Financing Trucks with Industry Experts: The trucking industry is the home of the captives, which are in-house financing departments of truck manufacturers. Commercial Lending USA, a truck finance company, is more likely to be there to help you, regardless of whether your business has been in trouble, growing, or just getting started.
These are five examples. Click on the ones that you think are most relevant to your business.
- Helping you get started or expand
- Combining and matching to get the best solution
- Just landed a contract. You need trucks quickly
- Working together with new truck fleet owners
1. Helping you get started or grow
Cash is essential for starting and growing a business. You will need to make down payments. Registration. Permits. Insurance. Hiring drivers.
Box Truck Financing companies offer tailored truck loans or lease options. Discuss your business needs when you review the truck and fleet financing options. It will allow for a custom solution. Flexible payment plans, programs, and commercial finance products may be of assistance. If you are a new owner worried about your first payment, you should ask during contracting how you can spread your downpayment over the first few months. Many finance options can help you stretch your money if your business expands.
2. Mixing and matching is the best way to get the best solution.
A specialized mix loan and the lease could be beneficial when financing additional vehicles or equipment. Will help you with replacement cycles and potential maintenance issues. Captives can help you find the best solution.
One Commercial Lending USA fleet customer faced a difficult task. To support the new contract he had just signed, he needed to buy 12 trucks. He was still determining how to make it affordable.
DTF has worked with many scenarios, including loans and leases. They also considered different terms and down payments. Flexible payment plans were also possible. They worked tirelessly to develop other options for customers. They finally found the right strategy. They needed a range of commercial truck loans and leases, a 90-day first payment, and a limited-time finance program to reduce down-payment requirements.
3. You have just signed a new contract, and you need trucks quickly.
A line of credit can make purchasing vehicles easier, whether replacing trucks in your fleet or adding routes. Will tell you how much your lender is willing and able to finance the truck over the next six- to twelve months. Plan based on your semi-truck fleet growth while avoiding overextending. You won’t have the hassle of applying for semi-truck financing each time you add a new vehicle to your fleet.
To help pay business expenses, many trucking companies have lines of credit with banks. To purchase semi trucks, apply for a line credit from your manufacturer’s captive financing company. These lines of credit are often free from fees and can be renewed once per year. They may not require accountant-certified financials. Allows you to use your bank line for business expenses.
Many financial institutions offer credit lines for semi-truck purchases. However, these often have fees and require accountant-certified financials. They also need to be renewed frequently. You can also use other business assets as collateral.
4. Collaboration with new business owners
Private equity firms and new owners buy into trucking businesses. They are likely to be familiar with their financials. They may need to gain experience in the trucking business and learn how to navigate commercial fleet financing. Captives are often a good option for those needing industry knowledge and truck financing solutions that will return on investment.
For example, some firms need to pay more attention to the amount of cash they will need to pay. They have difficult decisions about purchasing new semi trucks or reducing the fleet’s average age. Or if they should continue using older trucks which could lead to increased maintenance costs and downtime.
Captives can take a holistic view of the business and work with owners to find the best way to finance trucks.
5. Headwinds are to be avoided.
Financial numbers can look extremely scary when customers lose significant amounts of business, or an industry is in decline. Many lenders run.
They are not captive finance companies. They dig deeper.
For example, a business recently lost a significant customer, and its balance sheet looked grim. However, Commercial Lending USA looked beyond current revenue and profits.
DTF discovered that the company had been in business for 60+ years and had taken steps to recover revenue. DTF also saw how their end-of-year projections indicated a new strategy. To replace their older trucks with more efficient fuel-saving and maintenance-friendly models, the customer received a line of credit for $2 million.
Sometimes, it’s not just the customer struggling but the entire industry. Many private equity firms sold their equipment and businesses when the oil and gas industry declined. However, their trucks’ resale values had dropped by more than 80 percent.
One customer tried a different approach.
Although he had to downsize, he still wanted to be in business and diversify. He needed to purchase newer equipment to do this. Although many lenders were skeptical of the deal, Commercial Lending USA visited the customer instead.
They reviewed his business plan. They were able to get a better understanding of his strategy. They discovered he had an approximately $25 million cash infusion plan.
They also saw a creative way to make it work.
Locate a dealer to learn more about Commercial Lending USA‘s industry expertise and how it can make your fleet a reality.
Commercial Lending USA is a business unit within Mercedes-Benz Financial Services USA LLC. It provides various financial and insurance services for Daimler Trucks North America LLC’s commercial vehicle brands Commercial Lending USA, Western Star, and Thomas Built Buses. The company has been a trusted partner for the industry for more than 45 years and offers specialized finance solutions that meet specific customer requirements. Apply For Call: (571) 544-6600.