In the box truck equipment financing category, we would include different types of Reefer Trucks, Utility Trucks, Specialty Trucks, Maintenance Trucks, Gas Trucks and other enclosed cargo hauling truck set ups.
This type of transportation equipment financing is available with little to no money down for new or close to new vehicles.
Used assets tend to require more of a down payment, but still can be arranged for solid rates and terms.
For specialty box trucks that don’t have a lot o mileage, we can look at financing assets that are up to ten years old and potentially older, provided that there is sufficient useful life left in the asset to support an equipment financing facility.
In most cases, a box truck financing application can be approved in 24 to 48 hours.
Longer approval times can be required for larger purchase amounts and older vehicles that require more review of their condition and value.
We will also look at both private and dealer sales, although private sales will take more time to complete due to the need to provide a clear title for security purposes.
Box truck financing terms will range from 36 to 84 months in length with both capital lease and operating lease options available through select leasing companies.
The benefits of leasing can be considerable, especially if you have a fleet of box trucks that you have to have on a replacement schedule.
We also work with a broad cross section of lending and leasing companies, and as a result, we can consider box truck financing arrangements for a wide variety of credit profiles.
If you are in the market for box truck financing and want to better understand your available options, please give us a call and we’ll get all your questions answered and quotes completed right away.
Financing platform trailers for your business or trucking fleet can be accomplished through either an equipment loan or equipment lease financing solution.
This would include both new and used platform or flat deck trailers, although the older the trailer, the harder it will be to get financing arranged. Any thing that still has considerable useful life remaining has the potential to be financed by loan or lease.
If you’re looking at a bulk order of trailers, there are a number of different ways you can potentially arrange equipment financing to meet your needs.
For instance, if you’re ordering 5 platform trailer units, you could finance each through their own unique financing facility, finance each, but through multiple financing companies, or finance all 5 platform trailers under one loan or lease financing facility.
Some of these options can be your choice, and in other situations they may be your only coarse of action.
For instance, if you are a smaller company with modest sales, you may not be able to qualify for all the credit you need from just one financing source. In this situation, it may be possible to split the credit requirement up among loan or leasing companies to reduce their individual credit exposure, but still provide you with the capital you require.
Bottom line, there can be many different ways to arrange financing, depending on the condition of the platform trailers, and your financial and credit profile.
The transportation equipment financing business, the stronger your company is from a financial and credit perspective, the higher the loan to value you can secure when trying to finance platform trailers or other transportation related assets.
With a strong credit and financial profile, its not uncommon to be able to secure at or near 100% of the acquisition cost of the equipment through an equipment leasing company who may only want to see the last payment in advance before funding the deal.
This can be a tremendous benefit to cash flow and working capital as available cash can be preserved for other uses including funding more sales which can mean higher profits for the business.
While its very possible to get good financing rates and terms on used platform trailers, the type of equipment financing you can actually secure will depend heavily on the condition of the trailer or trailers you wish to acquire.
When trying to acquire trailers that are more than 5 years old, or have over 250,000 miles, its going to be important to have all the service records for the equipment. For instance, if there has been a major repair to a flat deck trailer, that will clearly extend its useful life, then that will be taken into consideration by an equipment financing source.
Getting used equipment from reputable dealers will also help compared with trying to secure a purchase from a private seller.
And while its still possible to finance a flat deck trailer from a private seller, there will be less reliance on any service records or mileage logs provided by a private reseller.
Flat deck trailer financing can be arranged rather quickly for both new and used flat deck trailer equipment.
In order to determine which lending and/or leasing sources we should approach with any given request, there are a few things we need to know first.
For example, are you purchasing the flat deck trailers from a licensed equipment vendor or a private seller? Both types of transactions can covered by equipment financing, but there is a bit more paper work involved in a private sale as a search and waiver process has to be conducted to make sure that the seller is providing a free and clear title to the assets. This additional step can add some time to the process, but typically is not an issue when completing the transaction.
Another thing we would need to know is where the seller is located. If this is a cross border transaction between Canada and the U.S., there will be certain lenders or leasing companies that will be interested in that type of transaction and some that won’t. So its important to know this before approaching a source of flat deck transportation equipment financing.
Next, we will need to know more about the applicant company that is trying to secure the assets. For example, how long has the company been in business; what do the most recent financial statements look like; how strong is the credit rating of the company and potentially the credit profile of the principal shareholders or owners.
