The Commercial Trucking Industry has been growing at an unprecedented rate in the last few years. There are thousands of new commercial trucks that are being added to our roads each year. The competition is fierce, and it has led to a situation where small or medium trucking companies can be overwhelmed by growing bills and shrinking opportunities.
However, the good news is that Truck Financing Solutions have opened the doors for both big and small trucking services to enlarge their avenues, increase their capital, and grow their business in the right way. The wide range of truck financing options that are available today mean that there is an ideal financing choice for your business out there.
With that goal in mind, let’s examine some of the most significant commercial truck financing options that are making the rounds in the industry today.
- Heavy Duty Truck Financing
Heavy-duty trucks usually include vehicles that belong to the Class-7 category and above. These trucks can carry a load limit of at least 26,000 pounds or more. You will find that there are multiple financing offers by different companies when it comes to heavy trucks, but not all of them can provide you with the best deals.
Look out for dealers who can provide you with an affordable down payment arrangement. There are companies out there who offer 0% down-payment provided your credit history is good enough, and you’ve been in business for some time. However, even if you don’t qualify for a complete waiver of advance payment, make sure you go for a deal that keeps it to a minimum. Heavy trucks are expensive, but they will also get you better returns so you can pay off your financing much more quickly.
- Specialty Vehicle Financing
Commercial truck financing also includes specialty vehicles that are built, designed, or modified to perform specific operations. These can consist of tow trucks, Shredder trucks, Box trucks, etc. With specialized services growing each year, there is an increasing need for commercial vehicles that are specifically built or modified to perform certain operations, apart from the usual transport of goods.
Specialty Vehicle Financing covers the purchase of factory-made vehicles and trucks that are built for conducting specific functions. It also includes financing for existing trucks that can or have to be fitted with parts that will let them perform specialized tasks. This means it will cover the costs if you have to enhance or specialize a truck by installing a crane, towing features, lifting equipment, etc.
- Commercial Line-Of-Credit
You can secure a line-of-credit in different ways; it can come as a demand loan, term loan, overdraft protection, discounting, etc. The most convenient aspect of a Line-of-credit is that it is flexible. You can manage your spending and expenses around your requirements, and you only have to use the portion of the credit line that you actually need. Then once it’s paid back you can use it again when necessary. This leaves a lot of wiggle-room for you to manage your financing resources. You can utilize Line-of-credit financing to:
- Buy commercial trucks or use them on a lease.
- Finance almost any light or medium operational trucks
- Retain a decent credit line for other loans or financing options
The good thing about Line-of-credit financing is that you usually get the option of repaying the whole loan amount in one payment, or you can spread it over the course of small monthly payments.
- Municipal Lease-Purchase Financing
The Municipal lease-purchase financing is an excellent option for local governments and public offices that have to own their own vehicles and trucks. This type of funding differs a little from the general leasing agreements. The primary difference is that the municipal aims to own the truck or vehicle at the end of the lease. This implies that there will be no ‘Balloon payments’ or any other residual fees that you will have to incur at the end of the lease term. Basically, it means that whatever you have to pay is covered over the course of the regular payments during the term.
Municipal Lease agreements amount to millions of dollars every year which shows that there is a vast market that involves local public offices from all over the country. Local offices like Police, Fire Departments, Sheriff’s Office, State Universities, etc. have all decreased their expenses thanks to Municipal lease-purchase financing.