What is the Range of Options for Truck Finance?

by Positive Lending Truck Finance

Every business has the requirement of a vehicle to ease some of the heavy-duty tasks with ease. Apart from the crane, one of the essential business vehicles is the truck. The truck also could be the medium of earning for many, not just a vehicle of the business. Buying a heavy-duty vehicle like this requires a good amount of investment. One of the effective ways to buy these vehicles without the burden is finance, just like Caravan Finance or car finance.

There are various options that you can choose from if you are thinking of Truck Finance to ease the process of buying the truck. This would reduce the impact of your truck purchase on your cash flow and, thereby, on the ongoing expenses. Choosing finance is also an important decision to make, just like which truck you want to buy.

Looking out for the various options and choosing the one that suits your requirement the best is one of the most effective methods to make the most out of the finance option that you choose. Here are some of the finance options that you can consider for your truck finance.

Chattel Mortgage

It is the finance that provides you with the capital to buy the truck for business purposes. It provides you with the benefit of a flexible repayment plan, ownership of the vehicle, along with low interest rate making the whole process less financially draining. In this form of finance, the truck itself will serve as the mortgage, which would be removed upon the successful replacement of the finance.

Finance Lease

Unlike a chattel mortgage, the ownership of the truck would not be provided to you until you pay the rental amount until the term of the lease, along with interest. Only at the end of the lease, you will be able to become the owner of the truck.

Novated Lease

If you are an employee and the truck is required for business purposes, under this finance, the repayment of the finance would be cut directly from your salary upon the approval of your employees. It is an amazing instrument if you are looking for a reduction of your taxable income.

Business Loan

This is a standard way of borrowing the money that you need from a bank or financial institution at a predefined rate of interest and a well-crafted repayment plan as per the term of the loan.

Commercial Hire Purchase

A better alternative to renting the truck is this finance option. Hereunder this finance method, you would hire the truck that you want to buy from a lender. A fixed monthly payment plan is crafted for a fixed interval. Upon the end of this agreed period and your successful payment of each monthly payment, you would be able to get the ownership of the truck.

The interest rate and the repayment schedule of these finances would vary drastically. You can choose the best suit truck finance that suits your requirement. Some of these finance alternatives have tax benefits too.