When you are planning to start a box truck business the first question will ever come to your mind is that is it possible to lease a box truck? Well, the answer is yes, box truck leasing is possible. Now the question is how and why it is beneficial for a startup business? A box truck is also popularly known as cargo truck which is used for shipping or transporting goods from one location to another. There is a separate cargo area to load and store the goods for transportation and most of the trucks have a door in-between the cargo area and driver’s cabin. It is an expensive fleet that costs in the range of 50000 to 80000 dollars so if you are planning to own a shipping truck then you require huge capital for investment to start the business smoothly. As mentioned above that leasing is the best solution for a trucking business so let’s take a look at following points to know why it is a good choice.
Require huge financial planning:
- As you know that you cannot establish a business overnight because it requires a lot of preparations especially related to the finances. So, when it comes to starting a box truck business it will require huge funding. However, there are many financial institutions and banks that will try to allure you towards their trucking loan programs that come with hefty charges, down payments and sky-mounting interest rates. But only a professional equipment financing and a leasing specialist will recommend you for box truck lease because it can benefit you a lot as compared to taking a loan from the bank.
- When you have a lack of adequate funds to own a cargo fleet then leasing is the best solution that you can prefer to acquire the truck. It is a useful credit option that will not require initial investment and charges as it does not require down payment or collateral like the bank loans. Leasing is a simple credit program that involves the use of leased equipment for a specific period of time and the lessee has to pay rent for using the fleet to the lessor in the form of monthly payments. The leasing program usually does not include ownership of the fleet but you have a lease to buy option as you can buy the truck from the service provider at the end of the lease agreement. A leasing specialist can offer you several options that you can use to acquire the fleet after a lease end through the full financing of the fleet and by paying just 1 dollar to the company.
Keep your business updated:
The decision of box truck leasing can prove feasible for you as it will enable you to keep your business updated. Rather than buying a fleet by investing a huge capital you can lease it quickly without requiring the capital and can use it to fulfill other aspects of the business. For example, you may have limited cash amount that you cannot use to buy the latest cargo fleet or may not get it financed by the bank due to strict loan conditions and qualifying terms but leasing can provide your ability to acquire the latest fleet as you can tell the requirement to the lease provider and can pick the model that you want to start a trucking business. In addition to this, leasing can also make it possible for you to upgrade the fleet at the end of the lease contract as you can replace an outdated and depreciated fleet with the new one.
Leasing is not costly:
One of the best features that you can find in a truck leasing program is the cost factor. Leasing a cargo fleet is less costly than financing as due to a loan agreement you have to pay a big amount in installments for repayment that will include interest and principal. On the other hand, you can reduce such cost by leasing a fleet for the long term and can pay the lease in fixed monthly installments. For example, if you choose a lease program for the period of 72 months then you can pay the rent with a nominal amount of 99 dollars to the lessor and can also get an offer for deferred lease payments. It will allow you to use the fleet to bring revenue to the trucking business before beginning with the actual payment process for leasing.
It covers the maintenance costs:
With the leasing of a box truck, you can also gain the advantage of maintenance cost coverage as the specialist equipment leasing companies offer lease programs that include the cost of service and maintenance of the equipment. So, by leasing a transportation fleet you can get huge fiscal benefits and can run your business without any complexity.