Truck Financing Vancouver: The Rundown
There could be a lot of reasons for you to want to finance a semi-truck for your Vancouver business. You may need a new truck and trailer for an outdated fleet or you simply cannot risk the cost of buying one outright.
Other reasons you may want to finance your next truck include:
- You need to increase your efficiency to keep up with work demands
- If you're just starting a new business with little capital, Truck financing in Vancouver BC would be an option.
- You need your financing agreement to cover repairs, maintenance or future upgrades.
How does Truck Financing in Vancouver work?
It’s not much different from financing your family vehicle. Monthly finance payments are made by the borrower to the financing company (like us) for a number of months decided upon in a financing agreement. The lender will charge an interest rate based on the market and the risk of borrowing.
Semi-trucks are often considered your business assets. Most likely, you’ve researched a few models on your own and have assessed what stock is available. Either way, the lender will ask you a few questions about the financial well-being of your business.
Ensure to be prepared when going for a consultation with additional documentation. Don’t worry, we’ve provided some tips on what to prepare below.
Documents You Should Prepare for Truck financing in Vancouver
As a business owner, it’s important to have the following documents and personal information ready to finance a truck. Here’s what you should gather for a smooth process:
Have your SIN number and your business or personal address handy when applying for financing. The lending company will need this to guarantee your loan, along with information about your finances, like proof of income.
Your Overall Business Plan
What do you plan to do with the new semi-truck once your financing has been approved? Lots of lenders want to know what your business plan is: including your growth and revenue goals. Don’t have a business plan yet? Well, that’s alright, it’s never too late to start!
Proof of Income & Revenue
At the end of the day, there’s an income requirement to finance a truck in Vancouver. Various statements will be requested, such as bank statements, cash flow statements and possibly more documents to assess the risk of lending to you. Having more proof of consistent cash flow will help you immensely.
Existing Assets for Collateral
If your business owns any existing assets, they can be used to help secure truck financing in Vancouver. Business assets such as cars, heavy equipment, land, or other trucks can be used as collateral if something goes wrong. Ensure to get your assets appraised or ask your accountant to ensure you know how much they’re worth.
Know Your Down Payment
Higher down payments help you get approval faster. Putting a larger downpayment helps reduce risk to the lender and also lowers your monthly payments for your new semi-truck.
Truck Financing Vancouver: Advantages
After getting your documents together, you’ll have all you’ll need to start your consultation with a lender.
Now, is it worth going through all of this trouble for financing? To answer that question, you may want to see the main benefits of truck financing in Vancouver.
- Owning a New Truck: Rather than renting, each payment made is one step closer to owning the semi-truck that your business needs! Once you purchase the truck, you’re free to do what you want with it: keep it, sell it, or even use it for a sale-leaseback.
- Taxable Benefits: You can deduct your monthly financing payments (which include interest) against your business income. Keep track of expenses too such as maintenance, fuel and repairs.
- Easier Payments: If you simply don’t have the cash flow for a new truck and trailer, then financing is the better option. It spreads out your payments over a period of time (ie: 36, 48, or 60 months) depending on your cash flow. This is the main draw of financing a vehicle, as it’s less risky for your business.
Thankfully at Blue Capital, we offer truck financing in Vancouver BC, Canada and across North America; don’t hesitate to contact us today to shift smoothly to approval!