Truck loans in most cases would be used for business, in which you would be able to select the loan structure that best suits your business, such as chattel mortgage, commercial hire purchase or finance lease.
If the truck’s gross vehicle mass (GVM) is under a certain weight, some lenders will treat these lighter trucks similarly to a car and assess the application like a car loan, which can sometimes mean finance approval without providing any financial information. We have a 'no documentation' finance product offered by some lenders, which is dependent on the applicant’s profile.
As the truck is generally used in the course of generating income for the business, lenders will most likely require up-to-date financial records for the business in order to assess the application. You can also use supporting documentation, such as contracts in place for the truck’s ongoing work, or cashflow forecast projections for the truck.
As the truck forms the security for the commercial loan, interest rates can be very competitive as opposed to trying to obtain a business loan from lenders direct. The lenders have flexible loan terms from 12 to 60 months, with the option for a balloon payment at the end, or if you opted for a Finance Lease a Residual Value would in most cases be mandatory.
Trucks may be purchased with trailers and these can usually be added on to the same loan as security, enabling you to finance the full truck and trailer package. There is the ability to finance trucks purchased through dealerships or private vendors.
A truck loan for assessment purposes may be treated more like a business loan, where the lender may take a little more time to assess an application, as they will be looking more in depth in regards to the truck and also the strength of the applicant and its guarantors if any.