There are several ways to finance a truck available to companies and with banks and lenders now more inclined to extend their financial services than ever before; there’s never been a better time for a business to apply for a loan. Unlike smaller vehicles, trucks often cost a far more substantial amount of money and there aren’t many businesses that will be able to cater to these costs without making cut-backs.

This is where financing options step into the spotlight and as they can be tailored to suit the borrowing companies’ needs – the potential to enjoy the functionality of the vehicle from the offset, without having to cater to the initial expense, can be very appealing. For those in the process of applying for a loan here are three methods that all differ in nature, whilst offering their own advantages.

Unsecured Loans

These options are only available to businesses (and borrowers) that possess a clean, impressive credit history. Rather than having to pay for a deposit, or provide a list of assets that can be used as collateral; those with a good credit score can instead use this data to reassure their lender. Most banks will consider this option, as long as the applicant can prove that they have a track record of successful repayments from other loans.

Using Collateral

Many businesses simply don’t have the financial backing to be able to cover the cost of deposits, so plenty opt to put up their own assets and equipment as collateral. By signing these items over to the ownership of a lending agency, the borrowing company will be able to cover the cost of their deposit, whilst ensuring their lender that if anything goes wrong; they will be able to seize the assets and sell them on to cover the cost of their initial investment.

Paying a Deposit

The simplest and most common method of truck financing is by providing a deposit, along with proof of earnings and other financial data, to help to secure a loan. The deposit will vary depending on the amount that is due to be borrowed, but in the majority of cases a lender will expect between 10% and 25% toward the cost of the entire loan. So, for a loan of $100,000, the lending agency will expect between $10,000 and $25,000.