Trucking Along
Equipment Financing Trucking Along
Author: Stephanie Clarke
Date posted: 03.09.25

The small business owner was aware that they required a replacement moving truck as soon as possible after losing their largest vehicle in the fleet. This moving company was in quite a bit of demand even though it was a relatively small operation. Because of the upcoming appointments with customers over the next few weeks, they required this truck. There were weeks of labor to be done in order to gain money, but there currently wasn't enough cash flow to buy a new truck outright.

When the owners brought the damaged truck to the mechanic, he advised them that attempting to fix it would waste time and money, suggesting they purchase a new vehicle instead; having two additional moderate-sized trucks for interim use. However, moving the larger houses necessitated a larger truck, leading the proprietor to invest significant time searching for a pre-owned commercial vehicle online and in local newspapers.

Ultimately, he located a sizeable moving truck from a private dealer and, during the financing discussion, they were presented with the choice of either obtaining equipment financing through a loan or opting for a lease.

Trucking Along

The lender explained the difference between a loan and a lease. With a loan, you own the equipment after the loan’s duration, and you don’t need to take any further action. When the lease period ends, you can choose whether to buy or return the equipment.

 

Monthly lease payments are typically lower than loan payments since you can return the equipment after using it. The truck owner chose a four-year loan, intending to keep the equipment after repaying it.

 

They received their new moving vehicle after completing the paperwork, and the funds transferred directly to the private seller. As the truck served as collateral, they didn’t need to make a down payment.

The truck’s utility allowed them to take on extra customers, even during the busiest part of summer. They prepaid some installments, which reduced their loan duration by six months. They automated monthly payments, freeing the business owner from bill concerns to focus on customers.

 

Because obtaining the loan was so easy, they repeated the equipment financing process two years later. They purchased four additional trucks along with equipment like dollies and mechanical lifts, alleviating worker burdens. Their company thrived, and they now hold the city’s highest moving business reputation.

Trucking Along
About The Author | Stephanie Clarke

Stephanie has a bachelor's degree in psychology and has been a professional writer for over 15 years. Her client list includes New York Times bestselling authors, publishing houses, prominent public figures and successful business owners. She resides with her family in Florida.

What’s New

All Resources
All Resources