5 Equipment Finance Tips for Trucking Companies
- September 29, 2018
- Posted by: Baxit Qureshi
- Category: Trucking Equipment Financing
According to the American Trucking Associations, the trucking industry employs over 7 million people and moves over 70% of US freight tonnage, including medicines, hospital supplies, and perishable food and drinks. This proves that the majority of the trucking companies in the U.S. are consistently on the rise and will always require high-ticket equipment items to run their businesses smoothly. However, without financial assistance, their expensive needs can easily break the bank.
We’ve compiled five equipment financing tips for trucking companies to use as they set out to continue upgrading and maintaining their business in this industry with ease.
Tip 1: Know your trucking equipment needs.
When you know your trucking needs, you can better decide on the tools and equipment that are right for the job they will serve. If you can test out the equipment you plan to finance, do it! You can’t afford to have drivers break down on the way to a delivery, spoil food or mishandle medicines or hazardous chemicals. Know the pros and cons of how the equipment works and how they will serve you now and in the future. Yes, think about the future. Select items that can grow with you and your company.
Tip 2: Know what “right” looks like to you.
Shop around to find the right financial service provider that caters to what you’re looking to add to your trucking business. Don’t marry the first trucking equipment provider you see. There are many many options out there. Get an idea of what each provider has to offer and explore the options that best fit your needs and your wallet. Ask for references, and don’t be shy about calling those references up. In a way, you may have to “interview” the provider, asking as many questions as you need to.
Tip 3: Consider the best financing option for you.
Should you go with a large national bank? Well, unless you have a 700 or above credit score and the money for a large deposit, I suggest steering clear of banks. On the other hand, online lenders offer less restrictive eligibility requirements than banks, but in return, you receive higher rates, shorter terms, and an overall more expensive experience. Traditional equipment financing options require smaller down payments and usually lower rates. Smaller finance broker companies, like The KPC Group, have in-depth knowledge of the industry so they can bring you through the process quicker.
Tip 4: Talk to others in your field.
Peers and mentors are an invaluable tool. Find out about the terms they received when financing for their trucking company. If they give you recommendations, be sure to create a list to Google and learn as much as you can about what they offer. If you have a financial adviser who has reviewed financing for trucking companies in the past, he will be able to help you narrow down your best options. Also, don’t afraid to sleep on it after speaking to so many other people about which choice to make. You want to ensure you’re making a thoughtful decision after weighing all of your options.
Tip 5: Choose a financing company that knows the trucking industry.
Make sure the financing company you choose can handle the needs of trucking company like yours. If you consider going small, using a boutique-size firm like KPC Group, you’ll have a team that can dedicate more time to your specific needs. Always make your purchase knowing that you did your due diligence in research and that your trucking company will be able to sustain a steady rise in this industry.
At The KPC Group, you can get started on your path to equipment financing for your trucking company. Our CEO, Copelon Kirklin, is looking forward to hearing from you. Contact him directly at email@example.com.