Truck Finance Options
If you have a business that operates forklifts, then you are highly likely to also operate a truck or even a fleet of delivery vehicles. Whether you’re considering purchasing a lift truck, a general delivery truck or a heavy duty prime mover, the same commercial finance products are available to finance your asset purchase.
Types of Truck Finance
The main types of truck finance are:
- Chattel Mortgage for Trucks
- Commercial Hire Purchase (CHP) for Trucks
- Truck Leasing
- Truck Rent to Own
Each has its own combination of features and benefits which suit different types of business structures and objectives but are all available for the purchase of both new and used trucks.
Key Finance Differences
Making the decision as to which commercial finance product is the best for you and your truck can be a complex process. In all cases you are well-advised to consult with your accountant or financial advisor.
The differences include:
- Accounting methods: some are suited to cash accounting methods, some to accruals accounting method.
- GST: not all elements of every loan type are subject to GST.
- Tax deductibility: not every element of every loan type is tax deductible.
- Balance sheet: leasing and rental are off-balance sheet options, Chattel Mortgage and CHP are on balance sheet finance.
Key Finance Similarities
Depending on how you, or preferably your finance broker, negotiates your finance package with the lender, all commercial finance tends to include:
- Fixed interest rate
- Fixed monthly payments
- Fixed loan term
- Balloon, residual or buyback optional