Secured or Unsecured?
There are two types of truck finance available on the marketplace, secured and unsecured. The primary difference between these options is that secured finance requires an asset as collateral for the loan. Since the lender does have this collateral to seize in the event of non payment, they tend to offer more flexible terms and be more likely to offer approval. Unsecured loans tend to be only readily available for long established businesses with a very strong credit rating.

Do You Have Your Supporting Documentation?
Generally, finance companies and truck finance brokers will ask for documentation to support your application and expedite approval. This documentation usually includes driver’s licences, insurance papers, bank statements and other financial information for your business. Arranging the documentation before you complete your application will mean that the lender will be able to check your assets and financial details without delay. Additionally, you may be required to provide local references or a details of a guarantor.

Do You Have a Deposit?
Generally, a down payment or deposit of approximately twenty percent will be needed to secure approval. Offering a deposit is a good way to convey your financial responsibility to potential lenders. Even a small deposit will increase your chances of approval compared to not offering any. However, be sure not to offer to put down too high a deposit and compromise your business capital.

Determine the Term for Your Truck Finance:
Truck finance brokers will generally be able to arrange deals with a term of between two and seven years. Determining the right term will depend on your own particular circumstances. The longer the term, the lower the monthly repayments, but you will also incur more interest charges. Generally, lenders offer more favourable rates on longer term loans, but it can work out better in the long run if you can manage a shorter term. Remember that you will need to make the commitment of a monthly repayment each and every month, so you need to ensure that it is affordable. Some lenders also offer more flexible terms such as balloon payments to reduce the monthly costs. Choosing a specialist business lender offering truck finance is likely to offer the best deals and, therefore, increase your chances of approval.