The financial organization or bank funds the truck of your choice and then lease it to you for a fixed period and for a fixed repayment amount.
The residual payments can be made on a monthly, quarterly or annual plan structured as per your needs and affordability, keeping a strict consideration over your budget. Additionally, the biggest advantage of the lease financing is that since you are not the actual buyer of the truck, you hold no liability of the truck and the truck holds no entry on your balance sheet.
Another way of truck finance in Australia is the option of hire purchase. Under this, you have to bear monthly instalments. The truck in this case is owned by the financial institution or the bank. You, as a borrower have to make monthly payments for the truck, while retaining the rights to use along with the advantage of using it as per the business needs. After all the repayments are made, the right to ownership is automatically transferred to the borrower.
Before getting into any transaction, it is always important to speak to a professional truck loan specialist or a financial advisor, who can analyse your needs and a suitable loan product for you. Even though, there are a number of lenders available, however, it is advisable to look for a financial consultancy with origin of repute and high expertise as well as professionalism.