All businesses require equipment to operate, some more than others. The problem is that commercial equipment is often very expensive and is prone to breaking down over time. This can leave companies in a tight spot. Not only is equipment a large upfront cost, but it also represents a liability over time. Used equipment often loses its resale value rapidly, and if something goes wrong, then your company can be stuck in a bad position with a huge repair bill and unable to operate. The solution: equipment leasing.
For those who have never heard of leasing, it’s similar to renting equipment, but the length of a lease is often much longer than a rental, and the cost of leasing is usually significantly less than you would pay if you were to rent your equipment for a long time. These days, many companies prefer to lease their equipment for a number of reasons.
First and foremost, when you lease, you don’t have to pay for the equipment upfront. The cost of the lease is spread out over time, which helps with cash flow. Also, if something breaks down, then you won’t need to pay for expensive repair bills; the leasing company will handle the repairs and may even lend you a replacement in the meantime. Finally, when your lease is up, you aren’t stuck with equipment that has lost its value; you can return the equipment and lease something new again or purchase it outright. Let’s look at the type of equipment you can lease.
This guide will go over the different types of commercial equipment you can lease and explain how you can lease the equipment you need today.
Transportation Equipment Leasing
If you need highly reliable equipment such as tractors, excavators, forklifts, trailers, or other heavy equipment to help run your business, then transportation equipment leasing may be a good fit. These assets help firms transport goods, schedule and coordinate work activities, and support the delivery of critical services. Transportation equipment leasing can help a number of industries, including construction, mining & minerals processing, oil & gas, and of course, transportation.
Some of the most commonly leased transportation equipment is as follows:
Highway Trucks
Dump Trucks
Dry-Vans
Crane Trucks
Tow Trucks
Cement Trucks
Pickup Trucks
Sprinter Vans
Plow Trucks
Utility Trailers
Reefer Trailers
& Much More
Aviation Equipment Leasing
Aviation leasing is a great way to get the equipment you need to support your aviation business. This type of financing is a great option for those who need equipment right away, are not able to purchase the equipment outright, and would like to avoid taking on more debt.
In addition, aviation equipment leasing is a great option for the aviation industry, which regularly experiences a high volume of demand for new and used aircraft. Whether you need a commercial jet for your aviation business or an amphibious aircraft, either way, leasing might be the perfect solution for you.
Some of the most commonly leased aviation equipment is as follows:
Single Engine Propellers
Twin Turboprops
Light & Heavy Jets
Helicopters
Fishing Boats
Sail Boats
Catamarans
House Boats
Tugboats
Yachts
& Much More
Agriculture Equipment Leasing
Agriculture is an extremely competitive industry, and it’s important for farmers and ranchers to be able to lease the equipment they need to stay competitive. Equipment leasing for agriculture can help you get the best price and terms for your new or used equipment.
With less risk compared to purchasing new equipment, you can lease the equipment you need and get right to work right away. There are all sorts of agricultural tools available through leasing, including farm equipment, dairy equipment, grain equipment, and more.
What type of agriculture equipment can you lease?
Tractors
Harvesters
Sprayers
Field Cultivators
Ploughs
Balers
Irrigation Equipment
Wood Grinders
Barns
Grain Bins
Combines
Processing Equipment
Dairy Equipment
& Much More
Construction Equipment Leasing
Construction is one of the most competitive industries. In addition, the industry is highly regulated, which makes it even more difficult to be successful. Leasing construction equipment can be a good decision when a business needs new or used equipment right away and is not able to secure a loan.
Construction leasing can also be a great way to secure the long-term use of equipment so that you can bid on new jobs and complete projects on time and under budget. Whether you need a crane, bulldozer, or excavator, there are many different types of construction equipment that you can lease today.
What type of Construction Equipment can you lease?
Excavators
Backhoes
Aerial Lifts
Cranes
Dozers
Generators
Cement Mixers
Cold Planers
Trenchers
Telehandlers
Skid Steers
Pipe Layers
Utility Vehicles
& Much More
Industrial Equipment Leasing
Industrial equipment leasing is a popular financing option for a number of industries, including manufacturing, food & beverages, and mining. With industrial equipment, you may also be able to lease equipment with elevated utilization rates for a short period of time.
Warehousing, cross-docking, and cold-storage facilities almost always lease their equipment due to the high cost of buying the equipment outright. So, whether you need forklifts, aerial lifts, or even warehouse shelving, there is an industrial equipment leasing solution that will be perfect for your company.
What type of Industrial Equipment can you lease?
Forklifts
CNC Machines
Laser Cutters
Compressors
Power Tools
Aerial Lifts
Chippers
Presses
Pumps
Grinders
Welding Equipment
Industrial Scales
Warehouse Shelving
& Much More
Hospitality Equipment Leasing
The hospitality sector is a lucrative but expensive industry to break into. If you plan on opening a new restaurant, then you probably already know how expensive some of the equipment can be to purchase. Grills, Refrigerators, Ventilation Systems, and POS systems are all necessary, and they all cost a small fortune to buy outright.
Fortunately, by leasing this equipment, you can open your doors as soon as possible and start taking reservations today. Best of all, by spreading out the cost of the lease over time, you’ll still have access to the cash flow needed to operate a successful business in this competitive industry.
Some of the most commonly leased hospitality equipment is as follows:
Ovens and Ranges
Ventilation Systems
Refrigerators
Walk-In Freezers
POS Systems
Ice Machines
Blast Freezers
Blenders
Kegs
Washing Equipment
Janitorial Equipment
Furniture
& Much More
Office & Tech Equipment Leasing
Offices and tech companies often require a ton of equipment in order to start conducting business. Some of this equipment is relatively inexpensive, but much of it can stretch your budget thin. From computers and printers to desks, copiers, projectors, and of course, office furniture, it can be difficult to gather the money you need to buy everything all at once. The good news is that by leasing your office equipment, you can start conducting business right away. Many offices and tech companies lease their equipment, and you can too.
Some of the most commonly leased office & tech equipment is as follows:
Coffee Machines
Desks
Copiers
Printers
Projectors
Security Systems
Telephone Systems
Computers
Servers
Lighting
Monitors
Filing Systems
& Much More
Medical Equipment Leasing
Medical equipment leasing provides a unique way for doctors and other medical professionals to access the high-quality equipment they need. This type of financing allows professionals to focus on providing the best care for patients while medical equipment leasing companies provide the necessary resources. Medical equipment leasing is a good fit for many industries, including medical, surgical, and laboratorial.
In fact, many science centers and research facilities also choose to lease the technical equipment they need due to the high cost of purchasing this equipment outright. With each industry, equipment leasing can help alleviate the impact of budget constraints and allow you to start practicing your profession immediately.
Some of the most commonly leased medical equipment is as follows:
X-Ray Machines
Intraoral Cameras
3D Imaging Systems
CAD/CAM Systems
Apex Locators
Lab Freezers
Lab Chillers
Climate Chambers
Anaerobic Chambers
Incubators
Computers
Analyzers
Centrifuges
Microscopes
& Much More
Type of Equipment you Can Lease with Equipment Finance Canada
Equipment Finance Canada is the premier commercial equipment leasing company in Canada. Serving all the industries discussed above, EFC has helped thousands of businesses get the tools and equipment they needed to start operating, and they can help you too.
The application process is simple and straightforward, the terms are favourable, and the selection of equipment available is second to none. So, if you are looking to lease commercial equipment in any of the above-mentioned sectors, then be sure to check out Equipment Finance Canada for the best terms and customer service in the industry.
Summary
In summary, many companies, equipment leasing is an ideal solution that helps with cash flow, eliminates a big liability, and allows business to get going as soon as possible. There are many different industries that can benefit from equipment leasing, including: Transportation, Aviation, Agriculture & Farming, Construction, Industrial, Hospitality, Office & Technology, and the Medical industry.
By working with Equipment Finance Canada, you can gain access to the tools and equipment you need right away. Secondly, the application process is quick and easy. So if you are looking to lease equipment for commercial purposes, then be sure to get in touch with Equipment Finance Canada today.
There are many businesses that can be started from home with a small investment. Perhaps the most unique of these is owning your own truck and operating it as a business. As an independent owner-operator, you get to set your own hours and working conditions. While also enjoying the benefits of operating your own company. However, if you’re looking to start a trucking business, there are a few things you need to know.
In this comprehensive guide, we will explain everything you need to know about starting a trucking business. Including the best reasons to start a small business in the first place, why trucking is a lucrative business opportunity, the different jobs available in the trucking industry, how to actually start a trucking business, and much more.
The Best Reasons to Start a Trucking Business
There are many reasons to start a small business. Some of the most common reasons include being your own boss, setting your own hours, and having great income potential. People who choose to become independent owner-operators enjoy all these benefits.
You are your own boss, controlling your finances and working conditions. Plus, you get to set your own hours and work whenever you want to. This allows for a much more flexible lifestyle than working for someone else. It can also be a great option for parents who need flexibility in their schedules.
Also, as the owner of the business, your earning potential is nearly unlimited. If you put in the work and seek out clients, you’ll be able to make a very good living. Probably much more than you imagine is possible right now.
Let’s look at some the benefit of why your should start a trucking business in more detail. So that you can understand these perks a little bit better.
Self-Employment
One of the main reasons to start a trucking business is to become self-employed. A self-employed individual is responsible for paying their own taxes, insurance, and benefits through their own company. This is opposed to being an employee who gets a salary and benefits from an employer. Being self-employed can be extremely rewarding, but it also comes with some risks.
