*iSelect does not arrange business loans products, but can refer you to Valiant who does provide such services and can help you compare business loan products. Valiant Finance Pty Ltd (ABN 95 606 560 150) holds Australian Credit Licence 500 888. iSelect and Valiant do not compare all providers in the market, or all products offered by all providers. If you click through to the Valiant website and acquire a business loan through Valiant, iSelect earns a commission from Valiant. Learn more
Find a loan for your business from over 80 leading lenders across Australia, powered by Valiant.
Financing for large assets, such as a truck, trailer, or other large commercial vehicle is usually in the form of a secured loan. With this kind of loan, the asset being purchased (in this case, a truck), is used as a security or collateral for the loan, meaning that if you default on the loan, the lender can repossess the vehicle. That said, it is possible to take out an unsecured loan to finance the purchase of a truck or trailer – it just depends on what makes sense for your business.
Secured loans typically attract a lower interest rate because they’re deemed less risky from a lender’s perspective. Additionally, a secured truck loan, such as a chattel mortgage, can also come with potential tax benefits.
Chattel mortgages are commonly used for vehicle financing because they can offer potential tax benefits through depreciation and other deductions. This is because you’re considered the ‘owner’ of the vehicle, even as repay the lender. The same typically goes for any other equipment purchased with a chattel mortgage.
That said, a hire-purchase agreement, or even a lease agreement, could also provide tax benefits. The best thing to do is speak to a qualified tax advisor to get a clearer view of any tax implications before making a decision.^
Regardless of how much you’re planning to borrow, here’s a range of factors worth considering as you compare business loan products and search for a good deal.
The eligibility criteria offered by lenders can vary widely, which is why it pays to speak to the team at Valiant who are experienced in submitting loan applications on behalf of Aussie businesses.
That said, here are some additional factors which can affect your loan eligibility:
Ready to find a finance option that for your new truck or trailer? At iSelect we’ve partnered with Valiant to make it easier for iSelect customers to find a loan product that suits their business. Not only can Valiant help you compare finance options to find a solution that works for you, but they’ll also manage the application process with lenders, giving you time to work on your business. Click here to get started today!
Last updated: 09/04/2021
^The information in this content is general in nature and should not be considered tax advice. You should always seek professional tax advice or assistance before acting or relying on any content.