What is a lorry loan?
A lorry loan is a commercial loan that is specifically designed to take care of your truck needs at an affordable rate. Lenders offer competitively low rates that differ from one lender to the next to help fund small and large business owners purchase a lorry without making their budget go bust. It is vital to know how to navigate your way to finding a business loan by looking at its features and whether it will be suitable for the type of business you are running.
Finding a loan that suits your business
Before heading out to find a loan that comes with the best interest rates, you need to consider the type of business you are running. The needs of a person who is self-employed compared to a business that owns multiple trucks and is looking to upgrade their equipment will differ.
Knowing why you need a loan to finance a truck will help you narrow down the type of financing you will need to get your business on the move. This will help you know whether leasing or purchasing a lorry outright will be suitable for your finances.
You will also have to consider a loan that will work with your cash flow, which means choosing a loan that will work for your business if it is seasonal or operates on a full-time basis. Commercial loans give you the option of making repayments weekly, fortnightly, or monthly to find something that works with your finances.
Comparing your options can save you
Having a strong credit record can give you access to a diverse range of loans that come with features that blend well with your trucking needs. When it comes to comparing, checking the comparison rate will help you know whether a loan will be suitable for you in the long run. For instance, one $10,000 business loan could cost hundreds more than another because of interest and fees.
The comparison rate is the true cost of the loan and is slightly higher than the interest rate. It also takes fees and charges that come with the loan into account. It is important that you read the fine print of your loan before signing. Check to see if it allows you to pay off your loan early without attracting a penalty fee.
Reaping tax benefits
Being financially savvy is important for any businesses sustainability. Therefore, it is important to choose a loan option that will help you keep your lorry’s from becoming obsolete and helps you save when it is tax time.
The big debate is always between whether purchasing your lorry outright or leasing it will work for your business. This will be settled by what will work for your business, which also means that you need to speak to a financial advisor and your accountant to find something that is suitable for you.
Thankfully, both purchasing and leasing have tax benefits that can help your business. If you purchase your lorry your business can deduct depreciation and mileage expenses from taxes. Leasing your lorry allows you to deduct mileage from its taxes which can work for your business.
Always keep in mind that making claims on expenses when it comes to purchasing a vehicle will vary. The type of financing you choose will also affect the type of tax benefits you will have access to.