When you own your own business, you spend ample time thinking about every financial decision you make. This applies to every product that you purchase, from the copy paper you use all the way up to researching a new vacuum truck for sale. In this current economic climate, overspending on such expensive yet necessary equipment could make or break your bottom line. For many in the sanitation field, choosing to finance a vacuum truck is usually the best bet. However, there are often many misconceptions out there about financing, which can cause confusion.
Today, our Flowmark team wants to take a moment to clear up some vacuum truck financing myths that you have probably heard over your time in the industry. Education is the key to making wise financial decisions, and purchasing the equipment you need to function is certainly no exception.
Myth #1: Startups won’t qualify for financing.
Taking the leap and starting a business is a huge venture. You need to secure financing for multiple areas, including your building lease and various office equipment. However, if you work in the portable sanitation industry and you don’t have a vacuum truck, you won’t make it very far. All too often, startups believe that they won’t qualify for financing, so they either avoid joining the industry altogether or opt to use outdated or preowned equipment instead. While the latter can serve as a backup plan, don’t be afraid to apply for financing for new equipment! Many equipment financing companies are eager to work with fresh faces. Note that while you may have to rely on personal credit right out of the gate, this will give your business the leg up it truly deserves.
Myth #2: New equipment is too expensive.
Whatever way you slice it, vacuum trucks are expensive. Even used equipment can come with a hefty price tag. The best way to think about new equipment is to remember that you are making a notable and worthwhile investment into your business’ future. Depending on where you purchase from, you may not be able to finance a used vacuum truck. Plus, buying preowned trucks comes with several risks and liabilities as well.
When you purchase a brand new vacuum truck for sale, such as the fine equipment we have available at Flowmark, you know exactly what kind of quality you are getting. Financing new equipment can help break up the expenses, build your credit, and above all else, allows you to put your best foot forward with your customer base.
Myth #3: You can only finance if you have perfect credit.
If lenders only loaned money out to businesses with perfect credit, there would only be a fraction of the vacuum trucks on the road today. While yes, better credit usually translates to better contract terms or a lower interest rate, a mediocre credit score doesn’t automatically rule you out from getting a great financing plan.
When seeking out financing options for a new vacuum truck for sale, make sure that you are up front and honest with your potential lender. This will help them to narrow down the best financing options for you and will build trust between you and the finance company. Also, don’t be afraid to ask questions, such as inquiring about any refinancing options down the road when your credit improves.
Myth #4: Banks are the only lenders.
Another major myth that deters small businesses from seeking financing is the misconception that banks are the only lenders out there. We are happy to report that this simply isn’t true. While banks are among the most famous financial institutions, they are not the only entities that can help you get behind the wheel of a brand new vacuum truck. Many equipment manufacturers, such as Flowmark, offer an option to apply for in-house financing using a very straightforward credit application process. There are also a number of equipment financing companies that work specifically with small businesses across a variety of industries and fields. Do your research and talk to peers in the industry to find out what might be the best course of action for you.
Myth #5: Cash is king.
In some instances, cash is the best way to go. However, when making a large purchase such as a vacuum truck, using cash could mean that you are wiping out your reserves. In turn, this could leave you high and dry in the face of an emergency. Instead of using all of your cash up front, consider instead placing a larger down payment. This way, you can get a great interest rate and have a low monthly payment while also retaining a backup stash of cash in case of a rainy day. Prior to making a final decision, talk it over with your team or financial advisor.
Myth #6: You can’t upgrade your equipment.
Last but certainly not least on our list, many worry that once they have financed their equipment, they won’t be able to upgrade down the road. This all depends on your lender and the terms of your loan. More often than not, you can trade in your previous vacuum truck and apply any credit towards a new loan on upgraded equipment. If this is a concern that you have, make sure to ask that question when initially speaking to your lender and before you sign your name on any dotted lines.
Purchase Your Next Truck from Flowmark
If you want to finance a quality, American-made vacuum truck for sale, then look no further than Flowmark! Every piece of equipment that we produce is manufactured and assembled right here in Kansas City, from the tank all the way to the valves. When you purchase from our team, you can rest assured that you are truly investing in the best equipment available on the market.
To get a free quote for your business or to find out more about our financing options, contact us today! We can’t wait to put you behind the wheel of a machine made with integrity, quality, and affordability in mind.