Bucket (Cherry Picker) Equipment Financing[yoast-breadcrumb]
Financing Your Bucket Truck: What You Need to Know
So you’re looking to add a bucket truck to your fleet, but aren’t sure how you’ll pay for it? Equipment financing can be a great option to get the gear you need now while preserving cash flow for other parts of your business.At Delancey Street, we specialize in helping businesses find the right financing options for their needs. We understand that every business is unique, which is why we take the time to understand your specific situation. Our goal is to match you with a financing solution that sets your company up for success.In this article, we’ll walk through key considerations for financing a bucket truck, financing options, and tips for securing approval. Let’s get started!
What to Consider When Financing a Bucket Truck
Before applying for financing, it’s important to think through what you need the equipment for and how it will benefit your business. This will help you determine the right financing solution. Here are four key factors to consider:
1. Type of Bucket Truck
- There are many types of bucket trucks such as articulating booms, telescopic booms, utility trucks, material handling booms, etc. Each is designed for specific applications.
- Consider the different jobs and projects your crew will use the truck for. This will help you select the right type and size of equipment.
- Popular options for electrical and telecom work include utility bucket trucks with insulated booms. Larger cranes and material handling booms excel at construction and industrial uses.
2. New vs Used Equipment
- New equipment comes at a higher upfront cost but offers the latest technology and features. Newer trucks may require less maintenance down the road.
- Used and refurbished equipment is more affordable but may have higher maintenance costs. Look for well-maintained used trucks from reputable dealers.
- Consider both purchase price and estimated maintenance costs over the life of the truck.
3. Purchase vs Lease
- Purchasing means you own the equipment after all payments are made. This builds business equity and may offer tax benefits.
- Leasing often has lower monthly payments but you must return the equipment at lease end. It can be a flexible option if projects and needs change.
- Look at your business plans for the next 3-5 years to determine if purchasing or leasing makes more sense.
- Create a budget for the total cost of the equipment including purchase price, maintenance, insurance, etc.
- Look at financing options that fit your budget constraints. Options like longer terms can reduce monthly payments.
- Factor in potential revenue and profit increases from the new equipment. This can help justify the expense.
Thinking through these key factors will help you select the right truck and financing approach. Now let’s look at financing options.
Financing Options for Bucket Trucks
There are several ways to finance a bucket truck for your business. Here are some of the most common options to consider:
- With an equipment loan, you borrow money to purchase the truck and make monthly payments over a set repayment term.
- Loans allow you to own the equipment after all payments are made. This can build business equity.
- Interest rates and terms vary based on your credit, down payment, and other factors. Expect rates from 5-30%.
- Leasing means you pay a monthly fee to use the equipment for a set period, usually 3-5 years.
- Lease terms are flexible. You return the equipment at lease end instead of owning it.
- Monthly payments are often lower than financing but you won’t build equity.
- Many equipment dealers offer their own financing programs. This financing is through the dealer rather than a bank.
- Vendor financing can offer specialized options tailored to the equipment. Rates may be higher.
- Good option if you have an existing relationship with an equipment dealer.
- The Small Business Administration guarantees loans made by lenders to qualifying small businesses.
- SBA-backed loans often offer lower down payments, longer terms, and lower rates.
- To qualify, your business must meet SBA size standards for your industry.
As you can see, there are many ways to finance the purchase of a bucket truck. We recommend looking at multiple options and comparing costs to find the best fit.
Tips for Securing Bucket Truck Financing Approval
If your business is just starting out or has limited credit history, you may need to take extra steps to improve your chances of financing approval. Here are some tips:
- Make a sizeable down payment – Putting 10-30% down shows lenders you are financially committed. This can help secure approval.
- Use collateral – Other business assets like property or equipment can be used as collateral to reduce risk for lenders.
- Bring on a cosigner – Adding a cosigner with good credit strengthens your application. They become responsible for payments if you default.
- Improve your credit – Maintaining good business and personal credit scores shows lenders you manage finances responsibly.
- Show business viability – Provide financial statements, tax returns, client contracts, and other docs to show lenders your business model is sustainable.
- Get an SBA loan – SBA-backed financing is designed for newer businesses. Make sure you qualify.
- Talk to an expert – Speaking with a financing expert can help you identify the best options for approval based on your unique situation.
Following these tips will help improve your chances of getting approved for bucket truck financing.
Partnering With Delancey Street
Here at Delancey Street, we make financing easy and transparent. Our experienced team will work closely with you to understand your needs and match you to financing options that meet those needs.We have relationships with a wide network of lenders and can shop your application around to find competitive rates and terms. Our simple online application only takes minutes. Then you’ll be assigned a dedicated lending concierge who will guide your application every step of the way.We know financing equipment is a big decision. Our goal is to make the process smooth and hassle-free so you can focus on your business. To learn more or apply for financing, visit our website at www.delanceystreet.com or give us a call. Let’s chat about how we can help add that new bucket truck to your fleet!