Dump Truck Financing: Truck Loans Lease & Financing

By: Harnam Singh

If you are planning about dump truck financing for a while, we can help you with various kinds of commercial and heavy equipment financing, lease and loans at your convenience.

Dump truck financing is one of the most sought after loans and financing option for owner-operators.

This is because of the heavy use of dump trucks and their needs in everyday life.

From garbage collection to construction for transporting loose material such as sand, gravel or demolition waste, dump trucks are seen everywhere in use.

There are many types of commercial trucks on the roadways however Dump Trucks are those that are used for multiple purposes.


Pickup Truck, concrete trucks, dump trucks, garbage trucks, tanker trucks, and tow trucks are all commercial vehicles.

So if you have been wondering how to get commercial vehicle financing such as the dump truck financing we can help you get out of the wheels.

There are different types of dump trucks available for special operations.

Almost all dump trucks operate by the hydraulic system and they come in a multiplicity of configurations.

The most common are the standard dump trucks, semi-trailer end dump trucks, transfer dump trucks and pup dump trucks.

We have consulted with a number of owners and operators from small fleet operators to construction companies and has helped them secure the lowest cost.

So once you select your truck we can help you with leasing options, getting the best rates, and loans for your business as we have in-depth knowledge of the construction and trucking industry.


What is Dump Truck Financing?

If you already know how the auto loan works, then you will easily understand the similarities of how dump truck financing works

The truck itself serves as collateral for the loan so lenders have much lower risk in financing loans for their customers.

Dump Truck Financing is a type of commercial equipment financing where business owners and owner-operators borrow the capital needed to buy a truck.

The borrowed capital is paid back gradually to the lender in the form of instalments every month including the interest that is levied on the amount of loan.

A dump truck or a semi-truck can cost you anywhere between $15000 to $150000 even if you purchase a used dump truck it will not cost less than $15000.


So depending on the condition of the truck the rate may vary, however, if you have looked for financing you have the question in your mind how much loans can you acquire.

The amount of loans usually depends on the cost of the dump truck that you want to purchase, it also depends on your business profile and your credit history.

If you are able to show a good credit score or prove income source that you are currently earning from your existing business, it will be easier for you to acquire the full amount of loans.

Additionally, dump truck financing terms for repayment will depend on the quality and projected life of the dump truck.

And even if you have good cash flow accessing loans and financing for a dump truck would be a great deal for your business.

Dump truck cost you huge amounts so with lower interest rate and longer monthly instalments it will prove more cost-effective to your business in the long run.


Financing for Bad Credit holders in Need of Loans

Now that you know what is dump truck financing and how it works, its time to know about the availability of the loan.

If your credit score is not satisfactory you might be wondering whether or not accessing the dump truck with bad credit is even a possibility.

First of all, the dump truck itself acts as collateral for the very loans so the dump truck financing companies take on the less risk.

This is because dump trucks itself mitigate much of the risk that lenders and companies take on by lending loans.

So dump truck financing will be more ideal, and will be easier to qualify for in the first place and bad credit won’t necessarily disqualify you.

However, qualifying dump truck financing with bad credit will certainly be tough than doing so with good credit.

The first important thing is time in business and that is going to be very important for you. You should at least be in business for 2 to 3 years and 600 plus credit score.

Companies and banks are more concerned about the profits, they are more likely to check your tax return and bank statements, they will verify everything before they can provide you with the loans.

However, most banks don’t like the trucking business so they either suggest you to US SBA loans or other financing options but it may not be a good option for you.

A good option is either buying a used dump truck or approach dealership for a new truck, the dealership salespeople have good relationships with the financing companies.

If you go to the bank most banks will say No unless you have 800 credit score and $50000 cash with you because banks don’t want to take the risk so they aren’t interested in truck financing at all.

But potential lenders may be worried more about the quality of the dump truck rather than the personal credit history.


Financing a Dump Truck is Better than other Commercial Trucks

In order to finance a dump truck,  it’s important that you find a lender who understands dump truck financing.

It is also important to find a bank that understands dump truck financing.

So these are some of the big steps that are crucial to dump truck financing and you need to do a little bit of research especially if you are a first-time buyer.

At Singh Lending Solutions we specialize in commercial equipment and dump trucking financing. We are a small team of business consultants who can help you with all that is needed for better financing.

So why financing a dump truck is better than others such as commercial truck financing?


There are some of the profound benefits of financing a dump truck from the lender’s standpoint and these includes

  • Higher Revenue: Whether it is a new or a used Dump Truck, it can still produce higher revenue than other commercial trucks such as semi or box truck. In terms of earning and revenue generation, dump trucks are going to make more money ninety per cent of their time while they are engaged in a significant way. So lenders like that, the more money the truck is generating the less likely the customer is going to go into default.