When you start a small business, it will cost you money upfront. This means you will need to have enough saved up to cover all expenses until you start making a profit. That said, you will be your own boss, accountable only to yourself and your clients. This is a huge quality-of-life upgrade that most independent truck drivers really enjoy.
Work Your Own Hours
Another great advantage of working for yourself is the flexibility in your schedule. You are free to work when you want, where you want, and with whom you want. If you have children or other dependents, you can choose to work full-time or part-time. You can also choose to take time off for vacations, sick days, or any other reason you might need. Best of all, you won’t need to run your decision by anybody else because you are the boss.
However, although you can work whenever you want, you will need to work enough to generate a consistent income. If you don’t work enough, you won’t be able to pay your bills. A large part of being self-employed is learning how to manage your time and striking the perfect work-life balance. That said, as an independent small business owner, you will eventually be able to enjoy much more time off than would ever be possible if you were an employee working for somebody else.
Great Income Potential
Starting trucking business can also be an excellent way to attain financial security because you have more control over your income than if you were working at a normal job as an employee. If the company you work for decides to cut your pay or lay you off, it will affect your financial situation. But if you own your own business and have a steady stream of customers, you will always have a way to earn money.
There are many types of small businesses that have high earning potential. Trucking is one of them. The demand for truck drivers is projected to grow as the economy expands. Therefore, trucking is expected to be a very lucrative business opportunity for many years to come. As the owner of a trucking company, you will probably be your very first driver as well. But in time, you will probably want to expand and hire other drivers while you oversee the client side of things. But we’ll come to that.
Trucking is a Lucrative Small Business Opportunity
If you’re thinking of starting a small business, then you’re probably considering a few different industries and wondering which ones offer the best opportunities. After all, not every business is equally profitable, and some are more challenging than others in terms of the capital required, the time required, and the amount of stress involved with starting the company.
Rest assured that the trucking industry is a great choice and has become an extremely lucrative small business opportunity for savvy entrepreneurs. In addition to its low entry cost and favorable demand outlook in the coming years, there are many other reasons why this industry offers a lot of potential for those willing to invest in getting started.
Why You Should Start a Trucking Business
The trucking industry is a lucrative small business opportunity for many reasons. The first is the low entry cost of starting a trucking company. To start a trucking company, you’ll need to invest in a small fleet of trucks and employ a few drivers. Although the upfront cost may be significant, the average capital required to get started is low compared to other business models. This is especially true if you decide to finance your first truck rather than purchasing it outright.
The second reason is the urgent demand for qualified drivers in the coming years. The trucking industry is expected to face a shortage of nearly 200,000 drivers over the next decade. As such, the demand for truck drivers is expected to continue to rise as the economy grows and online shopping becomes more prevalent. This means that there will be lots of money to be made as a truck driver in the decades ahead and even more money to be made if you own a trucking company.
But as is the case with any business, if you’re thinking about starting up an enterprise, then it’s important to be familiar with the ins and outs of the industry. So, let’s look at an overview of the trucking industry, examine the pros and cons of operating a trucking business, and see what insights we might be able to discover. This way, you’ll be able to make an informed decision about whether a trucking business is really the right choice for you.
Overview of the Trucking Industry
The trucking industry is massive. It involves the operation of trucks and other large vehicles on roadways for the purpose of transporting goods and materials from one location to another. It’s one of the largest industries in North America and supports more than 8 million workers across Canada and the United States.
The need for truck drivers will only continue to grow as technology continues to advance, resulting in a shortage of qualified drivers. In the coming years, the demand for truck drivers is expected to exceed 1 million people due to an aging driver population, increasing adoption of autonomous driving technology, and an increase in e-commerce deliveries.
With that in mind, let’s look at a couple of key statistics and answer a few important questions you may have about the trucking industry and the day-to-day responsibilities of a truck driver. We’ll also give some insight into what it takes to run a successful trucking company and what a normal day might look like for an independent owner.
What is the Job Outlook for Truck Drivers?
There are more than 3 million truck drivers in North America, and the vast majority of these drivers work for for-hire trucking companies. The job outlook for truck drivers is expected to grow exponentially by 2026, which is much faster than most other industries.
That said, the job outlook varies significantly according to the size of the company in question. This is because larger companies have a higher demand for truck drivers since they typically have more commercial trucks on the road at any given time compared to smaller companies.
All things considered, the outlook is very favorable up to 2026 and even for the foreseeable future beyond that, making now the perfect time to start working as an independent truck driver or, even better, to start up your own trucking company.
How Much Can You Earn If You Start A Trucking Business?
The average truck driver’s salary for an entry-level driver is about $40,000 per year, but this varies significantly based on your employer, experience, and the types of routes you’re driving.
With a few years of experience, you can expect almost double this. Something in the neighborhood of $60,000-$80,000 per year is fairly standard for an experienced long-haul driver working full-time.
Owner-operators with their own clients and truck can easily earn six figures a year; it really just depends on your clients and how much time you want to spend on the road. Much like with any other business, you’ll get out of it what you put in.
Different Jobs in The Trucking Industry
Trucking is an interesting and complex industry. Depending on the type of truck you drive, and the company where you work, your job as a truck driver can come with various responsibilities, duties, and challenges. If you’re interested in pursuing a career in the trucking industry, it’s important to know about the different types of jobs available.
From entry-level positions to management roles and everything in between, there are a variety of opportunities for those looking to work in this field. Depending on where you live and your career goals, there are many different paths that lead to working as a driver in the trucking industry.
Let’s go over a few of the most common types of truck driving positions so that you can decide what type of trucking business you want to start.
Long Haul Freight Drivers
Long-haul freight drivers are responsible for driving their shipments from one end of the country to the other. These drivers spend a lot of time on the road and typically have to adhere to strict deadlines when it comes to getting their load to its destination on time. Depending on the company, a driver may be required to make certain stops along the way to pick up or drop off other loads. This type of driver usually has a set schedule and typically drives during daylight hours. When it comes to pay, long-haul truckers usually make more than short-haul drivers.
Short Haul Freight Drivers
Short haul drivers usually make local deliveries within a certain region, typically within 100 miles of their start and end points. While both long-haul and short-haul drivers often have set schedules and have to adhere to tight deadlines, short-haul drivers often work nights, weekends, and holidays. Short haul drivers often make less than long haul drivers, but the difference in pay isn’t drastic.
Dump Truck Drivers
Gravel or dump truck drivers haul dirt, aggregates, and other materials used to build roads and other types of construction projects. Dump truck drivers often work with a crew and have to make sure their truck stays stocked with the appropriate amount of material for each project. Dump truck drivers make sure that their truck is loaded within the weight limit and that the load is evenly distributed. This means that the weight is evenly distributed throughout the truck bed.
Tanker Drivers
Tanker drivers haul chemicals, fuel, and other hazardous materials. If you drive a tanker, you might have to have special training and licensing. It’s important to understand the different regulations and restrictions associated with the type of material you transport. Tankers are often required to have a placard on the side of the truck that shows the type of hazard being transported. This helps other drivers and law enforcement officials recognize the load being hauled in the truck.
Flatbed Haulers
If you’re driving a flatbed, you haul large, bulky items that don’t fit in a truck bed. This could include furniture, appliances, large pieces of construction equipment, or other large pieces of cargo. Flatbed drivers often have to pick up and drop off their load at the shipper or the shipper’s location. If you drive a flatbed, it’s important to have a designated securement system to secure your load. Your load could be anything from furniture to construction equipment, so you have to make sure it stays in place while you’re driving.
Dry Van Haulers
These type of trucks haul just about anything, although they typically transport dry goods such as food, clothing, and other non-hazardous materials. As a Dry van hauler, you typically pick up their load from a shipper, transport it to its destination, and then drop it off at a receiver. Dry van drivers often have a set schedule and work a regular work week. This type of driver often makes less per mile than other types of truckers.
Automotive Haulers
Automotive haulers haul cars and other vehicles. This type of trucking job often requires special training and licensing, and the company you work for may have special requirements when it comes to the type of vehicle you use. Automotive haulers typically have to load and unload their vehicles at a shipper or receiver. This type of driver may have to work nights and weekends to accommodate the pick-up and drop-off times of the shippers they work with.
Truck Driver Instructor or Trainer
If you enjoy teaching others, a truck driving instructor or training position might be the right fit for you. While you might not be on the road hauling loads all the time, you still get to be a part of the trucking industry. Truck driving instructors and trainers work at truck driving schools or training facilities.
This is a great profession for those who want to work in the trucking industry but don’t want to be on the road all the time. Working at a driving school allows you to help new drivers get their licenses and start a career in the trucking industry. You can share your knowledge and experience with new drivers, and you can help them feel more confident when it comes to the road and the classroom portion of their training.
How to Start a Trucking Business
Now that you know about all of the different types of truck driving and you’ve decided on one that seems perfect for you, you’ll need to actually start up the business, and there is a lot involved with starting a small business. The trucking industry is no exception to this.
So, let’s go over everything you’ll need to do in order to launch and grow a successful trucking company.
Gain Some Experience Behind the Wheel
If you’re new to the industry, one of the best ways to start your trucking business is to get some on-the-road experience. You can do this by applying for a job as an entry-level driver or company driver. During your time as an entry-level driver, you can focus on building your skills and gaining experience under your belt. Once you have enough experience under your belt, you can focus on growing your business from there.
Another option is to apply for a company driver position at a logistics company that might be hiring. These companies often hire experienced team drivers to drive for them. This will give you the opportunity to work with a variety of different loads and customers. Plus, this will also give you the opportunity to earn a solid paycheck while you’re waiting to launch your own trucking business.
