If you’re thinking of starting a trucking business or expanding your business by increasing the number of trucks at your disposal, you should consider truck finance. While you may be able to come up with the money to buy a truck, it is best you seek financing. The capital you have can then be put to better uses, such as marketing your business, paying workers and sorting overhead costs as you run your business. It is important to note that there are many companies with amazing truck financing packages, but they are not all equal. You will need to conduct a little bit of research to identify the best financier for your needs. Start by looking for a truck finance broker.
How Truck Finance Works
If you want to buy a new or used big rig, semi-truck or an over the road truck, you can opt for either hire purchase or truck financing. There is also the option of taking a secured or unsecured business loan to acquire the truck you need. The best option, however, is truck financing.
The first thing you will need to do before you can apply for truck financing is identify the truck you need and negotiate the price with the seller. This will take a considerable amount of time, so be sure to take your time to search for the right truck and vendor. You will need to negotiate the price and terms of the sale. Next, you must pay the deposit required by the financier. Most firms usually offer up to 90% financing, but others can offer up to 100% financing. Depending on the level of financing offered by a firm, be sure to avail the funds needed to pay the deposit. You will need to have the terms and conditions of the sale written down in the sale agreement. Be sure to also get a payment receipt as the financier will require proof of payment before processing the application.
It is interesting to note that some firms accept online truck financing applications, so you can upload the sale agreement and deposit payment receipt together with your finance application and wait for the financier to pay the outstanding balance in just a few hours.
Depending on the terms of the sale agreement, you may be able to take immediate possession of the truck or big rig the moment the sale agreement is signed. To ensure you do not default on your payments you will need to set aside two or three payments to cushion you against slow revenues and other unexpected events.
Importance of Working With a Broker
Loan and finance brokers have in-depth knowledge of the industry. This means that they know the best lenders and financiers. Therefore, they can help you get the best deal possible. A competent broker can help you find a low interest auto financier offering almost 100% financing with favorable terms and conditions.
What to Look for in a Broker
Independence is the most important factor of consideration when comparing brokers. You want to hire an independent broker because they have your best interest at heart. Brokers who are contracted by truck financiers have the interests of their employer at heart, so they will not take care of your interests.
Reputation and experience are important factors to consider. You want to work with a trusted and reliable broker with plenty of experience helping businesses secure affordable financing. Therefore, you have to compare the number of trucks a broker has helped clients to secure in the past and go through reviews, testimonials and ratings provided by clients before deciding to commit yourself. Obviously, you’ll need to check the terms and conditions of the truck financing packages offered by different brokers. This will help to ensure you do not get a raw deal. After all, some brokers may want to force you to accept a bad deal because the payoff is highest for them. For this reason, you need to exercise caution when conducting your research. The good news is that there are many amazing brokers out there.