So you've finally set your sights on a truck to help your company increase its production and sales. The only problem is that you don't currently possess the right amount to purchase one. If this is the case, then don't fret, there are many firms that offer lease for these huge vehicles. Truck leasing is indeed very popular nowadays. Many people make use of it because it's easy to acquire. However, there are few key points that you need to keep in mind before applying for one.
Lessors typically look at the four key points whenever they decide to issue a lease to the clients.
Credit History of the Applicants
The issuer would usually look at the ability of the applicant to pay for the debts that he owes. They will base their judgment through the credit score of the prospective client. The higher the score of the potential customer, the bigger his chance of getting lease. If the prospective client is currently tied with a loan company then it would be harder for him to get one since he might encounter some financial difficulties and can't make payments.
TIB or Time in Business
The lessor will be looking for a company that has been running for at least two years. This means that the firm has the financial capability to pay back the amount that he owes every month. The longer the business is running, the better.
Money Reserve in the Bank
This again is one way of making sure that the firm is able to pay back its debts in case it gets into financial crisis. The lessor would usually ask for bank information and has amounts that are at least three times more than the monthly payment.
Type of Truck
There are many kinds that are available today. The type is one of the things that the lessor is most concerned of because it offers a lot of risk involved. The nature of this type of vehicle is to be on the road for many days. There's always a risk of getting into accidents. It's true that most of these huge vehicles are insured but there's always a risk because of the hazards offered by the open road.
Depending on the issuer, the lessee might go through other screenings in order for him to get the truck lease that he desires. However, previously mentioned are the four major components that need to be taken into consideration and must be addressed before applying for financing.