People who wish to start a rental truck service can obtain loans through truck finance that is provided by asset finance companies. These companies work in tandem with the clients while financing trucks and other vehicles and usually deal in near and sub-prime vehicles and vehicle refinances. It is important that these deals are conducted and concluded quickly, and most asset based finance companies are able to deliver money within 6 hours after the speedy process of the loan request.
Truck financing is particularly lucrative as truck services are very much in demand across the country. The truck can be pressed into service catering to hauling goods for many different industries. Trucking charges for carrying various commodities are usually on the higher side and within a very short of time most truck businesses increase the number of vehicles they have in their fleet. There are several types of vehicles that the asset finance companies will consider extending loans to clients for, and they include ATV finance, HGV finance, Trucks, Ambulances, agricultural vehicle, buses and coaches, chauffeured cars, new cars, old cars, classic cars, light and heavy commercial vehicles. Most of these vehicles are used in the service of public and so are lucrative money making machines hence, the owner can easily repay the loan while earning substantial amounts of money.
Entrepreneurs on the other hand, may require new machinery for new projects which are likely to increase their business fortunes. Depending on the size of the new project an owner will have to invest a good amount of money to acquire those machines. Small and startup businesses would not have that kind of money hence, they would require funding from outside to buy those machines. Under the provisions of machinery finance, the user could allow the banks or the financial institutions to buy the machinery for them and then they use them on agreed terms for a period of time as prescribed in an agreement. The user of the machinery will continue to pay a monthly rent plus interest until the period is over. On the expiry of the agreement, the borrower will either return the machinery or continue to use it under a freshly drawn up contract.
Asset based lending is a great financial instrument for businesses that are struggling to raise the finance to run businesses. It is usually tough for them to raise finance through conventional channels as they won’t extend credit without a good credit background. The private financers who lend asset based loans do not take bad credit as a road block and duly award the loans to them under contract.