  • Stronger Residual Value: The residual value is the estimated value of the dump truck that will retain at the end of the lease period. So in case of any default by a customer or for any other reason if the lenders have to take the truck back it is convenient for both the customer and lender to resell the dump truck on high liquidity because it acts as an asset and a piece of equipment that will provide a stronger value on the equipment purchase.


  • More Demand/Supply: The stronger is your dump truck, the greater the demand. The demand for the supply of dump truck has always been there because more and more customers are searching for the right dump truck. So the right dump truck will always be on-demand and it is ideally good for both customers and lenders.


  • Better Resell Value: If you need to get out of the trucking business, one important thing from customer’s point of view is that you will get a good to resell value on the dump truck that you hold the finance for. Better resell value again will provide both the lender and customer to get back investments back to normal. The more new your active dump is the more resell value you are likely to get out of it, so from lender’s standpoint, it also puts them in a better position too.


How to get the money for your first dump truck financing?

By now you have seen how financing a dump truck can make your business profitable.

But probably you’re trying to figure out, how to get the money for your first dump truck or junk removal vehicle.

Getting in the business with a dump truck is not just profitable but it will also increase the productivity of your business if you are aware of how to put your dump truck at work.

You should at least make a 25% payment down the line to get your first truck financed by a dealer or a dump truck financing company in case you are able to show the income proof.

However, getting the money for your first dump truck can be tough especially if you don’t have enough cash to purchase the dump truck.

If you are interested in landing up your first dump truck or junk removal vehicle you can apply some strategies through which you can save up the money for purchasing the truck.

You may be aware of it that even a used dump truck can cost around 15 to 25 thousand dollars.

So if you are already in a good financial position where you are able to put in the cash or you have got the income coming in as well, it is good to go and finance a dump truck for cash purchase.

Making a cash purchase can be one of the best decision that you will ever make and you won’t regret it anyway because you are going to eliminate a lot of worries about financing a dump truck and put your truck immediately at work.

But if you don’t have the financial position right now to finance or lease a dump truck, you must choose a different alternative to get the money for purchasing a truck.


Strategies you can use to save up the money you’ll need to finance a truck.

To pay on your situation you need a source or sources of income to flow in the cash.

Maybe you need to find a part-time job or could work somewhere full time if the earning is good enough.

If you are already working somewhere with a decent income making 50 thousand to 60 thousand dollars a year keep working that job. It will get your junk removal business get started.

Also, set up the target dates that by a calculated time you will be able to gather the required amount of money for financing. This will allow you to enjoy your job a lot more and you will probably save more money in your current job.

If you are already in business you need to ensure that you are already profitable in your existing business so that you can put your hands in another business such as financing a dump truck for doing business.

So if you exactly know how much money you are making in your existing business you can plan for financing a truck accordingly.

Suppose the truck is worth 15000 dollars so you will be able to make the instalments of 3000 dollars a month. So you can come out of the debt in 5 months time.

You exactly need to find out how much time you need in a job to get the money you’ll need for financing.

Stay motivated and have patience in business.

So once you have your cash up and running, you can look for a dealer or a truck financing company who knows about dump truck financing.


How to apply for dump truck financing?

So before you apply for dump truck financing finding the right dump truck for yourself is more important.

If you have found out your truck that is in good condition you can approach a consulting firm like Singh Lending Solutions.

We can help you get out of all the issues that may come across towards financing a new or a used dump truck.

However, financing can be harder, as opposed to dealing a new or a used truck on the basis of cash.

There can be several others who are waiting for the same truck in the queue but with the cash.

So a dealer will give more preference to them who are directly handling the purchase through the cash.

And applying for a dump truck loan can be very easy with Singh Lending Solutions.

However, your priority should be to check more on all the parameters if in case it is a used truck such as

  • It should be less than 10 years old
  • The truck has not run more than 700,000 miles
  • It should have all other papers ready
  • Condition of the truck new/used
  • Truck details such as Make Model & Year
  • Insurance is a must
  • Must be sold by a dealer

So once these things are fine, you can also approach us with all the details required for processing your application and loan.

And if you need any kind of help Singh Lending Solutions is always with you get out of the wheels for you.

It does not matter whether it is a new truck or a used truck, depending on most basic conditions we can get you your truck for you.

We would love to hear from you. Call us or email us for any kind of help that you would require and we hope we will be able to support you in every way.


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