Have you planned to spread your business to different locations? For that, you have to arrange means of transport. It indicates you must invest in a heavy goods vehicle like a truck or lorry. However, buying it outright will need you to subtract a substantial amount from the cash reserve.
Hold on! It is not the only available option. You can get a truck by checking different deals available on truck finance in the UK. TheBusinessFunds will help you source this finance most smartly.
The best thing about financing a vehicle purchase is no need to pay all in one-go. Instead, you will disburse monthly payments towards the vehicle. It is an uncomplicated way to buy a truck without hampering the working capital.
We want to shed light on aspects you must not ignore while seeking new or used pick-up truck finance deals in the UK. These are:
Truck finance in the UK is similar to several other types of business loans. It involves the owner of the business or the operator who seeks a loan on the truck by keeping that vehicle as collateral. In such a situation, the loan provider reserves the right to repossess the truck if the loan is not cleared.
Are you in a dilemma deciding between buying and leasing a truck? You can opt for the most conventional choices that hold with buying. However, it means you have to pay upfront. The second option offers more viability by allowing you to get truck finance deals through lease or any other way.
The best thing about this option is that it will not hamper the consistency of the business cash flow. It lets you pay in a manageable way by spreading out the cost evenly over a few months. Leasing an HGV does not mean you cannot own it. This option is also open to you.
Most of the deals to finance trucks come under asset finance. It has a direct relation with the truck suitable for your business. For this reason, defaulting on payment will allow the lender to claim vehicle ownership.
Here, this truck will act as a security to help you get financial aid in return. We know sourcing the best deal takes a lot of work. Thus, we have created a system to maximise the opportunities of getting the best offer. You need not have to settle with the first deal that appears before your eyes.
You may need any sort of commercial truck, including a pick-up truck on finance. If you are unaware of the basics of it, then you may be at risk. Therefore, as the financial companion of your company, we will guide you while preparing for this vehicle finance.
The terms and conditions will vary from lender to lender. Still, our analysis says that most truck finance providers look for these 3 factors to finance trucks for the indulging businesses, particularly the smaller ones:
Credit Score
Whether you opt for unsecured business loans or secured ones like truck finance, you should know that credit scores do matter a lot. A good credit score is always vital to keep open the borrowing chances. You not only get a large amount to obtain but also for a longer duration, providing much financial stability to your company. On the other hand, a poor credit score creates a lot of problems, mainly if you apply from a bank.
Collateral
It is correct that you chose your truck as the asset to secure a loan deal. Still, you should understand the criteria that lenders impose when it comes to loan collateral. They tend to check the quality and truck condition before finalising any deal. Trucks that are in better condition hold better value as loan collateral. If you do so, then you have an excellent chance to get an affordable finance deal.
Business’s age
New businesses are always under the shadow of doubts for most of the truck finance providers in the UK. They think financing those businesses would be a huge risk as they have not yet spent too much time in the business world. On the other hand, established businesses deserve a better chance with better rates on truck finance in the UK. They may get a deal with lower interest rates, assuming they have more profitable returns than new companies.
These factors also play a crucial role when you want to purchase an electric pick-up truck. Are electric pickup trucks coming to the UK market? They may not be in primary use, but many benefits will come when you seek finance.
As truck finance brokers, our forte is to take care of various businesses with different needs and contribute a lot in the growth of their capital. When it comes to finance a truck, you can expect to see a collection of several choices with different terms and conditions. However, we want to make the procedure for final selection less fussy for you.
Here is a simple trick to remember. It is to validate the business’s cash flow, budget and finance terms and conditions while running through the different options on truck asset finance like:
Hire purchase or lease purchase
It facilities your business to lease a truck based on a specific amount and defined time duration. Purchasing the truck is always an option once the contract ends. You are free to use the vehicle fully throughout the term, while gaining ownership is only possible after successful payment. In the case of a lease purchase which is almost like it, you can make a larger balloon payment at the end instead of following a monthly repayment pattern.
Contract purchase
This option provides the best way to handle depreciation losses. Repayments will take the shape of the minimum figure the future value of the truck would hold. The estimation does not coincide with the initial value of the vehicle. Besides, you get the liberty to buy or return the vehicle on completion of the final payment. Make sure to read the agreement or contract before taking the plunge.
Truck leasing
You can use this option to rent the truck. However, you can also use the truck for a specified duration by paying something every month. Once the term is over, you can disburse a lump sum amount to the lender to buy the truck upfront. You can even ask for a new vehicle or an extension of the leasing period. This truck finance option lets you avail a fresh truck and not worry about the servicing and maintenance costs. In addition, it permits easy upgradation to newer models in the upcoming years.
Finance lease
You cannot gain ownership at the end of the payment term in case of this option. It is comparatively pricey given the cost you will have to pay along the interest. However, there is a unique feature about every option. Here, you can sell the truck in the name of the leasing company once the term is over. Most importantly, you can hold the maximum portion of the value and enjoy lease extension facility at affordable prices.
Operating lease
This option works around the depreciating value of a business asset like a truck. Here, you can hire the truck for a shorter duration than the time it can actually spend on the road. Owning the vehicle is not possible when you consider this funding option. The leasing company have the freedom to sell or re-lease the truck again once the contract ends with you.