Create a Detailed Business Plan
Now, before you finance your first truck, you need to have a detailed business plan. This will help you to understand the industry and your specific niche, as well as give you a clear path to follow as you grow your trucking business. Your business plan should include information about your industry, your competitive advantage, your company, and your finances.
You should also include a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), which will help you identify potential issues and opportunities in your business. When it comes to finances, you’ll need to have a strong understanding of your expenses, profit margins, and revenue projections. This will be very important when you’re trying to secure financing for your business.
Finance Your First Truck
When you start your trucking business, you’ll need to finance your first truck. The good news is that trucking is a very capital-intensive industry, which means there are lots of opportunities to finance. Here are a few different financing options you can explore when you’re getting started:
Bank Loan
If you’re starting a trucking business, you may be able to finance your first truck with a bank loan. However, this type of loan is difficult to get and will generally come with high interest rates. Plus, in most cases, you’ll need to put down a significant amount as collateral. And if you miss a payment, you could lose your truck.
Commercial Loan
If you’re planning to start an operation that involves specialized equipment, such as a refrigerated truck, you’ll likely need to go with a commercial loan. These loans are designed for larger operations and are available from commercial lenders. Like bank loans, a commercial loan can be difficult to secure. They will almost always have a very high interest rate.
Finance Your Truck
In most cases, the best option for securing your first truck will be financing. Financing allows you to get your truck right away and spread the cost out over many years. This way, you won’t need to come up with a huge down payment. Another benefit of financing is that, in most cases, it is not required to produce collateral. This is often the easiest way to get a loan. Especially when you work with a company that specializes in financing the transportation industry, such as Equipment Finance Canada.
Find Some Clients (or Sub-Contract)
Once you’ve secured financing for your first truck and have some driving experience under your belt, you can start to find some clients to subcontract with. Sub-contracting is a common practice in the trucking industry; you’ll provide your services to another trucking company that has clients and a need for drivers.
Finding sub-contracting work is easy. All you have to do is start calling companies and asking if they have sub-contracting opportunities. The best time to start looking for sub-contracting opportunities is as soon as you start trucking. You can keep a list of companies that have work available and then start calling them when you have time.
Another option is to search for your own independent clients. This is more lucrative, and you’ll make more money when you secure the clients yourself. However, there is a lot of work that goes into finding clients. So, as a new business owner, your best bet will almost always be to work as a sub-contractor, at least while you’re learning the ropes. Once you have some experience, you will almost certainly make connections with clients, which will open doors for your company.
Expand by Financing a Second Truck
Once you’ve established yourself in the industry and developed a solid customer base, you can start to expand your business by financing a second truck. This will allow you to take on more work and bring in more revenue. Furthermore, financing a second truck will enable you to collect a better rate of return on your assets. You can do this by applying for a loan on a truck title loan. Truck title loans are like car title loans in that you use the truck title as collateral.
Alternatively, you can stick with what is already working for you and finance your second truck. The process is easy, and it will be even easier if you’ve already paid off the first truck that you financed when you started up your company. Again, we highly recommend that you contact Equipment Finance Canada, as they are specialists in this industry and have helped thousands of people get financing for first and second trucks. They can even help you finance an entire fleet if you qualify.
Build a Team of Employees
As your business grows and you start to hire more employees, you’ll want to get a copy of the employee handbook. This will help you to lay out all the rules and regulations for your employees and will provide a guide for you to follow as you manage your team. You’ll also want to make sure to get workers’ compensation insurance coverage. This is a type of insurance that every employer should have. It provides coverage for employees who get injured on the job.
Having coverage will protect you and your employees in case of injury. Finally, you should also get a general liability insurance policy. This type of insurance provides coverage if someone gets injured while on your property or while using your equipment. Having coverage will protect you in case someone sues you because of an accident.
Keep Investing in Your Business
As your business grows, make sure to keep investing in it. This can include investing in new equipment, expanding your customer base, and hiring new employees. Keeping up with industry trends and staying on top of new technology will also help you to stay successful.
Additionally, you should try to network with industry professionals, such as trucking company owners and other truck drivers. By leveraging relationships with these individuals, you may be able to get advice, references, and more work as your business grows.
Equipment Finance Canada Can Help!
Equipment Finance Canada is the premier source for transportation industry financing. The application process is quick and easy; all you need to do is get in touch with a representative at EFC, explain your situation, and go over some details about the type of business you’re looking to start. After providing a few documents, you can be approved for financing for your first truck almost immediately.
As your business grows, Equipment Finance Canada can help you expand by financing your second and third trucks as well. They can even finance an entire fleet if you qualify for that sort of lending. By starting off with your first truck, you’ll be able to build up a payment history with EFC so that even if you don’t qualify for fleet lending right away, you may be able to get that sort of financing at some point in the future when you’re ready to expand.
What is the cost of Purchasing A Semi Truck in 2022?
When it comes time to purchase your next commercial vehicle, there are many factors to consider. One key question you might have is about the cost of purchasing a semi-truck. After all, commercial vehicles aren’t cheap.
Depending on the make and model of your new truck, the cost of purchasing a semi will vary widely. Fortunately, with a little research, you can get a good idea of what to expect from your next purchase.
The good news is that we have already done that research for you, and in this article, we will go over everything you need to know in order to purchase your next new or used semi-truck.
In this guide, you will learn how much a semi-truck costs, the additional expenses involved with buying a semi, whether you should buy new or used, how much most semi-truck drivers earn, and much more.
How Much Does it Cost to Purchase a Semi Truck?
This is a tough question to answer, as it depends on a few factors. One factor is the make and model of your semi-truck. Next, it depends on the condition of the truck you choose. Some manufacturers list their models as “drivable,” while others state they are “as is” or “where is.”
That said, some good general guidelines can be helpful when purchasing a new semi. As a very basic rule-of-thumb, a high-end semi-truck, such as a Peterbilt or a Kenworth, should cost around $200,000+ if purchased new or around $175,000 used. A mid-range model such as a Freightliner, International, or Volvo truck will be cheaper and can often be found for around $150,000 new or $100,000 used.
However, you also need to consider the other expenses involved with buying a semi-truck. This includes such things as the purchase price of the truck, taxes, and the cost of using it. If you buy a used truck, you should also factor in the cost of repairs.
Other Costs When Purchasing a Semi Truck
When you purchase a new vehicle, you won’t have too many expenses. However, there are some unavoidable expenses associated with owning any semi-truck.
First and foremost, you will need to make sure you have enough fuel to run the truck. Some trucks require a lot of fuel to operate, while others only require a few gallons at a time. It’s a good idea to have a set amount of money for fuel while you’re on the road.
Of course, you will also need to have a license to operate the vehicle. Training and licensing vary in price, but generally speaking, if you don’t already have a license, you should budget around $10,000 for training and licensing. Make sure you also clear your calendar for the training and testing.
Next, you will need to insure the vehicle. Insurance for commercial highway trucks isn’t cheap. You’ll need to shop around and get a few different quotes before making your decision on an insurance policy for your semi. For an average truck driver with an average truck, you’re looking at between $2000 – $18,000 per year for insurance.
Finally, don’t forget about the taxes. When you purchase a truck, whether it’s new or used, you will need to pay tax. It’s important to keep in mind that the tax rate is not based on the purchase price but rather on the truck’s book value. So, remember to inquire about the taxes before finalizing your purchase.
Should You Purchase a New or Used Semi Truck?
The short answer to this question is that it really all depends on your budget. Used trucks will almost always be cheaper to buy upfront. However, new trucks are usually less expensive in the long run because they require fewer repairs and are typically covered under warranty.
Regardless of whether you decide to buy new or used, there are a few things to consider before making your purchase.
First, you should make sure the model you choose fits your company’s needs. This might mean that your next purchase is a bigger model. Or it might mean that you choose a different model.
Next, you need to make sure that your chosen truck is profitable. Remember, some models are more profitable than others. You should always do a lot of research on your truck’s profitability before you make a purchase.
To help you with that task, we have compiled a list of pros and cons associated with purchasing both new and used semi-trucks so that you can decide which option will be best for you, your business, and your budget.
The Pros and Cons of Buying New vs Used
Keep in mind that there may be additional benefits and drawbacks of buying both new and used semi trucks. However, this list details the biggest advantages and disadvantages of each option.
The Pros of Buying a New Semi Truck
New trucks have the latest technology
There is a large selection of new trucks to choose from
New trucks come with a large warranty
New trucks are often cheaper to operate than used trucks
New trucks are more profitable than used trucks
The Cons of Buying a New Semi Truck
New trucks cost more upfront
The taxes will be higher with a new truck
New trucks are more expensive to insure
The Pros of Buying a Used Semi Truck
Used trucks are cheaper upfront
Used trucks can be a good investment
Used trucks have lower taxes
The Cons of Buying a Used Semi Truck
Used trucks may need expensive repairs
Used trucks are less fuel efficient
Used trucks cost more to operate
As you can see, the best option is usually to buy a new semi truck rather than a used one. But, if you do your homework, shop around, and get lucky, you may be able to find a profitable used truck that doesn’t require many repairs for a good price.
Consider Leasing or Financing Your Semi Truck
One thing to remember about purchasing a semi-truck is that it will cost a lot of money. However, you can often lease the truck or finance the purchase. These options allow you to get a new or used semi truck without paying the full amount upfront.
Of course, if you have the money to purchase your new truck outright, then that is probably the best option. But new trucks are expensive, and most people don’t have a few hundred thousand in cash on-hand to purchase a semi.
Leasing and financing are great alternative options that can help you get the truck you need today and spread the cost out over the course of several years.
