Equipment Financing

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.


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.


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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.