Companies or industries that deal with heavy equipment, usually machinery or vehicles like trucks or trailers, often suffer in terms of repair costs due to the damages inflicted upon the equipment from over usage or poor maintenance. Repairs can be very costly and the company may not be able to cover them, especially if they are new and/or small in the industry. Even long-time dealers may find themselves in this situation if they hit a low in terms of economic conditions. Thus, at times like these, dealers should consider taking an equipment repair loan, which could prove to be quite a convenient option.
Truck repair loans are given by certain agencies, available both online and offline and they give these loans depending upon the worth of credit available and at how much the equipment is valued. Once these factors are determined, the dealer will have to submit necessary documents, as required by the agency. These documents should include all relevant details regarding the business, its economic conditions and also the relationship it shares with its regular customers. The sooner the dealer submits these documents, the easier it will be for the agency to approve the loan.
Taking an equipment repair loan can benefit the dealer and his business. Listed below are a few of those benefits:
- Equipment repair loans come with all facilities that will provide full coverage for the entirety of the repair costs. Often dealers use their credit cards to pay for repairs, but this may not be wise if there is no cash set aside for repairs exclusively because it might lead to further debts in the future. Rather, equipment repair loans act as a convenient means to an end – allowing you to repair your equipment at favorable rates. In addition the dealer can spend a portion of the loan on household or personal purposes if needed.
- There is a wide range of options available to choose from when a dealer takes an equipment repair loan. These options include credit cards that are issued exclusively to be used for repair costs, readily accessible cash or even lines of credit. A line of credit helps the dealer to reach an understanding with the agency and decide upon a fixed amount. This is the maximum limit and the dealer can withdraw any amount of money he needs for the repairs without crossing the limit, during a particular period of time. During this period, the dealer will have to keep making the minimum payments. All these options are flexible and the dealer will be able to decide which will accommodate the repair costs most conveniently.
- The process of applying for and taking out an equipment repair loan is not at all long drawn, rather it is very easy and methodical. The process is one that will allow the equipment to be fixed and repaired in the least amount of time as possible and the dealer will thus be able to use his equipment very quickly.
- More often than not, regular customers will ask for options that will require a longer repayment period. But as a dealer with certain conditions on credit, they might not always be able to offer this possibility. Thus, equipment repair loans can be used as a financing alternative that will take care of the customers’ repair invoice. The agency will provide that amount within days, allowing him to offer his customers longer repayment periods.
- Allowing equipment repair loans to finance customer repair invoices help the dealers keep small amounts of cash that can be used to fund the total repair bill for their equipment along with incremental revenue. And the dealers do not lose out on the good business rapport with their regular clients.
Contented by: Trufco.com
Trucks must be regularly maintained in order to prevent the eventual break down. It is therefore inevitable to make some regular repairs. The average cost of a truck repair is nearly $5000 dollars. This important capital represents a serious challenge for a businessman unable to meet the cost of repairs by himself. It is necessary to get the truck on the road as quickly as possible to profit from its use again. Luckily, truck repair financing solutions are available.
The truck repair financing can be broken down into 10 steps:
- A commercial truck repair financing program is found by the businessman.
- The loan is generally based on loan-to-value or remaining truck value (in the range of 25% to 50% of the original value of truck).
- The auction value, low market value and trade value of the truck can be used in determining the loan value.
- A few days are required for the completion of the
- Different teams or centres offer different interest rates and easy approvals of the loan by considering the cost associated with the truck repair.
- The loan given for truck repairing is based on the equity and therefore serves as a great option to those who have poor credit score.
- If a traditional bank is consulted, a good credit score is usually needed in order to obtain the necessary funds to repair the truck. Commercial financial centres therefore represent an interesting option for those with bad credit.
- Though a bank can provide more money and better terms than any truck repair financing program, there can be some problems with the transaction process with banks that can’t happen with the smaller-sized truck repair financing
- Before taking a loan, there is a rigorous process through which all the terms are reviewed. Contracts are to be read carefully.
- Any equipment-leasing company can consider truck repair financing.
There are several reasons why truck financing can be useful:
- A new vehicle is to be purchased: A high quality truck is needed to run a successful business of transportation. A few new trucks are required and the actual trucks are deteriorating or their number doesn’t suffice the needs of theGetting a new truck is a costly investment so truck financing is a good option to consider
- A vehicle needs to be repaired: One can find it more economical to repair an existing vehicle than to buy a new one. It is all about what will better serve the needs of the company. However, having a truck down might represent a loss of revenue.
- Investing in equipment: Aside from trucks, a lot of equipmentis required to carry on a successful transportation company. A moving company should have towing equipment along with the additional storages. A transportation loan can help cover the costs of the extra tools required (depending on the specific services of the business).
- Hiring more drivers: More drivers can be required in order to meet the needs of the business. During busy times, the part time drivers can be called and payments should be done on time. A business loan can be required in order to maintain a smooth business operation.
- Investing in marketing : In a transportation business plan, some money should be allocated to This marketing should be done strategically in order to inform customers about your business. These marketing expenses can be considered with the help of a business loan.
- Providing new services: The transportation industry is known to be very versatile. Extra services can be offered by a company in order to make more profit. Therefore investments should be done for the future benefits and a business loan can help finance this.
- Extra cash is necessary: If the sales get a boost up in a particular season, then investments should be done in truck repairmen along with other maintenance expenses during the off-season.
- Weather related expenses: In the trucking business, payments need to be made for the additional equipment that will protect the truck against harsh environmental conditions. Durable tires are necessary during the winter season. Several precautions are to be taken to protect the truck from the roads variable conditions. A business loan can help cover such costs.
- Purchasing of branding materials: The business can stand out by investing in branding The company’s logo should be featured on the truck as well as on bumper stickers, business cards, pens and other business items. This can increase the notoriety of the business and attract more customers.
- Investing in new technologies: New technologies are available to the trucking industry. Application of GPS tracking of the trucks can be beneficial to the business as well as the customers. Investing in technology can improve a company’s performance and profitability, and a business loan can help in accomplishing this.
There are a lot of reasons for repairing a truck. With the help of different truck repair financing programs it is possible to pay the cost of truck repairing and return your focus to the success of your company.
Contented by: Trufco.com.