The Benefits of Semi Truck Leasing
For those who don’t want to take on the financial risk of financing a truck, leasing a semi-truck can be a good alternative. With a lease, you have the security of knowing your costs of purchasing a semi truck. At the same time, you don’t own the truck and don’t have to worry about driving it off the lot. Should the need arise to buy a truck, you can simply end the lease and walk away.
There are also a number of other benefits to leasing a semi-truck. First, the lease payments usually include maintenance and fuel. This means you’re getting a truck with fewer out-of-pocket expenses. In addition, since you’re leasing the truck and not buying it outright, you don’t have to pay any taxes on the purchase price. This can help you save thousands of dollars over the lifetime of the truck.
The Benefits of Semi Truck Financing
The downside of leasing a truck is that you don’t own the asset. If you choose to finance your truck, you do own the truck, but you pay for the purchase over time. Typically, you will pay a small percentage of the value of the truck each month until it’s paid off, at which point you are free to sell the truck or do whatever you want with it. There are a number of advantages to financing a truck over owning it. First, you don’t have to worry about maintenance and fuel expenses. This can help save you money in the long run. Plus, financing a truck can help you save a considerable amount of money on taxes. Most truck drivers choose to finance their semi-trucks, but leasing can sometimes be a great option.
Being a Truck Driver is a Good Career
Truck driving is a good career if you are looking for a job that pays well and is flexible. Truck driving can be rewarding in terms of both money and experience. A lot of drivers are self-employed, so they can work when they want to.
While there are some disadvantages to being a truck driver, such as long hours and difficult weather conditions, it’s worth considering if you want to earn a consistent income while being your own boss and travelling across the country or continent.
How Much Can Truck Drivers Earn?
The salary of a semi-truck driver will vary depending on the type of trucking you choose to do, your experience, and the company you work for. Depending on these factors, the salary for a semi-truck driver can be upwards of $100,000 dollars per year, or even more for owner-operators.
Of course, this is assuming a long work week. It’s also important to note that you won’t see these wages right away. New truck drivers will start off with a lower salary while they are still in training, and it could take several years before they have the experience required to earn the highest rates in the industry.
That said, it’s not unreasonable to expect that you will be making a six-figure income after only a few years, as long as you are willing to put in the work and the long hours behind the wheel.
Common Expenses of Truck Drivers
Keep in mind that there are some expenses associated with truck driving, such as insurance and maintenance. You’ll also have to factor in the cost of fuel, as well as new tires and any repairs that may be needed from time to time.
In addition to these expenses, you’ll also be responsible for your vehicle payments. Depending on the type of truck you choose to drive, this can amount to thousands of dollars every month. However, the vast majority of truck drivers are able to pay for these expenses and still make a good amount of profit.
Conclusion
Truck driving is a good career that allows people to work flexible hours and earn a great amount of money. However, in order to get started, you will need a truck. Semi-trucks are expensive. So, what are the cost of purchasing a semi truck? Depending on the age, make, and model, you could be looking at $200,000 or more for a new semi. This is why it makes sense to either finance or lease your truck.
If you decide that you want to finance a semi-truck, then Equipment Finance Canada can help. Equipment Finance Canada works with people who need to acquire industrial equipment, such as semi trucks, and offers great financing options with low-interest rates. So, if you want to get into a brand new or gently used semi today, then be sure to contact Equipment Finance Canada.
Purchasing equipment can be very expensive, and you may not always need to own the equipment required for a project. By leasing equipment, you can save money and still have everything you need to complete the job. That said, leasing is a form of credit and, as such, requires approval. In this guide, we will explain how to get approved for equipment leasing. And offer some tips that can make the application process easy and straightforward.
Keep reading to learn:
What equipment leasing is
The documents required to lease equipment
How to increase the odds of being approved
Where you can lease equipment
And much more
What is Equipment Leasing?
Equipment leasing is similar to financing equipment. The main difference between equipment leasing and financing, is that when leasing, it’s actually the lender who purchases the equipment. In other words, when you lease, you will own the equipment outright once the term of the lease has expired. Because the client is actually not purchasing the equipment, leasing is generally easier to get approved for than typical financing. Equipment leasing rates are still very competitive. Especially for those who are well qualified, making leasing an attractive option for those who only need the equipment for a limited time.
How to Get Approved for Equipment Leasing?
Because leasing is a form of credit, you’ll be subject to credit and background checks. This is because equipment is often very expensive, and the lender needs to be sure that you have the means to cover the cost of the equipment if it’s lost, stolen, or damaged. Not every business gets approved for leasing, but there are a few things you can do to give yourself the best chance of being approved. So, let’s go over what you can do to increase your likelihood of being approved for equipment leasing.
Ensure your credit is in good standing
First and foremost, your business will need to have a good credit score in order to be approved for equipment leasing. You won’t necessarily need perfect credit, but your credit should be good and be in good standing. If your credit isn’t good, then there are a few things you can do to improve your credit score.
How to improve your credit score to get approved for Equipment Leasing
The best way to improve your credit score rapidly is to pay off any outstanding debts you’ve incurred. If it isn’t possible to pay those debts off entirely, then ensure you make payment arrangements and stick to the agreed-upon schedule. You can consider consolidating your debts into a single payment which might make repayment easier. Also, try not to use all of your credit. A good general principle is to keep your debt utilization at or below 30% of your available credit, meaning that if you have $100,000 in credit, you shouldn’t use more than $30,000.
Have an accountant prepare your documents
When you apply for equipment leasing, you will need to submit financial statements showing that you have the means to pay for the equipment if it’s lost, stolen, or damaged. By having an accountant prepare those documents on your behalf, you can ensure that they are accurate and lend more credibility to your application.
Audited financials can help you get approved for Equipment Leasing
Likewise, by having your financial statements professionally audited, you can greatly increase your odds of being approved for equipment leasing. Generally speaking, anytime you can have a third-party objectively audit your finances, it will be to your benefit in the eyes of the lender. This is especially true if the audit was done by an established accountant or firm. So be sure to hold on to any of your company’s previous tax returns as these can be a great asset when applying for credit facilities, such as leasing or financing.
Providing the correct information and details about your business
Another important and often overlooked aspect of a leasing application is your business information. So, when applying for equipment leasing, always ensure that you provide accurate and up-to-date information, as this will be required in order to verify your company’s assets and finances.
Create a business plan with projections if the business is new
Many people assume that if their company is new, then they won’t be approved financing. This is not always the case. By preparing a detailed business plan that includes future projections, you can significantly increase your odds of being approved for equipment leasing.
Show how the new equipment will be beneficial to your business
By explaining how the equipment you intend to lease will help your business generate new or more revenue, you will be able to increase your odds of being approved for that particular equipment.
Provide Corporate or Personal Guarantees
Providing some sort of personal or corporate guarantee in writing can also work to your advantage when applying for equipment leasing. This is because the lender will have something in writing should you default on the agreement. Having another company vouch for you can also be an asset on your application.
Showcase your experience
It also helps to demonstrate your expertise in your particular industry. By preparing a list of your clients and showing the lender that you have regular customers, you can again improve your odds of being approved for equipment leasing.
Where to lease equipment in Canada?
There are many different companies that provide equipment leasing services to businesses in Canada. However, most of those lenders require all of the documents mentioned above, and possibly even more. Equipment Finance Canada is one of the most trusted sources for equipment leasing. EFC specializes in helping businesses get approved for new equipment when other lenders say no.
So, if you need to lease some new equipment for an upcoming project, or to help your business get off the ground, then be sure to get in touch with Equipment Finance Canada today. The experts at EFC will be able to help you through every step of the application process. They offer competitive rates to help your company grow and succeed.
When it comes to choosing the right construction equipment, there are a number of important considerations that need to be taken into account. Of course, the purchase cost is of primary importance. However, there are many other things to consider before making your final decision.
In this article, we’ll go over the top ten factors to consider when choosing construction equipment. So that you can make the right choice for you, your company, and your finances. We’ll also explain how you can quickly and easily finance or lease the purchase of both new and used construction equipment.
Top Ten Things to Consider When Choosing Construction Equipment
Keep in mind that these are by no means the only factors to consider when choosing the right construction equipment for your business. However, by taking into account each one of these considerations, you’ll be able to make a purchase that you’ll be happy with, and that will serve you well for years to come.
1. Project Scope
First and foremost, you should consider the overall scope of the project. If you are constructing a skyscraper, then purchasing a crane may well be worth it. However, if you are only building a house or doing road work, then probably not. This is an extreme example, but by considering the scope of your project, you’ll be able to narrow down a list of the equipment you absolutely need to buy and the things that you would be better off renting.
2. Equipment Size
Next, you should consider the size of the equipment you plan to purchase. Depending on the project, you may need a 20-ton excavator. Or a 12-ton excavator may be perfectly sufficient, in which case you would be wasting your money buying larger equipment. This is true for all forms of heavy equipment. Whether we’re talking about front end loaders, excavators, backhoe or yellow iron equipment.
3. Attachments Required
Something else to factor into your decision when choosing the right construction equipment is the cost of the attachements. If it turns out that you do need an attachment, then look into how much that will cost. Be sure to factor it into your budget. Otherwise, you could end up with a piece of equipment that isn’t doing anything to help the job along, which would be a shame and a waste of money. There are many attachments when it comes to construction equipment that can be fitted on excavators, skid steers and more.
4. Resale Value
Whenever you purchase anything, you should consider that equipment’s resale value. This is especially true of large ticket purchases such as construction equipment. If you only need the equipment for a few projects, then you may be able to resell the equipment. Then recuperate a large percentage of the purchase price. But, if you plan to use the equipment for many years to come, then it’s likely that the resale value will diminish significantly.
