Things to consider when expanding your trucking fleet
Whether you’re reasonably new to the trucking industry, or you’re a seasoned veteran with an already impressive fleet; every business reaches a point where expansion is necessary. If you are considering expanding your trucking fleet now, or in the not too distant future, there are certain things you should consider first to ensure the process is smooth.
When it comes to selecting the right finance option for you and your business, our highly skilled team of experts can provide advice specific to your circumstances and guide you through the entire process. In essence, they will be helping you through one of two options: low document (doc) finance , or a full document finance application. Here’s the difference.
A low doc application requires no proof of financials, but you must have a GST registered ABN that has been active for a minimum of two years, a good credit record and property assets to back you. In the absence of property, you will need to provide a 20 per cent deposit.
One of the significant advantages to a low doc application is the turn around time. Because of our excellent business relationships with more than 40 different Australian lenders, we aim to provide our clients with low doc finance results in only 24 hours. A self-managed low doc application would have wait times of up to two weeks.
Alternatively, a full documented finance application might be your best opportunity to secure low-rate finance. However, to make the application process smooth, our finance team can assemble your application and step you through the process while ensuring you don’t hit any lender exposure limits. Meaning, we will ensure your loans are dispersed through multiple lenders to allow for maximum finance opportunities, avoiding any exposure limitations imposed by individual lenders.
Being under-resourced and having to turn down opportunities or retire some of your fleet before sourcing a replacement are not ideal situations for any business. To avoid short-changing your business and missing out on opportunities, be on the front foot with your finance application. Depending on your unique circumstances, this may mean seeking finance pre-approval to ensure you are prepared when the right truck or trailer becomes available. Or, it could mean taking advantage of generous tax incentives currently available to Australian businesses.
Until June 30, 2021, the Australian government has provided unprecedented incentives designed to stimulate the economy: Australian businesses can instantly write off new or used asset purchases to the value of $150,000. If you were planning on purchasing a truck or equipment later this calendar year, seek financial advice from your tax accountant to determine whether it’s beneficial to bring this purchase forward. You might be surprised at just how much you could save.
Type of equipment
Because of our long and established history with more than 40 different lenders, we can provide finance options for trucks, trailers or equipment of any age while still ensuring the best possible rate. Having this option to purchase both new or used means you don’t have to be limited and can instead focus on getting the right equipment for your business at the right time, allowing you to meet the needs of your customers, now.
Contact our team today for more information on how you can expand your trucking fleet; call 1300 664 687.