How to Use Truck Financing to Grow Your Fleet
Whether you’re a solo trucker on the road to owning your own fleet, or a business owner that relies on large vehicles to keep things moving, one thing is for sure: growth is vital.
Growing a fleet of trucks is an expensive task and one you might not currently have the upfront capital for. That leaves many truckers and business owners at a loose end. That’s also where truck financing comes in.
In this blog post, we’ll explore everything you need to know about growing your fleet with truck financing. We’ll dive into the ‘why’ of fleet growth, what this kind of financing actually is (and isn’t), and lay out some suggestions for hitting the gas with sufficient capital at your back.
Why Grow Your Fleet?
Investing in your fleet doesn’t just mean bringing more trucks onto the lot; it means creating more opportunities to grow. With a larger fleet, you can take on bigger contracts, cover more routes across Aotearoa, or even start hauling different goods to expand the sectors you serve. For any owner-operator, every new truck represents another step toward increasing your revenue and reducing how dependent you are on external providers.
Fleet expansion can also futureproof you. The logistics industry in Aotearoa is highly competitive, and companies with the resources to handle more demand, hire more drivers, and maintain more trucks are better equipped to thrive. Growing now means positioning yourself as a stronger contender down the line.
The real issue with growth is, of course, cost. Investing in more units means investing in an expanded staff and a bigger lot. This is where truck financing can be a big help.
What is Truck Financing?
Truck financing (also called transport finance) is a specialised loan that grants you either all or some of what you need to grow your fleet by purchasing more vehicles. It’s a great option if you want to keep your reserves safe and secure rather than draining them to expand your operations. In essence, you’re spreading the cost of acquiring the new trucks over time rather than paying down all at once.
The kinds of vehicles you can secure funding for, as well as the amount you can get, will depend on a few things: your credit, how your business operates, and even which vehicles you have your eye on.
Important: Truck financing is not for everyone, so be smart! It’s important to assess where you’re at and pick the right option rather than investing in an unnecessary or unmanageable loan for your circumstances.
How to Grow Your Fleet with Truck Financing
To make sure you’re properly leveraging your truck financing to grow your fleet, here are a few tips to get you started.
Figure out what you need:
Before you hit ‘Apply’, start by figuring out what the best course forward for your business is. Are you after an expanded heavy-duty fleet to bring in some long-haul capability, or are you after smaller vehicles for your more regional routes?
Lining up the type, size, and purpose of the trucks you want to bring on will help you partner with your advisor to choose the best financing package.
Choose the right truck financing option:
There are a few different financing structures to choose from. Hire purchase agreements let you own the truck outright at the end of the loan term, while a finance lease lets you lease the truck for a set period with the option to buy at the end.
There are others beyond that, each with a unique set of features that might appeal to you based on how your business runs.
Plan for any additional costs:
Keep in mind that the cost of purchasing a truck is just one part of the puzzle. Maintenance, insurance, driver hire, and fuel expenses should also be factored into your budget when you’re calculating what you can afford to finance.
Pick the right vehicle:
As an operator, you know that the right truck can make all the difference. Picking the right model off the lot can ensure your business is properly equipped for years to come, so make sure to consider how you can future-proof your investment by being selective.
At the end of the day, taking on the right truck financing strategy can make growing your fleet achievable. Jumping into an expansion this way secures you against any major future costs by keeping you liquid, allowing you to balance your plans for your business with your immediate financial needs. In short, it’s a win as long as you can find the right plan for you.
Speak to GVK Finance to find the right truck financing strategy for you.
The experts on our team can help you secure the right loan for the transport vehicles you want to add to your fleet. With experience across many different sectors requiring transport financing, our team is well equipped to find you the perfect plan.
Get in touch with us today to get started.