Getting a business loan is a great option. It allows you to boost business growth and improve efficiency. However, if you are within the haulage industry, getting a car loan might not do the trick. You will need to obtain truck finance that allows you to finance the purchase of these specialised heavy-duty or medium and small duty trucks.
There is a wide range of businesses and organisation that supports you to achieve this. They provide specialised information after understanding your business needs. In turn, you enjoy a well-tailored option that suits your needs. So, if you are thinking of adding to your haulage fleet or upgrading the existing option, you can count on truck finance.
What Can You Finance?
You can finance a wide range of truck options. They include:
- Commercial utilities
Truck Finance Options
There is a wide range of finance options you can take advantage of to aid the purchase of a truck. They include:
This is perhaps the most common mechanism for commercial lending. It is a lending option that allows you to obtain the necessary truck based on the cash financing of a lender. Under this system, you retain ownership of the truck. Then, the lender as security for the loan obtains a mortgage lien over the truck.
Now, as in every financial arrangement, you are obligated to make a monthly repayment to the lender. This is in return for the loan sum and the interest rate. Now, once you complete the payments, the mortgage arrangement comes to an end. It is an effective option, tax-wise, that allows low rates and flexible term.
This option, sometimes regarded as the commercial hire purchase, allows you to hire the truck. However, this is with the intention that you will buy the truck at the end of the arrangement. As such, with this arrangement, the lender remains the owner of the truck throughout the loan term. Then, when you complete repayment, you get ownership.
This option is also tax effective. It allows you to enjoy the use of the truck, although not as the asset of the business. Then, you also enjoy flexible terms and a repayment schedule between one and seven years.
This option is similar to the hire purchase option. This is because, in this arrangement, the lender remains the owner of the truck throughout the lease term. Then, when you complete repayment, you get ownership. However, what differentiates both options is the presence of a residue payment clause in a lease agreement. With this clause, you agree to a pay a lump sum at the end of the term, usually calculated as the truck’s value at that end of the term.
It is also tax-effective and allows you to complete repayment within one and seven years.
Frequently Asked Questions
Yes, you can finance the purchase of a used truck. However, depending on the lender, you will need to meet certain conditions or requirements.
Yes, you can finance the purchase of a fleet of trucks. As always, you will need to meet various requirements ranging from your credit score to your annual earnings.