balloon payment may be involved.
A finance lease is a great way for your business to acquire a truck with flexible terms to match your cash flow requirements. The financier AKA a lessor will purchase the truck on your behalf and rent it to you as the borrower referred to as the Lessee. Also for this finance option, the financier owns the car until you finish your lease term and make the residual necessary payments. As the borrower, you are required to pay a fixed monthly lease rental for the term of the lease. Once the lease expires, you could pay off the remaining amount and own the vehicle fully, you could also trade it in or refinance the lease. For a finance lease, you will be liable for maintenance, insurance, registration and other costs.
An operating lease is a contract that permits the use of an asset without transferring the ownership rights of said asset, in this case the truck. It is similar to a finance lease except for operating lease, once the lease agreement ends, the truck is returned to the lender. There is usually no option to buy the equipment once the lease ends. With this financing option, budgeting is much easier as you agree on the fixed price for the term of the lease. It also provides cash flow certainty. For an operating lease, costs like insurance and registration are included within the lease agreement.
Is Truck Finance right for you?
When deciding which type of financing is right for you, there are a number of things you need to consider.
Firstly, ask yourself whether you want to retain ownership. This will help you eliminate some of the options. If you would like to own the truck in the end, a Commercial Hire Purchase would be great for you but if you don’t want to own it, you could go for the Operating Lease option.
Secondly, consider whether your business can afford the repayments. Figure out how much your business can repay either on a weekly, fortnightly or monthly basis in such a way that it won’t be strenuous to your cash flow. Some options may require you to make balloon payments to take ownership. If your business cannot afford to make a huge payment, then it would be best to go for another option.
In conclusion, at Braid Finance we have helped over hundreds of Australians get approved for financing hence saving them time and money while protecting their credit file. Let Braid Finance compare the different lenders on your behalf and we will match you to the one that best meets your needs.
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