Commercial truck finance companies offer several different ways to help advance your business. One of the most direct ways that commercial truck financing is helpful is it reserves your business’s cash on hand. The prices of commercial trucks and commercial trailers are going up, up, up. Many small transportation businesses find it advantageous to reserve their working capital. Rather than putting out a large sum of money, businesses are financing or leasing their needed equipment.
Many commercial truck finance companies offer leasing options as well as commercial truck financing. Commercial leasing is often a great choice for many small businesses. Instead of your company’s financial records reflecting a debt of the entire purchase price, most leases reflect only the monthly payment as debt. For example, if you were to finance a $40,000 truck, your statements would reflect $40,000 debt. On the other hand, with a lease, your financial statement would indicate only your monthly payment as a debt. This is beneficial to businesses because it increases liquidity and does not tie up credit lines so the credit can be used, if needed, to assist the business in other ways. One of the really great commercial lease options that a business can benefit from is a lease/purchase option. This option is beneficial for your transportation company because throughout the term your balance sheets reflect only the monthly debt, and you retain ownership of the vehicle at the end of the term, usually for just a dollar.
Tax deductions are another perk to a commercial lease. . In most cases, lessees are able to write off the entire monthly payments made on their leased commercial vehicles, which is a substantial benefit to transportation companies. Additionally, the tax deduction will be the same year after year, keeping your budget simple.
Commercial truck finance companies provide commercial truck financing and commercial truck leasing options to a wide variety of commercial equipment, ranging from Class 8 vehicles, to boom trucks, to dump trailers and sprinter vans. Even a passenger shuttle company can benefit by using commercial truck finance companies to obtain sprinter financing for an additional sprinter. For example, if an airport shuttle service needed to increase its fleet, it would contact a commercial truck finance company in order to obtain the sprinter financing. Let’s say the shuttle company desired a quick transaction. In that case, a lease is the way to go. Since leases often don’t require as much financial statements as a straight financed transaction.
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