Car and Truck Business Loans

Have you ever considered a business loan to help you keep up with the demands being put on your growing business?  Maybe you need to deck out your current car or cars to fit in with your company’s new direction.  Maybe your business is a little rough on the tools of trade and you don’t think the vehicles are going to be in best condition after being put through the rigors of your business for the next few years.  If your business fits into any of these categories then you best read on.

There are three general types of business car and truck loans available from Ask 4 Finance;

1. Lo/No Doc Loans

2. Commercial hire-purchases

3. Chattel Mortgage

In addition, we can offer re-financing on some business vehicles and equipment to help you free up some of that cash flow.

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Commercial Hire Purchase

A commercial hire purchase allows a business owner to take immediate possession of a vehicle while paying for it in instalments. When the principal and interest have been paid, then the ownership passes to the purchaser. If payments are missed, then the car or truck can be re-possessed. A commercial hire purchase can have tax advantages; it can allow you to claim an input tax credit on any GST that you pay in cash upon purchase. A commercial hire purchase is generally easier to qualify for than some other structures, for example a chattel mortgage.

Lo/No Doc Business Loans

A lo/no doc loan requires less income documentation than a standard loan. It is a good choice for people who self-employed, sole traders or new in business. A lo/no doc loan can also be helpful to people who are relatively recent immigrants without well-established credit. You’ll still need an Australian Business Number to qualify and depending on the financier may need to have been trading under this ABN for a specified timeframe. In some cases you may find that a financier may request a minimum deposit, and the interest rate may be a few points higher to compensate for the added risk. There may be restrictions on the type of vehicle purchased, as well. Contact us online for more details or free call us on 1300 769 177 and speak with one of our experience business loan consultants about Lo/No Doc Loans.

Chattel Mortgage

With a chattel mortgage, you can take ownership of the car or truck as soon as it’s purchased. It’s the most popular way for Australian businesses to structure a truck or car loan. Like a commercial hire purchase, a chattel mortgage can allow you to claim GST as a tax deduction. Some stamp duty tax may apply so talk to your accountant first before making a final decision on which structure best suits your business.

Decision Time

So there you have it in a nutshell. Now before you run off and buy a car or truck we recommend that you contact us online with any further questions or free call us on 1300 769 177 and speak with one of our experience business loan consultants to get the full rundown.

If you have enough information and want to get your finance application started, you can apply online right now and one of our experienced business loan consultants can be in contact with you in a few short hours to discuss your loan pre-approval further.


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