When purchasing a commercial business vehicle check the types of commercial truck finance beneficial for you. Commercial truck loans are available with good offers and discounts by financial services providers.
At Pioneer Financial Services we offer commercial truck financing in Calgary with fast approval and 100% transparency. Anyone with a steady income, personal identity proof, business documentation and fulfilling eligibility criteria can apply for truck finance with us.
Commercial truck finance caters to multiple needs of the borrowers. It also offers customized solutions meeting the specific requirements of the customers. Different types of truck financing are available that can be customized according to the vehicle type. Understanding the various types can help businesses or individuals to make an informed decision matching their business goals.
1. Term Finance
Term finance is a traditional form of financing where you borrow a lump sum to purchase your truck and repay it over a set period. It is a tailor-made financial solution matching the various financial needs of business. Under this type of truck financing repayment tenure is up to 96 months
These loans are secured by the truck itself and often offer competitive interest rates. It adds the advantage of minimal documentation with repayment flexibility. Depending on the lender and your creditworthiness the repayment term typically ranges from one to five years
2. Equipment Leasing
In an equipment leasing agreement, the financer offers trucks on lease or rent for a specific period. It is a beneficial choice for businesses that want to preserve capital. Instead of buying a truck business or individual pays a monthly fee to use the truck for a predetermined period.
After the end of the period according to the agreement borrower gets the choice to purchase the truck, renew the lease or end the agreement. This truck financing type raised tax benefits as lease payments are often fully deductible as business expenses.
3. Balloon Payment Financing
Raising funds to buy trucks under the balloon payment financing offers the benefits of paying large amounts of payment due at the end. It offers lower monthly payments during the term of the loan, with a large ‘balloon’ payment due at the end.
This financing type offers a refinancing option at the end of the loan term. Its conditions help to make the balloon payment in a lump sum. Borrowing a truck with this option is good for businesses expecting a significant cash inflow in the future, which can be used to cover the balloon payment.
4. Asset-Based Lending
Financing truck with an asset-based lending option offers borrowers improved cash flow and flexibility. In this financing process businesses or individual can use their existing assets (vehicle, or equipment) as collateral (bond or guarantee) to secure financing for a new truck.
It is the best option for businesses seeking to expand their business operations. Raising funds through this option can be easier for businesses with strong assets but less-than-perfect credit.
Final Words!
Choosing the right type of commercial truck financing in Calgary can drive your business forward. Whichever Commercial Truck Finance type you choose it is important to compare interest rate and security before application.
