So you are in the market for a new truck. Whether it be a Tipper, Prime Mover, new or old, the team at MFIA Machinery Finance can help put a finance package together to suit your needs.
Truck Finance comes in many different forms and depending on your situation will depend on which is best for you. This decision can be made by speaking with your accountant and their advice should be sought before entering into any Truck Finance.
Types of Truck Finance
Hire Purchase
As basic as a rental agreement, with the option of including a trade in or deposit to reduce repayments. Balloons or residuals can also be implemented or structure the rental repayments to clear the debt in full over the term.
Ownership rests with the Lender until the final payment is made. For tax purposes your business income can claim depreciation and any interest paid during the term. Automatic ownership takes place if all the terms of the agreement have been complete.
Loan is for a fixed period of up to 7 years at a fixed interest rate.
Finance Lease
Lease rentals are tax deductible provided the item is connected with producing income. The item is owned by the finance company. At the end of the term you can make an offer to purchase the item, replace it, return it, or extend the term. Very similar to a rental agreement, where a residual value is nominated to determine the items value at the end of the term.
Loan is for a fixed period of up to 7 years at a fixed interest rate.
Chattel Mortgage
A Chattel Mortgage is a type of Business loan that is used when a person or company is going to use a car predominetly for business use. Unlike hire purchase agreements, under a Chattel Mortgage the purchaser takes ownership of the motor vehicle at the time that the agreement is entered into. The Asset is used as security for this type of loan as such you are usually able to secure a cheaper rate then an unsecured loan such as an overdraft.
Been Declined Elsewehere?
No Problem, we may still be able to help. Due to our exclusive relationship with Red Rocket Finance, the team at MFIA Machinery Finance may be able to secure the loan you need now.
Need further information?
If you have more questions please feel free to give one of our experienced staff a call today on 1300 00 MFIA or apply now