Vocational Trucks: Three new stats about old thinking…

In a recent survey of 3685 small business owners that have made a vocational truck purchase in the last 12 months…

78% replace trucks only when reliable operation is a factor

Waiting until the wheels fall off is a very expensive approach to replacing your vocational vehicles. There is no bigger cost to your business than the service interruption to your customer. Even if you can avoid the pain of customer complaints following vehicle failure, it often involves very high rental expenses and the operational challenges of using a generic truck not designed for your business.

Fleets with an average age of 5 years or newer turn over less employees.

No one wants to drive an old, beaten down truck—and the stats prove it. Finding new employees that drive your vocational trucks is a significant expense. Operational disruptions of turnover can include workflow challenges, recruiting, training, certifications and more just to put another resource in the driver’s seat. And those items carry soft and hard costs that far outweigh what a new monthly payment might be for a new truck.

82% sacrifice on specs needed for upfront cost implications

Most business owners are passing on needed features just to save a little money up front. And we’re not talking additional chrome and reflectors here folks. These are major technology features that would help them meet customer needs more effectively or help drivers do their jobs better. An extra $3-10K might look painful up-front, but may only provide a nominal impact to monthly payment. This impact could be overwhelmed by the operational benefits and upside of having the features you really need.

If you are planning on keeping the equipment for as long as you possibly can, waiting for the wheels to fall off before thinking about replacement or sacrificing the specs you need for the up-front cost you want—you just might be adding to your long-term expenses instead of reducing them. A finance partner like SLS can help. For more than 30 years, we’ve been financing vocational trucks in a way that helps business owners make this investment more affordably. If you need some new thinking around this topic, let’s talk.

Brian Soetaert

bsoetaert@slsfinancial.com

816.587.7375

Commercial Trailer Financing and Leasing

We LOVE trailers!

It’s that simple! We… Love… Trailers. When you’ve been financing trailers for over 30 years and you still get excited to help a company finance a trailer, you just know it’s a good fit. SLS has been financing commercial use trailers for over 3 decades now and we still see the value in making sure we keep these programs accessible to the masses.

Why Should I Finance My Commercial Trailer Through SLS Financial?

Where you may find that many banks and lender institutions shy away from trailers in asset-based programs, we understand the true value of a well-built trailer. If cared for, trailers can retain their value for years to come which is why our programs come with no age restrictions. This means you only have to focus on what trailer makes sense for you and your budget.

We have such a good knowledge of trailer financing that this also affords us the opportunity to open up our underwriting guidelines. This means our already industry leading approval rates are just that much better when trailers are involved.

And don’t worry, we understand that 99.9% of the time, if not more, you’re going to need either a truck or some other equipment to pull your trailer around. We’d be happy to help there too, but if you just recently purchased a truck, don’t let this stop you from seeing what we can do to help finance a trailer.

What are the Benefits of Commercial Trailer Leasing?

You’re probably looking to get a trailer to increase the profitability of your company, right? That’s what equipment is for! This means that your new (or used) asset will be making you money. So, think about this… If structured right, it can make more sense for your business to finance a trailer, even if you have the cash on hand to purchase it outright. You want to keep your cash available for other important parts of your business. Would you rather empty your reserves to purchase your trailer immediately, potentially putting you in a bind when emergencies arise? Or would you rather have the equipment contribute to your monthly payments with the increased profits you will be seeing with your new equipment? Your trailer will practically pay for itself! Not a bad deal… So, now that you’ve seen the benefits… What kind of trailers do we finance?

We’ll Finance It All

Don’t let your perception ruin your opportunity to get the trailer you need. We finance all kinds.

Trailers We Finance:

  • Dump Trailers
  • Walking Floor Trailers
  • Lowboy Trailer
  • Tanker Trailers
  • Deck-Over Trailers
  • Utility Trailers
  • Dry Van Trailers
  • Reefer Trailers
  • Car Haulers
  • Logging Trailer
  • In Line Concrete Pump Trailers
  • Food Trailers
  • Commercial Smoker/Grill Trailers
  • Pipe Coil & Reel Trailers

 

There are many more types that weren’t listed and some that may not even been thought of yet. Just remember, if it’s a trailer that can help your business, we can finance it.

If you would like to reach out regarding commercial trailer financing, don’t hesitate to reach out:

John Brock

816.587.7301

jbrock@slsfinancial.com

Today, we’re continuing our series of podcast shorts with our seventh episode, looking at the shocking correlation between equipment and employee turnover in small businesses.

(You can find our first episode on the credit evaluation process here, and the second episode on the benefits of pre-qualification here)

Throughout this series, we’ll be covering bite-sized topics that will help you better understand our values and our processes, as well as tips that will help you make better decisions during your periods of growth, or equipment acquisitions. If you have any topics you would like us to cover in the future, don’t hesitate to reach out. My contact information can be found at the bottom of this post.

