Dump Truck Financing

Dump Truck Financing
There are many alternatives in obtaining dump truck
financing. Whether you are a start up or a seasoned
business, the first logical place to investigate your
financing is at your local bank. This may be pleasurable
experience if you have many contacts at your bank but most
people usually don't have these types of connections. The
seasoned business must have at least mid 600s on their
personal credit scores and be prepared to go through a
lengthly paper process. Prior year income tax returns may
be required, current personal financial statments needed
and various other requests. The start up business must have
a credit score properly 680 or higher and will have a much
smaller success rate in obtaining bank financing. The
business start up is a high risk factor and must adhere to
higher lending standards.

Most banks and financial institutions offer loan and/or
lease programs. The difference is that the loan programs
transfers title at the end of the payment obligation,
whereas the leasing component offers a rent type
environment during the course of the lease with a buy out
option at the end of the lease period to take title.
Usually, the monies required upfront to acquire a loan are
higher and eliminates many candidates. The Leasing arena
requires anywhere from usually first and last payment to
approximately 20% down of the dump truck cost.

On the loan and lease programs for a dump truck applicant,
the applicant must investigate whether the bank and/or
financial institution considers this a qualified asset
which they will lend on. Most lenders like this type of
asset but others may specialize in other industries such as
medical and transportation such as limos, limo buses,
ambulances etc. Some Lenders will only lend up to ten years
based upon the age of the truck where others may extend
beyond this parameter. Loans and leases usually run
anywhere between 36 -60 months based upon the age of the
dump truck. Another factor to consider in the financing
area, many dump trucks are what they call conversions. The
chasis of the dump truck and./or the road truck may be
given a new dump box. Obviously this dump box is new but
the chasis could be as old as ten years old. Lenders are
particular in this area and may not accept a converted dump
truck. Obviously, please check with your lender to
ascertain their lending guidelines.

The dump truck applicant is seeking a relationship with the
lender no matter whether it is a start up or seasoned
business. The front money to commence the lending vehicle,
the monthly payments and the buyout clauses at the end of
the lending instrument, if there is one, is paramount in
making a prudent business decision. The amount of paperwork
and hoops to jump through to get to end of the financing
process are considered in the total evaluation process.

As we discussed above, there can be a lengthly paperwork
process to obtain your financing. Recently, some of the
lenders have changed their computer qualification models
and accept application only programs. This means there are
no income tax returns required, time consuming personal
fianancial statments needed, and other key documents either
prepared and /or requested. This program is usually geared
for the seasoned business but there are start ups
applications programs available as well. These application
lending programs usually run from $20,000 to $250,000. It
is important for the dump truck applicant to check out all
the lending programs available. The collateral of the
financing is the dump truck and usually no additonal
collateral is required. The minimum credit score required
for all dump truck applicants may start as low as 575.

The last thing you should be aware of is dealer/financing
inventory programs. What this means, the lender has repos
and/of a off lease inventories that they want to move for
cash flow purposes. This financing arrangement is geared to
the start up as well as seasoned business and may offer the
dump applicant an execellent buying and financing
opportunity.

When you are shopping for dump truck financing, consider
the following, the front money, the monthly payments, what
collateral is required, and what the buyout clauses mean.
Also, make sure you have a good source of income coming
from a contract and/or other methods. Remember, whatever
lending program you select, there is more than likely a
personal guranatee required.

Happy hunting for your dump truck and its related
financing.....

----------------------------------------------------
J.M Luna has over thirty years experience in the financial
field. It includes accounting and taxes, leasing, hard
asset money and working capital loans and commercial
financing. U.S Corporate Capital Leasing Group assists
start up and seasoned businesses in many different
industries.If you have any questions, give us a call at
800-760-6863
http://www.cclgequipmentleasing.com/dumptrucks.htm