Once the above information is put together into an application package, we send it out only to equipment financing and equipment leasing companies that are the most relevant to the financial and credit profile of the applicant.
If the total equipment value is under $100,000, the approval process can be completed in a couple of days with funding completed soon after, provided that you can readily provide the basic information required in the application right away.
For larger financing amounts, the approval process can take from two to five business days, depending on the amount of review and financial supporting documents required by the lender or leasing company
The key to financing used flat deck trailers is the condition of the units.
In order to get financing in place, you need to be able to provide detailed a detailed listing of each trailer to be purchased, including make, model, year, axle type, condition, any major repairs, tires, and so on.
The more detail the better so that an assessment of value can be performed right away by the financing company or a third party appraiser.
Used flat deck trailers will require more money down than a new purchase in most cases, but 80% levels of financing are still possible.
And as long as their is sufficient useful life remaining, a three to five year lease term is what will be offered to the applicant in most cases where financing is approved.
For equipment leases, you can also consider operating versus capital leases to better match the financing to your case flow and income tax filing.
Specialized equipment like a boom truck can be financed in both a new equipment or used equipment situation. Even with an older model truck, if the equipment is newer or in very good condition an equipment financing solution can still be arranged. Just keep in mind that for used boom truck financing requirements, rates are likely going to be higher than new, down payments higher, and repayment terms shorter. But if you have the ability to acquire a used boom truck at a great price, higher rates and terms may not have a big impact on the purchasing decision.
Its also possible to acquire a truck, modify it with a boom, and put everything together, including the retrofit costs into one loan or leasing facility.
The keys to getting financing are always going to be the strength of the cash flow of the business applying. The stronger the cash flow over time, the more likely financing will be available, and for better rates and terms. It can be more challenging for new businesses to finance boom trucks, especially when the cost increases beyond $50,000. In these situations, the borrower may have to pledge additional security or have a second guarantor sign for the equipment financing commitment.
One of the challenges in the used equipment financing market overall since the start of last recession has been a surplus of equipment available in the used market. For an asset like a boom truck, this may not be the case, especially in a localized market, providing a stronger security value to the lending institution or leasing company to make a financing decision in your favor.
An equipment loan is likely only going to be available for either for established businesses with good credit and cash flow or through a government sponsored equipment financing program that shares the risk with the lender for newer and/or smaller companies that would be viewed as higher risk credit opportunities for the lender processing the application for equipment financing.
Regardless of your situation or requirements or stage in the boom truck acquisition process, we suggest that you give us a call so we can get all your questions answered right away and provide equipment financing options for your immediate consideration.
Dump Truck financing is available through different forms of transportation equipment financing including equipment loans and equipment leases.
Transportation equipment leases are by far the most popular form of financing for new or used dump trucks or any type of truck for that matter as lenders prefer to own the asset and lease it back to the business owner. In the event of default, the financing company can take action to secure the dump truck and resell it to get the financing amount repaid. Unlike other forms of equipment that need to be disassembled and reassembled, a dump truck can easily be put up for sale and resold.
The advantages to business owners that want to acquire this type of asset is that there are going to be several options available to you even if you don’t have perfect credit/
For used dump trucks, the financing requirements are likely going to be tougher in most cases with more of a down payment required compared to financing a new piece of equipment, higher rates, and repayment terms shorter as well. And the older the use dump truck asset, the tighter the financing requirements are likely to be. That being said, dump trucks, especially heavy duty models, can retain their value for long periods of time and also retain their lending value as well. Basically as long as their is good value for specific used equipment in the resale market, there is likely going to be a equipment financing alternative to consider.
One of the key decision many business owners need to make where a fleet of dump trucks is being financed is whether they should lease to own or lease to rent. With the later, the strategy is to enter into operating leases where at the end of the lease term, the asset is returned to the leasing company without further obligation and a new operating lease is entered into on a new piece of equipment. The focus near is to forgo some of the paid equity in the dump truck in order to also forgo further repair and maintenance expenses that are likely increase as the unit gets older. The lease to own strategy is more like an equipment loan where the intention is to purchase the dump truck at the end of the lease and own it longer term and take on the responsibility of the ongoing costs and maintenance in the years to come. Which strategy to employ will depend on the level of annual use for the dump trucks as well as how efficiently the business is set up to deal with ongoing maintenance and repair in a cost effective manner.