Are you planning to purchase a truck for your logistics business? If yes, instead of buying in cash, financing or leasing can turn out to be a more convenient choice. In case, you are wondering which one will work for you, it’s better to analyze your goals and then formulate the right finance option.
Financing a new commercial truck can help you save the money you would end up paying upfront and ensure you have a stable financial status. Whether you are planning to buy just one truck or expanding your commercial fleet with multiple trucks and trailers, applying for truck and trailer financing in Abbotsford is the foremost option to consider.
The Basic Truck Financing Process
If you are planning to finance a truck and take out a loan for acquiring or repairing it, the truck will act as collateral. In case, you don’t oblige to return your half of the loan deal or don’t pay off your debt, your lender might threaten or even take away your collateral, i.e. your car.
Traditional banks that offer a limited choice of deals for financing a truck are often the first choice of the majority of borrowers. The other underrated options are lending firms or financing companies that have direct connections with lenders and offer several financing deals to choose from with varying interest rates and zero to low down payments. Based on your credit score, opting for a lending firm can turn out to be a better alternative.
Loans vs. Leases- What’s Better?
Both loans and leases work their way and have several advantages and disadvantages. The foremost advantage to leasing a truck is that the monthly payments are usually smaller and you can save up more to cover other business expenses or maintain your financial stability. In comparison, a loan allows you to gain complete ownership of the vehicle after the loan term is complete.
One thing to consider is that leasing typically has higher interest rates and you can end up paying more money. If you are running a seasonal or short-term logistics business, leasing makes more sense. Also, for those having poor or no credit, getting approved for leasing is easy compared to financing.
What To Expect From A Lender?
When approving a loan or financing a truck, a lender may ask for specific information about your personal and business financial records, including:
- Your Time In Business: You are more likely to get easy funding and more options available to choose from if you have been in business for a long time.
- Your Credit Rating: Having a good credit score can help you get better loan approval and repayment terms with greater chances of getting approved.
In case, your loan doesn’t get approved or you have been denied financing for your commercial truck because of a low credit score, don’t worry. Sandhu & Sran Leasing & Financing is here to get you approved for a competitive truck finance deal at the lowest interest rate possible. We specialize in truck loans, commercial leasing, equipment financing in Abbotsford, and more.
