Guide to Applying for Truck Finance in New Zealand
If you own a small to medium-sized transport business in New Zealand and are looking for streamlined truck finance solutions, we’ve got you covered. Whether it be a single truck or an entire fleet of trucks, we can make the process for applying for truck finance simple. At GVK Finance, we’re specialists in transporting finance with over 30 years of experience. While you focus on running and growing your business, we help you get access to the best asset finance options on the market.
In this blog, we have put together a helpful guide with information on applying for truck finance in New Zealand, and everything you need to know before signing on the dotted line.
What is Truck Finance?
Since you’re in the transport industry in New Zealand, you are likely already aware that purchasing a truck or truck fleet is a substantial investment. Whether you are using your trucks for transportation or delivery purposes, it’s important to be able to acquire the vehicles you need without putting a massive strain on your cash flow. That’s where GVK Finance comes in.
Truck finance is a key financial tool to help your business purchase or lease trucks, with tailored loan options to suit your needs. This approach helps you to manage your cash flow, making it more financially sustainable for your business.
There are different types of truck financing options in New Zealand, each offering its benefits to your business, depending on your needs and financial position. Common types of truck finance options include:
Hire Purchase
A popular option for business owners looking to finance their trucks is using a hire purchase method. This allows businesses to spread the cost of the truck over a specified term after paying an initial deposit. Once the final payment is made on the last date of the loan term, your business owns the truck outright.
Finance Lease
Your business will rent the trucks for a predetermined period, and after the end of the lease, you will be given the option to buy the truck outright. Then, you will be able to add the truck as an asset to your business’s balance sheet. This is a flexible option for business owners who want to use their trucks without large upfront costs.
Operating Lease
The opposite of a finance lease, you will be able to rent the trucks over a decided time and return them at the end of this leasing timeframe. The ownership of the truck remains with the lessor, not with your business. This option entails lower upfront costs and monthly payments, making it an attractive option for businesses that are looking for flexibility in operating trucks and lower costs over ownership.
Chattel Mortgage
A great option for businesses wanting to finance trucks while still having ownership and potential tax benefits. The lender will be granted a mortgage over the truck while the business takes immediate ownership of it. Regular repayments are made to the lender, which can also include principal and interest. Once the last payment has been made, the mortgage is released from the lender, and the borrower owns the truck outright.
Applying for Truck Finance in New Zealand
Step one: Assess Your Current Situation
Think about your current financial situation. This will include your cash flow, credit score, and overall budget required for financing trucks. Understanding these factors will help determine how much your business is able to afford and repay.
Step two: Think of Your Business’s Needs
Consider what you need for your business. Whether that is leasing one truck or a fleet of trucks, there are various factors to consider including. What type of truck do you need? How often will your business be using the truck, and what are the size and capacity considerations? Having a clearer picture of what your business needs will allow you to make informed decisions.
Step three: Gather Relevant Documents and Information
Prepare and gather the required documentation that will support the application process. This might include any financial statements, business details, identification documents, truck information and so on.
Step four: Apply With GVK Finance
Once you have obtained the relevant information, submit your finance application. At GVK Finance we have a streamlined process and will help you find the best finance option tailored to your business needs. We have trusted relationships with many banks and finance companies in New Zealand, so we can connect you with a broad range of finance options. We will go over the terms and conditions of the loan with you to help you understand the repayment terms and any other relevant information associated with the financing agreement.
Get in Touch
By following our helpful guide for truck financing, you can ensure you have everything you need to help your transport business run efficiently. We are here to guide you every step of the way to ensure you are able to access the right options for your business. No matter what your goal is, contact us today to get started.
Professional Asset Finance Specialists
At GVK Finance, we help business owners secure the loans they need to expand. Besides truck finance, we also help with business loans for plant and equipment, working capital, and commercial vehicles. Learn more about our services here.