The success of your company depends in part on how well you can deliver goods to your customers. When your business sells heavy-duty equipment like tractors or combines, you need a way to load up these purchases and ship them out to people who buy from you.
In particular, you need to invest in flatbed trailers that your delivery drivers can use to deliver products to your buyers. You can buy a fleet of them by using practical strategies designed for affordable trailer equipment financing.
Factoring Your Invoices
One of the most accessible ways that you have to finance equipment that you need to buy involves factoring in your business's unpaid invoices. When you factor your invoices, you sell them at a slight discount to a third-party factor. The factor pays you cash for the unpaid invoices that you can then turn around and use for trailer equipment financing.
Factoring can work to your advantage when you need upfront cash and may not have the credit or assets yet to secure a bank or credit union loan. You also avoid having to wait for clients or vendors to pay these invoices to get the money that you need to buy your fleet of trailers.
If your business does have a solid credit rating and money in the bank, it may be eligible to secure a loan from a bank or credit union. When you apply for trailer equipment financing through one of these lenders, you may not need to use any kind of collateral to secure the loan. This especially can be the case if both you and your business have high credit scores.
A bank or credit union can also offer a lower rate for trailer equipment financing. This lower interest rate lets you make smaller payments each month and keep more money in your business's cash flow.
Finally, you can take out affordable trailer equipment financing from the manufacturer of the trailers that you want to buy. Many manufacturers extend financing for their equipment. They also offer same-as-cash options that let you avoid paying interest on the equipment that you purchase.
These options are a few that are available to you for affordable and practical trailer equipment financing. You can sell the unpaid invoices that your business has to a factor. You can also apply for loans through banks or credit unions or use manufacturing financing. For more information, reach out to a financing solutions professional.