Commercial dump trucks are an indispensable piece of heavy equipment for both commercial and governmental applications. It is certainly the top heavy equipment choice for the transport and transfer of loose material and other tools like sand, gravel, dirt, etc. Many industries depend heavily on these commercial dump trunk mammoths to get heavy things moved. However, acquiring such an important piece of equipment is not inexpensive. In fact, a single unit can cost anywhere from $2,000 to $50,000! This is no small amount of investment for a company at any time let alone in an unstable economic climate.

Try Your Local Banker

So what is the solution? The solution could be a trip to your local banker. This could work out just fine if your company is stable, your assets are very adequate, and you know your local lender. Often, this is not the case. So what is your course of action then? You turn to commercial dump truck financing. Commercial financing is probably the easiest way to acquire costly commercial equipment without draining your business' finances.

The loans are usually classified as secured or unsecured. A secured loan uses an asset, usually the truck you are purchasing, as collateral against the loan. This type of loan typically carries a reasonably low rate of interest because the asset against the loan can be seized if you do not make payments.

The other type of loan is unsecured, which means there are no assets pledged against the loan and the loan is made based upon the personal guarantee of the borrower. The interest rates here are high as the lender has no means to recover the balance of the loan if the borrow defaults. Needless to say, this type of loan is not done very often.

Try a Specialized Lender

The financing of heavy duty equipment such as commercial dump trucks calls for specialized lenders. With these lenders, you have higher chances of approval and at the same time get flexible terms for your financing needs. Despite our present economic status, commercial truck lenders are still responsive to borrowers since dump trucks are such valuable collateral.

For those with good credit standing, take your time to shop around for the best interest rate from prime lenders. If you have an almost perfect payment history and cash assets, you can anticipate good rates. Some specialized lenders handle quotes and applications online. Spend some time shopping online so you can have a wider perspective for the best rates and the best deals.

It's easy to qualify for truck financing if you have a good credit standing. But even if yours isn't quite that good, there are still ways to qualify for financing and get the much needed equipment. Here are some means to work around any financing difficulties.

Consider Using a Co-Signer

Consider having a co-signer with a good credit record, usually a business partner. It may take a little longer for all the necessary paperwork to process but could solve a financing problem. You could also see if the lender will accept a lending ‘package’ of collateral such as equity in your home, another vehicle with a clear title including other construction equipment, basically any other source of collateral.

Other Financing Options

If you are still having trouble getting commercial truck financing, consider the follow options:

• Consider buying a used dump truck. With so many companies purchasing newer, more economic commercial dump trucks, there is a glut in the market of used trucks. Prices are lower as a result and you may be able to quality for this category of vehicle.

• Consider lowering your expectations – add-on’s – to bring the price to an amount you can finance.

• Ask your lender about ‘dealer financed inventory programs.’ Typically these are repossessions that the lender is trying to sell quickly.

Despite the large investment of capital, acquiring commercial dump trucks to expand your business is possible with commercial truck financing. Good luck with hunting for the right dump truck and getting that financing!

Chris Hunter is an expert in Commercial Dump Trucks.