Expanding your logistics business requires purchasing more vehicles to boost your fleet. Without cash on hand, you will need to find ways to finance trucking.
Thankfully, through reputable companies like iCREDIT, you can easily compare lenders, loans and rates in a few easy steps to find the best possible truck financing solutions to suit your needs.
Here are some of your truck financing options so you can expand your logistics business effectively and conveniently:
Chattel Mortgage
A chattel mortgage is a popular type of trucking loan, where the money provided is secured against the asset that you have purchased. Chattel is another term for “moveable property”, which in this case refers to the truck. With this type of loan, the truck itself is attached as collateral.
When using a chattel mortgage option, you can secure financing for your truck more easily and at a lower interest rate owing to the fact that it is lower risk for the lender.
A chattel mortgage is an excellent option for businesses that want to maintain ownership of the asset while gaining financing. It is also a great option for businesses seeking to finance a truck for the first time.
Financial Lease
A financial lease offers long-term rental of the asset. However, ownership is not ultimately on the table.
This is a good option if you wish to have access to the truck but do not want to take on the responsibility of owning a depreciating asset. However, with financial leases, your business is typically responsible for ensuring that maintenance and insurance are taken care of throughout the lease.
The upside of a financial lease is that you will not be left with a depreciated asset in your hands.
Rent-To-Own
Renting a truck to own is similar to a financial lease, except that you have the option to buy at a certain point, with your monthly payments up to that point being credited to the purchase price.
Renting to own is a good option if you are unsure of your ability to own the asset outright or need more time to secure the financing.
Unsecured Loan
An unsecured loan is a special type of asset financing that doesn’t require any kind of collateral. But note that an unsecured loan typically comes with high interest rates and can be a little more difficult to get as it poses more risk for the lender.
An unsecured loan will protect your asset from being reclaimed should you default. However, you will be personally responsible should anything go wrong.
Unsecured loans are usually only offered to individuals and businesses that have established sufficient creditworthiness, and even then, the interest rates are generally higher.
Here at iCREDIT, we offer various ways to finance trucking for businesses like yours. Contact us to learn more and let us help you find the best financing solution.