Major Banks in Australia have to adhere to a set of lending guidelines (as set by APRA and ASIC) which means it can be difficult for some transport operators to obtain quick and easy access to capital when looking to fund their next truck and equipment purchase.
As a general rule, in order to obtain their servicing benchmarks, the Banks need to have their customers provide information such as (2 years company financials, 2 years personal tax returns for the directors and 12 months running balances for gst and income tax accounts).
At times accountants do not have this information up to date or the applicant may have suffered a loss or reduced trading income due to unforeseen circumstances. In these instances, servicing is not evident, and approval cannot be given.
Given these restrictions to big bank funding many Australia Transport Operators are now looking for quicker funding options.
Low doc and no doc funders do not require financial statements etc as they are not governed by the same APRA/ASIC regulations. This means that clients can obtain truck finance approvals within 24 hours of providing a limited amount of documentation.
Not only do these funding options provide customers quick access to capital, the applicable interest rates are only on average 2 per cent higher than the major bank interest rates – this effectively means monthly payments are only slightly higher than mainstream.
No doc truck finance approval limits are up to $250K and requires the least amount of financial information – ie no banks statements and no financials.
Low doc truck finance approval limits are up to $500K but require some financial information – ie business activity statements for last 12 months.
Benefits in brief
Very quick funding option
Flexible policy matrix
Increased demand for this form of funding by Australian Transport Operators
Limited financial information required
Provides customers with greater access to capital
Only marginally higher interest rate than the banks
When you need access to quick truck finance options, reach out to the team at Heavy Vehicle Finance. We have been assisting clients for over 20 years and provide tailored finance solutions to the Transport and Earthmoving Industries.
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