One of the biggest headaches from Omicron for businesses at the moment is overcoming the supply chain issue. With many people off work with COVID-19, staff shortages are causing problems at many stages along the chain of supply. For SMEs that are facing issues with their transport operators or couriers there may be a solution. If you’re seeking a more efficient way to get goods into the hands of their customers or to pick-up your own supplies, buying a van to operate your own delivery service could be a viable option. Accessing cheap and workable delivery van loans can be key to a business operating its own cost-effective, profitable and efficient delivery and pick-up service.
Businesses in many sectors have pivoted to self-delivery services during the pandemic and the current supply situation has further highlighted the importance of having a reliable way to get goods to market. If you’re considering this option, there is a selection of business finance products and specialist loan services that may make operating your own delivery van a highly profitable decision.
Selecting a Delivery Van
There is a great selection of delivery vans on the market with quite a large price range. Buyers will be considering a number of aspects when making that decision including:-
- Size: the size, shape and quantity of goods and packages to be delivered will be a key determinant. Look not just at capacity but access. Some vans offer both side and rear access.
- Ensure the design of the cargo space suits your needs. Height of the deck for easy loading and unloading is important as can be a totally flat cargo area – check where wheel arches are located!
- Driver licence conditions should be considered. Some vans require only a standard licence while others will need a higher level licence. Who is going to operate the vehicle? If business owners plan to step-in when required to do deliveries, they must have licence and skill to operate the vehicle.
- Accessibility: The delivery locations and environments are important. Is parking available? Can the van easily negotiated tight inner-city streets and lanes?
- Fuel efficiency: Cost of fuel will be an important cost element. Deciding between petrol, diesel or electric is a big factor. EVs are fuel-efficient but still usually come with a higher price tag.
- Price: The ticket price will be important but possibly more relevant will be the loan repayments. We can assist with cheap van loans which are individually negotiated and structured to best meet customer repayment expectations.
Some of the more popular vans currently on the market include the models from LDV which are well-priced in the lower range: the Mercedes-Benz Sprinter; sales topping Toyota HiAce; VW Transporter and its smaller Caddy; the stylish Renault Kangoo; the iconic Ford Transit; and one that is receiving a lot of current attention, the Hyundai Staria.
Delivery Van Finance Options
In order to be cost-effective and work with the business cash flow, the van loan needs to be cheap which essentially requires a cheap interest rate plus the actual structure of the loan must meet the objectives of the business.
Even before selecting a van to deliver goods, business operators can be considering which loan type is best suited to deliver the goods for their business.
There are a number of different commercial finance products, each with varying features and benefits.
The selection of van finance products includes:-
- ABN car loans
- Lease
- Hire Purchase
The differences include suitability to accounting methods; balance sheet approach; when a tax deduction is made; and treatment of GST. The interest rates also vary. While your Jade Car Loans consultant will be working to achieve the best offer for your van loan, it is strongly recommended that operators refer to their own accountant in regard to loan selection.
Investment Incentives
The cost-effectiveness of a delivery van loan can be further enhanced by utilising the investment incentive measures currently available to eligible businesses for eligible acquisitions. Temporary full expensing, which essentially replaced Instant Asset Write-off, has been extremely popular and offers significant tax deductions.
Chattel Mortgage is considered the loan type most suitable for businesses looking to take advantage of the measure.
New and Small Business Van Finance
Many small and newly-started businesses are likely to be interested in purchasing a van in order to be self-sufficient in regard to picking up their supplies and materials and delivering their products and goods directly to customers. Owning their own van to have greater control over their supply chain.
But new and relatively new businesses can face obstacles when applying for finance. To assist these operators, we offer specialist lender services with our Low Docs and No Doc Car Loans. These categories are for businesses that do not have all the financial records and documentation that are typically required to complete the loan application.
If considering taking control of the supply chain for your business, at least to some degree, through the purchase of a delivery van, contact us to discuss how we can assist with cost-effective van finance.
For a quote on a delivery van loan, contact Jade Car Loans on 1300 000 003
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
