Commercial leasing is more beneficial than loans for your transport

Few people would be willing to debate that idea that the transportation industry has its ups and downs. It?s a feast or famine kind of industry. Gas prices go up; demand for delivered good goes down, or vice versa.? Trucking companies run their trucks for years with no problems and then one day the truck goes kaput. Maybe you never even saw it coming. Or maybe you had been babying your truck and nursing it back to health after every broken part or break down. If that?s the case, then you?ve known for a while that it was time for you to start considering buying a new truck for your transport business. When financing heavy equipment you will often be given two choices for your commercial vehicle financing agreement. You will either be offered a loan or a commercial vehicle lease.

A commercial truck lease is more beneficial to your transportation business than a loan.? As a business owner, you want to reserve as much of your capital as you can and leasing a commercial truck or commercial trailer will allow you to do that. Generally speaking, lease payments tend to be lower than a loan payment, and spending less per month means more money in your pocket. Another benefit of commercial vehicle lease is the down payment ? or LACK of down payment. In most cases, applicants are not required to put down a down payment, but instead, will be asked to pay the first and last months payments upfront. Again, this is saving money for the business owner and that allows the company to reserve funds. This option isn?t available to everyone ? those with poor payment history, or poor credit, may be asked to put down a down payment in order to acquire a commercial vehicle lease from commercial truck leasing companies.

Yet another benefit of a commercial vehicle lease is the way that the debt is displayed on your balance sheet. On your financial statement, all that is shows as ?debt? is your monthly payment ? not the entire amount of your lease.? So, instead of showing that you have a debt of $40,000, your financial statement will only reflect what ever amount your monthly payment is, for example, $900. That is a benefit for companies that may need to use their credit to obtain more financial assistance in the future because it keeps your debt-to-income ratio low. In the case of a commercial truck loan, the entire amount of debt is reflected on your balance sheet and this raises your debt to income ratio.

In commercial equipment financing, there are pros and cons to every option. Be sure to objectively assess your business? needs and goals in order to select the right commercial vehicle financing option for your company.

Source: http://trucklenders-trucklendersusa.blogspot.com/2012/08/commercial-leasing-is-more-beneficial.html

michelle obama adam lambert arrested barkley beltran space ball jim mora the weeknd echoes of silence