Commercial Vehicle Insurance

Wednesday, 28 December 2016

Thumb Rules With Regards to Financing a Truck for Commercial Purposes

Trucks, trailers or the commercial vehicles are key business resources required in the routine everyday running of your business operations. As an entrepreneur, you are always confronted with various fundamental decisions, whereby you need to choose - what is best for your business. Anyway, if you are an entrepreneur you need to carefully consider various essential factors when the time has come to get another truck, trailer or a commercial vehicle, like, having:
  • The right truck that ensures your business remains competitive.
  • The right truck for the work required and at the right price.
  • The right truck finance companies and finance arrangement to purchase a truck.

Points to Consider When Purchasing a New Truck

There are various points you should take time to consider when purchasing a truck, and you need to pose the following questions:
  • Is the truck new or used?
  • Is the truck coming from a dealer, auction, or private sale?
  • Has the truck been beforehand written-off?
  • How many hours has the truck logged?
  • Is there any money owing on the truck?

Are you thinking about using up your home loan (for example, equity release) to give you the needed money to purchase your truck?

The Thumb Rules When Financing a Truck for Commercial Use

In case it is a new start business then commonly an upfront payment is required or collateral security taken over any property of the applicant (like a house or machinery).

No income-proof needed for finance up to $500K where the following conditions apply:
  1. Applicant has been in business for at least 2 years
  2. Buying a new truck through a dealer
  3. A good payment history on similar equipment loan
  4. Applicant has the backing of assets

Applicants doing business for many years and having 2 years financial statements with backing of assets are offered the best finance packages. However, for candidates with a bad credit history, sourcing finance approvals becomes harder.


Lastly, it is highly recommended that you should try to find the best truck finance companies to ensure the best truck finance arrangement for you.


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