With the boom in construction and national disasters that have happened in the past and will happen in the future, companies are always looking to include new equipment into their arsenal. The demand for equipment is actually pretty high so banks have developed a special type of financing for this niche. It is similar to heavy equipment financing.
What is specialty truck financing?
Specialty trucks are really just trucks that do things besides roll on the road or move freight. Construction companies constantly use specialty financing to get equipment for their business or projects. Freight trucks aren’t really including within this category because to banks that is considered a normal type of vehicle. Some trucks that do qualify are things like:
- Dump trucks
- Cement trucks
- Fuel trucks
- Construction vehicles and equipment (with treads)
- Back hoes
- Wheel loaders and just about any type of yellow iron equipment.
Financing Terms and Conditions
Just about the same as everything else, although construction equipment will require treads (NOT TIRES). So, bull dozers and things that like fit the bill.
How to get financing for a specialty truck
Expect to pay about 5% in broker fees because generally this is a really niche loan and you will have access to many lenders through a broker. Watch out though, some will try to take you for a ride and charge up to 10%! The loan can be closed in 24 hours. It’s really fast and the application is super light weight- most of the time there are no financial statements or tax returns. Provide business credit or personal credit guarantee and that particular lenders requirements. You should not have to pay an application fee unless you are approved.
Amount of Financing
Financing specialty trucks can range from $25,000 to $250,000. If you require $25k or less, look to a micro-loan or refinance existing equipment to come up with the money. You will keep your overall business debt much lower that way.
Who can get the loan?
This is the best part, a start up with less than perfect credit can get this loan. Each lender varies, but I have seen some extraordinary cases where brand new start ups have been approved.