Truck lease
Truck Lease

Truck Lease Finance

As you investigate your truck leasing options, one of the first things you need to consider is truck lease finance. This is especially true if you’re just starting out in the trucking business and cannot afford the high payments associated with commercial truck leasing.

Truck lease financing companies abound to help you with your financial needs. Whether you’re a seasoned operating company or a startup, most truck lease financing companies will deal with you as long as your credit is good. These days, the definition of good credit is a little different than it has been in the past. There’s no doubt that in order to qualify, you’ll need better credit than ever before.

Truck lease finance companies usually have some basic requirements you and your trucks must fulfill for them to take you on as a client. These can relate to your employees as well as your trucks. Most companies require that your tractors and trucks be no older than a certain number of years. This is typically a lesser age, such as five years, for tractors, and a longer age, such as 10 years, for other types of trucks. Besides age requirements, truck lease finance companies can require that you have been in business for a given amount of time, usually in excess of two years. Companies may also impose requirements on your principal credit rating, the record of the drivers involved and generally any other aspect of your operation.

If you successfully meet their requirements, a truck lease finance company will set you up with a lease of usually no more than five years. The total value financed generally cannot exceed 300,000 pounds or so, though this will depend on the exact type of truck you wish to finance. Trailers are generally financed for a lesser value.

Truck lease finance has been difficult for a long time due to the economy. There have been indications that things are finally starting to recover, but these haven’t hit the truck lease financing sector as of yet. In the meantime, you can expect continued stringent credit qualifications that limit financing to only those with blemish-free credit. If you happen to have less than perfect credit, now is probably not the best time to try and start up an independent trucking operation. You may need to wait at least a year until the credit markets become a bit more liberal. If you absolutely must find a truck lease financing option, there may be companies out there that will take you on, but they’re likely to charge astronomical rates that are best avoided.

Truck lease finance is a difficult subject at the present time, but if your credit is perfect and you meet some other basic qualifications, it is indeed doable, especially if your company has been incorporated for a few years. If this is the case, you still owe it to yourself to shop around to find the truck lease finance option that’s perfect for you and your company.

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