As a new business owner, buying a heavy-duty truck may be critical to getting your business off the ground. At the same time, this major capital investment may be tough to swing from a financial perspective. Here are some tips to getting financing for your truck.
1. Buy it as part of a small business loan. If you have been granted an overall small business loan, using some of this cash to buy the truck will avoid you having to get another loan.
2. Buy from a dealer that offers financing. You may find that dealer financing is a bit more lenient than borrowing the money from a bank. The interest rate may also be a bit higher, so be sure try to get the best rate possible by shopping for loans. Some dealers may offer you a better deal if you are financing through their dealership. This break comes in money off the price of the truck, not a reduced interest rate. Many commercial truck dealers are used to working with new business owners, so they often offer terms that are amenable.
3. Verify that the particular truck you’re looking at can be financed. You may be able to find a really great deal on used heavy-duty truck for sale. Buying a used truck can be a smart financial move, since you’ll get a much better deal, so long as the truck is in good shape. However, before you agree to purchase a used truck, ensure it can qualify for financing. In most cases, a truck must have passed a recent DOT inspection in order to qualify for financing.
4. Offer a personal guarantee. If you are a brand new business, your personal credit may be better than your business credit. If this is a case, ask if you can offer a personal guarantee on your business loan. As soon as your business can qualify for credit on its own, however, refinance in the business name in order to keep personal and business assets and liabilities separate.
By exploring all the available possibilities in financing your heavy-duty truck, you’re sure to be able to find a deal that will work well for your business’ financial situation and find a truck that will service all your business needs. That heavy-duty truck for sale in Texas could be the start of your company’s fleet in no time.
