Securing Van/Lorry Finance For Your Business
Perhaps you have recently opened your doors and want to put a van on the road? Maybe you want to add to a large fleet?
Whatever your requirements may be, you will often need to turn to finance to acquire the van you need. As you can imagine, financing a lorry fleet can get expensive, so keeping that in mind, in this post we are going to reveal everything you need to know regarding van and lorry finance.
So, continue reading to discover more.
Therefore, instead of you having to fork out thousands and thousands of pounds for the lorry, you will pay the company back in small installments, usually on a monthly basis, but sometimes on a quarterly or yearly basis.
This makes it a solution that is much more financially viable for a lot of businesses. Nevertheless, you will, of course, need to pay back more than you have borrowed, as this is how these businesses make their money. They don’t offer you the money for free!
Despite the extra costs, a lot of people prefer this solution, as most business owners cannot afford to spend thousands of pounds on one vehicle in one go.
Moreover, as vans depreciate in value, there is not a lot to gain by purchasing outright. When it comes to securing van finance, there is a lot to be considered to make sure you end up with the right loan for you. So, let’s take a look at the various aspects you must bear in mind…
What is van finance?
There is only one place to begin and this is by revealing what van finance actually is. This is basically a loan whereby a company will purchase a vehicle on your behalf.Therefore, instead of you having to fork out thousands and thousands of pounds for the lorry, you will pay the company back in small installments, usually on a monthly basis, but sometimes on a quarterly or yearly basis.
This makes it a solution that is much more financially viable for a lot of businesses. Nevertheless, you will, of course, need to pay back more than you have borrowed, as this is how these businesses make their money. They don’t offer you the money for free!
Despite the extra costs, a lot of people prefer this solution, as most business owners cannot afford to spend thousands of pounds on one vehicle in one go.
Moreover, as vans depreciate in value, there is not a lot to gain by purchasing outright. When it comes to securing van finance, there is a lot to be considered to make sure you end up with the right loan for you. So, let’s take a look at the various aspects you must bear in mind…
- Interest rate – There is only one place to start, and this is with the interest rate. You need to determine how much extra money you are going to pay back for the sum you have borrowed. It is vital to consider this carefully as interest rates differ from lender to lender, and you want to make sure you can comfortably pay the money back. Also, consider your costs as a whole, as you may need the likes of lorry insurance, and then you are going to have fuel and other costs too.
- Payment terms – You don’t only need to consider the amount you are going to be paying back, but you need to look at how you are going to pay it back. Will you make an installment every month or every year for example? Do you start paying the loan back straight away or is there a period of grace? You need to ensure you can manage the payment terms that are presented to you.
- Lender – Last but not least, you need to choose a lender with a considerable amount of care. Make sure they have plenty of experience and that they are credible. Read reviews that have been left by previous borrowers, as this is a great way to get an idea of the level of quality you are likely to experience. Never rush into this decision – take your time to assess your options, so you find the ideal lender for you.
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