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Page written by Chris Godfrey. Last reviewed on December 4, 2024. Next review due April 6, 2026.
Dump trucks can cost from a few thousand pounds up to £180,000 or more, but as an all-purpose workhorse they’re pretty tough to beat. However, paying for this kind of equipment with working capital is financially inefficient and can often be prohibitive. Fortunately, there’s an answer to this problem: Dump truck financing. Pay for the equipment as you use the equipment. Give your organisation the vehicles it needs without hurting cash flow.
Dump truck financing – also known as equipment financing – is a type of business loan used to support the purchase of new or used dump trucks. This type of financing gives organisations an alternative way to pay for one or more dump trucks without putting strain on working capital by buying vehicles with cash.
Dump truck financing can cover most of the cost of acquiring one or multiple new or used dump trucks for your business. Available in two main variants (see below), the financing will usually require a down payment from the buyer and then regular monthly payments over a fixed contract period. At the end of the contract, depending on which type of financing you choose, you will either own the vehicle outright, or have the option to buy the vehicle for a pre-agreed price. In the latter case, if you choose not to buy the dump truck it goes back to the lender.
There are two types of dump truck financing:
Dump truck finance is a straightforward business loan. You make a down payment and then pay off the balance of the purchase price, plus interest, with regular payments over a fixed-term contract. The dump truck acts as security for the loan. When the agreement comes to an end, the vehicle is paid for and yours to keep.
Top tip: Dump trucks tend to have a good residual – meaning they hold their value well – so owning the vehicle at the end of the contract can be a good move. The majority of UK dump truck buyers choose to finance their purchase.
Advantages of a dump truck loan:
Disadvantages of dump truck loan:
A dump truck lease is a long-term rental agreement. Because you are only financing some of the purchase price, leasing typically has lower monthly payments than finance/hire purchase. With a lease, you make a down payment and then pay a regular sum plus interest each month to use the vehicle. At contract end you can either give the vehicle back to the lender, renew the lease at a different cost per month, or buy the dump truck for the fair market value of the vehicle – this is commonly known as a ‘balloon payment’.
Advantages of a dump truck lease
Disadvantages of a dump truck lease:
Obtaining dump truck financing is determined by three key factors:
You will need to provide a preliminary bill of sale for each vehicle you are seeking to finance. The lender may also ask to see your business bank statements and other financial records. Note that most lenders set a mileage limit – such as 500,000 miles – on used dump trucks.
The application process for most dump truck financing is straightforward:
You should shop around for different financing offers before settling on a deal. You can do this by approaching banks, credit unions and online lenders one by one, or you can use the services of a loan marketplace that will introduce you to a choice of dump truck financing deals from different lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for business owners who have never taken out a dump truck loan before.
You will need to provide:
A determination is a pre-offer for dump truck financing. It will set out the down payment, interest rates, fees, monthly payment and other conditions of the loan. If you accept these terms move on to:
Receive your approved finance package. This will include contracts containing each vehicle’s VIN as well as the complete terms and conditions of the financing. Sign and return the contracts along with any other paperwork, such as proof of insurance.
Pay your down payment to the vehicle dealer and let the finance company take care of the rest. They will either give you the funds to complete the transaction or pay the dealer the balance of the vehicle price.
Most lenders will want a minimum personal score of +640, although if you pay a larger deposit, it may be possible to get a dump truck loan with a score in the mid-500s.
There are other ways to finance your essential business vehicles:
Even if you have bad credit, or have been turned down elsewhere, it may still be possible to get the dump truck loan you need. However, if you’re not sure you will qualify and want to avoid unnecessary disappointment, contact Swoop today to discuss your situation with a bad credit expert.
Top tip: If your business has any of these attributes, bad credit problems can often be overcome:
Important note: Lenders will typically want a bigger down payment and charge higher interest and fees on dump truck loans for borrowers with weak credit.
Interest rates on dump truck loans can vary from 5% to 35%, but the rate you pay will depend on the strength of your credit, your down payment, how long you’ve been in business and other factors unique to your organisation.
There are other ways to finance your essential business vehicles:
Working with business finance experts can make all the difference when applying for dump truck financing. Contact Swoop to discuss your borrowing needs, get help with your application and to compare top-quality dump truck financing from a choice of lenders. Get the vehicles you need without putting strain on cash flow. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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