There are many alternatives in obtaining dump truck financing. Whether you are a start up or a seasoned business, the first logical place to investigate  your financing is at your local bank. This may be pleasurable if you have many contacts at your bank but most people usually don't have these types of connections. The seasoned business must have at least mid 600s in their credit scores and be prepared to go through a lenghly paper process.  Prior Year T ax Returns may be required, current personal financial statments needed and various other requests.  The start up business must have a credit score properly 680 or higher and will have  a much smaller success rate in obtaining bank financing.  The business start up is a high  risk factor and must adhere to higher lending standards.

Most banks offer  loan and/or lease programs. The difference is that the loan program transfers title at the end of the payment obligation,  whereas the leasing component offers a rent type environment during the course of the lease with a buy out option at the end of the lease period to take title. Usually, the monies required upfront to acquire a loan are higher and eliminates many candidates.  The Leasing arena requires anywhere from usually first and last payment to approximately 20% down depending on the type of industry financing is requested for.  

On the loan and lease programs for a dump truck applicant,  the applicant must investigate whether the bank and/or financial institution considers this a qualified asset which they will lend on.  Most lenders like this type of asset but others may specialize in other industries such as medical and transportation such as limos, limo buses, ambulances etc. Some Lenders will only lend up to ten years based upon the age of the truck where others may extend beyond this parameter.  Loans and leases usually run anywhere between 36 -60 months based upon the age of the dump truck.

The dump truck applicant is seeking a relationship with the lender no matter whether it is a start up or seasoned business.  The front money to commence the lending vehicle, the monthly payments and the buyout clauses at the end of the lending instrument, if there is one, is paramount in making a prudent business decision.  The amount of paperwork and hoops to jump through  to get to end of the financing process are considered in the total evaluation process.

As we discussed above, there can be a lengthly paperwork process to obtain your financing.  Recently, some of the lenders have changed their computer qualification  models and require application only programs This means there are no income tax returns required, time consuming personal fianancial statments needed, and other key documents either prepared and /or requested.  This program is usually geared for the seasoned business but there are start ups applications programs available. These application  lending programs run as high as $250,000. It is important for the dump truck applicant to check out all the lending programs available.  The collateral is the dump truck and usually no additonal collateral is required.  The minimum credit score required for all dump truck applicants may run as low as 575.

The last thing you should be aware of is dealer/financing inventory programs. What this means, the lender has repos and/of a off lease inventories that they want to move for cash flow purposes. This financing arrangement is geared to the start up as well as seasoned business and may offer the dump applicant an execellent buying and financing opportunity.

When you are shopping for dump truck financing, consider the following, the front money, the monthly payments, what collateral is required, and what the buyout clauses mean.  Also, make sure you have a good source of income coming from a contract and/or other methods.

Happy hunting for your dump truck and its related financing.....