Without trucks, Australia grinds to a halt – and without effective, timely truck finance options, your business comes to a standstill too. That’s why at Savvy, we provide a seamless start-to-finish truck finance brokerage service that delivers as quickly as your business does. From flexible lease packages to affordable, convenient chattel mortgage and hire purchase solutions – when you need to upgrade or increase your fleet, we’ll have you on the road in no time.
Our strength lies in our people, and Savvy’s knowledgeable commercial finance consultants bring a wealth of transport industry experience to the process of finding you the ideal solution – every time. Every business is different, and that demands a versatile, varied selection of lenders and products. Whatever your financial position, however you operate, Savvy partners with a lender that can service your financing needs – and that makes for faster, more cost-effective funding.
Operating leases provide several benefits and work well for many specific businesses. There’s no obligation to buy or risk associated with the vehicle’s value at the end of the term when you use an operating lease. It’s signed on the basis that you return the truck when the agreement ends. For companies and owner-drivers that want to upgrade their vehicles frequently, that can be a huge advantage, but operating leases offer great flexibility too. If you do decide you want to run the truck for a longer time than the lease agreement, lenders will always be open to negotiation on a price to buy.
Finance leases are an excellent way to run a truck in a straightforward tax-effective way. They differ from operating leases because you commit to meeting the residual value when the term ends. That value gets calculated on ATO-approved tables based on the length of the lease agreement. When the term finishes, you can choose to pay in cash or refinance the residual and continue using the truck, trade the vehicle in for a new one, or sell it and take care of the residual that way. You might opt for a finance lease instead of an operating version if you preferred to own the truck eventually. The ATO-set residual is known from the start of the finance term, making budgeting or forecasting simpler.
If you want to own the truck when the finance term ends, another option is hire purchase. That’s a very similar structure to a finance lease except you don’t have to use a residual and can pay down the full value of the truck during the term instead. It also shares some chattel mortgage traits – in that essentially, it’s a straightforward way to pay down truck finance. However, payments are fully tax-deductible as a business expense because you don’t own the asset until the term finishes. Lenders do claim depreciation and GST on the purchase price, though, so when they pass on that saving, you get tax benefits both ways.
A chattel mortgage is a commercial asset loan that provides some excellent tax benefits. You also gain from fixed, lower-interest repayments because borrowing gets secured against the truck. Terms run between twelve and eighty-four months, and you can use either or both of a deposit and residual value, tailoring repayments to your business revenue cycle. Unlike with leases, residuals for chattel mortgages can be adjusted. You’re the registered owner of the truck from day one of the term, and when the finance gets repaid in full, the lender lifts their mortgage, and you have clear title.
Low doc truck finance is a facility available to businesses that wish to borrow in the absence of up-to-date financial records or tax returns. Some specialist lenders will consider alternative forms of documentation if you need to expand or upgrade vehicles during the tax year and your most recent financials don’t represent your current position.
Applying for low doc finance is relatively simple. Savvy’s expert commercial vehicle finance consultants will look at your business and goals and assess your borrowing requirements before recommending the best lenders – then they’ll guide you through the approval process. Generally, the more evidence of revenue you can supply, the lower your borrowing costs will get – lenders look at things like:
Talk with A Savvy Consultant
This is a chance for one of our finance experts to get a feel for what your business does and where things are going. It’s usually a relatively quick conversation where you’ll provide basic details for your application – but it’s an important step in the process of getting you on the road quickly and efficiently while sourcing the ideal finance option.