If you’re an ABN holder, gaining commercial truck finance can seem like a daunting and challenging prospect, however, if you know what lenders require before applying you can make the loan approval process a lot easier. Lenders assess commercial truck finance differently, so it pays to prepare supporting documents to assist the lenders in making a quicker and better decision for you.
Things to consider when applying for commercial truck finance
Truck Type – Prior to applying, research what truck type and year model you will be requiring. This will allow the lenders to process your loan application correctly and will give them an understanding on how the goods will be used. If you’re using the truck as collateral for the loan, keep in the mind the year model as some lenders will not accept older model trucks as security.
Loan Amount – Having a rough idea on how much you want to borrow will make it easier for lenders to assess your application. As they generally use the truck as collateral against the loan, most lenders will not fund more than the fair market valuation, so trying to borrow more than the sale value may result in a less than suitable answer from the lenders
Full Doc or Lo Doc Finance – If applying for truck finance, you will receive a quicker and better answer by providing current tax returns. This will show the lender how the business is operating over a period of time and allows them to justify the loan amount. Showing tax returns will show the lenders how a new truck can have a positive impact on business turnover. Should you be a new business venture or have incomplete tax returns, lenders can offer a no doc finance facility to enable you to purchase a truck for business usage. Some lo doc lenders will require an upfront deposit or trade-in allowance to reduce any risk.
Asset Position – When applying for truck finance, you need to be thorough in noting your assets, bank balances, cash on hand, work contracts and investments to assist with the application process. This will allow the lender to make a better decision for you.
Additional Security – To assist with truck finance, some lenders will accept additional security in the form of vehicles or other chattels to add strength to the loan application. Additional security, deposit or trade-in will reduce any risk or concerns lenders may have.
Typical documents to assist with Commercial Truck Finance
Tax Returns
Bank Statements or Work Contracts
Proof of current or previous credit
Asset and Liability Statement
iCREDIT can help you find, compare and choose commercial truck finance suitable to your business needs and cash flow.
Contact us on 1300 350 118 or admin@icredit.net.au to discuss your commercial truck finance comparison needs.
This article contains information on commercial truck finance.
This information provided is a guide only. It should not be treated as financial advice and does not take into account your personal circumstances, financial needs or loan requirements. If you have any specific questions about financial matters or government legislation, you should consult an appropriately qualified professional or government department. iCREDIT endeavours to ensure the information is accurate at the time of publication, however, cannot guarantee the ongoing accuracy of this information.