Care For Your Car; It will Care for You

Posted on: 10 November 2021

Building a career as an owner-operator means launching a new business, and that comes with more paperwork, hassles, and decisions than starting a new job as an employee. In addition to buying your tractor, you'll also need to decide how you want to haul your cargo. While some new owner-operators may choose to buy a trailer, leasing is also an option worth considering.

In many ways, leasing may be a superior choice for new owner-operators or those attempting to expand their business for the first time. If you fall into these categories, check out these three reasons that leasing a trailer may be the best option for your operations.

1. Less Capital Investment

Starting a trucking business isn't cheap. If you've recently financed or outright purchased your own tractor, you may find that your remaining capital funds are rapidly dwindling. Taking out a loan for a trailer typically means putting down a significant down payment, which may be challenging with limited capital on hand.

Leasing allows you to start working right away, typically with a much lower down payment or no down payment at all. You may also be able to find a lease with more flexible terms than a loan, helping you obtain a monthly payment that won't stretch your available reserve funds.

2. Lower Credit Requirements

Your personal credit score shouldn't limit you as a business owner, but many financial institutions may not see things that way. A poor credit score can make it challenging to get financing from a dealership, especially if you've recently taken out a loan for a truck. Even if you can arrange for a loan, the terms may be unacceptable or the interest far too high.

Many trailer leasing companies have less strict credit requirements or may even offer leases with no credit check at all. Although it's critical to ensure that you receive favorable terms for a no credit/poor credit lease, these may be options worth considering if your financial history is impacting your future business prospects.

3. Less Commitment

If you're just starting, you may want more flexibility and less commitment. While a box trailer might seem like the way to go right now, you may later decide that a flatbed is a more suitable or profitable option. Buying or financing a trailer leaves you with a long-term commitment and the hassle of selling your old equipment if you change your mind later.

With leasing, you're only on the hook for the terms of your lease. Once your lease runs out, you can choose to switch gears and try a new approach or stick with what works. Either way, you'll have the flexibility you need to develop your business how you want.  

For more information on semi-trailer leasing, contact a company near you.