Skip to content

An Introduction to Modern Trailer Finance

One result of the COVID-19 pandemic has been a marketable shift in e-commerce sales resulting from government-enacted social quarantines and the shuttering of brick and mortar stores across the world. Adobe Analytics noted the pandemic’s e-commerce surge represents a 55% year-over-year increase in e-commerce sales, resulting in $435.5  billion in online spending. That growth contributed to a massive demand in trucking and trucking equipment, but modern trailer finance isn’t quite as simple as going down to the bank.

Further, there are multiple financing options that go well beyond the traditional bank-based lending approach. Fortunately, logistics companies could offset these demands by using an array of financing options provided by lenders within the industry. With the right financing, transportation providers  could easily access the equipment they need to adapt to rapid transformations in consumer spending habits.   With a variety of options available, carriers can select the best trailer financing options suitable for their business. 

Find the Best Trailer Financing Options By Knowing What to Look For

In July 2021, Supply Chain 24/7 noted that “final mile logistics accounts for 53% of the total cost of shipping and 41% of total supply chain costs.” These costs were exacerbated by rising fuel prices and labor shortages.  Logistics companies responded in part by reconsidering their supply chain to find the most efficient way to transport their products. 

For transportation providers, this meant looking past the pump to the beginning of the logistics process: trailer finance and lending. Traditional trailer finance comes with traditional problems: months-long negotiations that result in contracts with strict, unrealistic deadlines that ignore the real-world challenges faced by the logistics industry. By carefully considering what type of trailer finance company they want to partner with, logistics companies can find flexible, cost-effective trailer financing partners that allow them to meet real-world logistics challenges. WIth a flexible trailer finance partner, companies can stay competitive in uncertain times. Still, they need to know a few things about what to look for and how to start the process. 

  1. Determine Lender Credibility and Eligibility

The world of trailer financing can be complex, and finding a credible lender that offers financing to non-traditional freight companies is equally complex. By partnering with a cargo trailer finance company specializing in fast, effective service, businesses can determine whether they are eligible for financing. The key to fast, effective service, however, is experience. As the logistics space becomes crowded with too-good-to-be-true financing solutions, businesses should prioritize trailer finance teams with a proven track record of financing success.  Maybe something like, “Fortunately for transportation companies, there are a variety of different financing options available to find the right equipment to do the job. When considering the best lender, they should look for a reputable company that prioritizes the needs of small businesses. Trailer financing can often be overwhelming. But fortunately, there are financial companies that specialize in fast and effective service that can quickly determine whether you are eligible for credit.”

  1. Gather Documents and Proof Requirements

In order to get approved for a loan, companies will need to gather the correct documents.  Requirements may vary from state to state or depending on the lender.  Determining eligibility for  your business depends on an accurate assessment  of your paperwork . Partnering with  a cargo trailer finance company that prides itself on communication and customer transparency will make the process easier. An expert team can guarantee that a business's cargo trailer financing experience is smooth from start to finish.

  1. Find the Vehicle That Makes the Most Sense

Thoroughly analyzing what type of equipment they need and the most cost-effective option for obtaining that equipment is a core step in the process. Businesses can approach potential trailer finance providers with an accurate understanding of why they need the equipment they need and what they’re looking for from cargo trailer financing. However, it’s equally important for businesses to partner with a cargo trailer finance company that knows as much about the trucking industry as they do. 

  1. Determine Required Down Payment and Terms 

The down payment on a piece of equipment can often determine other aspects of a trailer finance payment contract, precisely the amount of continued trailer finance payments and their regularity. This can often leave businesses at the mercy of their trailer finance providers and a list of inflexible cargo trailer financing payment deadlines. However, by working with a flexibility-focused, businesses can ensure that their payment dates work for them

  1. Find the Right Insurance Coverage and Providers

Insurance coverage can present one of the trickier aspects of trailer finance. Much like in cargo trailer financing as a whole,  logistics companies should partner with an insurance provider that knows the industry well 

  1. Compare Loans to Find the Best Fit

When a transportation provider is in the market for a new tractor unit, they understand how essential it is to shop around and weigh the pros and cons of their different options. Similarly, logistics providers businesses must accurately understand non-traditional trailer finance options available. However, obtaining cargo trailer financing offers can be a lengthy process. With a sluggish supply chain bogging down timelines, it’s vital that businesses partner with a cargo trailer finance company that can offer financing within days, not months, as well as provide easy access to plans and forms

  1. Choose a Lender That Knows Trucking

There are more trailer finance options available to logistics companies than ever before. From traditional banks to tech-based companies, choosing a lender can leave cargo businesses scratching their heads. Luckily, however, by partnering with an industry-specific lender that knows trucking, companies can rest easy knowing that their cargo trailer financing partner appreciates the world of trucking. 

  1. Follow Best Practices to Protect Vehicles

I following recommended maintenance schedules can help ensure that a business's equipment is up and running for the long haul. Semi-trailers can be expensive, and helping them stay on the road semi-trailer finance arrangement. 

