When is it time to turn to equipment financing for your trucking business?

by Brian Roberts, AVP of Equipment Lending

Equipment financing is a powerful option for businesses in the trucking industry. TAB Bank offers effective, flexible options for trucking companies to acquire the equipment they need without having to pay the full price up front. Let's look at the advantages of equipment financing, when your business should consider using it and why working with us is a dependable, effective choice.

What is equipment financing?

Equipment financing gives businesses an alternative to paying for equipment outright or leasing it. This approach offers benefits like spreading out the total cost of the equipment and providing access to a wider range of potential purchases than would be possible when paying directly. Your business simply shares some basic financial and operational information, applies for approval and - assuming the financing is green-lighted - quickly puts the new equipment to work. It's an effective choice for companies that want to maintain ownership of trucking-related equipment but don't have the financial reserves to buy it immediately.

While the total cost of financing is somewhat more than the price tag associated with a purchase made directly by your business, it offers some important advantages. The financial stability of your company is an important consideration, as is the dependability and consistency of a monthly loan payment as opposed to the large, single bill generated by acquiring equipment outright. Let's explore the details of these advantages and look at when it makes the most sense for your enterprise to take advantage of this offering.

When should you consider equipment financing?

Trucks, trailers and other truck equipment doesn't often come cheap. Whether you're looking for brand-new vehicles or trustworthy used equipment, the price tag might simply be too much for many companies to consider at the moment when that truck, trailer or other asset is needed. These significant costs can lead to problematic cycles where, absent an option like equipment financing, the key vehicles and supporting assets that trucking companies need remain out of reach due to a lack of immediately available funds. Without access to this core equipment, it's hard to maintain positive relationships with customers and stay in business.

Equipment financing is a powerful choice in a variety of contexts. Consider a chance for expansion that offers additional revenue in the form of a larger contract with an existing customer or new deals with fresh clients, but also requires additional equipment to successfully operate. Unless your business already has the money on hand to buy additional trucks, trailers and associated equipment, it will be difficult or impossible to take advantage of a lucrative new business opportunity.

With equipment financing, your company can get the key pieces it needs and put them to work on a short timeline. That helps in a variety of situations, from having the capacity to handle a major expansion to acquiring specialized equipment, like reefer trailers, needed for a specific route. If your organization has opportunities to expand but doesn't have piles of cash on hand to fund that growth, a careful consideration of the benefits of equipment financing is in order.

You may also want to turn to equipment financing as a way to manage cash flow and available capital. While the total cost of equipment financing is more than a direct purchase, this option spreads the total price out across many payments and creates a predictable line item in your monthly budget.

Why you should consider TAB Bank for your equipment financing needs

We're proud of our long history specifically working with companies in the world of trucking. With 20 years of experience under our belt, we have a deep understanding of the unique nature of the industry and what the businesses within it need to do to succeed. With direct financing, competitive rates, quick approval timelines, simple, straightforward terms and customized solutions, we're here to help you find the best possible financing agreement. Whether you're looking for new or used equipment, or to refinance an existing loan, get in touch with us today!

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