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Start Up and Seasoned Businesses have an Rare International Truck Acquisition and Financing Opport
by
J.M Casa
In today’s economy, start up and seasoned businesses have an rare acquisition and financing opportunity to obtain an appealing deal for any type of International truck. The first option, for the buyer, is to visit their local dealer and discover his truck there. This is huge location to start and find important information that will be used afterward in the data gathering process. From there, it is recommended searching the internet and its mass volume of facts that is available. The potential buyer can visit such sites as truck paper and truck trader etc to view thousands of listings of trucks open across the United States. He is able to sort and sift through this infinite information and should be able to find a truck, in any city and/or state across the U.S, that meets his buying needs
Once he has located a source of trucks offered to him, he is able to contact these sellers and consult a deal that might be able to meet his wants. Once he is approved to a price and its particulars, his next hurdle is to acquire adequate lending in todays complicated lending world of this commodity. The type of International trucks we are identifying for this article is the following: International dump trucks, International semi trucks, International garbage and refuse trucks, International Tow trucks, International Cement Trucks, International Concrete Trucks, International Flatbed Trucks, etc Today, the banking arena for International trucks has become much smaller, especially for big rig trucks.. Banks, in the past, that use to finance this niche market have either pulled their portfolio funds out of this area or have customized its lending requirements. It is not unheard of today that a start up business must commit to a down payment of between 10% – 30% of the acquistion cost of the International truck to enter this marketplace. The seasoned business with good credit might be able to get in as little as one payment down plus documents fees but must have either A or B Credit. Other seasoned businesses that dont meet these credit needs., may be required to put up 10-20% down or either put up additional collateral as their credit scores fall below 600. Most customers dont get pleasure from these tightening financial needs., are eliminated out of this market, and will commence looking for options that are available due to market conditions. In addition to the marketrequirementsof sizeable monies due upfront, the conventional bank has modified his risk/reward factor for the failure and possible recouping of these trucks. Therefore, the rate and/or interest factor that the bankcharges has gone up making it a bigger challenge to complete the lending end once the want to be buyer locates his asset. As the economy has destabilized due to market conditions, the route of conventional banking has changed as we know it. The bank has acquired another predicament that makes their equation a little more complicated. In the past year as the price of food has gone up, the real estate markets have taken a toll for the worse and other world factors have caused the financial institutions to be more unbalanced , the trucking industry has become more volatile. As the increase of defaults on the payments of International and all other trucks have risen to all time highs, the lenders have been taking back these trucks by the droves that are earmarked as repos. This has caused a dilemma with customary lending practices and trying to balance it with a non producing income portfolio. If these institutionsdont act quickly and carefully, the combination of these two type of portfolios can be devasating to the lenders bottom line. A third factor to ponder is the off lease truck. These trucks are being brought back to the bankand they must act accordingly with this third factor. By definition, a International off lease Truck has been brought back to thebankas the lease has terminated The lessee has made a resolution to return the item in lieu of exercising the buyout option. A repossession is different than an off lease because it has arisen due to a defaulting of the lessee for non payment terms or a violation of the stipulations of the lease. Either way, the lenderhas taken these trucks back and/and now mustservice these trucks and either sell these trucks or re-lease them. The bank can either advertise their off lease and repo inventories through their internal sales force, trade journals such as truck paper, truck trader etc or utilize outside professionals such as brokers to move their inventories as fast as possible. On occasion, as these inventories either sit or whatever reasons arent moving, thebankwill put these items up for auction. At the present time, the financial institutions have two dissimilar types of banking monies to judge and must act accordingly. Normal financing on new business transactions. still involve rigorous lending practices based upon the credit markets and the risk/reward factors financial institutions identify out there in the financial markets. The second type of portfolio, for the off lease and repos, require possibility a more relaxed approach to liquidating their inventories carefully and recreating the income stream for the institutions. This will be discussed below. Some institutions presenting repossessions and off work trucks in the repo market offer these trucks with a minimum credit score of 525. This gives the startup and/or seasoned business an chance to start and/or enlarge their fleet with bad credit. This opening would have never existed in the past. Other financial institutions offer no credit check but are reference and income driven to make sure they have experienced a good candidate to take over one of their over the work trucks. The work truck financing and banking doesnt stop here, others lenders with good credit and time in business tender no down payments and up to 60 months to repay. This obviously gives the over the work truck owner operator an exceptional chance to obtain work truck financing. Other work truck financing and leasing programs start at 525 and the down payments can be anywhere from 3-5% down based upon the applicant and the special work truck. In addition, if you are a cash buyer, there is large opening to acquire a work truck at a considerable reduction In todays economy, we have even located reference driven banks, credit reports arent considered as the most important criteria for financing and leasing. Prior Bankruptcies can be a road block for lots of finance deals, however these financial institutions will look at them on a deal by deal basis and in most situations will not be a deal busterAll trucks are reconditioned and subject to your inspection prior to delivery. These promising financial arrangements by the bank has inspired the buyers desires and needs to either enter the trucking industry as an owner operator and/or possibility an extension of a existing business. First Time buyers, whom were locked out of this market in the past, now has an distinctive occasion to earn more revenue by acquiring an International truck for himself. Concisely, this is a buyers market for International trucks. One should evaluate all the factors relating to this purchase including gas costs, air emissions, environmental type requirements, buyout clauses acquisition costs and its related financing.
J.M Luna has over thirty years in the financial field. This includes accounting and taxes, leasing, hard asset money and commercial lending. U.S Corporate Capital Leasing assists the start up and seasoned business for financing in all different fields.
http://www.jaguarequipmentleasing.com/Internationaltrucks.htm http://www.jaguarequipmentleasing.com/leasing_repos1.htm>
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Start Up and Seasoned Businesses have an Rare International Truck Acquisition and Financing Opport
