Improved credit conditions have seen a rise in approved truck loans, according to Alliance Truck Finance
By Ruza Zivkusic-Aftasi | May 22, 2013
Improved credit conditions have seen a rise in approved truck loans, according to Alliance Truck Finance.
The firm, which displayed its stand at the Brisbane Truck Show, believes times are picking up within the transport industry following the onset of the global financial crisis (GFC) five years ago.
Finance specialist Ross Brooks, who owns a transport company of eight trucks in Queensland, says a relaxed credit is making operators more confident.
“I think it’s becoming a bit easier – the credit is becoming a little more relaxing and the rules are very competitive at the moment,” Brooks says.
“We now have a fairly large database of customers and turn a substantial amount of loans every year, from small, single operators up to the large fleets Australia wide.
“I think there’s a bit more confidence around and I think people are deciding they’ll now do something as the GFC has hurt many and some people are carrying residual debt.”
Alliance Truck Insurance Director Nicolas Jarvisto says clients are more willing to lend, with banks also becoming relaxed making the process easier.
“It’s different to four years ago. The increase in loan limits and the approvals are easier to get through than a few years ago,” Jarvisto says.
“Go back two years ago. Unless you had a 30 percent deposit the banks wouldn’t do any measure to start up the business. Some companies pulled out doing trucks altogether and some are just now starting to come back.”
A couple of Jarvisto’s customers have taken up loans in excess of $3 million in the last 18 months, he adds.
“A lot of people are saying to us that they feel confident that there will be a change in government but what exactly that’ll change we don’t know. A lot of people have been frightened by the carbon tax,” he says.
