Knowing when to upgrade your tow truck isn’t easy. Let’s be honest: with the uncertainty revolving around today’s economy, you might not know where to begin. Beacon Funding has been providing equipment financing services across the nation since 1990. To help towing and recovery businesses navigate this difficult time, we’ve created a video guide to evaluate purchases post-pandemic.
Your Truck Is Your Lifeline
Unreliable equipment means losing opportunities and business revenue to your competitors. How do you begin considering what equipment you’ll need, while also navigating how to purchase it?
Watch the video to learn how to determine if your business’ capacity to take on new equipment.
While we may be in a buyer’s market, the decision to acquire new equipment should come down to your own business’ need and ability to take on another truck. Fortunately, there are tools like a breakeven calculator and a financing pre-approval to help you better visualize what you can afford.
Using a breakeven calculator will determine how many tows per month, your business needs to perform to afford a monthly truck financing payment. A useful breakeven calculator will also allow you to customize the revenue per tows to customize the results to your business.
Analyzing the Results
When you use it, the goal shouldn’t just be to breakeven with your equipment. Factor in your other towing business expenses like fuel, insurance, marketing, repairs, staffing, etc. to get a realistic idea of if a truck fits into your budget.
You can try the breakeven calculator for yourself here.
A pre-approval is a simple financing plan that allows you to budget and plan for new equipment. By applying for a pre-approval, you can find the terms of a potential financing plan without any commitment. Pre-approvals let you see details of a possible payment plan that a simple quote wouldn’t offer.
The best thing is that they are in no way binding. When you apply for an equipment financing pre-approval, you aren’t entering into a legal agreement. They are a commitment-free way to determine how much you can afford to spend on your next equipment purchase. Applying for a pre-approval isn’t a trick to get you locked into a financing agreement; it will help you plan and budget.
You can learn more about pre-approvals here.
We're Here to Help
By considering your business’ demand, staffing needs, and your financial position, you’re well on your way to understanding if now is the right time for you to take advantage of the current buyer’s market. However, you don't have to go it alone. Call 847.897.2499 to talk with a tow truck financing expert and explore the options available to your business.