What to Consider when Choosing a Truck and Trailer

When considering trailer financing options, businesses should understand what type of equipment they need. After all, semi-trailer finance is a high-cost decision. The difference between the right choice and the wrong choice can be measured in thousands of dollars, as well as untold future costs in fuel and efficiency. With diesel prices up more than  $2.30 a gallon from 2021, according to Logistics Management, it's more important than ever for businesses to find the most efficient tool for the job. Considering their unique needs helps a company save on equipment trailer financing

Types of Cabs or Tractors Used For Trucking

Any plan for finding the right equipment must start with understanding the different types of cabs and trailers that are available. 

  • Day Cabs. Day cabs are the ideal solution for a business's traditional final-mile logistics needs. These smaller, more fuel-efficient semi-trucks are often relatively sparse compared to sleeper cabs. 

Generally, they contain a bench for the driver and the passenger, which backs into a set of rear-facing windows, thus making it easier for the driver to back up and navigate the dense traffic of many final-mile logistics environments. Despite their smaller size, day cabs can be equipped with almost any trailer, making them an ideal choice for single-day, final-mile shipments. 

  • Sleeper Cabs. For long, hauling, sleeper cabs represent a step-up in utility and comfort from day cabs. As the name implies, these larger semi-trucks have built-in sleeping quarters for drivers. These sleeping quarters often come equipped with other amenitiesliketelevisions and refrigerators, and occasionally even hot-plates and bathroomsthat can bring a bit of luxury to the life of the long-haul trucker. 

These trucks serve as home-away-from-home for their drivers, so they tend to reflect a driver's needs. This can make for a happier, better-rested driverLike day cabs, sleeper cabs can be used in conjunction with various trailers, making them the perfect, flexible solution for a business's long-haul trucking needs. 

  • Custom Haulers. Custom haulers represent the broad range of customizable tractors on the road today; these tractors can be customized to meet any logistics needs of drivers and clients. For drivers, custom haulers can be easily equipped with other amenities that can make life on the road just a bit sweeter. 

For businesses to meet clients' needs, custom haulers can be outfitted with some of the largest, most-powerful engines driving the logistics industry today. The flexibility of custom haulers makes them an ideal choice for oversize loads or any other cargo that pushes the limits of traditional tractors. 

Types of Trailers Use With Semi-Tractor Cabs

A semi-tractor is only as helpful as its trailer. Trailers come in numerous sizes and styles, all designed to meet a specific cargo need. By familiarizing themselves with the different types of trailers, businesses can better understand the kind of equipment they'll need before considering trailer financing or remarketing

  • Belt. Belt trailers are a specialized type of self-unloading trailer. With the press of a button, the truck driver can use a conveyor belt that runs the trailer length to unload the cargo onboard. This makes for quick unloading of various loads, though these trailers are most often seen in the agriculture and waste industries. 
  • Drop Deck. Drop deck trailers, also known as step-deck trailers, utilize a platform that drops to a lower height than standard trailers. This drop allows for shipments exceeding the legal height limit if carried on a traditional flatbed trailer. This height accommodation often makes drop deck trailers ideal for moving large machinery and equipment. 
  • Dump. Like belt trailers, dump trailers utilize mechanics to load and unload cargo quickly. Hydraulic lifts allow a driver to tilt the trailer from the comfort of the cab, allowing quicker turnaround times when large amounts of freight need to be transported by one truck. These fast turn-around times make dump trailers especially useful at construction sites. 
  • Flatbed. Flatbed trailers are the most common type of trailers on the roads today. The flexibility, ease of use, and affordability of these trailers make them the first choice of many industries. 
  • Grain Hopper. Grain hoppers are one of the more task-specific trailers in the cargo industry. Specially designed to load, transport, and unload grain, these specialized trailers are a must-have in agricultural sectors. As an industry-specific freight asset, these trailers come special-equipped to meet industry coverage regulations set by the Environmental Protection Agency 
  • Lowboy. A lowboy trailer, also known as a double drop trailer, is a lower version of the drop-deck trailer. Though the lowboy can accommodate taller loads, its lack of clearance can create other issues during transportation. Lowboy trailers are less common than a traditional drop-deck, though an absolute necessity in many last-mile equipment deliveries. 
  • Tankers. Tank trailers are among the most flexible trailers available. These trailers are specifically designed to load, transport, and unload liquids from fertilizers to dairy products. Furthermore, these trailers are designed to be easily customizable, allowing them to meet the special demands of various types of cargo quickly. Tank trailers are often used to transport agricultural and petroleum products. 

Make the Most of Vehicle Purchases and Capacity Resources With Tractor Trailer Financing Services From Finloc

Whether you're looking for flatbed trailer finance or leasing any type of trailer, Finloc can provide your business with flexible, fast, and cost-effective trailer finance solutions. Finloc delivers quick access to trailer finance offers, which allows your business to access the equipment you need Finloc’s team of industry professionals has over 45 years of experience and a vast network of broker partners  Working with this team of experts, you can set a trailer finance payment schedule that works for your business Equipment trailer financing can be a hassle; let Finloc make it easy. Schedule a call with Finloc today, and discover how flexible cargo trailer financing can help your business succeed.