Transportation Equipment Financing
When you are in the business of transporting precious cargo, you want to make sure that your vehicles are up to date and as safe as can be. That is why replacing your vehicles and equipment is so important. Building a fleet is hard enough, but then maintaining and replacing your fleet continues to challenge you. One of the best ways to continue to keep that cargo safe is by replacing your old vehicles with new, financed vehicles.
Benefits of Transportation Equipment Financing
Here are a couple of quick considerations for why you may want to finance or lease your Transportation Equipment:
- Preserve Cash
- Flexibility of Keeping or Returning Equipment
- Avoid the Pitfalls of Technical Obsolescence
- Tax Benefits
- Improves Debt Ratios
- Fixed Rate and Payment Options
- 100% Financing
As always, and especially today, cash is king. If you can manage to finance your largest assets and save your cash for other working capital needs, your business will be able to stay ahead of the pack. The most important thing to keep in mind is that your transportation equipment is an income producing asset, and it will pay for itself.
Types of Transportation Equipment
Generally speaking, most transportation equipment is considered to be good collateral. Larger pieces of equipment like the ones mentioned below can be financed from 1 to 7 years:
- Motor Coaches
- Buses
- Ambulances
- Trailers
- Tractor/ Trailers
- Vans
- Limousines
Whenever it is that your vehicle decides to give out, your thoughts will immediately turn to, “How can I afford this?”. A couple of considerations for that thought is deciding between a capital lease and operating lease. A capital lease will offer you the ease of purchase at the end of the lease term and allow you to keep the depreciation. The operating lease can potentially get you to a lower monthly payment and allow you to improve your debt ratios. And if you can afford the payments, it may also be a good idea to choose a shorter financing term in order to avoid committing your business to a long term lease or loan. Which ever option you choose, you can rest easy that you will not pay a single dollar for that piece of equipment until it earns you a dollar.
