What Is Bucket Truck Financing?
April 12, 2023 ⚊ 1 Min read ⚊ Views 109 ⚊ FINANCE
Bucket truck financing is a type of financing which is used by trucking companies to purchase new trucks. It\’s also known as dumb truck financing because the money goes in a bucket and the company selects its own trucks.
Bucket truck financing allows even small companies to have access to capital without having to go through the hassle of collateral, credit lines, or other traditional means of funding a vehicle purchase.
The reason why one company may be able to obtain bucket truck funding is because they meet the \”credit score\” criteria that the company uses for getting credit. For example, if a large bank offers an interest rate on loans at 1%, smaller banks may offer more than 2%. In this case, if you have an interest rate higher than 2%, you may get bucket truck funding from them as well.
The downside of this type of financing is that it has no collateral and leaves your assets at risk in case things go wrong with your business.
