Whether you have a trucking business or one that relies on trucks, you will agree that these commercial vehicles are in a class of their own.

From logistics and delivery of goods to transporting fuel and operating other heavy machinery, trucks are indispensable. If you are seeking to get a truck, financing it is the biggest expense you have to worry about. However, there are other expenses involved that make trucking business to be an expensive one to run. But all these expenses don’t have to be a big worry if you know where to find the right truck loan for your purchase. At Finance Guide, we know where to find the right truck loan, and you can count on us to help you through the entire process.

What is A Truck Loan?

A truck loan is simply a financial product for buying any commercial vehicle of your choice. Usually, automobile dealers and banks offer these loan services. However, there are other non-traditional lenders that provide more competitive options tailored to your individual needs. At Finance Guide, we link you up with these lenders so you can secure your truck loans. While these loans are mostly used for buying new trucks, it can be used for many other truck-related purposes as well.

What You Can Use Truck Loans For

Beyond the purchasing of the truck, you can also use truck loans for

Vehicles needs regular servicing and maintenance to serve their purposes, trucks more than most. This maintenance covers oil changes, tyre changes, servicing the engines, etc. If you have a fleet, the cost of maintenance alone could run into hundreds of thousands, all necessary expenses to keep your business running. You can use a truck loan to finance such large scale maintenance.

The employees of a trucking business are as important as the trucks itself and truck loans is one way to ensure their payments regardless of the financial condition of the company. The job is very demanding, and as an employer, the least you can do is give your employees incentive with on-time payments.

This is related to maintenance as well but regardless of it, replacing parts of a truck is a regular occurrence that could cost thousands to get the perfect original replacements. You can use truck loans to take care of this on time.

Operating a trucking business requires different licenses and taxes. For instance, your drivers must have commercial driver’s licences before they can operate heavy commercial trucks. Getting this license is a strenuous and expensive process that involves background checks, driving tests, exams, and fees. Apart from this, there are also legal obligations that require compliances, all of will cost money; you can easily use truck loans to cover these costs.

As we have mentioned before, running a trucking business is expensive. For instance, fuel alone costs hundreds of thousands annually. You can take care of these daily expenses with truck loans and ensure the smooth operations of your business.

Seeing the various ways you can put a truck loan to good use, you will fully understand how vital this finance product is to the trucking business.

Types of Truck Loans

Truck loans can come in various forms, all designed to ensure that you can start your business, sustain your business, or expand your business when you feel it is necessary to do so. Some of the standard options include:

Working Capital

A working capital loan gives you access to cash in exchange for a percentage of your monthly revenue in the future. Thus, the amount you can be offered will depend on how much your business generates. This loan option is not usually accessible to small and new companies due to the revenue level necessary to qualify for such loans

Invoice Factoring

It is not unusual to have unpaid invoices. Through this finance option, the lender converts the invoices to cash for you and charge a percentage of the invoice as a fee. Thus, it is the lender that cashes the invoices from your customers when it is eventually due.

Traditional Loan options

You can also get the regular term loans such as hire purchase, chattel mortgage, personal loans, etc. from both traditional and non-traditional lenders, while traditional lenders such as a bank may not grant this loan or attach strict conditions to it. You can easily get the loan from non-traditional lenders. At Finance Guide, we have a relationship with these lenders and help you to secure the loan you want even if your credit score is merely average.

Finding the lender that suits your requirements and will give you the right deal can be tricky, but when you count on the experienced team of Finance Guide, it becomes relatively simpler and easier.