Making mistakes when applying for truck finance in Brisbane can lead to you paying more than you had planned to.

Find out which ones to avoid to prevent this.

Trucks are an integral part of transport business’ so it pays to follow a few steps when deciding on the type of truck to purchase and what type of finance to look at.

These are four mistakes to avoid when applying for a commercial truck loan. 

Being Unrealistic 

If you have not set a realistic budget for your repayments, you may be in for a surprise at the end of your first month. When entering into a finance agremeent ,you need to factor in details such as your current business outgoings, the possibility of interest rates rises (if your loan is a variable rate loan) and your disposable business income. What looks good on paper may not necessarily translate to reality. Take into consideration not only repayments, but general running costs and any maintentance / repair costs that may happen in the future. 

Unwise Choices 

There may be a few conditions you want when considering truck loans. The loan term determines your monthly repayments and your qualifying interest rate will depend on your current financial situation, whether your providing up to date financials and your business needs. You need to take into consideration that lenders will assess your total monthly debt level, so if choosing a truck loan over the longest term possible, this may affect your ability for future borrowings by reducing the loan amount allowed.

Overshopping

Browsing through hundreds of options is great when comparing trucks, but is not advised when comparing financial providers. Not only will this confuse you but will make the process of applying for a business loan even more tedious. Too many loan applications can flag intensive credit checks that can impact future purchases. Using a central platform that checks your profile against available lenders will reduce any unnecessary credit enquiries being shown on your credit file.

No Prior Knowledge 

Having some basc financial information can help you when choosing finance for a truck purchase. Knowing your current credit score can give you insight into your spending habits and give you a better idea of what offers to expect from lenders in the future and how to improve this too. 

Not every financial provider will be upfront or transparent; therefore, it is essential to do your homework before signing your loan offer for truck finance in Brisbane.