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Four Ways to Get Truck Repair Financing


➢ There are certain equipment leasing companies, that in addition to leasing equipments for a certain period of time, also fund truck repairs. Here, for security purposes, the equipment leasing/financing company will hold on to the truck, while the repairs are being done as some form of collateral. This is only possible if there is no other type of debt held against the truck and the owner is in a condition to use the truck as leverage. The credit that is charged will depend on the repair costs and most companies will allow it to be repaid over a period of months or years depending on the amount. However, leasing companies will demand to see proper equity and will then make use of liquidation or auction values, as well as ask for early repayments. This might prove to be difficult for a starting company.


➢ The truck owner can also take out a term loan. These term loans come with fixed down payments, collateral and fixed rates of interest that have to be paid back within a predetermined time period. Term loans are usually very secure but in the case of a new owner in the trucking business, he/she will have to present a lengthy number of documents to validate the business and prove that it qualifies for a term loan. If the business has already been running for at least two months, having a credit score of above 500, then the owner can borrow twice the monthly revenue for truck repairs.


➢ The third financing option that can be considered for truck repairs is a work capital loan. A work capital loan is a short-term loan where cash is made available to the borrower and he can use it for any maintenance or operation services he chooses to over the fixed period of time. These loans come in handy when due to unfavorable or unstable funds; the owner finds it difficult to continue with essential repairs. Most companies giving work capital loans try to maintain a daily payment method where a certain amount is charged from the borrower’s account from Monday to Friday, every week for about six months to a year. However this method proves to be extremely inconvenient if the repair cost is very high, because then the daily payments add up quickly and the business is bound to suffer.


➢ Often truck business owners find themselves waiting for a client to pay back the money they owe for using the trucking services. Now, they can utilize this factoring company to fund necessary Truck Repairs Financing. The factoring process stands on the payment made on outstanding invoices where you receive a lesser amount at the end while the other portion can be used to facilitate the truck repairs. This factoring process can, however, often be a long one and involves UCC filing which might make taking out future loans difficult.


Contact Us: Website: http://trufco.com/ Email: info@trufco.com Ph no.: (613) 519-4400

Four ways to get truck repair financing  

There are certain equipment leasing companies, that in addition to leasing equipments for a certain period of time, also fund truck repairs....

Four ways to get truck repair financing  

There are certain equipment leasing companies, that in addition to leasing equipments for a certain period of time, also fund truck repairs....

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