In this episode, we’re focusing a survey that revealed some pretty interesting causes for employee turnover. Sometimes it can be as simple as bad equipment. Take a listen and let us know if the points we brought up opened up your eyes to some better ways of managing employee turnover! We’ve always focused on making financing and leasing uncomplicated, and we hope to live up to that promise with this easy to digest podcast so that you can keep focusing on what’s most important – your business. Enjoy!

 

First of all, let’s look at…

What are Soft Costs?

Many times on this blog, we discuss the main costs of acquiring equipment, which almost always ends up being the cost of the equipment itself. Pretty straight forward, huh? That doesn’t mean that’s all there is to equipment lending. Often times there are other costs involved, which we like to call “soft costs”. So, what are soft costs exactly? Soft costs can be a range of things, from the cost of delivery, to installation costs, warranties, and even assembly in some cases. You may be asking, “well, why does that matter to me?” These soft costs can affect your business in a big way.

Soft Costs can Offset the Benefits of Financing Your Equipment

Presumably, you’re looking to finance your equipment to ease the burden an equipment acquisition can have on your cash flow. You make easy monthly payments on revenue-producing equipment, and it seems like the equipment is paying for itself with the extra work you’re able to complete with your new gear. But, look at some of the “soft costs” we mentioned above. Deliveries have to happen before you can put your machine to work. Installation, same thing. Many of these costs occur before you even get a chance to see the benefits of your equipment, and can ironically put a pretty big strain on your cash flow when that’s exactly what you were trying to avoid in the first place!

Why Does SLS Finance Soft Costs, and How Does It Work?

We understand the issues soft costs can bring to a business, and we think of these costs as part of the process. We want to make commercial lending as easy and beneficial as possible, and so we understand the power of including soft costs in your payment structure. That being said, just as we look at rates on a sliding scale according to the credit composite of the applicant, we look at soft costs the same way. With a higher credit composite, we may be able to cover more soft costs for your equipment acquisition. Each situation is different and we would welcome a conversation at any time to see what structure would work best for your unique situation. It’s another way we look to make commercial lending… Uncomplicated.

Brian Soetaert

816.587.7375

bsoetaert@slsfinancial.com

Concrete Saw Financing and Leasing

We have enjoyed great relationships with concrete construction professionals over our 30+ years in business, and we know what a great asset concrete saws can be. We know that certain models can carry quite a cost, and if you’re getting multiple saws, the cost can add up quickly. Financing and leasing may be good options for your business so you don’t break the bank as you acquire the equipment you need. So, where do you go for help? Well, whether you’re a start-up business, or an established company, you’ve come to the right place.

Why Should I Get Financing and Leasing for a Concrete Saw Through SLS Financial?

We’ve worked with many companies over the years to help them get the funding they need for their own concrete saws. Experience matters, and we’ve been assisting businesses with Uncomplicated Commercial Lending since 1986. We’ll give it to you straight, and help you find the best option for funding for your concrete saws.

Who Can We Help with Concrete Saw Financing and Leasing?

We’ve occupied a space in this industry as a general lender, and we’re proud of our ability to help business owners of varying credit strengths, and time-in-business. As we mentioned above, whether you’re a start-up, or an established enterprise, we’d be happy to take a look at your situation. We know there is an applicant behind the application, and we appreciate the story that comes with that. We love building relationships with business across the country, and have enjoyed fostering these relationships with businesses for many years. Feel free to reach out at any time, and we’ll be happy to explore a package that will work right for your particular situation.

What are the Benefits of Concrete Saw Financing and Leasing?

As we said above (and as you probably already know,) concrete saws can be expensive. Even if you have the cash on-hand to make the purchase, this can have a ripple effect on your business if you’re not set-up for this large of an expense (check out our podcast on why you should never use working capital to finance equipment). When you use concrete saw financing and leasing the correct way, with the increased profitability you will be seeing with your new saws, the equipment will essentially pay for itself over time. Again, you will be looking for an experienced lender that can work with you to make this process work as intended, but trust us, we’ve got you covered there. There are even some tax benefits you may qualify for if you finance or lease your concrete saws this year (see our Section 179 article here).

Who Do I Contact for Concrete Saw Financing?

There are a couple ways you can get into contact with SLS. I’m available on the chat you see on the bottom right of your screen if you want to get talking right away. You can also find my contact information at the bottom of this post. I will be happy to lead you to a rep that can assist you in your particular industry. We’re excited for this chance to show you what we’re all about, and we look forward to the opportunity of assisting.

