You’ve probably already noticed that looking for box truck leasing can be pretty tricky. There’s not very many reliable sources of information available out there to help you figure out if you qualify for box truck financing. Unfortunately, even when you do find a website that advertises financing for a box truck, you won’t even get a straight, accurate answer with that company. More often than not, you’ll be promised a certain rate (without even knowing your financial situation), but when it comes time to sign, you’ll be offered a completely different rate.
Financing a Box Truck with Great Credit
Unsurprisingly, it’s easiest to get a box truck lease when you have great credit and it gets even easier if you’ve been in business for a while. Lenders are more trusting of companies that can make regular payments reliably and have been in their industry and market for a little while. Their investment is less likely to flop. To qualify for the lowest box truck financing rates. You will need to prove at least two years in business, have 5 open trade lines reporting on your credit report, have fifty percent of the loan request in installment debt history reporting on your credit report with at least a two year history.
As an average, you can expect to make monthly payments on a box truck (when the box truck prices are about $50K paid over 5 years) that are around $1K to $1.3K, depending on your business credentials.
Click here for a box truck finance calculator to calculate how much your box truck financing payments could be and how much of a box truck you can afford to buy based on your monthly budget.
Financing a Box Truck as a New Business
As your credit score gets lower and the less years of business experience you have under your belt, the higher your monthly payments will be in order to lease a box truck. Financial lenders are trying to assess the risk of your business and will need some type of compensation to help alleviate the risk they find. To qualify for a start up business loan for a new box truck company you will need to have above a 600 credit score, have five open trade lines and 50% installment debt history. Installment debt are loans like vehicle loans and personal loans. We look for good installment debt history becuase these are the loans that are most like our loans to judge how well you can repay debt like this for your business.
To get the lowest rate and no pre payment penalty for your box truck purchase it's important to provide at least three years industry experience.
This means that it’s relatively more expensive to finance a small box truck as a new business than someone who has been in the business for a while. On the flipside, if the rest of your business credentials are good, you may still be able to get a great rate. In other words, you need to have a good credit score and have a certain value in company or liquid assets.
As a newer business, on the same box truck, you can expect payments every month between $1.2K and $2K.
Box Truck Financing with Bad Credit
Sometimes bad things happen to good businesses, causing credit scores to completely bomb. If this has happened to you, don’t rule yourself out of getting a box truck lease. While you won’t be able to get the cheaper rates by having great, or even ‘OK,’ credit, you can still get the financing you need.
If you don’t want to wait to get your credit score back up, you can choose to go the route of putting up collateral to secure your financing. The liquidation value of the equipment, vehicles, and real estate in your business will also need to be equal to or exceed the value of the vehicle you are purchasing in order to be considered.
Large Down Payments as an Alternative for Box Truck Financing
If your business doesn’t have a lot of history in the market, and you don’t have great credit, there are still some alternatives for you so that you won’t feel left out in the cold without your box truck. One option is to offer a larger down payment to help ease the concern of lenders that are looking at the level of risk in your business.
You should expect to pay 50% of the intended purchase amount as a down payment, which will reduce your monthly payments by 50% as well.
Box Truck Financing Tax Benefits
Having the most reliable box truck for your business, acquired with affordable and fixed monthly payments, can have a lot of benefits for your business. When you structure your box truck financing on an equipment financing agreement or on a $1 buy out lease agreement you get section 179 tax benefits. With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on box truck purchases likewise has increased to $2.5 million.
No hard credit inquiries to get a Pre Approval for Box Truck Leasing.
Are you ready to Apply online for box truck financing? Feel free to call Trust Capital and speak with a box truck finance specialist that can take your application over the phone at Call 866-458-4777 To See If You Will Qualify for Box Truck Financing.