In an economy like this, one of the biggest crunches business owners face is the cash crunch. Customers have begun to be slow payers and some have even buckled under and filed for bankruptcy. Just when you were expecting a check, you get a Chapter 11 notice from some courthouse. As you know, cash is king in an economy like this, so how does one get the cash during the shortfalls of cash flow?
FINANCING VEHICLES
Lisa Key, from Diamond International, Kansas City, Mo., says it isn’t significantly more difficult to get a loan for a truck these days.
“Things haven’t changed all that much. I can still get customers financed through Navistar in pretty much the same routine. If a customer has good credit or there is other criteria that appears to make them worthy, they can still get financed,” she explains. She elaborates on the criteria for loans.
“In terms of credit rating, we’ve gone as low as 500 in some cases if the customer has a track record and we understand what has happened to put them in that rating bracket. We don’t exclude anyone because of a relatively low credit score,” she says. “Those other factors come into play, such as how long (the borrowing company has) been in business, how much business have they done with us, and what is the likelihood they’ll be able to pay the loan off.”
So in terms of trucks, the truck dealership may be your best bet for a successful loan application. The truck manufacturers remain anxious to sell vehicles and have the latitude to work with the buyer.
