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Heavy Truck And Equipment Financing

Heavy machinery is quite costly, especially to small and medium-sized companies. Their financial constraints necessitate them to seek the services of a financial institution or funding body to assist in securing a loan or lease so that they don't have to pay the full amount up front. These equipment are almost exclusively used in business environments and are expected to result in profit to finish payments. Trucking is a vital bone of the American economy, and this importance, therefore, spills over into the heavy truck equipment financing sector.

Advantages of financing

Affordable down-payment

Many small companies cannot afford the lump sum payment for heavy equipment. They, as a result, opt to propagate the amount over a duration of time as they make use of the acquired vehicle in generating revenue.

Save money for other purposes

Rather than pay the full amount, a company can lease it to save money for other purposes. Cash flow is essential to a business establishment, thus overstretching financial muscle in procuring heavy truck equipment is not a good idea.

Keep current with technology

Technology is a fast-changing environment that companies may find hard to keep up with. Financing is an appropriate route for establishments to keep pace.

Outsource running equipment

Financing companies can manage the financed facility from delivery up to the termination of the contract. The financier has experience in this arrangement, and this relieves the company from running the highly specialized equipment.    

Bundle Operations

Financing companies offer packages that bundle purchase, maintenance, operation and other services related to heavy equipment into one solution; the organization may have otherwise found these different, but related, activities daunting to roll out. 

Different types of financing

There are different kinds of heavy equipment financing. The common types are:

  1. Commercial hire purchase: the lender procures the facility and lends it to the company in question for a fixed monthly price until the full amount is met.
  2. Chattel mortgage: the equipment serves as collateral for the loan secured to buy the machinery.
  3. Equipment lease: this is recommended for equipment that will not be relevant after some short duration, say due to morphing technology. The financial institution retains the equipment at the end of the lease period.
  4. Managed Equipment lease: the leaser not only retains the facility at the end of the lease period but also manages it all through the lease period.

Are you thinking of acquiring used semi trucks, trailers, or construction equipment? Contact us, and we will advise accordingly. We also offer provides parts and service at competitive rates.


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