Talk to you soon!

Brian Soetaert

816.587.7375

bsoetaert@slsfinancial.com

Today, we’re continuing our series of podcast shorts with our sixth episode, looking at how a financing relationship should feel.

(You can find our first episode on the credit evaluation process here, and the second episode on the benefits of pre-qualification here)

Throughout this series, we’ll be covering bite-sized topics that will help you better understand our values and our processes, as well as tips that will help you make better decisions during your periods of growth, or equipment acquisitions. If you have any topics you would like us to cover in the future, don’t hesitate to reach out. My contact information can be found at the bottom of this post.

In this episode, we’re focusing on the intangibles of commercial lending. There are lots of companies that are offering commercial lending, and while it seems like it boils down to the very simple things like rates and terms, there are other factors that can make certain commercial lenders better than others. Take a listen and let us know if the points we brought up resonate with you! We’ve always focused on making financing and leasing uncomplicated, and we hope to live up to that promise with this easy to digest podcast so that you can keep focusing on what’s most important – your business. Enjoy!

 

You may be exploring your options on procuring a bucket truck. That’s an exciting prospect! You must be growing to be looking into acquiring another bucket truck for your business. Or, maybe this is the first one for your new start-up. Congratulations on this big step in your entrepreneurial journey! In either case, you’re in the right place. We know that business vehicles can be expensive, and it may not be wise to purchase them outright. In that case bucket truck financing and leasing may be the right choice. Your cash flow will thank you. Let’s look at a few questions you may have.

Why Should I Get Financing and Leasing for Bucket Trucks Through SLS Financial?

We’ve worked with many companies over the years to help them get the funding they need for their own bucket truck. Experience matters, and we’ve been assisting businesses with Uncomplicated Commercial Lending since 1986. We’ll give it to you straight, and help you find the best option for funding for your bucket truck.

Who Can We Help with Bucket Truck Financing and Leasing?

We’ve occupied a space in this industry as a general lender, and we’re proud of our ability to help business owners of varying credit strengths, and time-in-business. As we mentioned above, whether you’re a start-up, or an established enterprise, we’d be happy to take a look at your situation. We know there is an applicant behind the application, and we appreciate the story that comes with that. We love building relationships with business across the country, and have enjoyed fostering these relationships with businesses for many years. Feel free to reach out at any time, and we’ll be happy to explore a package that will work right for your particular situation.

We Have a Bucket Truck for Sale!

Nothing is better than proof. You can rest assured that we’ve worked with this equipment type before, because we have one sitting in our parking lot for sale right now! If you’d like to get more information on our bucket truck don’t hesitate to reach out.

What are the Benefits of Bucket Truck Financing and Leasing?

As we said above (and as you probably already know,) bucket trucks can be expensive. Even if you have the cash on-hand to make the purchase, this can have a ripple effect on your business if you’re not set-up for this large of an expense (check out our podcast on why you should never use working capital to finance equipment). When you use bucket truck financing and leasing the correct way, with the increased profitability you will be seeing with your new truck, the equipment will essentially pay for itself over time. Again, you will be looking for an experienced lender that can work with you to make this process work as intended, but trust us, we’ve got you covered there. There are even some tax benefits you may qualify for if you finance or lease your truck this year (see our Section 179 article here).

Who Do I Contact for Bucket Truck Financing?

There are a couple ways you can get into contact with SLS. I’m available on the chat you see on the bottom right of your screen if you want to get talking right away. You can also find my contact information at the bottom of this post. I will be happy to lead you to a rep that can assist you in your particular industry. We’re excited for this chance to show you what we’re all about, and we look forward to the opportunity of assisting.

Talk to you soon!

Brian Soetaert

816.587.7375

bsoetaert@slsfinancial.com

The Truth about Early Pay-offs from Equipment Leasing Companies and other most Equipment Financing Commercial Lenders.

First and foremost, most equipment leasing documentation and equipment financing agreements do not provide for a simple interest pay-off. In fact, many organizations will simply require that all payments be made and do not provide early termination (pay-off of the contract) language. Please note that this is not always the case.

Let’s get started by defining a few terms:

Simple Interest Pay-off.

This is the method with which we are usually most familiar. In short… you pay interest only on the outstanding principle. The pay-off assumes NO accrual (meaning no additional interest) of interest beyond this ‘simple’ calculation. Here is a definition from Investopedia (https://www.investopedia.com/terms/s/simple_interest.asp)

Simple interest is a quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

Summary of Simple Interest Prepayment:

You pay interest only for the actual time that the funds have been extended by a lender to a borrower. It seems that this is not often the case and so ~ here are some variations that we have seen used over the years.


Other Early Pay-off Calculations.

