Transportation Equipment Leasing
|Transportation Equipment Leasing covers not only long haul and short haul transportation services, but all the different types of specialty transportation vehicles as well.
Here is a short list of some of the more common types of road based transportation equipment that are pre approved for equipment leasing by leasing companies.
For transportation service companies, equipment leasing is the primary form of business financing available to owners and operators. In order to provide enough industry wide financing for the large volume of trucks and trailers on the road today, there are several lease companies that focus primarily on funding these types of assets, and still more lenders that will entertain more specialized transportation and service equipment.
Transportation equipment leasing is readily available for both new and used equipment with many of the major leasing companies providing services all across Canada.
Transportation assets can also be financed through both operating and capital leasing programs. With an operating lease, the equipment is returned to the lessor at the end of the lease term with no further payment obligations required of the lessee while a capital lease requires the lessee to buy the equipment at the end of the lease term.
Operating leases are more common in this industry due to the large resale market that provides lenders with a strong liquidation pathway for any assets they may need to dispose of. The choice of operating versus capital lease depends largely on the operator’s equipment replacement strategy and view towards long term equipment repair and maintenance. Both approaches can work well, depending on the approach the business wants to take and their view of the cost and benefits each type of lease provides.
For owner operators, equipment leasing is much easier to come by if the applicant owns their own home and has reasonably good credit. This will also result in lower leasing rates and more repayment options.
At the same time, there are transportation equipment financing options for just about all types of credit with financing rates and down payments increasing and repayment terms decreasing with lower levels of credit.
If you’re in search for transportation leasing for yourself or a related business, please give us a call so that we can quickly review you situation and outline your options.
Call 1 800 559 8845 and Speak Directly To An Equipment Leasing Specialist
Or Click Here To Send Us An Email