Starting a business can be quite a challenging feat, particularly when it comes to raising ample funds for the working capital that you need to begin with. Even after you have set up your business and you are already running your operations, you may still fall short of funds from time to time. Fortunately, there are already various options for you to consider when it comes to funding your business. This article lists down some of the most viable lending options if you have a dump truck business.
Reputable Equipment Lenders
- Balboa Capital
- Crest Capital
- CAG Truck Capital
- Wells Fargo
The lenders listed above are only some of the top reputable ones that you can consider engaging with when it comes to funding your dump truck enterprise. Each of them varies in terms of the amount of money that you can borrow. Even their lease terms can be different, with some allowing you to pay back for as long as 72 months, while others only allow up to 24 months. In this case, make sure that you go for the lender who is amenable to fulfill your needs before you explore looking into a used dump truck for sale. In this way, you will have a good idea of which type of dump truck you are most likely to acquire based on your available funding.
Other Financing Options
- Bank Loans
Apart from exploring the equipment lenders who will be able to extend a helping hand to your dump truck business, you also have the option of going for a bank loan. Much like dedicated lenders for trucks and big rigs, banks will also have specific loan terms. In this case, you need to pay for the interest of your loan or even use your big rig as collateral for your loan. This means that the bank may sequester your vehicle in case you fail to make the necessary payments for your loan.
You can also consider leasing instead of buying a big rig for your business. In this case, your costs will be lower, plus you get to have the option of going for a newer dump truck model when your lease term is over, or even acquire the dump truck that you have leased at a cheaper price. Rest assured that there are various companies that are dedicated to truck leasing. Thus, you won’t have a hard time looking for a reliable one who will be able to help you with your business.
The requirements you need to process depends on the funding option that you eventually go for. Nevertheless, you can expect most lenders to ask for your business licenses. Some will even look into the number of years that you have been in the business before you are tagged as eligible for a loan. Banks or equipment lenders may also look into your financial records and business cash flow, which is why you need to ensure that your financial statements are organized accordingly.
As soon as you have turned in the requirements that a lender asks of you, the application process for your loan will already start. The proceeds of your loan can be made available in as fast as a couple of days, or as long as a couple of weeks. The duration typically depends on the lender that you are working with.
When it comes to sourcing the amount of money that you need for your dump truck business, you have the option of engaging with lenders who are specifically offering their services to the trucking industry. Just keep in mind that apart from lenders though, you still have other financing options such as getting a loan from a bank or leasing instead of buying.