Sum of the Remaining Payments:

Under this method there will be no discount at all. The contract will be paid in full … and thus there would not really be a financial incentive to prepay.

Net Present Value Calculation:

This pay-off methodology employs a financial calculation to determine a discounted contract buy out. Some, but not all, interest will be saved in the event of an early contract termination. Here is a link that may help to explain this rather complex calculation: https://hbr.org/2014/11/a-refresher-on-net-present-value

Other variations:

Simple interest plus 1% of the then principle balance added for each year that the contract has remaining until maturity.

For example: a 5 year contract with 3 remaining years would receive a prepayment of the current principal, plus 3%.

½ of the unearned income:

This method discounts the pay-off by ½ of the remaining interest due under the contract.

While there are certainly other methods and manners for lessors and other commercial lenders to compute an early contractual buyout of a lease or a commercial equipment loan, nearly all are a variation or a derivative of a simple interest pay-off. And so we will end this writing with some helpful guidance. Here is the question to ask your lender:

“If I prepay my contract will the computation be a simple interest calculation?” 

If the answer provided is yes… you will then have the ultimate necessary follow-up question.

“Will that be stated as such in the documentation?”  

You can take from here!

We hope that this is helpful, and would enjoy assisting you with straightforward and uncomplicated commercial equipment lending & leasing. Please contact ~

Doug Fuller

816.423.8021

dfuller@slsfinancial.com

 

Brian Soetaert

816.587.7375

bsoetaert@slsfinancial.com

When the need is apparent, but the prospects are slow to respond, and decision-making processes seem to go on forever, it might take some cold hard facts to awaken the sleepy opportunity. In a recent survey of 1767 companies that have recently acquired new commercial equipment, the top reasons decision-making processes lasted longer than 3 months were:

  • A financial issue NOT addressed by dealer sales teams
  • A financial decision maker that has NOT been engaged by the dealer sales team
  • The company cannot justify the capital outlay, the lease v. the purchase, or show a realistic ROI/A model and have NOT been shown the way by dealer sales teams.

Common theme: Talking about money is more than just quoting a lease payment.

To engage a financial expert at SLS to help you wake the sleepy prospect by addressing the financial obstacles that are holding up your opportunities, contact us today.

Brian Soetaert

bsoetaert@slsfinancial.com

816.587.7375

Crane trucks have many uses, from construction, to electric utility, to tree service, and more. We know that many industries have uses for this valuable asset, because we’ve worked with folks in these various industries! We also know that crane trucks can cost a pretty penny in certain cases. It may not be prudent to purchase a crane truck outright, even though it may be necessary to acquire one due to demand. Sounds like a good sign to us. “So, what are my options?” – you might be asking. Financing and Leasing for Crane Trucks can be great options to get the equipment you need.

Why Should I Get Financing and Leasing for Crane Trucks Through SLS Financial?

As we’ve said, we have experience with this asset class, and we can use that expertise to help you find a financing or leasing plan that works for your business. We know there are a lot of finding sources out there that are offering their services wherever they can. We also know there are a lot of doctors out there, but would you trust a dermatologist to give you advice on heart health? Probably not. We suggest going with the experts 😉

Who Can We Help with Crane Truck Financing and Leasing?

At SLS, we’ve always been proud of our ability to help all types of buyers. Whether you’re a small business, looking to get your first crane truck, or a larger company with a few in the fleet already, we’re prepared to help. We also work across the credit spectrum. We know there is an applicant behind the application, and they have a story. Our credit team makes sure to take a more ‘hands on’ approach to underwriting, because we know some of the greatest success stories have come from ‘outside the box’. We’d welcome a conversation any time if you have questions on our process.

What are the Benefits of Crane Truck Financing and Leasing?

As we said above (and as you probably already know,) crane trucks can be expensive. Even if you have the cash on-hand to make the purchase, this can have a ripple effect on your business if you’re not set-up for this large of an expense (check out our podcast on why you should never use working capital to finance equipment). When you use crane truck financing and leasing the correct way, with the increased profitability you will be seeing with your new truck, the equipment will essentially pay for itself over time. Again, you will be looking for an experienced lender that can work with you to make this process work as intended, but trust us, we’ve got you covered there. There are even some tax benefits you may qualify for if you finance or lease your truck this year (see our Section 179 article here).

Who Do I Contact for Crane Truck Financing and Leasing

You can reach out to me, the author of this article, and I can lead you to the right rep that can assist with your particular industry. You can find my contact information at the bottom of this post. We’re excited that you’re making this next big step with your business, and we look forward to the opportunity of assisting.

Talk to you soon!

Brian Soetaert

816.587.7375

bsoetaert@slsfinancial.com

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