If you have aspirations of taking your business to newfound heights, then transportation plays a crucial role in the growth of your business. For example, you may need to transport certain goods or items across the country or make deliveries that require a truck. Irrespective of the reason, here’s why financing a commercial truck is a sound financial business decision. If you are a small business owner with insufficient working capital to purchase a truck, commercial truck financing can help with that. Financing significantly helps in expanding your business operations.
For commercial truck financing in Brampton, there is only one reliable name in the business, i.e., Top Link Loan and Leasing. Give our team a call today to apply for financing or to find out more information.
How does it work?
It gives you access to funds needed to purchase a truck or trailer to expand your business, including paying for repairs or upgrades of your existing truck/s. Unlike a car or personal loan, it is not technically a loan; it helps the individual or business to make affordable payments by spreading it out. When you purchase a truck, it is used as collateral, and the lender will hold the title until the amount is completely paid off. Unfortunately, if you default on your payments, the lender has the absolute right to seize your truck to recover their losses.
Pros and cons of commercial truck financing
Financing a truck commercially eventually leads to ownership. Once the debt is paid in full, you are not required to make further payments. Another pro is that the financing terms will match the life of the commercial vehicle. The payments you make are guaranteed and will not increase the life value of the truck. Additionally, when you choose to finance, you don’t need to remove a significant amount of your company’s cash reserve.
A con of commercial truck financing is, if your business has poor cash flow or bad credit, they will be denied financing from traditional lenders, including a few private lenders. Additionally, securing funding can become expensive as well.
Requirements for commercial truck financing
When considering your application for commercial truck financing, lenders will take a look at the below-mentioned requirements:
- The truck’s condition: They will look at the make, model, serial number and verify to see if it is in good working condition. In some instances, lenders might approve financing for only new trucks.
- Vendor: The vendor’s reputation plays an integral role when applying for commercial truck financing.
- Credit score: A vital requirement. Lenders will look at your personal credit history, including your business credit score, regarding financing. But at Top Link Loan and Leasing, regardless of your credit score, we still provide funding even if it is poor. For more details, get in touch.
- Other related documents: In some instances, lenders will ask you to provide proof of business, tax returns, and bank statements, including various business and personal documents, to secure financing for your commercial truck.
Apply for a commercial truck financing in Brampton with Top Link Loan and Leasing
When it comes to commercial truck financing in Brampton, look no further than Top Link Loan and Leasing. For further enquires or to apply for financing, please do not hesitate to give us a call today at (905) 565-8667.