When Specialty truck financing is required by a business, there are basically three different situations that can be relevant.
The most common type of truck financing is to purchase or acquire a new or used unit via an equipment loan or lease. The second scenario would be when there is an end of lease term balance owing in what we refer to as a balloon payment that needs to be financed over a longer period of time. The third scenario is when a business wants to tap into the equity that exists in trucks that it owns and wants to refinance the equipment through a loan or lease to free up capital.
Specialty Truck Leasing programs will also involve providing capital for new or used equipment. Terms of sale can also very from purchase to purchase and these also have to be taken into consideration when attempting to arrange financing. For instance, because of the nature of a specialty truck, a financing facility may have to allow for the purchase or acquisition of the truck separately from the manufacturing and installation of the related equipment. This may require several partial payments to be made by the finance company in order to get the entire truck paid for. Another issue could be the purchase of the truck and/or the equipment from a U.S. based vendor where payment needs to made to the vendor before the equipment can be released to the buyer. This will then require the truck and equipment to be imported into Canada through a customs broker with the relevant sales taxes paid at time of crossing.
The reason all of these aspects need to be properly understood is that while there are lots of different specialty truck leasing programs out there, not all of them will cover off the same scenarios. For instance, most truck financing programs will not pay a U.S. vendor directly, but some will. Some leasing programs will provide larger balloon payments to aid in cash flow management while others will not. The size of a deal, whether its new or used, whether its a new business, owner operator, or a fleet expansion can all influence which truck leasing company is most relevant for any particular deal.
There is also the issue of rate and term. You may have many different financing companies interested in your requirements, but their rates and terms can be dramatically different.
So the good news is that there tend to be lots of specialty truck leasing programs out there to consider. And the stronger your credit and financial profile, the more options and better priced options will be available to you.
The challenge then is to be able to sift through the market in a timely fashion and zero in on the most relevant options as quickly as possible so you can get the financing work completed and get back to the business of making money.
In our opinion, the best way to do this is to give us a call at 905 690 9874 so we can discuss your requirements with you and quickly provide the most relevant options available to you.
There is no cost or obligation associated with the specialty truck leasing assessment we provide and in most cases we can provide relevant options for you to consider in minutes.
Give us a call today and we’ll make sure we get all of your questions answered as quickly as possible.