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.
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