Question 1

What is the most suitable type of loan to finance a prime mover?

Accepted Answer

All heavy vehicles can be financed with Chattel Mortgage, Hire Purchase, Rent-to-Own or Leasing. These facilities have varying suitability to business set-ups based on compatibility with either the cash or accruals methods of accounting, preferences around ownership of the asset over the loan term, tax strategies, and general financial goals. The most suitable facility will be the one that best aligns with the individual business requirements.

Question 2

What is the financing solution when buying a prime mover and trailer together?

Accepted Answer

Where a prime mover and trailer are being purchased from the same dealer at the same time and the purchase price of both units appears on the one invoice, both can generally be included in the one financing agreement. Subject to individual lender approval. Where being acquired from separate suppliers, or at different times, individual loans would be required for each asset.

Question 3

What is the finance term for a semi loan?

Accepted Answer

Terms on heavy vehicle financing can vary with different lenders and can be dependent on specifics of the application. Asset financing terms of up to 7 years are typical for heavy vehicles, but custom terms may be negotiated.

Question 4

Will I own my semi with Leasing?

Accepted Answer

During a Lease term, the lender retains the ownership of an asset. At the end of the term, the lessee, the business, can finalise the residual and take ownership of the heavy vehicle.

Question 5

Can new operators get approved for financing prime movers?

Accepted Answer

New operators without complete financials may need to source specialist lenders and brokers that offer low doc financing for heavy vehicles to get approved.

Question 6

What is the deposit required on prime mover loans?

Accepted Answer

The deposit required for financing heavy vehicles will depend on the lender assessment of the amount requested, the business credentials, and the value of the vehicle. New vehicles being purchased by good credit businesses can typically be financed without no deposit.

Question 7

Can I use the vehicle as the only collateral for the finance?

Accepted Answer

Acceptance of a heavy vehicle as the only collateral for a loan is subject to lender approval. Lenders will be considering the value of the vehicle in relation to the total amount of the loan. They will want to be confident that they can recoup their funds should the borrower default on the finance.

Question 8

What is the best type of loan for a used vehicle?

Accepted Answer

Used heavy vehicles can be financed with the same selection of credit facilities as new vehicles -Chattel Mortgage, Hire Purchase, Rent-to-Own and Leasing. The same decision-making process applies with operators selecting the credit facility that best suits their business set-up and accounting practices.

Question 9

Does the application or industry affect the semi loan?

Accepted Answer

Variations in loans for businesses based on their industry can arise with some lenders.

Question 10

Will different vehicle fuel systems change the loan?

Accepted Answer

The type of fuel system in a vehicle should not impact the loan interest rate or terms which are primarily determined by the credentials of the business.

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