Trucks and other similar vehicles play a huge role within the professional sector; with 1 in 3 Australian businesses requiring these types of assets in order to operate. But there’s a huge difference between wanting and needing a truck to help with particular services – and as much as your company might require one (or even a fleet), they can be quite a hefty expense.
What is the solution?
Some businesses might be in a position to purchase these types of assets outright, but not everyone will be in the same boat. Others may need to try alternative methods, such as truck financing options, and with these varieties of loans getting your hands on a functional vehicle may be easier than you ever imagined.
How does truck financing work?
Most loans will often involve two parties (or a third if you prefer to apply through a broker and get yourself a much cheaper deal in the process). The first party is the borrower and the second is the lender. As with any loan, an amount will need to be applied for and if approved, this sum of cash can be given to the borrower under certain conditions.
What are these conditions?
Some will require repayments to be made weekly/ monthly to cover the cost of the sum borrowed, with interest. Others may need further reassurances in the form of collateral, or a deposit to cover the initial expense and concern of the lender.
Which types of options are available as far as truck financing is concerned?
This will typically depend on the business that is applying for the loan – as well as other financial factors that may take a toll on the terms and conditions of the application.
For example, some lenders may offer cash to specific borrowers that can demonstrate their reliability with an impressive credit score, or a proven track record of meeting their repayments. Others may need to take out collateral loans whereby the lender will require a list of valuables such as property, other vehicles and more to secure their losses, just in case repayments aren’t met.
There are also options for deposit and non-deposit loans to be applied for, with the former requiring a percentage of the overall cost of the loan to be provided by the borrower and to the lender. On the other side of the coin, reliable borrowers may find themselves able to take advantage of non-deposit loans where their credit history is appealing.
And these are just a small handful of the types of truck financing solutions available. As you can imagine, choosing the right type of loan for your needs can be tricky and this is why so many applicants turn to financial brokers for help with picking the ideal option for their needs.