Equipment World Digital Magazine
Issue link: http://read.dmtmag.com/i/894232
Smart solutions for fi nance road blocks Part 1 W hen it comes to vocational equipment, fi nance solutions can range in complexity, especially when you consider the fi nance structure needs to support the truck, body and additional equipment. Glenn Inzinga, vocational/ TEM national sales manager, and Carrie Kohout, small business credit manager at Daimler Truck Financial, talk about some of the common misconceptions about fi nancing vocational trucks. 'If I can, I should pay outright.' Seasonality, business downturns and economic changes are road blocks that many vocational companies and owners face, making liquidity a primary concern. While it's in our mindset to pay outright for equipment when we can, it's not always considered sound fi nancial advice. "This is why many customers opt to fi nance vocational equipment," Inzinga says. "By choosing to fi nance, cash reserves remain intact for emergencies, slow business periods or for other investments in the business." 'Financing is too expensive.' Vocational vehicles and their bodies are big investments. There's no doubt about that. "When we work with custom- ers we spend a lot of time understanding their business and their equipment needs because of the cost and complexity of vehicles within the vocational industry," Inzinga says. "Factors that can impact their business such as seasonality, contract approvals, economic dips, and production lead time, can help us determine a fi nance solution that makes business sense." Financing the equipment means the investment is paid in smaller installments, making it easier on your bank account. "This can also free up cash reserves," Inzinga says. "Since we're specialized in the commercial vehicle industry, we have access to information to show custom- P A R T N E R S O L U T I O N S / F R E I G H T L I N E R