In acquiring a dump truck, regardless of whether you are interested in a new one or going for a used one, it is often a more viable option to get a loan for it rather than pay out a hefty sum upfront. When you intend to pay in full immediately, you need to be able to come up with a huge amount of money that you can otherwise use for the other aspects of your business. On the other hand, when you go for a financing option, the repayment proves to be more manageable, even if you need to settle a certain amount of interest together with your loan. In line with this, below are some of the top dump truck financing options in the United States.
Lenders
It is often the case that truckers approach lenders when they need to finance a dump truck that they are eyeing to purchase. More often than not, lenders prefer to finance new dump trucks but some lenders are willing to finance used ones, such as the dump truck for sale at UsedVending.com. All that you need to do is to find a reliable lender with the capability to help you acquire the dump truck that you need for your business. Thanks to the internet, you will be able to effortlessly find the perfect lender as long as you exert the effort to do your research.
1. Balboa Capital
One of the top lenders popular to trucks when it comes to financing heavy equipment is Balboa Capital. The average interest rate they impose on the amount of money that they release to their borrowers is often around 13%. You may think that this is significantly high but this is just similar to the interest rate imposed by most traditional banks. Nevertheless, it is possible for you to acquire as much as a quarter-million dollars without the need to put up your dump truck as collateral for the loan. They also offer a flexible loan term which proves to be greatly beneficial for small-scale truckers, as well as those who are merely starting their business.
2. Crest Capital
Another top lender that is renowned when it comes to dump truck financing is Crest Capital. Compared to Balboa Capital, the average interest rate imposed by Crest Capital is significantly low at only 5%. However, to take advantage of this low-interest rate, you need to have a credit score of at least 650 and you must already be running your business for at least two years. Alongside this, you will also need to settle a certain administrative fee before your loan proceeds are released. Nonetheless, you don’t need to process numerous paperwork because their loan process is seamlessly integrated online.
Traditional Banks
Aside from lenders, you also have the option of getting a loan from traditional banks. There are now several banks that have designed a program specifically intended to help truckers grow their business. However, like lenders, banks also charge a certain interest for the amount of money that you need to borrow to finance your truck. It is also most likely that you need to apply for a loan in a branch of the bank rather than online but more and more banks are already setting up online channels for the benefit of their clients.
3. Wells Fargo
Wells Fargo is a traditional bank that offers a loan package that is specifically designed for truckers to finance their equipment. However, you need to make sure that you have the relevant business licenses for you to qualify to take out a loan from them. In parallel to this, you also need to present your current bank statements, as well as your recent cash flow records to ensure that you will have the capacity to pay for your loan. They will most likely ask for your tax returns for the past couple of years too.
4. American Express
Another traditional bank that you can consider if you need to finance your dump truck is American Express because they also have a loan package intended to help truckers get the big rig that they need. Like with most traditional banks, American Express offers an average interest rate of 13% for a loan that can be settled anywhere from 36 to 60 months. This proves to be manageable for small and medium-scale truckers who are looking into growing their business.
Conclusion
In conclusion, there are several options for you when it comes to finding ways on how you will be able to finance the dump truck that you need for your business. You can either borrow from reliable lenders or apply for a loan from some of the most reputable banks. The key is in ensuring that you can meet the requirements that they need for you to be able to borrow a sufficient amount for the dump truck that you want to purchase.