5. Maintenance Costs
Construction equipment tends to have a lot of moving parts. As such, is subject to wear and tear that will eventually require maintenance. Therefore, it’s a good idea to find out what sorts of issues crop up with that particular equipment. So you can know how much it costs for maintenance and repairs. As these costs can eat into your budget and affect your overall profitability if not accounted for ahead of time.
6. Availability of Parts
When your construction equipment needs repairs, the cost for parts can sometimes be higher than expected. Especially if the parts aren’t readily available. So, whenever you purchase a new piece of construction equipment, consider what parts you may need to replace. Also, when they’ll need replacing, how easy it is to replace them, and how much that’s likely to cost.
7. Re-Usability
Some equipment can be used for years, whereas other things are only good for a few projects before needing to be replaced. All machines break down eventually. However, if you’re going to invest a lot of money into buying new equipment, then consider whether or not you’ll be able to re-use that equipment in the future. As this is one of the main factors determining the overall value for money on your investment.
8. The Warranty
Most reputable construction equipment companies (CAT / Hitachi / Volvo / John Deere, etc.) will include a comprehensive warranty with their industrial products. Which can add significant value and make your purchase much more worthwhile. So, before making any large purchases, be sure to ask how long the warranty lasts and what it covers.
9. Training Required
Generally speaking, most qualified construction workers know how to operate the vehicles and power tools required to get the job done. But, from time to time, you may encounter a task that doesn’t pop up every day. These one-off tasks often require special equipment that your employees may be unfamiliar with. As such, you may need to set aside some time and money to train your workers on operating this equipment.
10. Overall Cost
Of course, one of the largest considerations is the purchase price of the equipment. Depending on the size of your budget, this may or may not be a huge factor. Either way, you’ll need to factor the cost of purchasing your equipment both into the quote you provide your client and your overall budget for the job.
How To Finance or Lease Construction Equipment
Let’s face it – construction equipment is expensive especially when your trying to choose the right one. Paying for it all upfront out of your own pocket isn’t always feasible. Fortunately, there are financing options available. A Capital Lease can allow you to quickly and easily purchase the equipment you need and pay for it over time.
Equipment Finance Canada is a company that helps businesses with both construction equipment financing and construction equipment leasing.
So, if you need to purchase construction equipment for an upcoming project but don’t have all the money upfront, then be sure to get in touch with EFC today. The application process is easy. The rates are highly competitive, and best of all, you may be able to get the construction equipment you need right away.
Breaking down the Top Semi Trucks in Canada for 2022
Choosing a semi-truck can be difficult as numerous brands are on the market. Whether you are looking to lease a semi truck or out right buying one, it is essential to carefully select the right brand to manage costs and avoid frequent breakdowns. Are you buying for yourself as you transition from a company driver to owner-operator? Or are you buying with plans to hire a driver?
Whatever the reason, we will evaluate the 2022 top five semi-truck brands in Canada: what makes them unique from others and how Equipment Finance Canada can help you with truck leasing and financing in Canada. They are:
Peterbilt
Kenworth
Volvo
Freightliner
International
1. Peterbilt
Peterbilt is a leading global semi-truck manufacturer launched in 1939 in Denton, Texas. Although it is a subsidiary of Paccar Inc., Peterbilt has built a formidable clientele that depends on the comfort and quality of its products. It has positioned itself at the forefront of the next generation of transportation technology because it utilizes innovative technology to save fuel, identify or diagnose problems quickly, etc.
With Peterbilt, driving a semi-truck does not have to be a Herculean task. So if you are looking to have a fun, adventurous, and rewarding journey while riding a truck, Peterbilt is your best shot.
Features
They can last between 750,000 to 1,000,000 miles with proper care and regular maintenance.
Peterbilt is an advocate of comfort-behind-the-wheels. They produce the most enjoyable trucks for over-the-road truck drivers.
Pros
They consume less fuel compared to other truck brands
Peterbilt semi-trucks last longer compared to other brands.
They experience fewer mechanical issues.
Highly durable with fair resale values.
They are less prone to corrosion as they have aluminum bodies.
They have the most oversized, well-ventilated sleeper cabs compared to other semi-trucks.
Cons
Most used Peterbilt semi-trucks are susceptible to increased mileage.
Buying a Peterbilt truck is more expensive than other truck brands. But you can consider leasing.
The cost of repairing and maintaining a Peterbilt truck is relatively expensive.
2. Kenworth
Founded in 1923, the company specializes in manufacturing medium-duty and heavy-duty (Class 8) trucks for commercial purposes. Following its partnership with Toyota in 2019, Kenworth now has trucks that operate with hydrogen fuel cells with zero emissions.
Kenworth trucks are specifically built to guarantee drivers’ comfort with sleeper cabs ranging from 70 to 86-inch and an in-built infotainment system to help drivers remain active through a long ride. Going for a Kenworth truck is an excellent choice, especially If you want to get something similar to Peterbilt without breaking the bank.
Features
Kenworth trucks have stainless steel parts that help them function under any weather or road conditions.
Minimal fuel consumption.
Newer models have driver assistance systems like adaptive cruise control to help drivers stay active.
Pros
They have some of the best engines on the market.
Kenworth trucks are durable with fair resale value.
They are very fuel-efficient.
They are more affordable when compared to Peterbilt trucks.
Cons
Sleeper cabs are smaller than other semi-trucks.
Some of their truck models have been recalled for life-threatening issues.
3. Volvo
Volvo is one of the top-performing semi-truck brands in Canada and globally. The brand manufactures unrivaled luxurious truck designs with aesthetically pleasing sleeper cabs and extra amenities for drivers. Volvo has also added telematics data to its features, allowing smooth communication between Volvo semi-trucks on the road.
Most models can remotely diagnose problems and run tests before, during, or after a trip. Overall, using a Volvo truck for commercial or personal purposes is less tasking, as most functions are automated.
Features
They are ideal for over-the-road truckers.
Volvo trucks are aerodynamic and fuel-efficient.
They use up-to-date technologies to help drivers manage their trucks well.
Pros
They are more spacious when compared to Kenworth trucks.
They prioritize driver’s safety via the remote diagnostics system.
Volvo trucks have a three-point seat belt for heightened safety, unlike other trucks.
Fairly durable.
The sleeper cab in Volvo trucks can comfortably house two people.
Cons
They are highly prone to frequent breakdowns.
Most parts of Volvo trucks are pricey and difficult to find.
Poor resale value when compared to other truck brands.
4. Freightliner
The Freightliner Company owns some of the top-performing trucks in Canada, including heavy-duty and medium-duty trucks for commercial purposes. Freightliner’s engines produce nearly 600 hp and about 2,050 lb-ft of torque. Freightliner trucks also come with inbuilt facilities to aid drivers’ safety when an accident occurs, such as steering wheel airbags and an optional lifeguard seat, making it stand out from other trucks.
Features
The Detroit Powertrain is one of the best and most efficient systems on the market.
Freightliner semi-trucks have safety tools for drivers: a radar system on the bumper for better monitoring and a camera installed on the windshield.
They have manufacturer-approved maintenance plans.
The sleeper cabs can function with natural gas, making them more fuel-efficient than diesel-enabled trucks.
Pros
Freightliner trucks have better steering and handling than other semi-trucks.
They are among the most affordable trucks on the market.
Freightliner prioritizes drivers’ safety more than any other brand.
Cons
They are unsuitable for long rides.
Some models are susceptible to mechanical and electrical problems.
They have poor engine capacity.
5. International Trucks
The International Corporation is one of the oldest semi-truck companies, dating back to 1902. Apart from semi-trucks, they are also known for making school buses, motorhomes, etc.
Features
The newest models have advanced security features.
They are customizable, unlike other truck brands.
International semi-trucks are durable and safe for long-haul driving.
Pros
International has one of the largest dealer/manufacturer networks compared to other brands.
They have fuel-efficient engines and are suitable for commercial purposes.
High resale value.
Cons
Most older models experience electrical and mechanical problems.
Poor customer service.
Getting a Semi-truck in Canada
Learning about these trucks without having to use any of them is disheartening. We understand that purchasing or leasing one comes with a considerable price. That is why Equipment Finance Canada is here to help you access any highway truck of choice via the available semi-truck leasing options. Our forte lies in helping existing and new truck owners lease equipment needed to start or grow their new or already-existing businesses, respectively.
Equipment Finance Canada is also one of the top financing companies recognized in Canada. We specialize in simplifying the equipment financing process in different sectors, including agriculture, transportation, construction, etc. We also have access to leading certified banks, financial institutions, and trusted private lenders across Canada.
Purchasing equipment is expensive, and as such, it pays to shop around. Oftentimes, the best way to secure a great deal is leasing equipment from a private sale, either second-hand or through an independent seller, as opposed to buying new or directly through a vendor. But banks typically don’t finance private sales. Fortunately, there is a solution that allows customers to secure financing for equipment purchases through private sales, and that’s what we’ll be looking at in this article.
Keep reading to learn:
What a private sale is
The pros and cons of private sales
The precautions to take when buying privately
How to lease equipment from a private sale
And much more
What is a Private Sale?
In simple terms, a private sale is when you purchase something from another person rather than from a company. Buying used equipment or finding equipment for sale through classified sites like AutoTrader and Craigslist are great examples.
