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.
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