When it comes to vocational equipment, finance solutions can range in complexity, especially when you consider a finance structure that needs to support the truck, body and additional equipment. Glenn Inzinga, vocational/TEM national sales manager, and Carrie Kohout, small business credit manager at Daimler Truck Financial, talk about some of the common misconceptions that can happen around financing vocational trucks.
“If I Can, I Should Pay Outright.”
Seasonality, business downturns and economic changes are road blocks that many vocational companies and owners face, making liquidity a primary concern. While it’s in our mindset to pay outright for equipment when we can, it’s not always considered sound financial advice.
“This is why many customers opt to finance vocational equipment,” says Inzinga. “By choosing to finance, cash reserves remain intact for emergencies, slow business periods or for other investments in the business.”
“Financing is Too Expensive.”
Vocational vehicles and their bodies are big investments. There’s no doubt about that. “When we work with customers we spend a lot of time understanding their business and their equipment needs because of the cost and complexity of vehicles within the vocational industry,” says Inzinga. “Factors that can impact their business such as seasonality, contract approvals, economic dips, and production lead time, can help us determine a finance solution that makes business sense.”
Financing the equipment breaks down the investment into smaller payments making it easier on your bank account. Inzinga states, “This can also free up cash reserves. Since we’re specialized in the commercial vehicle industry, we have access to information to show customers the benefits of newer, more productive equipment, which may far outweigh the interest costs associated with financing.”
“I Need ‘Perfect Credit.’”
The message of understanding your credit is prevalent these days with entire companies dedicated to helping consumers understand and know their credit score and credit history. Credit is part of your financial blueprint and a key piece of information that gives lenders one view into your financial background.
“Although good credit often translates into better terms, businesses or owners in the lower credit brackets can still have access to great financing plans,” adds Kohout. “Because of our industry knowledge, we take into account all aspects of your vocational business and work with our sales organization to determine a solution that makes sense both for you, the customer and us, the lender.”
“Financing is Too Inflexible for Me.”
There is no ‘one size fits all’ vehicle in the vocational industry. Equipment varies to support the needs of each specialized segment. “Knowing this is why we are able to tailor a finance program ideally suited to each customer’s business,” states Inzinga. “Whether it’s a skip payment program for slow seasonal times or structuring a line of credit, we can craft a financing plan that allows you to acquire equipment in a way that stabilizes cash flow and encourages profit.”
With so much vocational financing experience, nobody does more to deliver the right financing solution with all the necessary vocational customer requirements than Daimler Truck Financial. No matter what vocational segment you are in, we provide financing that works for you!*
*Eligibility for credit will be determined by DTF’s Credit Team based upon the creditworthiness of each customer.