The Differences Between Leasing Equipment From a Private Sale and Leasing from a Vendor
There are some key differences between buying privately and buying from a vendor. For starters, when you buy privately, you’ll almost always get a much better deal. However, when you buy equipment in a private sale, it may not be in perfect condition, and it can sometimes be difficult to secure financing for private sales. That said, it’s very possible to find like-new equipment for a fraction of the normal price when purchasing via a private sale, and there are financing options available if you know where to look.
The pros and cons of leasing equipment from a private sale
There are definitely some pros and cons to consider when deciding whether you want to buy privately or through a vendor, let’s look at them now.
Pros
Prices are often negotiable
When you purchase something through a private sale, you can usually negotiate the price, whereas when you buy from a store, retailer, or other vendors, the prices are usually firm.
You can find a better deal
In almost all cases, you’ll be able to save a ton of money when purchasing your equipment privately rather than through a vendor. Sometimes you can even source equipment for half the price that it would cost when buying from a traditional outlet.
Equipment is often like new
Many people think that buying privately means getting subpar equipment, but in many instances, this is simply not the case. Very often, private sellers are looking to off-load gently used equipment that is almost brand new and is in perfect working condition.
There is no tax to pay
When you buy equipment through a private sale, you won’t need to pay sales tax, which in some cases can amount to thousands of dollars saved.
Cons
Equipment may be damaged
It’s true that sometimes, disreputable sellers may list damaged equipment for sale in hopes of recuperating their money on the equipment. As such, it’s important to protect yourself when purchasing privately, and there are a number of ways to do that, which we will look at momentarily.
A warranty may not be included
More often than not, when you purchase equipment privately, it will not include the original warranty, which means that repairs will generally need to be covered out-of-pocket. However, sometimes a portion of the original warranty will still be in place and can be transferred over to you as the new owner.
The precautions to take when purchasing from a private sale
As mentioned, some private sellers list damaged equipment for sale, so when buying privately, it’s always wise to exercise due diligence and do your homework before going through with the purchase. Let’s go over a few of the ways that you can protect yourself when purchasing equipment from a private sale.
Overall condition of the equipment
You should always inspect the overall condition of the equipment before you buy it. Simply put, you should never take a private seller’s word that their equipment is in perfect working condition; the only way to ensure this is by testing and inspecting the equipment yourself.
Inspection reports
Always ask to see any available inspection reports for the equipment you’re considering before handing over your money. If no inspection reports are available, then that’s a red flag that could indicate something isn’t quite right with the sale.
KMs and Hours
Be sure that you consider the mileage or hours before making a purchase. Vehicles and other pieces of equipment that have high mileage are much more likely to require costly repairs in the immediate future.
Private sales can be leased by Equipment Finance Canada
If you find a great piece of equipment and would like to purchase it through a private sale but don’t want to invest all of the money upfront, then you’re in luck. Equipment Finance Canada can help you finance equipment purchases from private sales, and there are a number of excellent advantages you’ll enjoy when financing through EFC.
Why lease through Equipment Finance Canada
Equipment Finance Canada helps businesses and individuals with leasing equipment from a private sale. Let’s go over some of the best reasons to finance your equipment through Equipment Finance Canada when buying from a private seller.
Local banks do not specialize in private sales
In most cases, your local bank or credit union will not help with financing a private sale. The same goes for equipment leasing and equipment financing. Simply put, it’s almost never possible to finance used trucks / used equipment through a traditional lender. That’s where Equipment Finance Canada is different. We help people finance the equipment they want regardless of who’s selling it.
We have a wide variety of lenders who are willing to fund private sales
At Equipment Finance Canada, we take pride in having some of the best lenders anywhere. We have a large network of lenders who are willing to fund private sales, and almost always at very competitive rates.
We can pre-approve buyers
When you want to finance equipment, it helps to know what your budget is. At Equipment Finance Canada, we pre-approve buyers so that they can search for equipment that they know they’ll qualify for.
We are able to pay sellers directly
Unlike most traditional lenders, we pay sellers directly so that you never have to worry about handling a large cash transaction yourself. Simply file your application, get pre-approved and let us know what you’d like to buy and from whom; we’ll take care of the rest.
We ensure equipment is free and clear
To further assist you when buying equipment from a private sale, we personally ensure that the equipment is free and clear, that there are no liens on the equipment, and that everything is above-board, which can save you a ton of problems down the road.
Summary
Purchasing equipment from a private sale is a great way to get the equipment you need for a fraction of the price you’d pay to a vendor. That said, it’s important to do your homework when buying privately, but as long as you inspect the equipment yourself, this can be a great cost-effective means to acquire the equipment you want without breaking the bank. Traditional lenders often don’t finance private sales, but Equipment Finance Canada can help. So, if you want a equipment lease from a private sale, then be sure to contact EFC today to learn more or submit an application.
If anything, 2020 really showed businesses and companies how to stay resilient during a global pandemic. COVID-19 has forced thousands of companies to evolve, to look at their current practices, or working capital to make ends meet at the end of every month.
One of the key areas that companies have had to really focus on has been their equipment acquisition and fleet management. This area, for most companies, has had to take a back seat during the uncertain times for funds to be pushed into the day-to-day running of the business.
The problem with no equipment being purchased or acquired for the company is that the company stagnates and stops expanding. Equipment is key for the daily functioning of the company, but it is also vital to remain competitive in a highly cut-throat environment. New equipment means new service offerings.
Whether you are replacing old, outdated equipment, like office technology, for example, or you are looking to add a truck to your fleet, this addition will mean that you can reach more customers, or be able to service customers quicker and easier with the latest technology.
No matter what industry you are in though, new equipment comes with a hefty price tag. So, we thought we would unpack the various options of equipment financing, and how to choose a business equipment loan that will suit your company. Let’s get stuck straight in.
Map Your Strategic Trajectory
The first thing you will need to do before simply going ahead and making a large purchase is doing a deep dive into your company. You will not only need to understand what the current financial standing is of the company, but also know what the strategic trajectory is for the next few months to years.
What are the long-term and short-term goals of the company? Are you looking more at internal development, or are you on a rapid expansion trajectory? What are your competitors currently doing, and what is your competitive advantage?
Purchasing new equipment can lead to a wider service offering, or you might be able to service a wider range of customers. Let’s take a look at an example. If you are in the manufacturing industry, a large piece of equipment could mean that you can extend your product line, or even streamline some of your processes. If you are in the transport industry, a new truck or semi-truck could mean that you reach more customers in less time.
But, you could also be in an office, and simply looking to upgrade your technology like your laptops or printers. This could mean more efficient admin or more functioning in servicing your clients.
Have A Firm Insight Into Your Finances
With this expansion, and additional equipment comes a price tag. In many cases, like manufacturing and aviation, this can be quite significant. So, you will need to work out what your financial standing is before simply making a purchase. Calculating what your working capital is is integral to the business equipment loan process.
Your working capital should be sufficient enough to cater to your day-to-day operations like rent, wages, and operational expenses. It will also need to cover you in case of unexpected economic downturns. So, integrate at least three months’ worth of emergency savings into your working capital calculations.
Take COVID-19, and the sweeping effects it had on business globally. Lockdowns forced millions of businesses into an idle state, and many struggled to maintain the day-to-day expenses of running the business.
The purchasing of a new piece of equipment can take a massive chunk out of your necessary working capital. So, it may be worth your while to look at breaking up the purchasing price of equipment into manageable portions. A business equipment loan or lease divides up the full purchasing price into monthly installments which make up part of your monthly expenses.
The monthly installments will be spread over a period of time, whether it be two to six years, depending on the cost and usable lifespan of the equipment. A truck, or vehicle, for example, will usually have a lifespan of around five to six years and will be financed or leased for that period of time.
Weigh Up Your Financing Options
The next thing to look into is what kind of financing you have to choose from. Here, we are going to delve particularly into equipment leasing and business equipment loans.
A loan is a financing option whereby a company borrows money from a bank or finance house to purchase a piece of equipment. A lease, on the other hand, is a term rental agreement for the use of a piece of equipment.
Based on your specific needs and financial standing, you should weigh up your options when it comes to a lease or a loan as both come with different pros and cons. A business equipment loan, for example, will have fluctuating rates, so the overall monthly cost of the equipment might fluctuate slightly, due to the change in interest rates. A lease, on the other hand, will remain at a constant monthly installment until the end of the term.
A loan will also only finance around 60- 80% of the equipment, excluding added costs, while a lease will cover full usage of the equipment and include add usage costs. Let’s take an office printer, for example. If you are leasing a printer, the lessor will be responsible for the maintenance, servicing, transport, insurance associated fees that come with the printer. They will also be responsible to train the staff to use the equipment and for any troubleshooting needs.
In the case of a lease, especially an operational lease, the lessor will have ownership of the equipment throughout the duration of the lease. A loan, on the other hand, means that the business taking the loan for the equipment will own the equipment. This is why they will be financially responsible for all aspects of the equipment.
Loans are also less negotiable than leases. In the case of a lease, because the lessor still owns the equipment throughout the duration of the lease, the equipment is considered collateral. In case of payment defaults, a lessor can simply retrieve the equipment, so it is a less risky option.
Loans, on the other hand, are riskier to financial institutions. It is for this reason that financial institutions will conduct credit checks on companies prior to providing them with a loan. So, if you are a brand new company, or have a bad credit history, you are less likely to be granted a loan than a lease.
Know The Impact It Will Have On Your Finances
Accounting plays a large role in determining which option would be better for your company. It is important to remember that investors and future creditors will want to examine your balance sheets and statements in order to determine your levels of risk and risk appetite.
If you currently have extensive credit, it will be less likely for a credit provider to offer further credit unless you can guarantee regular payments. It will also be important for you to know how tax-deductible the loan or lease is. In many cases, especially in leasing, you are able to write off a large portion of the amount to tax.
