The key to operating a successful towing business is to make sure that you have commercial vehicles and equipment that is in top condition at all times. Having vehicles down due to needing repairs or commercial tow trucks that are unable to perform the duties that are necessary for the job can end up costing you a great deal of profit. This can also have a major impact on the overall reputation of your company.
Purchasing commercial tow trucks and other heavy commercial equipment outright is not always in the company’s budget when these vehicles are needed. However, there are financing and leasing companies that can help you obtain the financing that is necessary. Some of these financing options that may be available have excellent terms that result in additional benefits for your company as well.
When choosing to finance a tow truck, whether it is to begin your own company, replace rundown tow trucks that you may have or to help expand your towing business, you should educate yourself on how to find the most reputable company that is available to assist you. While there are literally hundreds of financing organizations that promise to give you special financing options and interest rates, there are very few that will follow through on those promises.
Reputable truck financing companies will always make sure that you can get loan agreement in writing even if you choose to fill out the application process over the internet. Online loan applications are not always a negative option to choose. Many online financial loan applications will only take you a matter of minutes to complete. In most cases you will be given a determination on your loan inquiry within a few moments. However, you will receive an official copy of your loan agreement through the mail or at a centralized business office. A professional loan company will never ask to meet with you in an outside designated area or ask for you to pay money to process your application.
There are companies that will help you financing a tow truck even if you do not have the recommended experience within the field. They may ask that you provide a 10 or 20 percent down payment along with a completed application in some circumstances. Many financing companies will even be able to provide you with customized contracts to help meet your budget if necessary.
For many towing companies, leasing a new tow truck or fleet of tow trucks may be the most beneficial option for your company. There are two main types of leasing options that are available to commercial customers. This includes Operating Leases and Capital Leases. Both of these leasing options have a great deal of positive aspects to provide depending of the circumstances of the business.
An Operating Lease is often times consider to be an off-balance sheet liability. What this means is that when considering the profits and assets of the company, this type of equipment is not figured in against the business. At the end of an operating lease, the business owner will have the option to purchase the tow truck or commercial equipment for a reasonable market value amount. When figuring your company taxes, the payments that go towards this type of lease will most likely be deducted as an operating expense for your business.
A Capital Lease is another leasing option available to help get you behind the wheel of your new tow truck. This type of lease is included on your company’s business accounting sheet as a long term liability against the company. You can claim the interest that is paid toward this lease as a business expense. At the end of your leasing term you are then given the option to purchase the tow truck or other commercial equipment for a very minimal amount of money. In some cases this ranges from $1 to 10% of the suggested manufacturer’s price.
Whatever financing option you choose to obtain your new tow truck you will be please with the benefits it provides to your business. Whether this opens up the ability for you to expand your business, maintain your company’s reputation with customers or gives you the opportunity to start your own towing business, you will be happy.
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