Launching a new business is not that simple. It requires adequate planning time and budget to get everything you need ready before your launching date. It’s easy to get focused on investing just in the products but a business needs more than just that.
You also need to prepare your store location and all the supplies and equipment needed on your daily business operations. Aside from that, logistics is also an essential part of any kind of business, which is also another thing to prepare.
Having your own commercial vehicle makes the transport of goods and supplies to and for your business a lot easier and convenient. However, commercial vehicles are a huge investment no matter what type it is.
If you’re still starting out, it would take you years to save up enough money to buy a commercial vehicle straight up. There are actually other options that would help you get the vehicle you need even if you don’t have enough funds yet – truck financing and leasing. Read along and learn more about these two methods.
Commercial Truck Financing
Commercial truck financing provides the funds that you need to purchase a new commercial truck or vehicle. It can also be used to buy a second-hand commercial vehicle or fund an upgrade or repair for your existing vehicle. This type of commercial truck finance ends up with you getting to own the vehicle you’ve been paying for.
After completing all the payments, the vehicle becomes your own and you can continue using it for your business, sell it to buy a new one, or do anything you want with it. The good thing with truck financing is that you can already use the vehicle while still on the process of paying for it. The vehicle serves as the collateral if you fail to pay your dues. If you’re looking for a long-term logistics solution, truck financing is the most recommended option.
Commercial Truck Leasing
On the other hand, commercial truck leasing is a lot different from truck financing. While both of them provide you a vehicle you can use for your business, you can’t own the truck you’re paying for in a truck lease. A commercial truck lease works like just borrowing or renting a commercial vehicle and paying it regularly to continue using it. A lot of leasing companies lease commercial trucks for about 1 to 3 years, or even more depending on their terms.
In a truck lease, there is lesser commitment since you can just end the lease if you don’t need the vehicle anymore. However, there are plenty of limitations when using a leased commercial vehicle since it is not legally your property. Since you have to return the vehicle after the ease has ended, it is not really a good option if you’re looking for long-term investment.
If you need a commercial vehicle for your new business yet don’t have enough funds, you could still get what you need by using either of those options.
