Question 1

What is the best loan to finance a concrete truck?

Accepted Answer

Cement mixers and pump trucks can be financed with Chattel Mortgage, Leasing, Rent-to-Own or Commercial Hire Purchase. The best loan product is the one that is best aligned with the accounting methods and practices, the financial objectives, and the approach to asset acquisition of the business. It is advised that this matter be discussed with an accountant.

Question 2

Are concrete truck loans the same for new and used models?

Accepted Answer

The same credit facilities can be used to finance both new and used cement mixers. There can be differences in the interest rates, loan amounts approved, collateral required, and other conditions between new and used model loans. New vehicles are generally accepted as the sole form of collateral for commercial financing but used vehicles need to be assessed as suitable security by lenders.

Question 3

Will my concrete truck loan repayments change over the loan term?

Accepted Answer

Asset acquisition credit facilities are generally arranged with a fixed rate of interest and over a fixed loan term. These fixed elements result in a fixed monthly payment schedule. As the rate is fixed, the repayments do not change during the term of the loan.

Question 4

What is the tax deduction available on concrete truck leasing?

Accepted Answer

Leasing provides for a tax benefit with fully deductible monthly lease payments. GST is applied to these payments, and it can be claimed by businesses registered for GST.

Question 5

Can new operators get approved for cement mixer loans?

Accepted Answer

Commercial credit application forms typically require applicants to provide a range of financial documents including tax returns, annual accounts, profit and loss statements and similar. These documents are required for approval by most lenders. Where a new operator has not traded long enough to accrue these records, they may seek out brokers and lenders that offer low doc loans. These loans can be approved with minimal or no financials, subject to individual lender guidelines.

Question 6

What is a balloon?

Accepted Answer

A balloon is the end of term payment for Commercial Hire Purchase and Chattel Mortgage. It is a percentage of the loan amount total, ex interest, which is paid in full after the last monthly payment is made.

Question 7

What loan terms are available on concrete truck loans?

Accepted Answer

Terms on asset acquisition loans can vary with different lenders and for individual business applicants. The term may be determined by the lender based on aspects of the vehicle and the credit profile and financials of the business. Terms of up to 7 years can generally be achieved.

Question 8

If I buy the agitator and truck chassis cab as separate units, what type of loan can I get?

Accepted Answer

Where vehicle and body are acquired in separate transactions, two separate loans are usually required. As assets, both can be financed with the choice of Lease, Rent-to-Own, CHP or Chattel Mortgage.

Question 9

What is a low doc loan?

Accepted Answer

A low doc loan is the description given to businesses that apply for financing without all the documentation usually requested by lenders. The applicant can select from Lease, CHP, Rent-to-Own or Chattel Mortgage. This type of loan category is often required by start-up, new and very small businesses.

Question 10

What are the collateral requirements for concrete truck finance?

Accepted Answer

Collateral requirements for truck loans may be determined by the lender’s assessment of the individual application. New vehicles are generally accepted as suitable collateral. The lender will assess the applicant’s financials and credit history in deciding if additional collateral is also required. Used vehicles must be assessed for collateral suitability.

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