Commercial financing, heavy truck financing, tow truck financing

A local tow truck company in South Dakota named Terry’s Towing was running two trucks and keeping busy in their small town. Over the span of six months, the population had grown by 50% and Terry’s Towing business was booming. Soon, it was apparent that Terry’s Towing would have to purchase another truck and hire another driver in order to keep up with the demand of the business.

Terry didn’t have enough money to purchase a tow truck with cash; the cash he did have on hand needed to be saved to pay for his insurance, drivers’ salaries and other business expenses. Terry’s Towing was a profitable business and was doing well. Although Terry was producing a lot of profit, it would have taken him much too long to save the money needed to buy a new tow truck with cash. In addition to the cash-on-hand issue, Terry needed a new truck immediately and could not wait several months to purchase one. As a shrewd business owner, he did not want to waste any time since obtaining a new truck would allow him to answer more service calls and give him the opportunity to make even more profit. Once again, commercial vehicle financing services comes to the rescue.

Savvy business owners like Terry often use commercial financing as a tool for running their business. Commercial vehicle lenders specializing in heavy truck financing as well as tow truck financing are helpful because they allow for the attaining of new equipment with a minimal amount out of pocket. In the case of Terry’s Towing, Terry opted for a company that specializes in commercial vehicle leases. He called the lender and in less than 24 hours he had an approval. Terry’s transaction went smoothly, and in just about one week he was the proud new owner of a new tow truck. A commercial vehicle lease was an excellent choice for Terry’s tow truck financing because no down payment was required. Additionally, commercial leases typically have lower monthly payments than a straight financed purchase and the monthly payments are tax deductible. The commercial financing company that Terry worked with offered a program called a “Lease Purchase.” At the end of Terry’s 60 month term, Terry’s Towing will be able to attain sole ownership of the tow truck for just $1.

Tow truck financing was a smart move for Terry’s Towing. The new tow truck allowed for him to increase his profit margin by 35% and allowed him to keep up with the growing demand in his booming South Dakota town. In the case of Terry’s Towing, commercial financing services came to his rescue, permitting him to acquire a new truck and improve his monthly cash flow in a short period of time.