Contract hire
It can be an extended version of the operating lease option. You will get some extra facilities in addition to what you received in the case of the previous one. It is an ideal alternative to prefer if you want to lessen the risk of asset depreciation. Get an offer that could claim to cover the maintenance expenses and other road-related assistance charges. The offer might vary from one leasing firm to another.
Portioning out the cost is not the only benefit that should encourage you to get a truck on finance options. You will be able to understand ways you can make the most of this financing option by looking at the advantages. Validate them further to make sure, if financing will make sense for your business.
Fast and easy to procure
Procuring funds is the ideal way to arrange money in the most convenient manner and without any delays. Use our interface to find the best offer and save the time you spend searching randomly.
Moreover, we work with lenders who are quite swift in their approach. It means you will get a response regarding your finance request immediately.
Flexibility and control
Since TheBusinessFunds have access to a vast network of finance providers, you can come across offers of different shapes and sizes by using our services. You can take advantage of a customised finance package with a guaranteed buy-back facility. The option of further selling, return or rent is also accessible when you choose to finance over other modes.
Protection from asset depreciation fear
With it, you do not have to hand over the total price at once. You can pay off in a monthly pattern. For this reason, you have the least worry about the depreciating value of your asset. With more filtered options, you need to make a payment based on the residual value of the vehicle.
Budget price
Drawing comparisons will make it easy for you to determine which offer will work in what ways. You fully understand the amount you must pay and the benefits you can retain. It helps if the offer is budget-friendly.
Finance for new and used truck
It is vital to opt for financing. We will never judge your choices based on new or used pick-up truck finance deals. The finance provider will curate the deal keeping your preference in mind. It helps you save a lot of money in the initial investment you will make for the truck.
Are you looking for a commercial finance provider offering better deals on HGV finance or lorry finance in the UK? Only TheBusinessFunds can assist you here. We can be quick in searching out the loan provider who can offer an instant quote and ensure no hassle in applying.
We will do the legwork or negotiation on your behalf. Our representatives quickly update you with each quote we receive from our panel of lenders. Besides, our experts will guide you, and their advice will help you get what suits you best.
We can be a medium through which you can quickly fetch a deal on lorry finance or HGV finance from a renowned lender. It is a less hassle process, unlike going to a bank. We have done the leg work for you by already getting potential finance providers on our radar.
We would like you to go through the basics of the process, which goes on in this manner:
Send a query, and our specialist team will share it with the prominent lenders.
Interested loan providers will send you a quote with the price and other details.
Run through each offer and apply for the one you think is relevant.
The lender will take some time to examine your application and reply.
Once your application gets through, funds will be released for your purpose.
Remember that this asset finance can be much better than a conventional loan solution. We have helped over 70 businesses like yours fetch genuine and affordable deals on HGV or lorry finance in the UK at reasonable rates.
Due to cost-effectiveness, it is beneficial to look for such offers. Your monthly payments will become relatively low when you accept new or used pick-up truck finance deals. It will gift you an opportunity to get a good-looking vehicle for some valid commercial use.
Still, you might need solid reasons to acknowledge why a pick-up truck on finance can also be an excellent option for you as it:
We have been closely involved with the truck finance in the UK market for a long time. Our main task is to help you filter offers by giving the highest preference to your priority and budget. We do not want you to spend a lot of time in the search. Here is how we can make sure about it:
Our Vast network: We are aware of the effort and time you invest while searching for a lender. We present our panel of lenders here so that you do not have to work too hard to find something suitable.
Precise steps: We give value to time. For this reason, we have included steps that are fast to complete. No need to spend hours sorting out an offer.
Purpose-built solution: We will never recommend anything to you. We will instead introduce you to our lender’s network through your application. Depending on what you share in the application, you will get a proposal from a lender.
Constant urge to serve better: We respect our competitors and try to learn from them. Simultaneously, we also want to be ahead of them by constantly upgrading our services.
Call us or complete the online form to lodge your application today. We immediately work hard to find out the best deals available on truck finance in the UK with pre-approval.
It is a matter of individual choice. You must understand which option will be more flexible for you. Besides, you must not ignore the repayment aspect and the interest charges that will add up to the principal amount. Besides that, you need to make sure what sort of truck would your business need. You may be able to fulfil your business needs with a small truck rather than a Heavy Goods Vehicle (HGV).
Clarity about the purpose and affordability is a must to validate before heading over to opt for financing. Having your business plan handy can help lenders comprehend the purpose behind getting the truck for your business. It is important to share everything with us, as we can discuss your behalf with the possible lenders.
You can search among lenders available in our network. On finding a lender, you can ask for a quotation for both new and used trucks. You can look at the offers to decide if they suit your budget. Unlike other truck finance brokers in the UK, we are always ready with over 100 truck finance deals, including those ensuring used pick-up truck finance deals. You can choose any of them according to your priorities.
We cannot give you any idea about the exact term. You will need to contact the lender who can clear your doubts about the length of the tenure. Discuss with your lender without any hesitation. If you need our guidance at this point, our experts will direct you accordingly, and they will try to find only those deals where you can have a longer duration on used truck finance.
Reviewing the drawbacks is equally important as the advantages. It will help you make the right decision. Take note of the cons of financing:
