You might need a dump truck at one point in your company’s life if you are a contractor, renovator, or landscaper. Financing dump trucks, however, can be expensive; they can cost anywhere from $15,000 to $150,000.
To get the best deal, it is important to compare different business loans, regardless of whether you are looking for new or used truck financing. Where should you start your search?
The purpose of this guide is to provide all the information you need about commercial dump truck financing.
What is Dump Truck Financing?
The first thing you need to understand is how dump truck financing works.
The financing of dump trucks is a type of commercial truck financing. It allows you to borrow a lump amount of capital to buy a dump truck. The loan is then repaid over a while with interest. The dump truck you buy is often collateral for a loan.
This loan structure is similar to a term or commercial loan and can be obtained from both banks and online lenders.
In addition to leasing and equipment financing, there are several other options for financing dump trucks.
Dump Truck Leasing
- Your financing will work as described above, but you won’t own the dump truck you paid for at the end of the lease. You’ll have two options: either you can return the truck, or you may be able to buy it at residual value from your lender.
- Many businesses opt to lease equipment instead of a loan. As a result, they are not required to maintain their truck, nor do they worry about the truck becoming old at the end of the loan term. Leasing is often cheaper than a loan, and you will also pay lower monthly payments.
- Leasing may offer lower monthly payments, but increases in interest rates can make the contract more expensive. Online lenders and banks also offer dump truck leasing.
Dump truck financing terms and rates
- The rates, terms, and loan amounts for dump truck financing will vary based on many factors, including your business’s credit score, the purchase of the dump truck, and the lender with whom you are working.
- Although this is true, if you use a dump truck as collateral, you’ll usually get a longer term, lower interest rate, and more flexible qualification requirements than if you used another type of business financing.
Here are some general expectations:
Loan amounts vary depending on the truck’s value.
Terms: Dumptruck financing terms are typically based on the quality of the truck and its expected life expectancy. These terms can be as long as two years or six years.
Rates Commercial dump truck financing rates are generally lower than other business loans. They can start as low as 4% and 5%.
Are you interested in getting dump truck financing?
If you need dump truck financing, you can apply online. It is important to compare rates for your business to find the best deal. National Truck Loans make it easy to get a dump truck loan. Visit their website for more details.