There are many ways you can finance a new lorry. Find the financing option that best meets your specific financing needs and preferences. Look for the features, terms and conditions that are suitable to your types of business and income source. You can save lots of money if you choose the right lorry financing option.
It is a flexible financing option to own a new lorry. There is no high upfront cost and it can be used for buying a variety of lorries. You can manage your cash flows easily because this financing comes with fixed monthly repayment option. You become the owner of your lorry once you have repaid the borrowed amount. You will be hiring the vehicle until you repay the borrowed amount completely. After you have made all repayments, you become the owner of it.
It is another option to own a new lorry. It can be a tax efficient option for some types of businesses because this asset is treated as a monthly expense and not as an owned asset. Within this category, you will find various subtypes of lease options. Find the one that meets your commercial vehicle financing needs. You can add maintenance and insurance or determine whether you want to keep the vehicle for a short period of time or throughout its working life.
Sale and Hire Purchase
In this type of financing, the lender will buy your truck and then finance it back to you. On the book, you will not own the truck but rather hire it from the lender. This financing option is available for many types of businesses. Whether you are a sole trader or an established firm, you are eligible for this financing.
Sale and Lease Back
You can use this option if you already have a fleet of commercial vehicles. You can sell your asset to the finance company who will then release some of its value in the form of cash flows. You can leverage an existing asset to finance a new lorry. This financing option can be used to replace an old asset with the new one, refinance assets, or raise additional working capital cash.
It is an asset backed lending that helps you leverage your existing asset. It is possible to restructure your existing lorry finance. Release the value of a large asset to finance a lorry.
The other solutions include borrowing a direct auto loan or using a collateral or cosigner to borrow the amount you need for financing your lorry.