A tipper truck is a commonly used vehicle in the construction industry. Many businesses take a loan to afford this commercial vehicle. This write-up largely focuses on the major things to remember when applying for a tipper truck loan.
A tipper truck is a popular type of heavy goods vehicle (HGV) that has a tipper body on its rear. Also referred to as dump trucks, such vehicles are widely used in the construction industry to complete projects safely, efficiently, and swiftly. The job of a tipper truck is to lift and transport loose building materials in bulk at a worksite. Such materials range from gravel, sand, and wood chips to asphalt, construction aggregate, and dirt. Let us learn more about how to get a tipper truck financed.
Buying a Tipper Truck
Most construction businesses can benefit from a commercial vehicle like a tipper truck. But these trucks can be very expensive. Hence, it can be a huge problem for any small or medium-sized construction company to add tipper trucks to their fleet. They can, however, resolve this issue by taking a loan. There are many financial institutions that offer loans for tipper trucks, tractors, vans, and other commercial vehicles. You can easily take out a loan to purchase a tipper truck for your business and subsequently pay back the debt via instalments over a chosen period of time.
4 Things to Keep in Mind
Much like buying a tipper truck, taking a loan for this purchase is a significant financial commitment. Hence, you need to properly prepare yourself before applying for this loan. Here are a few things that have to be kept in mind when applying for a tipper truck loan:
1. Check Your Credit Score
Before applying for a tipper truck loan, you should review your credit score. Most lenders use these scores to evaluate the creditworthiness of the borrower and decide whether to grant them the loan or not. In case your credit score is low, you should take steps to improve it like paying your credit card bills on time and reducing existing debts.
2. Establish a Budget
You should carefully establish a budget to determine how much money you can afford to spend on a tipper truck loan. The monthly expenses of your business and other financial obligations have to be taken into account in this situation. You should focus on setting a realistic budget that helps you make loan payments comfortably without putting strain on the finances of your business.
3. Accumulate Down Payment
Having a good amount of money for a down payment for the truck can majorly increase your odds of getting the loan approved. Basically, having a significant down payment demonstrates your commitment. Moreover, it lowers the amount you need to borrow. You should try for a down payment of at least 10 to 20% of the purchase price of the tipper truck.
4. Gather Necessary Documentation
All lenders ask borrowers to provide certain important documents, which include proof of identity, proof of income, bank statements, IT returns, a copy of the registration certificate, insurance of the new vehicle, and so on. Thus, you should prepare these documents in advance and provide them to the lender as and when needed.
You should avail of a tipper truck finance solution from a dependable lender and carefully go through the terms and conditions of the loan before signing any agreement. It is prudent to pay attention to interest rates, fees, loan terms, and other specific details as well.