![]() You need to be able to prove to your lender that your business can service the debt and/or afford the lease payments.Your business must have less than the lender’s maximum level of existing borrowings (usually $1 million).Your business must meet the lender’s minimum annual turnover requirements (usually $75,000 to $100,000).Your business must meet the lender’s minimum credit score requirements (otherwise you may need to look for a bad credit truck loan).With some lenders, your business must have been operating for at least two years (newer businesses can apply but may need to supply proof of work contracts in place and may be charged higher interest rates).Your business must be registered for GST.Your business must have an ABN (there are specialist vehicle loans for ABN holders).Your must be an Australian citizen or permanent resident.These are the main eligibility criteria for most truck finance options: If your lender identifies you as a high-risk borrower, they may charge you higher rates to cover themselves against that risk. ![]() What documentation you’re able to provide ( low doc business loans may attract a higher rate).How long your business has been trading.The truck finance provider will weigh up a number of factors to assess your risk as a borrower. Loans to purchase brand-new vehicles usually have the lowest rates, with higher interest rates for used vehicles under five years of age, and higher rates again for used vehicles over five years of age. That’s because lenders may find it more difficult to sell specialist vehicles (compared to a passenger vehicle, for example) and recoup their losses if the borrower can’t repay the loan. Especially if the truck has a specialised or niche use. In fact, the current average interest rate is more than double what it is for prime and super-prime credit borrowers. Generally speaking, loans for trucks or other heavy commercial vehicles tend to attract higher interest rates than light vehicle loans. Getting a car loan when your credit is between 600 and 699 can be significantly more expensive than it is for borrowers with better credit scores.
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