Many different businesses utilize trucks for daily operations; from shipping and flower companies to catering businesses and food trucks. However, the up-front cost of new trucks can pose a real difficulty to many small business owners. So, how to get a loan? How to get truck financing for your small business? Has anything changed after COVID?
Truck financing for your business can be a new concept for many business owners. At times, the number of options can seem overwhelming. And other times it can seem like there are no options that fit your business nor your budget.
At Camino Financial, we want to give small business owners the tools they need to achieve their dreams. In this article, you will be introduced to some of your many great options for truck financing for your small business.
How to Get Truck Financing for Your Small Business
There are three reasons to get commercial truck financing:
- buying a new or secondhand vehicle
- leasing a vehicle
- repairing or upgrading vehicles you own
Your circumstances will determine your loan’s terms and conditions.
There are a few key differences between commercial and personal auto loans. Commercial truck financing differs in both lenders and cost.
Personal automotive loans often have interest below 5%, while commercial auto loans can range anywhere from 5 to 30%. This variability means it can be difficult to plan ahead. It also makes commercial auto loans potentially far more expensive than alternatives.
To get a loan, banks are often the best option. However, banks do not lend to most trucking businesses since there can be a high failure rate in that industry. Nevertheless, other lenders make truck financing their focus, they offer truck loans.
These lenders can sometimes have higher interest rates.
Truck loans are self-secured loans, which means that the truck itself is the collateral on the loan. Financing is easier to get when you have collateral since lenders like to have a guarantee you will repay them.
The truck becomes a guarantee that your lender will be repaid.
The price of the trucks determines the loan amount and conditions. Trucks that qualify for financing can be either new or secondhand.
Other lenders focus their efforts on tailoring financing to small businesses by making their options more affordable and flexible.
Are Trucks Business Equipment?
Small business loans can be used to finance business equipment, but, can commercial vehicles, including trucks, be considered business equipment?
The short answer: yes, they can be considered business equipment.
Commercial vehicles count as business equipment because they are used to help with the needs of a business. They can be used to take employees to destinations or transport goods to customers or between locations. Other vehicles may carry heavy cargo and require specialized training and skills to operate.
This means that you have the option of using a small business loan to finance your truck.
Small business loans are often more affordable than commercial auto loans, which can have far higher interest rates.
Because commercial trucks can be financed with small business loans, business owners can potentially save a great deal of money.
Through lower interest rates and the fact that no collateral is needed, business owners often find small business loans a better option for truck financing.
Small business loans are also far cheaper than leasing vehicles in the long run.
These qualities make many business owners gravitate toward small business loans for a better way to finance commercial trucks.
Is it better to lease or buy a truck?
When it comes to commercial vehicles, you have two options: leasing and buying.
But when it comes to getting a truck for your small business, what is the best option?
Leasing a truck
Some business owners consider leasing trucks instead of buying. The benefits of this are that leased vehicles are ultimately not your responsibility should they need repairs. Likewise, in the short term, it can be cheaper to lease.
However, leasing vehicles means that you have stipulations for how many miles the trucks can be driven, and there can be conditions for where and when they can be repaired.
Ultimately, leasing gives you far more limited control over your trucks (and consequently your business) than owning your vehicles.
Leasing also means you will face monthly payments indefinitely.
Buying a truck
Getting the money to buy a truck might not be as easy, after all, they can be very expensive. But if you don’t have the money upfront, that doesn’t mean that you can’t buy a truck,
Truck financing lets you get the funds for financing the trucks your small business needs through a loan. Financing your own trucks with a loan builds your credit history. Interest rates are reasonable, often lower than credit cards.
Some might say that the most cost-effective option is owning vehicles and using them for the duration of their lifetime.
In the long run, leasing costs far more than owning your vehicles.
How to Get a Small Business Loan for Truck Financing
At Camino Financial, we have a wide number of financing options available to help your business.
With our small business loans, you can rest assured that you are receiving a more affordable alternative to most commercial auto loans. We design our financing to help businesses of all types and from all backgrounds.
Loans ranging from $5,000 to $400,000 are available to help you get truck financing for your small business.
The 3 steps to get a small business loan for truck financing
1. Get pre-approved online
Just by filling our form online, you’ll know if you qualify for a loan. This is very intuitive and we just need the basic information from you and your business. Within 24 hours you’ll know the result and we’ll personally guide you through the next steps.
2. We find the best loans for your business needs
Here you just need to submit your business documents and we do the rest: review them, analyse your business profile and match its needs with the best loan for you. This is what we do best, don’t worry if you have doubts, a loan specialist will help you find the best solution to help your company succeed.
3. Get an offer and receive the funds
This is it! After our specialist and you have discussed what’s best for your business, you’ll receive an offer, and after you accept it, you’ll find the funds in your bank account. All of this will happen only in a few days.
The first step begins right now: Apply today and start growing your small business!
Buy the Truck your Business Needs
At Camino Financial, we believe in our motto: no business left behind. If you have bad credit, or even no credit history at all, reach out to us, our small business loan specialists can explain your funding options and answer any questions you have.
Our loans come with numerous great benefits. These include:
- Zero prepayment penalties
- Loans even if you don’t have a credit history
- 24-60 month extended payment periods
- A fast, online, paperless process
These are just a few of the reasons that equip Camino Financial to help your business achieve its goals.
We do our best to make our loans accessible to business owners in all industries. By answering some simple questions about your business in our brief online application, you can find out if you prequalify for one of our small business loans in seconds.
Our process is completely secure and designed to be easy.
Request a quote now and let us join your business’s journey of success today.