How to Finance a Fleet for Your Transportation Services

February 23, 2022

Business owners in the transport industry rely heavily on the stability of their fleet and when even just one truck breaks down, it causes a huge issue with their productivity. 

The tricky part about trucks is that they are expensive and a big investment upfront. So how can you afford to buy the fleet you need and stay within your budget? The answer is financing. 

With equipment financing you can easily add what you need to your fleet without jeopardizing your capital. Blue Capital is an experienced North American finance brokerage that wants to help businesses succeed and grow.  

The benefits of fleet financing 

There are many benefits to financing a fleet for your transportation services. It also doesn’t take long to apply for financing and it’s an easy and simple process with Blue Capital. If you would like more information you can contact one of our trusted team members who will help facilitate the transport equipment financing process. Here are just a few of the advantages to financing your transportation fleet. 

Increased flexibility

Financing trucks for your transportation business allows you to have greater flexibility when it comes to the lease agreement and you can easily upgrade your vehicle. Here at Blue Capital we have the following lease options: 

Capital lease

A capital lease entitles you to the temporary use of a piece of equipment and upon the completion of the lease, you are transferred the ownership at a nominal fee. 

TRAC lease

A terminal rental adjustment clause, also known as a TRAC lease, is a tax-oriented lease of vehicles and trailers. This reduces the high cost of heavy-duty, expensive equipment to much lower, negotiated monthly payments and it allows you to obtain the equipment you need at the best rate.

Sales & leaseback

If you need to raise some business capital you can sell your asset to Blue Capital and lease it back. You can use the cash to pay off any debts and help boost your capital while still using the equipment. 

Loans or conditional sales agreement 

The cost of the equipment is entirely financed privately by us and you own the asset after purchase.  Your monthly payments cover interest thus reducing the total principle. One can also claim a tax deduction on the interest paid and on the yearly amortization of the asset.

Operating lease

With an operating lease, you can temporarily use the equipment based on a pre-determined fee. At the end of the lease, there is no transfer of ownership. This is a much simpler lease and the payments are tax-deductible. 

Preserve your working capital 

By financing your transport equipment rather than buying them outright, you save your working capital. You can then use this saved cash for other business opportunities. With financing, you pay regular monthly payments and do not need to use your cash, this will also help you budget more accurately. 

Tax savings

Some equipment finance payments are tax-deductible. The interest paid on the financing payments can be written off as tax-deductible. There are even bigger tax benefits when it comes to equipment leases. Leasing equipment helps businesses with 100% tax write-off benefits.

Upgrade equipment - anytime 

You can always take advantage of new technology if you choose to finance your equipment. You never have to worry about the upfront cost, and you can continue improving your workflow with better, high-quality equipment. Obtain the equipment you need without your working capital taking a big hit. 

Blue Capital’s quick and easy fleet financing 

Blue Capital can help you easily get approved with zero down payment options and low-interest rates. We have multiple finance options and can help you find the right loan for your business so that you don’t have to let old, and unreliable equipment slow you down. You can bring a new vehicle or a used vehicle to us or we can use our wide network to find your business’s next commercial vehicle or equipment.