[dailyfunderppt]

Best tried and true lenders for Startup Equipment Leasing/Financing?
With commission rates and credit requirements.

[dailyfunderppt]

More or less for Truck Leasing.

[Jplummer]

We do a lot of truck deals. Startup must have 3 years CDL experience, 650 credit and $10,000 in reserves in a bank account. We require app, 3 months bank statements and 2 years tax returns to consider. For a startup we will need to know who their haul source is and how much they will be making. Commissions on transportation related equipment range from 2-6% depending on the size of the deal. Non-transportation related equipment commissions 2-8%.

[dailyfunderppt]

So a startup needs $10k in reserves?

[Jplummer]

Yes at minimum. On a used truck that would be our minimum required amount in reserves. Now if they are looking at getting a new truck they will need more money in the bank. We want to make sure they are properly capitalized and able to fix the truck if it has mechanical issues.

[dailyfunderppt]

A lot of new startup merchants are looking to start up because they don't have money.
Who is the best bet for those merchants seeking to get a truck (more specifically in this case box truck)?

[Jplummer]

Good luck. If they are trying to get into the trucking business with no money they are destined to fail. I don't know of any good finance companies that work with brokers that will fund a deal for a startup that is not properly capitalized from the start. Typically, they would have to get on with a haul source that would have them drive for them as a company driver for at least a year prior to offering them a walk-away lease on one of their own trucks. Most of the time the terms are really bad for the customer. Usually $4,500-$5,500 a month plus the cost of maintenance, fuel, insurance, etc. They will drive for them as an owner operator for a few months and decide to turn the truck in and go back to being a company driver because under those terms the driver will bring home $300-$500 a week. If the startup owner operator gets his own used truck with a monthly payment of $1,500.00 he will still have the maintenance, fuel, insurance, etc. However he will not be bound to hauling for just one source and can actually after expenses bring home $1,500-$4,000. If he has good credit he maybe able to work something out with his bank. But that would usually be a small ticket item and they usually steer clear from someone that is just starting out.