Own a logistics business and need a new trailer? Buying a trailer is an expensive investment and needs a lot of money at once. If you are new to the business and don’t have enough savings to invest together, financing is the best choice for you.
In Canada, even the low-end new trailers cost more than $100,000. To avoid any financial burden on your pocket, opt for getting a loan or finance from a leading company specializing in truck and trailer financing in Abbotsford.
What Is Trailer Financing?
Trailer financing is a hybrid financing model that’s a combination of a business loan and an auto loan. A financer will consider some prospective aspects like your business history and the make and model of the tractor-trailer you intend to buy to approve you for finance. Also, your credit score is taken into account for eligibility requirements.
Pre-requisites to Qualify for Trailer Financing
To qualify for trailer financing, here are some pre-requisites you need to meet:
- Down Payment: A down payment equal to one or more monthly installments is needed.
- Credit Score: The minimum credit score requirements need to be fulfilled.
- Business History: At least two years of experience in the trucking sector is needed.
- Vehicle Mileage: Loan or financing for low-mileage trailers is favored over high-mileage ones.
- CDL: Obtaining trailer finance may require you to obtain your Credit Discretionary Limit first.
If you meet all of these qualifications, you can get easily approved for trailer and truck financing.
Applying for Trailer Financing- What To Do?
Your loan may get refused by a bank, but a financer leaves no stone unturned to get you approved. It’s advised to do your homework on local lenders before rushing to your closest bank to submit a trailer loan application.
Many financing firms are ready to assist you with financing your trailer and present many loan options to choose from. You can submit more than one application with many lenders to compare the rates and offers they are providing. Once you analyze what is being offered, you can choose your best-fit loan option.
What Could Prevent You From Getting Trailer Finance?
Other than just credit score, many other factors are considered by the majority of financing companies before getting your finance application approved. The most common ones include:
- Lack of Business History
- Low-Quality Trailer Model
- Not Having a Good Credit Score
- Being Low on Cash
- Past Financial Mistakes
- Not Having a CDL
Conclusion
Getting trailer finance is an easy yet complex task that needs a lot of research and requisites to be completed. If you are buying your first trailer or truck, it is recommended to choose an expert financing company having a good track record of satisfied clients.
At Sandhu & Sran Leasing & Financing, we are your local truck financers having years of industry experience in assisting small truck owners like you in getting approved for truck-trailer financing and equipment leasing in Abbotsford. Give us a call to find out how we can help you.
