Commercial Truck Financing
Industries like perishable food and drinks, hospital supplies, and medicine are included in this. Hence, without these services, the economy may take a serious hit. The trucks are expensive with the average price falling around $80,000 for a single unit. There are several options available for financing commercial trucks. These services offer assistance to trucking companies and trucking factoring companies to get the trucks. The rate offers are usually lower than those offered in small business loans.
How Commercial Truck Financing Works
Commercial truck financing is completely different from personal vehicle loans in terms of costs, and the places to look for. Personal auto loan rates provide interest rates lower than 5%, while business auto loan rates meant for commercial truck financing come with interest rates between 5% and 30%.
While banks are the best option when it comes to acquiring a personal car loan, they do not offer funds to trucking businesses. This is due to the huge failure rate associated with the industry. You have to find alternative sources that specialize in truck financing in order to get the needed funds.