Transportation has a crucial role in agriculture. From your farmland’s Point A to Point B, and then to your suppliers. Add to that the fact that harvesting is related to the need of being able to haul your crops not only to your storage houses but to distributors, all of these, and more, fall under transportation.
So we can understand why you price your farming vehicle/s in that manner with which you do. They’re as essential as the rest of your farming machinery. Even if you’re only now starting with your business or are running a small family-owned farmed, it’s almost imperative for you to have and maintain trucks and other farming automobiles.
As you envision your business’ future, you might have already thought about what step to take in order for you to make the transport of goods to and fro quicker and much more efficiently. And at the point, you also already are aware that it’s time to either lease or buy a truck (or more, for larger farms).
If budget is what’s stopping you from progressing your farm’s operations, here’s how you can obtain farming vehicles without being too concerned about where you’ll pull resources for them.
What Is Truck Finance?
Truck financing is a type of loan that’s pointed towards business vehicles. Lenders realize that farmers are one of the strongholds of Australia’s growing economy and thus need the most support and financial assistance. Especially because the farming industry has perennial challenges that plague farms and farmers all the same.
Therefore, lenders that are focused on trucking loans have retrofitted said loans so that they’re made precisely for farmers’ needs when it comes to business vehicles. Add to that the reality which is that said vehicles tend to be on the heftier side of the price tag because they aren’t ordinary automobiles. They have features and specifications that are meant for large-scale hauling and long-distance travelling.
Since you’re thinking big and are seeing that your business model is to grow bigger than it is now, your regular pickup may no longer cut it. An upgrade to more massive and more hard-wearing trucks is definitely the best direction to traverse today.
Benefits Of Truck Financing
1. Instantaneous Leasing Or Purchasing
The first main advantage of going through a truck financier is that you won’t have to wait for months, or even years before you can lease or purchase the truck your farm requires. Saving up for it will be out of the picture.
Even if you don’t currently have the finances or the downpayment for such a vehicle, a truck loan will solve this problem easily. And time is of the essence because farming doesn’t have a “Stop Sign”. Crops are continually cultivated until they’re ready for harvest. Harvesting has to be done during their peak season. Plus, you always have to weigh in seasonal changes.
These are grounds for why “now” is a word that cannot be swayed when speaking of arming your farm with farming vehicles.
2. A Higher Possibility Of Tax Deductions
Taxes are another thorn to pick with business machinery and vehicles. But with farming trucks, there’s a potential for tax deductibles. The Australian Government will allow the deductions of a certain percentage each month for very particular types of purchases. Also, take note that this is applicable solely to business and farming trucks.
Talk to your lending specialist about this and have them clarify the matter with you so that you can take advantage of this bonus whenever it’s available.
3. A Variety Of Lending Options
Owing to the fact that these loans are expressly for trucking and similar business vehicles, the options are flexible and are customized along the lines of truck requirements and the business owner’s income stream.
You’ll discover that you can choose repayment options that are realistic and comfortable against your monthly revenues. In this manner, you won’t be given a loan that’s outside of your reach. Additionally, interest rates will also be less vexing. Truck loans typically have lower interest rates compared to other kinds of loans.
You may even go the route of selecting a mortgage plan that is dismissed upon your final repayment. There are numerous repayment alternatives you can ask about in order to find the ideal one for your situation.
By the same token, the application process itself is free of hassles and stress! As long as your credit history is in tip-top shape, you can go online, fill up an application form, hit “Submit”, and wait for at least 24 hours (in most cases, less) to get a response for the lender.
Finally, if you want to catch a glimpse of what the estimated number will turn out to be for a term and with a repayment amount each month, you can look for a Truck Finance Calculator online. You’ll simply need to type in the digits you want to be estimated and in a click, you’ll have answers. And it’s free!
DISCLAIMER: This information has been provided as General Material for your deliberation. Any data with regards to Government Policies have been taken from official Australian Government resources. No liability shall be accepted in the event of errors or misrepresentation of said facts, and the commentary and analysis of the same which can be found in the public domain. It is advised that you seek counsel from your financial advisors or accountants for specifics.