Have you ever thought of owning a semi-truck? Well, you should now! Because believe you me, it’s worth it.
For those who are thinking of what a semi-truck might be; it’s a semi-trailer that is used for carrying loads from place to place. Very known to Australians since the carriage transportation is quite common there; so is the use of semi-trucks. Even the roads of Australia are known for transportation of very large trucks and semi-trailers.
The purpose of bringing this topic up is to make you rethink about the business you can do with a semi-truck and ways of getting it started. Owning a semi-truck can get you into a business of transporting heavy loads.
But again, you’re thinking how could it be so easy? Buying semi-truck isn’t a piece of cake! A heavy vehicle can’t be purchased just like this.
Surprisingly, it is that easy! All you need to learn about is the loans for the semi-trucks. Even if you don’t have the money to buy one, you can always avail the opportunity of taking loan for it. There are several Australian financial institutions that offer loans for truck and semi-trucks that it has become so easy to get into business even without having enough money for it.
Interesting already it is, the further details that you are looking for are the ways of getting this loan. Just like every bank offers ordinary loans, the semi-truck loans are given on a certain criteria. These criteria are to assess the character, capital, collateral, capacity and condition of the person who is taking loan. The purpose of looking into these factors is to assess the credibility of the loan-taker. It is determined whether the person is taking loan for buying the semi-truck or will he use the amount somewhere else and just taking it in the name of semi-truck loan. Similarly, the ability of the person to run a business and pay back the loan is checked. The character defines whether the person is charged for bankruptcy in past or not, since it is not viable to give loans to a blacklisted person in credit ratings.
Conditions for getting Finance for Semi-Trucks
To assess all these factors, the financial institutions undertake some evaluation of the person demanding loan. Following are the conditions that most commonly apply for issuing the semi-truck loan:
- First of all, the person is supposed to be unemployed. If he can buy a semi-truck on its own, then the loan is not provided because the purpose of loan is to help deserving people. Therefore, it is required of the person to provide no proof of income in order to get finance for amount up to $500,000.
- The historic data of the person is most important while giving away loans. It is evaluated whether the person is in the same business for at least two years. The reason is that, if he is familiar with the business activities, only then he will be able to get benefit out of the semi-truck loan. On the contrary, getting a truck and not using it purposefully is waste of loan granted.
- If a person already has a truck, it is required of him to give evidence that he needs the loan to buy a new semi-trailer though a dealer.
- Most importantly, the ability of the person is evaluated by exploring his 12 months historic payment schedules. A good payment history increases the chances of getting a semi-truck loan.
- Another point is regarding the collateral discussed above, that the person should be asset backed. It is required of the person to own an asset that can be held as collateral in case he cannot pay back the amount taken in the loan.
- And finally, the legal status of the applicant is assessed. He has to ensure the payments of GST and keeping the payments updated as seen on the present tax portal.
Tips & Tricks of getting Semi-Truck Loan
Before moving to get the loan, let’s learn some tricks to flip in.
- Financing rates are coordinated with the age of trucks and its previous usage. For instance, the most suitable financing rates are offered for semi-trucks that are no older than 5 years. In contrast, the trucks that are older are financed on relatively higher rates due to the fact that with the usage of truck, the risk involved is also increased.
- To get better loan offers and payment packages, you must have an experience of two years or more to show your capabilities of running a successful business.
- A dealer is always preferred since it reduces the burden of paperwork and gets the agreement settled quicker than private purchases
- History is always highlighted! You ought to have a clean credit history which depicts that you can pay back loans responsibly.
The Process
Since you have grabbed enough knowledge on owning a semi-truck through availing semi-truck loan; let’s get into the process.
- First off, a face to face conversation is conducted by the finance specialist with the applicant of semi-truck loan. The purpose is to get basic information of the applicant regarding his work, the equipment handling and business management capabilities. The applicant is required to show the details of the business he has been into
- Then the finance broker plays his role of assessing the capability of client to repay the amount in the form of loan. His previous financial statements as well as market credit rating are analyzed
- After getting satisfaction on above points, the broker extends the offer of an official finance offer that is to be approved by the client, if he finds it fine
- Playing the role of middleman, broker requests an invoice the truck supplier and conducts an inspection of vehicle as well as financials
- Next step is to prepare documentation and get is signed by both parties
- The financial institution makes the payment on part of loan-holder and the supplier releases the vehicle
- Both the parties are sent a copy of final agreement and transaction invoices. Afterwards the GST records are maintained and copy is given to the supplier
Not as hard as it seems, the semi-truck loan is a thing in market now! It’s your time to get the opportunity if you fulfill the discussed requirements.
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