Secrets from the Commercial Dump Truck Financing Experts!
Commercial dump trucks are an indispensable piece of heavy equipment for commercial and government applications. Without a doubt, it is the superior heavy equipment option for the transport and transfer of loose material and other tools such as sand, gravel, earth, etc. Many industries rely heavily on these commercial dump truck mammoths to move heavy stuff. However, acquiring such important equipment is not cheap. In fact, a single unit can cost between $2,000 and $50,000! This is not a small amount of investment for a business at any time, let alone in a shaky economic climate.
Try your local banker
So what is the solution? The solution could be a trip to your local banker. This could work well if your business is stable, your assets are well-suited, and you know your local lender. Often this is not the case. So what is your course of action then? You turn to commercial dump truck financing. Business financing is probably the easiest way to acquire expensive business equipment without draining your company’s finances.
Loans are generally classified as secured or unsecured. A secured loan uses an asset, usually the truck you are buying, as collateral for the loan. This type of loan usually has a reasonably low interest rate because the asset against the loan can be repossessed if you don’t make the payments.
The other type of loan is unsecured, which means that there are no assets pledged against the loan and the loan is made on the basis of the borrower’s personal guarantee. Interest rates here are high as the lender has no means of recouping the loan balance if the borrower defaults. It goes without saying that this type of loan is not made very often.
Try a specialist lender
Financing heavy equipment, such as commercial dump trucks, requires specialized lenders. With these lenders, you have a better chance of approval while getting flexible terms for your financial needs. Despite our current economic situation, commercial truck lenders are still responsive to borrowers as dump trucks are very valuable collateral.
For those with good credit, take time to shop around for the best interest rate from major lenders. If you have a near-perfect payment history and cash assets, you can anticipate good rates. Some specialty lenders handle online quotes and applications. Spend some time shopping online so you can get a broader perspective on the best rates and best deals.
It’s easy to qualify for truck financing if you have a good credit standing. But even if yours isn’t that great, there are still ways to qualify for financing and get some much-needed equipment. Here are some means to avoid any financial hardship.
Consider using a co-signerr
Consider having a co-signer with good credit, usually a business associate. It may take a little longer to process all the necessary paperwork, but it could solve a financing problem. You can also see if the lender will accept a ‘package’ of collateral loans, such as the equity in his house, another vehicle with a clear title including other construction equipment, basically any other source of collateral.
Other Financing Options
If you’re still having trouble getting commercial truck financing, consider the following options:
- Consider buying a used dump truck. With so many companies buying newer, cheaper commercial dump trucks, there is a glut on the used truck market. As a result, prices are lower and you may be able to qualify for this category of vehicle.
- Consider lowering your expectations (add-ons) to bring the price down to an amount you can finance.
- Ask your lender about ‘dealer financed inventory programs’. Typically, these are repossessed vehicles that the lender is trying to sell quickly.
Despite the large capital investment, it is possible to purchase commercial dump trucks to expand your business with commercial truck financing. Good luck finding the right dump truck and getting that financing!