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Know what type of truck you want
Before you start the process of getting a loan to finance your rig, it is vital to know what type of truck you want and whether it will be suitable for your business. For example, do you want a new or used truck? Consider the benefits of having a new or used truck and how this will affect the overall performance of your business.
Do you want to buy your truck or lease it?
When it comes to choosing some of the ways to get your truck business off the ground, you could be faced with the options of buying or leasing. Buying will give you the advantage of having access to your truck at all times. It will also be beneficial in terms of the potential tax benefits that you will be able to access.
However, leasing also has the benefit of low initial upfront costs, fewer maintenance costs, and the ability to upgrade your trucks at no costs.
Compare your finance options
A commercial loan is just one of the many ways in which you can use to finance your truck business, but it is important that you check the features that come with the loan as all loans are not created equal. Comparing loan features such as the comparison rate, fees, and charges can help you know whether the loan will be affordable over the term of the loan. It can also prevent you from biting off more than you can chew.
Running costs
Budgeting for the running costs of your truck can help in many ways such as finding out how much you need to borrow to ensure that the expenses such as fuel, maintenance, and repair costs are taken care of for the first couple of months. If you are planning to run a seasonal business, check that your loan comes with features that work with your cash flow. This can help you stay on top of repayments without defaulting.
Keep updated with the rules and regulations
Starting any business generally comes with rules and regulations that protect consumers and business people to ensure that there is fair conduct all 'round. The same goes for the removal industry. Checking the government regulations that are relevant to your business. For example, if you are planning on starting a furniture removal business, it is advisable that you approach the Australians Furniture Removers Association.
Seeking professional advice from a financial adviser can help you know what can work for your business and they could also highlight any blind spots that you may have missed.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for commercial loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
