First there are captive financing companies. Think about them as weapons of financing all major manufactures. They exist solely to provide funding to the public in order to sell their trucks. In the past, they were somewhat liberal in their subscription criteria and as the mortgage industry may be too liberal. This relaxed subscription of the past has caused serious defects today. This resulted in a subsequent tightening of credit. The final result is the sale of fewer trucks and trailers; Customers have trouble getting funding. Nevertheless, the Captive Finance Corporation will always be part of the commercial truck financing game.
Secondly, independent funding companies. They are not related to manufactures in any way. They exist to take advantage of the financing of commercial trucks and other equipment. They can be a welcome alternative for several reasons. First, they can be a person to turn to if a good credit client is “tapped” with the captives. This means that they have already funded trucks with captive financing companies and they do not want to do for the customer (at least for now). These sources of credit “A” are competitive on the rate with the captives and, using different independent sources, a customer can finance an unlimited number of trucks. The self-employed are also perfect for other reasons. Say that a customer wants a lease of trac with different parameters than what the captives offer. They can search for an independent who can adapt a trail lease for this customer. This is invaluable for the more sophisticated customer who has a fiscal structure as the main objective. Here is another, we have customers calling us all the time that can only work nine months of the year. They need funding that can offer jump payments. In this way, the customer can make nine payments per year instead of twelve; Take three months reduced their payments. A last one who strikes at home with us, the customer with bad credit. A captive financing company generally only works with people with good credit. For the customer with bad credit, their choices are limited. Thanks to independent financing companies (like ours) specializing in the client with bad credit; These customers can get the funding they need to start or develop their business. Think of independent funding companies as offering financing products that can accommodate almost all needs.
The third arm of financing for the financing of commercial trucks is the internal financing program. Usually offered by the smallest supplier, internal financing offers benefits for resellers and customers. By proposing internal financing, the dealer is able to move more inventory than if he did not do it. This is important because a smaller dealer does not always have a captive funding program. And with credit credit, independent funding companies become less important. The dealer can act as an independent financing company by providing all the same products while maintaining the benefits of gaining interest on the trucks they sell. Of course, the wrong side is also involved in the case of defect values where the customer ceases to make payments. The benefits for the customer are that they have a single shop where they can finance a truck in the same place as they bought it. The disadvantages are that they are limited to their inventory.