Author Archives: Gary Weiss

Custom Truck Capital - Finance
10 Reasons Why You Should Finance Heavy Equipment from Custom Truck Capital

So, you’re in the market for some heavy equipment solutions for your company. Perhaps you have even found the perfect roll-off truck or dump truck or vac truck that suits your needs perfectly.

The next question is: should you buy or lease?

There are advantages to both options, and which one you choose depends on how much cash you have on hand, potential tax implications, forecasted business needs and a host of other supplementary factors.

At Custom Truck Capital, the financing arm of Custom Truck One Source, we often have customers who ultimately decide that leasing equipment makes more sense for them than outright purchase.

For any or all of the following reasons:

  • Leasing saves capital as it requires little to no cash up-front.
  • Leasing is a way to keep up with the latest technology as you can upgrade equipment after a specified amount of time.
  • Leasing means a lower monthly payment.
  • Leasing gives you flexibility in case your future business needs change and you no longer need the equipment.

Custom Truck Capital makes heavy equipment leasing even more attractive with the following advantages:

# 1: 100% Financing 

Conserve cash for other needs! We include soft costs such as destination charges, taxes and other fees in the financed amount.

# 2: Lowest Monthly Cost

With financing, you have full use of the equipment with low monthly payments for the term you choose. You can profit from use of the equipment to generate income without making substantial upfront investments.

# 3: Fixed Payments 

We lock in your payments, so you don’t have to worry about adjusting for inflation in the future.

# 4: Flexible End-Of-Term Options 

With certain lease structures, you have the option to purchase the equipment, trade up to new equipment, return the equipment with no further obligation or continue to make payments on a month-to-month basis, as needs may change over time.

# 5: Flexible Payment Structures 

We structure payment plans to suit your specific cash flow needs.

# 6: Manufacturer Warranties 

We pass any warranties directly to our customers.

# 7: Obsolescence Protection 

Financing can provide the flexibility to trade up or add equipment when business demands something new.

# 8: Available Credit Preservation 

Custom Truck Capital financing doesn’t tie-up existing lines of credit, so you have more available credit when you need it. Leasing may not interfere with loan covenants or other restrictions you may have with your bank.

# 9: Tax Benefits 

You may be able to deduct monthly lease payments on True Leases as an operating expense and take advantage of government incentives like Section 179 with a Full Payout Lease.

# 10: Flexible Financing Terms 

Financing terms generally run from 24-84 months, depending on the type of equipment and are subject to standard credit review and approval.

 

Ready to discuss leasing options?

Contact us by clicking HERE.

With Custom Truck Capital, you have access to industry-leading financing, and our equipment financing experts are standing by to guide you through the process.

 

Equipment Financing
Equipment Financing Terms You Should Know If You’re Acquiring A Vocational Truck

Equipment financing can be pretty confusing if you’re doing it for the first time. At Custom Truck One Source, we not only help customers find the right vocational truck equipment, rentals, OEM parts etc, but we also offer a wide range of flexible and easy-to-use leasing and financing solutions as well as part of our products and services.  We often find that people are struggling with the financing `jargon’ when they’re trying to make acquisition decisions relating to trucking equipment needed need to grow their business.

This article will give you a brief overview of the financing terms you will encounter along the way.

If you have more questions or need financing help, get in touch with us by clicking HERE or calling 844-282-1838.

 Financing equipment with Custom Truck Capital gives you flexible equipment acquisition solutions with a variety of impactful benefits – such as 100% financing, lowest monthly costs, flexible payment structures, tax benefits and so much more!

Equipment Financing

What this term really means is: you acquire a vocational truck or any other heavy equipment with funds borrowed from a lender. The equipment will be purchased in your name, and you will pay off the lender according to previously agreed-on terms. When the loan is paid off, you will own the equipment outright.

Equipment Leasing

Unlike the above scenario, when you’re leasing, the equipment isn’t acquired in your name. The lender is the title holder and you pay an agreed-upon amount each month to use it.

Lease-To-Own

A lease-to-own agreement has a clear and definite end goal. You’re paying the lender to own the equipment at the end of the term. During this pay-off period you don’t have ownership but right-of-use. An end-of-lease balloon payment, typically is 10%-20% of the original equipment cost, allows for transfer of title and ownership.

 

Custom Truck One Source Inventory

Flexible Financing

Flexible financing allows us to customize a structure to best suit your economic and business goals. They may be related to cash flow, accounting, tax or asset ownership and depreciation.  Here are some of the more common structures:

Deferred Payment Plan:

Basically, a buy-now-pay later kind of agreement. You can defer payment for a period of time subject to approval, and let the equipment work for you before you actually start paying for it.

No Money Down:

This is 100% financing and you can keep your cash supply in optimal flow because you don’t have to make a down payment on the equipment you want to acquire.

Skip Payment:

In certain situations a lender will agree to let you `skip’ a payment during initial or slow months, according to pre-approved conditions.  This may also include a Seasonal payment structure if your business cash flow is uneven throughout the year.

Step Payment:

In a step payment agreement, you gradually increase the amount of money you pay back as the lease matures. It gives you the time to put the equipment into use and have some cash rolling in before you have to budget for a larger payback amount every month.

Term Length

A term length simply refers to the period of time your financial plan is going to last. It could be 36-60 months – or longer or shorter depending on your unique needs.