A vacuum truck sale is increasing that desire to drive one of those powerful machines a€” what can a person do? A potential buyer needs to learn a lot of information about what this vehicle does and more importantly, how to fund the purchase of such a vehicle!
Vacuum trucks or street cleaners are one type of commercial vehicle that is utilized in both the construction and environmental industries. They are used mainly to carry liquid materials such as water, oil or both at the same time. They can also evacuate solid materials such as dry leaves, dust, soil, sand and gravel or even semi-solid materials such as scum or sludge. Because of their unique ability to perform cleaning operations rapidly and safely, a vacuum truck for sale comes with an expensive price tag. When a street cleaner makes its way through town cleaning the streets of the community, many people simply disregard it, taking for granted that it is actually performing an important job for the community.
Due to the uniqueness of the vacuum truck, it can sometimes be difficult to pay for it. Not all finance companies are willing to help fund this kind of extraordinary vehicle. Once one finds the vehicle they wish to purchase at a vacuum truck sale, business establishments who render services that involve the use of this equipment attempt to lessen their fiscal burden by finding an experienced finance company that is willing to provide funding for this equipment. When searching for a finance specialist, it is possible to find leasing companies who will help a business obtain the type of lending suited for their business.
The number of vacuum truck lending companies has decreased during the past few years and many changes have taken place in regard to lending requirements. The current lending requirements include:
a€? For a start-up business, a 10 to 30 percent down payment towards the price is needed to secure approval of a loan.
a€? For established businesses with a good credit score, a 10 to 30 percent down payment is required, along with additional document fees and a credit rating of an A or B.
a€? If the established business is unable to comply with the requirements or if their credit score has dropped below 600, they will have to provide a 30 percent down payment and furnish extra collateral.
a€? Higher interest rates may be applied if the buyer cannot make the full down payment.
Many businesses are unhappy with these changes and have been forced to look for alternative ways to pay for their equipment. Because of the many problems that lenders have encountered regarding the repossession of vacuum trucks, they need to develop a different approach to streamline their income.
Different Financing Approaches
Due to the large amount of money needed up-front for a down payment, lenders face one common problem: how to increase the number of loans without adversely affecting the lendera€™s cash flow. Because of this problem, financial institutions had to come up with another solution which is to modify the current requirements as follows:
a€? A credit rating below 600 is qualified. Start-up businesses can also take advantage of this new rule.
a€? The down payment needed to start a lease is negotiable. So, even if a business is not able to reach the credit limit, they can still get financing approval.
a€? No income tax, financial or bank statements are needed.
a€? The buyout clauses to acquire a vacuum truck for sale may range from a dollar buyout to 20 percent, which is reasonable.
When financing a vacuum truck, carefully analyze various factors related to the purchase of this vehicle. There are two different ways to obtain fiscal backing depending on where the truck is purchased, either through a dealership or through a lender who is selling a repossessed vehicle. When looking for a lending company that is willing to finance this equipment, it is highly recommended that one first finds out all they can about funding vacuum trucks by consulting an expert to get a much better idea about what is required from them. With this information, a potential vacuum truck buyer better knows how to approach such a funding dilemma!