Long-haul transport is crucial in moving goods between major cities over distances above 400km. The latest statistics show that metropolitan freight movement in Australia is forecast to grow by nearly 60 per cent over 20 years to 2040. This means it’s time for business owners in this sector to start investing in truck finance to grow their businesses and meet the upcoming demand.

So, what does truck finance involve, and what are the benefits to your business? Read on to find out more.

What is truck finance?

Truck finance refers to a type of asset loan used to finance a heavy vehicle purchase and spread the upfront costs of purchasing the vehicle over time.

This allows business owners to purchase assets needed to help their company grow without paying the total amount upfront.

Business owners have the option to use either of the following when it comes to gaining finance for a chattel mortgage:

• No doc – only requires a driver’s license up to a certain amount.
• Low doc – requires minimum financial document such as bank statements
• Full doc – requires up to two years of financial statements.

Which financial application your business is eligible for depends on factors such as how long you’ve been in business, length of ABN and GST registration, etc.

How can I use truck finance to help my long-haul transport business grow?

It’s true what they say – sometimes you have to spend money to make money.

Investing in your business is one of the best ways to increase company growth.

With a chattel mortgage, you can have your next truck on the road – bringing in extra income – sooner.

A chattel mortgage uses the asset being purchased as collateral for the loan. So, in this instance, the truck you are buying will act as loan security.

When we hear the word “mortgage”, our minds often go straight to a property mortgage.

However, a chattel mortgage is only for moveable equipment (such as vehicles or factory machinery) or anything with a serial number.

What type of truck can I finance?

Our team of specialist asset finance brokers are equipped with expert knowledge to get your new truck sooner.

Whether you’re after a second-hand truck or are eyeing the latest model, Lavender Finance House knows how to get you what you’re after.

Regardless of which option you’re after, there are plenty of benefits to both.

While newer trucks are popular for those looking for an upgrade, there are some quality second-hand trucks that businesses can finance for less.

If you’re still unsure about whether you’d prefer new or second-hand, here are some of the benefits of each:

New trucks:

• Are at the beginning of their lifecycle.
• Often have longer warranty periods.
• Gives you access to some of the newest technologies.

Second-hand trucks:

• Are often cheaper to purchase.
• Have already gone through their main depreciation period.
• No dealer fees.

Whether you’re looking to finance a new or second-hand truck, our LFH asset finance brokers have the experience to get you your new asset sooner.