Last week we financed an Iveco Water Truck for a client that contacted us through our facebook profile – www.facebook.com/heavyvehiclefinance . This client required a second Water Truck as they recently picked up additional work contracting to a large Civil Works company involved in the construction of a new highway. When asked if they could supply the last two years accountant prepared financial statements – they said that their accountant was still working on them and that they would be some 3 weeks away from completion.
So how did we do it?
After a brief consultation with one of our Truck Finance specialists, it was best that we put the deal through under our low doc policy (ie no financials) – as the client meet the following guidelines;
- in business for more than 4 years
- could provide a current tax portal indicating that gst was paid and up-to-date
- director was asset backed – ie property owner
- goods would be no older than 15 years at the end of the term
During the conversation, the Finance Consultant took down the application over the phone and forwarded the submission through to our Credit Team – who came back with an approval by close of business. From there we requested an invoice from the dealer, prepared documents and forwarded them to the client for signing. The deal settled one day later and the client sent one of his drivers to pick up the new Water Truck.
This is only one example of how we can facilitate Truck Finance without financial statements and each client’s scenario will vary based on the following factors;
- nature of the asset
- age of the asset
- purchase price
- time in business for applicant
- private sale or dealer purchase
- whether or not applicant is asset backed
- adverse credit history or clean credit history
Our credit matrix relating to Truck Finance is very broad and extremely complex, however 9 times out of 10 we are able to achieve success for our clients. Even though our first option is to request financial statements to ensure the client payments are as low as possible, at times we have no other options but to facilitate a low doc transaction.
Even though payments on low doc are slightly higher than a full doc deal, lo doc facilities allow a client make purchases required within a timely fashion – sometimes saving thousands of dollars on the purchase of a really well priced machine or to fulfil additional work load commitments. Why miss out on a well-priced item of equipment?
Hopefully this article highlights the fact that there are multiple factors at play when dealing with Truck Finance. Any of our Finance Consultants are available on 1300 788 740 to offer an obligation free assessment of your scenario.