Financing a Trailer & Frequently Asked Questions Guide
Financing a trailer has never been easier, thanks to the wide range of funding facilities available through Irish finance companies used by Vendor Finance.
Nonetheless, there are still a number of important details you need to be aware of when securing financing for your new or used trailer. This article, which will explore the frequently asked questions regarding trailer financing, is aimed at helping you navigate this important first step to getting on the road.
Trailer Financing Options*
Today, business owners looking to finance a trailer have more options than ever to choose from and at Vendor Finance, we offer financing options such as:
Leasing: For Vat registered clients, 100% funding can be availed of with Vat chargeable on each repayment. Vat can be claimed back at the clients regular Vat return with no interest charged on the Vat element. Full ownership passes to the client at the end of the term.
Hire Purchase: This is the most common method for funding trailers for non-Vat registered clients. Up to 100% funding is available and capital and interest payments are made between a term of two to seven years with full ownership at the end of the term. Suitable for Vat registered clients also, however the Vat must be paid upfront to the dealer or the funder which can then be claimed back in full at the next Vat return
Business Loans: Clients can draw down business loans starting from €15k to be used within the business. These are generally used for more complicated transactions where the client is in control of the purchase – for example, in foreign deals.
Sale-Leasebacks: This financing option allows lessees to increase their cash position by selling assets to the finance company and then leasing them back. Assets generally need to be no older than 6 months old for this option.
Re- Finance: Existing business assets can be re-financed to raise working capital facilities for the client. Funds can be used within the business at their own discretion. Funders generally will lend on a Loan to Value of 70% for this option
These broad range of financing options enable business owners to choose the financing option that is best suited for their unique business needs. Whether you are looking to secure a traditional equipment facility, create a line of credit for your business, increase your available cash with sale & leasebacks or Re- Fi’s, or anything in between, Vendor Finance can help.
* For any queries on Vat related issues, clients are advised to contact their accountant for professional tax advice
Top Frequently Asked Questions About Trailer Financing
While Vendor Finance strives to make financing a trailer as easy and hassle-free as possible, business owners looking to finance their next trailer purchase still tend to have many questions about the process. To help clear up some common misconceptions, let’s take a look at the top frequently asked questions about trailer financing:
Q: What Are the Requirements for Financing a trailer?
A: The exact eligibility requirements for financing a trailer tend to vary depending on the finance company you choose to work with. Generally speaking, though, you will need to have a reasonable credit score, a 10% deposit, your bank statements and accounts need to show an ability to repay the facility , and possibly tax clearance.
Q: What Credit Score do You Need to Finance a Trailer?
A: To get the best trailer financing rates, you will typically need a good credit history. You can request a copy of your credit record from the Central Credit Register https://www.centralcreditregister.ie/ . Exact requirements, though, will depend on numerous factors, including the exact trailer you are purchasing and the financing company you are working with. Typically Irish funders do not like to see history of missed/ late mortgage or finance payments, evidence of returned direct debits, unpaids on the bank statements, bank accounts up to their overdraft limit or trading losses within the business.
Q: Can I Finance a trailer With Bad Credit?
A: Yes – however, it all depends on the circumstances surounding the poor credit history such as when it occurred, and when it was resolved. Typically, these types of finance proposals are dealt with on a case-by-case basis.
Q: What Interest Rate Can I Get?
A: The interest rate that you will be required to pay on your trailer finance depends on numerous factors, including the finance company that you work with, your credit score and financial history, the length of your loan, your business history, and the trailer you are purchasing. At Vendor Finance, we offer industry-leading rates for trailer finance to help business owners secure the equipment they need.
Q: How Much of a Deposit Will I Need to Pay?
A: The industry standard for down payments on a trailer is 10% of the trailer’s purchase price. However, this requirement will vary from one finance company to another and will depend on other factors such as your credit score, business and financial history, and the condition of the asset you are purchasing. In certain circumstances, we can arrange 100% funding for the cost of the asset.
Q: What terms can you arrange?
A: Vendor Finance can arrange finance terms ranging from 2 to 7 years. We can also provide seasonal payment plans matching agri customers cash flows.
How Does Trailer Financing Work?
At Vendor Finance, we make securing finance for a trailer quicker and easier than ever before. To finance your next trailer purchase through Vendor Finance, all you have to do is complete the following steps:
Step #1: Fill Out our short form Credit Application
This should only take a few minutes and can be done at https://vendorfinance.ie/commercial-finance-form-new/
Step #2: Credit Application Review
We will contact you about your finance proposal generally within 3 hours of receiving it to obtain all the relevant background information. Your credit application is then submitted to a suitable lender on our panel of lenders and processed. , Vendor Finance generally have a decision back within 24-48 hours.
Step #3: Arrange the Terms and Conditions of Your Facility
Vendor Finance will reach out to you at this point in the process to discuss your preferred terms and conditions for the facility. Once these terms and conditions are agreed upon, we arrange the dealer invoice and make signing arrangements either in person or via DocuSign.
Step #4: Funds Are Released
Once all the above steps are completed, the funds are released directly to the dealer you are purchasing from and collection of your asset can then be arranged.
This simple process makes it easy for anyone who meets the right requirements to secure financing. If you would like to finance your next trailer purchase without all of the red tape and hassle, then give Vendor Finance a call – we look forward to being at your service!
Finance Your Next Trailer With a facility through Vendor Finance
Since 2004, Vendor Finance has been helping business owners all over the country secure the affordable financing they need to purchase new assets and grow their businesses. By offering a broad range of flexible financing options, we can work with your customers to provide a solution that meets their budget and finance needs.
If you want to get started by exploring the funding options available to you, be sure to submit a credit application today!
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