When it comes time to upgrade your horse or livestock trailer, you might not have the cash on hand to purchase the trailer outright. If you don’t have the upfront capital for a new trailer purchase, then financing your trailer can often make the purchase possible.
Financing a horse or livestock trailer has an array of benefits. It can allow you to ensure that important business operations continue to take place. It can offer you the chance to upgrade the comfort of your animals. And it can help you overcome financial limitations.
If you are considering financing your horse or livestock trailer, check out our complete guide to everything you need to know about this form of borrowing.
Understand Your Budget
Before you explore financing for a horse or livestock trailer, it is important to assess your budget. There are two key considerations to outline before you begin conversations with a financing company or specialist.
- Available capital: When you purchase a horse or livestock trailer with financing, you’ll have the opportunity to put down money toward the total purchase price. How much money you can put down will influence the terms of your loan. The more you can put down the better, however, even if you have limited capital to use towards a down payment, most lenders can still work with your situation. A general rule of thumb is to make a down payment of 10-20% of the total cost.
- Monthly payment: Another factor to consider when creating a budget for the purchase of a livestock or horse trailer is how much money you can afford to pay each month toward the loan. Providing an estimate of what monthly payment will match your budget will help your lender and your salesperson assist you in finding the right trailer and loan.
Key Factors Used to Determine Your Financing Options
Once you know what financing will match your budget, you’ll begin the process of applying for the loan. This can be done through a bank, or in the case of our dealership, you can work directly with our team to secure financing.
How much you are eligible to receive financing for and the terms of your loan will be influenced by the following factors:
- Credit score: One of the most important factors to understand before applying for financing is your credit score. The higher your credit score, the better rates and financing options that will be available to you.
- Income: To ensure that you can pay off your trailer loan, your financier will want to know how much money you currently make. If you are self-employed, the previous year’s tax records can help establish your income.
- Income-to-debt ratio: In addition to understanding how much you currently make, your lender will compare this against any current debt you have. The lower your debt-to-income ratio, the larger the loan you may be eligible to receive.
- Business earnings: If you are purchasing a trailer for business use, the lender will usually factor in the amount of earnings your business can demonstrate through a Profit & Loss (P&L) statement.
Work with the Trailer Financing Team at Transwest
If you are interested in what financing options are available for the purchase of a new horse or livestock trailer, our team is here to help. When you work with the Transwest team to secure financing, you’ll experience all of the following benefits:
- Specialized Expertise: Financing a livestock or horse trailer isn’t the same as financing a personal vehicle. In many cases, your trailer is a vital part of your farm or ranching business. At Transwest, we have years of experience working with people just like you. We understand how to navigate situations unique to livestock and horse trailer financing.
- Hassle-Free On-Site Financing: You can work with our team. Skip the extra visit to the bank and take care of all of your business in one convenient location.
- Same-Day Approvals: In many cases, we can approve your financing the same day as your visit. Our goal is to make the process as efficient as possible so you can get back to work.
- Title Work Completed: Once your financing is secured, we can handle the title work on your new trailer for you. No extra paperwork after the purchase.
- Better Rates Than Most Banks: Often, when you opt for financing through Transwest, you’ll actually receive a better rate than a bank will offer you. We will be happy to help you explore what rates are available for your needs.
At Transwest, we offer a variety of financing options to fit your specific situation and budget. Our goal is to help you secure the best rate possible and to ensure that you feel confident in the solution you choose.
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