Truck and Trailer Finance Melbourne: Definition, Perks and Disadvantages

Truck and Trailer Finance Options

Are you looking for truck and trailer finance options? If you reside or own a small business in Australia you are in luck! Trailer and truck finance options can help you purchase a new or old truck or trailer. The advantage of this option is that you can have the deal brokered in just a matter of hours or in a day. Additionally, you will be dealing with a financier who is conversant with truck and trailer finance. This will ensure that the deal you get is tailored to suit your unique needs.

Truck and trailer finance is suited for anyone who owns a small business. Whether you need to buy a refridgerated trailer for a grocery business, or you need a livestock trailer, this type of finance is your best bet. The finance also covers other types of trucks and trailers, including semi trailers, side lift trailers, and even low loader trailers. This type of financing is also suitable for business owners in the mining, construction, transport and earthmoving industries.

Benefits of Truck and Trailer Finance

1. Quick Loan Access

Unlike other financing options, using a truck and trailer finance is more convenient. If you need financing urgently, you can be assured of it in a matter of hours. Most companies will avail the finance to you within 24 hours.

2. Less Paperwork

For anyone looking for a stress-free loan option to purchase their truck or trailer, they can also avoid a lot of formalities and paperwork. Most of the time, all you need is an ACN or ABN, and a certain minimum amount of money in monthly sales to show that you can repay the loan. You may also be required to have been in business for a certain period, usually at least for 6 months.

3. Flexible Repayment Options

The other benefit of truck and trailer finance is that it comes with a flexible repayment plan. The good news is that you can always discuss your financial situation with your lender and they will help you work out a payment plan that suits your individual needs. This flexibility may not be enjoyed with other finance options.

Cons of Truck and Trailer Finance

1. High Interest Rates

If you get a truck and trailer finance from a lender, including a bank, you may have to pay high interest loans. However, this will depend on the lender. The rate may be high because you are a new customer, and you do not have a financial history with the lender.

2. Third Party Dealings

Some truck and trailer financiers will involve third parties, such as a local car dealer. Such dealings may mean more formalities for the customer. To avoid these inconveniences, some business owners prefer getting financing directly from the truck and trailer dealers.

3. Expenses

Some truck and trailer finance options come with conditions. Some financier will require you to enter into a prior lease before buying the truck or trailer of your choice. While a lease may be cheaper than buying your truck immediately, if extended over a period of time, you may end up incurring more charges than you had initially anticipated.

Charges and Interests

Most truck and trailer finance companies in Australia will offer their customers funding between $5 000 and $ 250 000 or above. While some companies may not charge customers fees for using their financing facilities, some charge a small fee. The interest rates on the truck or trailer finance may also vary depending on the company you settle for. Some may have rates as low as 4 -5% while others may start from 7-12%. Some lenders’ rates may even exceed 12%. The rates usually depend on the amount borrowed, as well as the timeframe for repayment. While some have a fixed interest rate on an annual basis, some may have a variable rate over a number of years.

Alternative Forms of Truck Finance

As a business owner, you can finance your truck or trailer purchase using other modes of financing. These include online lending, crowdfunding, angel investors as well as grants. These will work well if you have a also a start-up or a small business.

Companies that Offer Truck and Trailer Financing in Australia

  2. Heavy Vehicle Finance
  3. PACCAR Financing
  4. Savvy
  5. Finance Ezi

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