Financing Available For A,B, and C Credit profiles, owner operators, and start ups.
If you have a tow truck loan or lease financing quote already in hand, then give us a chance to see if we can provide even better rates and terms.
For dealers and vendors selling new and/or used tow trucks, we can also set up a customized vendor financing program for your customers that will allow you to close more sales in a timely fashion. The biggest issue with most dealer financing programs is that they are not able to address all the different credit profiles of their customer base. This is not a problem for us as we can work with A, B and C credit profiles.
The process of applying for tow truck financing is fast and straight forward. The rates and terms are very competitive and we provide loan or lease programs that fit most business needs.
The majority of financing we arrange for tow trucks is via an equipment lease. This can be a capital or operating lease structure with different end of term options available.
When you call, we will go over your situation with you on the phone and immediately provide financing options for your consideration.
If you get our voice mail, leave your name number and best time to call…your call is important to us and we will call you back as soon as possible.
Alternatively, you can also access our contact form through the link below and send us an overview of what you’re looking for. Please leave a phone number in your note so we can get back to you with any additional questions we may have in order to get you a proper quote.
Most loan or lease approvals are secured within 24 to 48 hours with funding following closely after.
Even if you have bruised or damaged credit, please give us a call as we still may be able to help you.
We can provide competitive quotes for large companies, government organizations, and even owner operators that may be starting up, adding a tow truck, or replacing one.
Call us today at 1 800 559 8845 and get one step closer to getting your financing in place.
If you’re looking to acquire a used highway truck or semi trailer or highway tractor, depending on what you want to call it, there can be a number of different options available to you.
But the first thing you need to focus on is where you and your financial and credit profiles are likely to fit in the market place.
First of all, most leasing companies do not provide financing for highway trucks, so its a fairly specialized form of financing.
There are a number of reasons for this, but the primary one is access to the asset in the event of default and then the ability to effectively liquidate the truck to get repaid.
Regardless of the reason for financing or not offering financing for this type of asset, its just important to realize not only who is providing financing, but what types of programs they offer.
For instance, there are leasing companies that will finance semi trailer tractors for businesses that have been in existence for more than three years, but not for any individual or operation less than three years in business.
The next bit of pre work to do before applying anywhere for credit is to self assess how much money you are going to have to put into the deal.
As a general rule, a used truck will require a 10% down payment for a company that has been in business for three years and has a solid credit rating. It is possible to get financing with an even lower down payment, but credit and historical financial statements are going to have to be very strong.
And with a weaker financial and credit profile, you still may be able to qualify for financing, but it may take a 20% to 25% down payment to make things work.
One of the main focuses of any equipment financing transaction is the minimization of the initial cash outlay. This is why equipment leasing solutions tend to be preferred for transport financing requirements.
Bank and institutional lenders that provide loans will typically issue credit at very good rates, but will want 25% down for even strong applications and at the time of purchase, you not only have to part with 25% of the down payment, but outlay the sales tax for the asset as well. You’ll likely be able to get the sales tax back in some way or another, but the timing could be difficult to manage.
With a leasing arrangement that requires 10% down, the leasing company is also paying the sales tax at time of purchase, requiring you to only pay sales tax on the individual leasing payments. So the overall transaction is very cash flow friendly to get started.
And if you’re looking to expand your operation, leasing companies can allow you to acquire anywhere from two to five trucks with high leverage where as a bank or institutional lender is going to want to always see an overall debt to equity ratio for your whole operation of 2:1 to 3:1.
The bottom line is that leasing will likely provide you with the most leverage to finance used highway trucks and tractors.
And the highest potential leverage available to you will directly depend on the asset being acquired and your financial and credit profiles.
With respect to the asset, you are going to get more financing options and more leverage on trucks that are no greater than 5 years in age. Age and condition will both be assessed as the leasing company is going to want to know that the unit you want to acquire has enough useful life remaining for the intended use over the leasing term.
So in review, longer time in business, solid credit, and newer asset will result in lower down payment, longer leasing term, and better rates.
Older assets beyond 5 years can be still financed, but their condition and mileage and repair history are going to be key components to the lending decision. And you can also expect higher down payments, shorter terms, and higher effective leasing rates for older trucks as well.
If you require financing for a used highway truck, give us a call and we’ll go through you’re requirements and options together.
Tool truck financing for outfitted van or panel trucks that are designed to showcase parts and tools for customers, or serve as a business owned and used parts and tool truck is available through equipment loan, leasing, and other equipment financing solutions.
These units can be purchased through a dealer or private seller, although the process of acquisition through a private seller will have a few extra steps such as inspection and lien search.
Vehicles both new and used can be financed with used assets over 10 years still able to get financing in many cases, depending on the condition of the asset and the amount of useful life remaining as compared to the loan or lease term being sought.
For new tool trucks, you can look basically secure 100% financing with the only cash outlay typically being your first payment in advance.
If capital is provided via an equipment loan, you will own the tool truck from the outset of acquisition. If the asset is being leased, then there are some other considerations you will have to make.
For instance, if you intend to own the truck at the end of the lease term, then you would enter into a capital lease where at the end of the lease you would be required to pay a small buyout amount, typically no more than $20, in order to have the vehicle transferred over to you.
If you want the option to return a tool truck at the end of the lease term, then you would be looking at an operating lease where at the end of the financing term you can turn the truck over to the leasing company with no further obligations to pay against it.