Let’s take a look at the reporting of each separately.
Loan Accounting
The first thing that you will need to take into consideration is the term of the business equipment loan. If it is a loan taking place over just a year, it will be considered a current liability. But if it is a loan over a number of years, it will be considered a long-term liability. It is also key to know that you will also have to divide the amounts up. The amount due for the current year will be recorded as a current liability, while the balance will be recorded as long-term.
The amount received from the bank, which will then be used to purchase the equipment and is referred to as the principal amount, will be recorded with a debit to Cash and a credit to a liability account, such as Notes Payable or Loans Payable.
Because the principal amount is not part of the company’s revenues, it will not be reported on the income statement. You will need to enter a debit to the cash account to record the receipt of cash from the loan and enter a credit to a loan liability account for the outstanding loan.
The interest will be recorded separately as it is charged periodically and due to the fact that the interest rate might fluctuate. Interest is debited to your expense account and a credit is made a liability account under interest payable for the pending payment liability.
Lease Accounting
Before simply delving into leases, you will need to know the difference between an operating and capital lease. A capital lease will usually result in the lessor taking ownership of the equipment at the end of the term and after a residual amount is paid off. This could even be $1 (hence why it is referred to as a $1 buy-out lease), as long as money is exchanged.
In an operating lease, the lessor will never own the equipment, and is merely paying to utilize the equipment. This will mean that the lease is recorded similarly to monthly rent. It will be recorded as an operating expense to the company, and both the amount can be tax-deducible, and the interest written off to tax.
In the case of a capital lease, it will be recorded differently.
It will be recorded as an asset and a debit to the appropriate fixed asset account, and a credit to the capital lease liability account;
Interest should be recorded regularly, on receipt of invoices. A portion of the payment should be recorded as interest expense, and the balance in the capital lease liability account;
Lastly, you will need to record the depreciation of the asset too. Because you will be owning the equipment like a normal asset, you will need to record the depreciation as well as plan for the disposal of the equipment.
Find The Right Company
The last thing to consider it who you will be gaining the financing from. As mentioned, loans are tougher to acquire than leases. Because of the higher risk, banks and financial institutions will need to examine your credit history, be provided with a business plan as well as financial statements. The process of getting a loan is more in-depth and complicated than acquiring a lease, simply due to the risk attributes.
But, whether you are getting a lease, or a loan, it is important to research the financing company first. Especially in the case of a lease, you will need to know that you can negotiate some of the terms that come with a lease. From interest rates, to the duration of the lease, to the added costs of the lease. The lease will ultimately be benefiting the lessor, so negotiate as much as possible.
In the case of a loan, many of the terms may be more set, but there are aspects that you will be able to negotiate. Shop around for a company who will be open to negotiations.
The last thing to look for in a financing company is to look for a company who will partner with you. The right company will evaluate your business, take your unique needs and company profile into consideration and structure a finance package for your unique needs. They will also have in-depth insight into the industry and market conditions, so they will be able to guide you against the risks and help you avoid pitfalls in the financing process.
Wrapping Up
Before entering into any financing agreement, it is important to do thorough research and due diligence prior to signing. You will also need to take each aspect of your company in consideration. Bring your financial advisors as well as tax consultants into the process as they will be able to guide you correctly and ensure that you get the most out of the agreement.
Owning your own business comes with its own challenges. From acquiring and retaining customers to keeping your fleet on the road and financing new trucks and semi-trucks to keep your business running, you can expect a plethora of challenges.
Vehicle acquisition and is certainly one of the biggest elements for a fleet management company. Financing a semi-truck to add to the fleet will ensure business continuity as well as business expansion. You will be able to expand your business into new territories and serve more customers with the addition of a new vehicle. But a new semi-truck means added expenses to your company. And we all know that a new semi-truck can come with a huge price-tag.
So, we thought we would take a look at the ways that you can go about financing a semi-truck to add to your fleet. Whether it is the first vehicle that you are purchasing for your start-up, or whether you need to expand in tough financial times, we unpacked the ins and outs of financing. We took a specific look at semi-trucks and leasing, and how leasing a semi-truck could be your best option to expand your business.
Take Your Needs Into Consideration
The first thing you need to do is create a blueprint of your business. Where is it currently standing, what is your current financial situation, and what are your goals for the next year to five years? This overview will allow you to map out your future needs and decide what your business needs going further.
If your strategic trajectory for the next five years is to expand and take a competitive standing in your industry, you will need to factor new equipment and fleet into your long-term plan. This will give you time to plan ahead and budget for the new semi-truck which you will need to service your increased client base.
The next thing to consider is your risk appetite. If you are a new business with start-up capital and a somewhat inexperienced team, your risk appetite will be a lot lower than that of a long-standing business. This will mean that you will not be able to take large financial risks, and your expansion will need to be a lot more calculated.
A large purchase like financing a semi-truck could assist your company with expansion in the long run, but, it could put immense strain on your company, especially in difficult economic times.
Weigh Up Your Semi-Truck Financing Options
The next thing to look into is how you will actually finance your semi-truck. There are a few options that you can choose from, each having vastly different impacts on your business.
You can firstly buy the vehicle cash. This will mean that you have full ownership of the semi-truck, and you can list it on your financial statements as an asset of the company. Buying cash will mean that you do not need to continue monthly payments as it is a once-off payment. The problem with buying equipment and large assets cash is the fact that not many companies are actually able to put down such a large sum of cash at once.
Especially if you are a start-up company, having enough working capital to buy new equipment cash is virtually impossible, and also hugely risky to the company.
Working capital in your business should be used for the day-to-day operations of the business. Things like rent and wages should be included in your working capital, together with buffer savings for when unexpected events take place.
Take COVID-19 for example. The global pandemic which has swept the globe has taken millions of companies by surprise and they have had to operate on a severely reduced income and rely on their working capital to keep afloat.
This is where leasing comes in. Leasing a semi-truck is a far less risky option for your company as you are able to spread the payments out over a period of time. These reduced monthly payments can be divided into achievable monthly sums where you can actually make use of the vehicle.
You can approach a leasing company and negotiate a lease that will work for both companies. In most cases, when it comes to financing a semi-truck, you can negotiate the lease duration, interest rates, and added benefits that come with the lease. Lessors are more likely to provide financing to companies, especially start-ups, as they use the semi-truck as collateral in case of non-payment.
Choose Your Leasing Option
If you have decided to go with the leasing option, the next thing to look at is what type of lease you would prefer and what would work for your company. There are a number of different leasing options to choose from, with two highly popular options which we shall expand on.
Operating Leases
An operating lease is the form of financing option in which the company never actually owns the equipment that they are leasing. The lessor will have ownership rights to the equipment throughout the period of the lease, as well as at the end of the period.
Operating leases are especially handy in cases where the equipment that is being leased has a short expected lifetime and where a company will want to upgrade to the latest technology frequently.
Take office equipment like laptops and printers into consideration. These are perfect examples of technology that is constantly evolving. After around two to three years, you will want to upgrade your technology to not only have faster equipment and replace redundant technology but to maintain competitive standing.
Companies who choose an operating lease can either choose to re-lease the equipment, return it to the lessor and lease newer technology, or even offer to purchase it. This is not as popular in the case of operating leases and is more common in capital leases.
Capital Leases
These are also known as finance leases as well as $1 buy-out leases. In the case of a capital lease, the lessor will lease the equipment for a period of time, with the monthly payments, and thereafter buy it from the lessor.
A residual amount is usually added to the contract for the end of the term for the company to actually make the purchase. This can be anything from the equivalent of the remaining life-time value of the equipment to simply $1. Money has to be exchanged at the end of the term for the lessee to become the owner of the equipment.
Capital leases are more popular when financing equipment with longer expected lifetimes, like trucks and semi-trucks. These, compared to laptops and office equipment have an expected lifetime of five years and more, and it will make sense in the long-run to eventually own the equipment.
Work Closely With Your Financial Advisor and Tax Consultant
Depending on which option you choose to finance a semi-truck, you will need to know how it needs to be recorded on your financial statements and in your books. Buying a semi-truck outright will be recorded differently from if you are leasing it, and even then, there are differences when it comes to different types of leases.
If you have decided to go with the cash purchase option, it will be recorded as an asset on your financial statement and will be recorded as a debit and credit of the same amount.
It is also important to know that you need to also keep depreciation in mind as you will actually own the vehicle and because this will be producing an income for your company. Recording the depreciation is somewhat simple, you will just need to know the expected lifetime of the semi-truck. In the case of vehicles and trucks, they are usually given a five-year lifespan, so you can divide your purchasing price by five and list that as your depreciation amount.
Leasing is recorded completely differently, however. In the case of capital leases, because you will eventually own the semi-truck, you will be listing it as a credit, however, you will not need to take the depreciation in mind until you actually own the semi-truck.
Operating leases are in a totally different league of their own. Think of how you record rent on your financial statements. it will not be conveyed on the balance sheet and will not be considered a company asset. Operating leases are recorded as expenses on the financial statements and are also expensed on the income statement. It will therefore have an impact on both the net income as well as the operating income of the business.
The next thing to consider is the impacts that it will have on your tax. Leases are considered tax-deductible as “ordinary and necessary” business expenses and can be written off to tax. In the case of operating leases especially, where you do not need to take the depreciation of the semi-truck into consideration at all, it will not be considered a debt, and you can also look into writing off the interest.
If you work together with your tax consultant and financial advisors, you can get enough of the monthly payments written off that you could end up spending very little on the financing of your semi-truck.