Most operating leases also provide buyout options in the event that you decide later to purchase the asset.
One of the best features of an operating lease is that at least 10% of the principle is not repaid during the lease term which allows the payments to be smaller as compared to a loan or capital lease for a similar amount.
There can also be tax advantages to an operating lease which should be discussed with your accountant before hand.
With used tool trucks, depending on the age of the asset and the amount of time in business, you can expect to pay anywhere from 10% to 25% down from your own cash reserves.
This can even be possible with start up businesses provided that you have the credit rating and personal net worth to support your new business.
Financing for start ups related to tool and part franchises are going is going to be easier to obtain than an independent start up due to the fact that an existing and established franchise model will provide more predictable results in most cases as well as support to the business owner as they work to get established.
The key for start up financing is going to be proof of down payment and working capital to start the business as well as a business plan and financial projections to not only show a plan of action to get started, but that the relevant costs of the business are being identified and that there is sufficient cash flow to cover all costs including debt servicing for a tool truck credit facility.
These vehicles can be used to cars, trailers, heavy equipment, shipping containers, steel material and much more.
Some of the more common commercial applications include the floating of forklifts, bobcats, excavators, backhoes, bulldozers, and other related equipment.
When acquiring a tilt tray truck, you may have the truck and tilt tray already assembled into one unit, or you may have to purchase these two items separately and get the tilt tray installed.
Either way, we can likely come up with a equipment financing solution for you.
For used tilt trucks, as long as there is significant useful life remaining in the the asset, its very possible to get financing arranged for something that is over ten years old. The newer the asset, the better potential rates and terms that are potentially available. But for older units that are in good shape, we can still arrange financing for up to three year terms.
If you are an owner operator looking to start a float business and require tilt tray truck financing to get the initial asset you need to get operational, transportation equipment financing can be arranged provided that you have good credit, good personal net worth, 10% to 20% to put down, and a business plan that shows how you are going to be able to make the payments once the financing is completed.
For established operations that are looking to add one or more trucks, you may need to provide your last completed financial statements with the application package in addition to a signed application and vendor invoice for the assets you want to purchase.
Typically a company over three years in business with good credit and positive cash flow will have a good chance at qualifying for “A” equipment financing rates through banks, institutional lenders, and leasing companies.
If the operations are less than three years in business or do not have a strong financial and/or credit profile, there can still be “B” or “C” credit options available as well.
If you have located an asset you want to acquire, a submitted application will typically get a credit decision in 24 to 48 years with funding to follow immediately after for approved applications.
There are times when the seller of a tilt tray truck may be a private individual or business as apposed to a licensed dealer.
In those situations, we can still potentially arrange financing, but the application and approval process will take more time as all financing companies will require a search and waiver process to be completed to make sure that there are no outstanding liens against the asset.
If you has some specific cash flow or taxation requirements that you would like a potential financing facility to be congruent with, we can look at different forms of operating and capital leasing facilities that can provide flexibility in both the repayment structure and the accounting and tax treatment.
So regardless of what your tilt truck financing requirements are, the first step is to give us a call so we can quickly assess your situation with you over the phone, and then provide equipment financing options that meet your requirements.
Off highway truck financing can be obtained in the form of an equipment loan or an equipment lease.
The most common form of equipment financing for this type of asset is via an operating or capital lease facility.
This is because the financing company can reduce and control risk better through a lease where they actually own the asset that you are using.
For off road truck assets, there can be several transportation equipment financing options for used equipment, even when assets are older than 10 years in age.
This is due to the fact that used equipment financing is based on the remaining useful life of the asset, and when you have trucks that can be operated far beyond ten years, there can be a strong case to be made with a financing company to provide financing.
From a lender or leasing company’s point of view, off highway trucks will depreciate very little from the tenth year of operation to the eleventh in most cases as compared to the drop in market value from say the second year to the third. As a result, older assets tend to hold their market value, or at least provide a more predictable value to lend against as compared to a newer model.
That being said, newer trucks are going to get the most financing company attention and provide for the best rates and terms.
The key with new off road trucks is how you want to manage your assets over time.
If you have a fleet of trucks, do you want to own them longer term, or replace them every five years or so when the higher levels of repair and maintenance will start to creep into the picture.
Depending on your objectives, financing can be arranged in the form of a capital lease or equipment loan where ownership of the asset is required long term as compared to an operating lease where the asset can be turned back to the leasing company at the end of the lease term without any further cost or obligation incurred by the borrower or lessee.
Even if you are a start up operation, there can be a case to be made for getting an equipment financing approval for an off road unit.
The keys to getting financing for someone starting out is a good down payment of between ten percent and twenty percent, solid credit, strong net worth, and a business plan that shows that the work is lined up and will be available to the operator for the financing term being requested.
And for established operators with three or more years in business, it can be fairly straightforward to finance one or more trucks. The challenge for existing operators will come more when they require several units and then will need to provide a balance sheet and corporate guarantee that can support the larger lending exposure that will be created from three or more units.
If you are looking to acquire a used off highway truck, then its going to be important to get an accurate condition report from the vendor or reseller so that the financing company in turn has a solid basis from which to assess their potential security value in the unit.
For getting financing on either a new or used truck, your first step is to get us a call so we can complete a free initial assessment of your options with you.