Take time to consider your financial reporting. Your financial statements will be closely scrutinized by investors and future creditors, and leases are especially attractive on the balance sheets to both. Not only are you less of a risk to both, but they will be able to confirm business expansion and continuity with the monthly expenses.
Shop Around For The Right Financing Company
The last bit of advice that we have to offer is to ensure that you get the right financing company on your side. Not only will you need a transparent and reputable company to provide you with financing options to lower your risk, but you will need to consider them partners.
A good financing company will actually take your needs and unique company position into consideration when providing you with a lease for your semi-truck. They will also have in-depth knowledge of the industry and be able to pinpoint where the risk lies for the company and understand the industry and the market. Should the market be fluctuating, for example, the financing company should have in-depth knowledge about this and be able to guide you in the right direction.
Consider also hiring a company that will be negotiable when it comes to your leasing terms. From the interest rates to the duration of the contract, a good financing company will be able to structure a package around what your company needs and requirements are.
Take the added costs into consideration too. Elements like maintenance, insurance, transport fees, and licensing fees can also be included in the lease agreement should you negotiate with the financing company. This might be a bit trickier in the case of a capital lease, but, it will be incredibly beneficial in the beginning stages of your lease agreement.
Maintenance plans are especially important in semi-truck financing, so even if you negotiate the first few years with the lessor, make sure you include a maintenance and service plan in your budgeting. Not only will it save you money in the long run, but it will extend the lifetime of your vehicle.
Wrapping Up
Financing a semi-truck can be a big decision to make, especially if you are a small company with little working capital to back the expense. But, with the right company behind you, together with a knowledgable and expert financial and tax consultant, you will be able to add the semi-truck to your fleet and ensure your business continues to run and expand according to your set goals.
Spend time doing research into the right semi-truck for your needs and take energy efficiency into consideration. If the budget is tight, you will want to spend less on the running of the vehicle, and that will cost you less in the long run as well.
If you are a business owner, you will know that with the expansion of your business, comes the need to add more assets to your operations. If you are running a fleet, no matter how big or small, this is most certainly the case.
The fact of the matter is that in order to remain competitive and continue growing, you will need to keep adding trucks and vehicles to your business. But, this naturally does come at a cost for your business.
Despite the global fleet industry’s value exceeding $15 billion in 2019, the industry, in general, is seeing a dip in profits. Not only are companies focussing more on operational efficiency, but the COVID-19 pandemic which has swept the globe has had huge effects on the fleet and trucking industry. In fact, the industry is seeing a 58% reduction in overall drive time, which will have a large impact on the global market.
With this in mind, the importance of growing your fleet, and your business cannot be undermined. So, we thought we would take a look at ways for you to add new trucks to your fleet, what the truck financing requirements are and how you can work out the best truck financing rates for your business.
Pre-Plan Your Fleet Strategy
The first thing you need to look at before going out and making a large purchase is your company’s financial standing, the growth trajectory, and the strategy for the next one to five years. Adding a truck, or several more trucks to your fleet can be a huge cost to your company, so you will need to weigh up the pros and cons before you simply jump in.
One of the first things to consider is the risk appetite of your company. Working together with your accountant is key at this point to establish the financial stability of the organization, as well as how much leeway you have in economic instability.
Consider, for a moment, the impact that COVID-19 had on businesses globally. It was a sudden, and unexpected downturn that wreaked havoc on an organization’s working capital. Companies found themselves in a position where their highly reduced working capital had to keep the company afloat for longer and had to carry more expenses than usual.
Next, consider your strategic trajectory and your company’s goals for the next 6 months, year, and five years. What are you aiming to achieve? Are you looking to branch out into other avenues of business? Or are you looking to expand your fleet to different parts of the country? This will give you an indication of what kind of vehicles, and how many you should be adding to your fleet over a period of time.
Lastly, consider the energy efficiency of the vehicles that you are choosing. Not only is there a general trend toward going green, but choosing the correct vehicle can also save you thousands in the long run. Not only can maintenance be cheaper on more efficient trucks, but you can end up spending less on fuel.
Consider Your Purchasing Options
The next thing to look at is what options you have when it comes to actually acquiring the truck. The first option that you have is to buy the truck outright with cash and be the sole owner of the vehicle. This naturally comes with its perks and benefits as you do own the vehicle and it can be cheaper than truck financing in the long run.
For small businesses and cash-strapped companies, however, this could be impossible. Trucks and equipment usually come with a big price tag, and in a lot of cases, a company just simply does not have the capital available for a massive cash purchase. Even in the case of larger organizations, a financial advisor will usually advise against a large cash purchase like this due to the risks involved.
As we mentioned earlier, COVID-19 was a prime example of how a company’s cash-flow can be impacted suddenly and devastatingly. Your working cash-flow will need to be set aside for day-to-day expenses like rent and staff wages.
So, what is the alternative you may ask? Leasing is one of the most popular and viable options for companies to acquire new trucks and equipment for their business, without the huge initial outlay of cash.
Truck financing comes with several benefits too, depending on the type of lease you opt for. There are generally two different types of leases; a capital lease and an operating lease. A capital lease is a contract that allows a company to pay monthly installments to the lessor for the use of equipment, with a residual amount attached at the end of the period. Once this has been paid, the lessee becomes the owner of the truck.
In an operating lease’s case, there is no residual, and the lessee never actually owns the truck. They can choose to re-lease it or give it back at the end of the period. In these cases, companies can easily upgrade their trucks and ensure that they have the most modern and top-of-the-range vehicles in their fleet as they can simply sign a new lease for a new truck.
Work Out The Benefits For Your Finances
Truck financing has varying impacts on your financial statements, cash-flow statements, and your taxes. It is important to know, especially if you are a start-up company just what each entails.
If you have bought the truck in cash, you will need to record it differently than if you have leased it. A cash purchase will be recorded as an asset on your financial statement and will be recorded as a debit and credit of the same amount.
However, because you own the vehicle, and because this will be producing an income for your company, you will also need to record the depreciation of the asset. Vehicles and trucks are usually given a five-year lifespan, so you can divide your purchasing price by five and list that as your depreciation amount.
Leases are recorded differently, especially in the case of an operating lease. Because you will not own the vehicle, it will not be conveyed on the balance sheet and will not be considered a company asset. Think of it similar to rent. Operating leases are considered expenses on the financial statements and are expensed on the income statement. This, in turn, impacts both the net income as well as the operating income of the business.
Operating leases are also considered tax-deductible as “ordinary and necessary” business expenses, and can be written off to tax. Because it is not considered a debt, and because you are not reporting the depreciation, your truck can be written off to debt. Speak to a knowledgeable tax consultant for further advice, as you can also write the interest off, thus not spending too much on your truck.
The last thing that you need to consider about acquiring a truck is how it will appear on your books to other creditors and investors. Usually, if you have signed an operating lease, or own the truck, it will appear on your balance sheets as an asset. This could discourage other creditors from giving you further lines of credit. Operating leases are also more welcomed by investors due to the fact that you have included integral equipment as an operating expense.
Take Other Costs Into Consideration
Whether you are leasing or buying outright, you will need to keep in mind the other costs that come with acquiring a new truck. Costs like insurance, maintenance, licensing, and transport and fuel need to be considered in the planning stages of the acquisition.
If you are purchasing the truck yourself and owning it, you will need to cover all of these costs yourself. When it comes to maintenance, there are a number of maintenance plans that you can sign up for to ensure that your truck receives regular serving and maintenance to extend its lifetime.
With leasing, this can be even easier. In the case of an operating lease, the lessor will be primarily responsible for the continued maintenance of the vehicle. Whether it is preventive maintenance or regular servicing, this will usually be included in the lease contract.
Capital leases might differ in this, so make sure you check your lease carefully. In some cases, the lessor might include a maintenance plan in the contract, while others might leave it up to you to do. They will only take responsibility for it, however, while they still own the rights to the equipment, so make sure you have a plan for the end of the lease and for when the equipment becomes yours.
Find the Right Financing Partner
When it comes to truck financing, having the right financing company is key for the smooth running of the leasing period. Lessors have very little risk when it comes to leasing equipment and vehicles to companies as they use it as collateral. So, if the lessee starts defaulting on their payments, the lessor can simply take back the truck.
The leasing process is also usually somewhat simple, and to-the-point. Credit checks are usually done, but are not critical, which is good news for a small business or start-up which has little to no credit history. Applications can take a few hours to a day or two to be approved, and the lessee can receive their new truck within a short period of time.
It is important, however, to make sure that you get the right company on your side if you are leasing. This company will be entering a financial contract with you and will need to be as transparent and accountable as possible to ensure that your money is being spent effectively.
It is highly advisable to find a financing partner who will treat you as a financial partner. Having a company whose staff has years of experience in the industry and who are experts in the field will be a huge advantage to you. If they are also keeping up with market trends and fluctuations, they will be able to advise you correctly and be able to guide you away from the pitfalls and risks of a lease.
Lastly, make sure you find a lessor who is flexible. There are a number of terms on the contract that can be altered to suit your unique needs. The duration of the contract, interest rates, the residual amount, and added costs and fees can all be negotiated and worked out. So, find the right company who will work with you, and you won’t look back on the lease.
Wrapping Up
When expanding your business, it is integral to consider all aspects of adding new equipment, vehicles, and cost-heavy expenses to your business. From the risks that come with the truck to your financial stability, to the financing partner, ensuring all elements are carefully mapped out will ensure your stability throughout the use of the truck. For a financing partner, you can trust, make sure you do your research, and only choose reputable and respected companies like Equipment Finance Canada for your financing needs.
