Similar to other utility vehicles, platform trucks are used to carry small loads in warehouses. The l-shaped structure is very useful in commercial and industrial applications since it improves efficiency and adds ease. Instead of getting your staff to manually move heavy objects, a platform truck can both speed up the process and help with morale. Of course, like other warehouse-specific utility vehicles, platform trucks are an investment. For this reason, many seek out platform truck equipment loans to help finance the purchase of much-needed equipment.
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Difference Between Platform Trucks and Hand Truck
Though platform trucks and hand trucks have a great deal in common, they are far from being the same tool. A hand truck has a small base that’s used to slide underneath a heavy object like a fridge or a stove. There are two large wheels at the back which lead to a large handle. After you slide the base underneath the heavy object, you pull it backwards with the wheels acting as a fulcrum for the lever. While tilted, you can use the wheels to transport the object more easily.
A platform truck is significantly different in both design and application. The large base has four wheels beneath its surface. At the back of the platform is a large handle which you use to move and direct the platform truck. A key difference is that, while a platform truck can handle heavy objects, it can’t pick them up. Once an object is placed on the platform, the size of the structure spreads out that force over the substantial surface area, allowing it to tackle really heavy loads.
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Benefits of Platform Trucks
There are countless benefits to having a platform truck, especially when you’re working in an industrial or commercial setting. The risk of injury resulting from lifting unsafely can do more than impact employee morale (and health), it can result in substantial downtime that affects your bottom line. A platform truck is a necessary tool to have around, not only because it improves overall efficiency, but because it is a valuable way that you can improve the safety of your workplace. There are tons of benefits to platform trucks, including:
- Hold objects in place to prevent damage
- Help you carry really heavy loads
- Makes it easy to move heavy objects
- Not prone to rapid wear and tear
- Relatively easy to repair if it breaks
- Fairly inexpensive relative to the value
How Much Does it Cost to Finance a Platform Truck?
When going to make an investment in platform trucks, you are likely to want to limit the burden of that expense through financing. The good news is that there are a lot of options available to you in order to make the financing process smoother. When you choose a well-structured loan, you can pay the lowest amount possible for the platform truck. Consult with loan comparison sites to get a full picture of what to expect out of your loan. A good example of what it will look like to get a platform truck loan is:
| Cost of Platform Truck | $568.17 |
| Interest Rate | 1.5% |
| Term | 1 year |
| Sales Tax | $5.68 |
| Monthly Payment | $47.73 |
| Total Payment | $578.48 |
Now, let’s consider a larger warehouse where you will likely need multiple platform trucks to get the job done. While one may seem like a small investment, and one where you may not require an equipment loan, when you consider how many platform trucks you are actually going to need, the number changes drastically. Let’s consider a mid-sized warehouse where your staff could benefit from six platform trucks.
| Cost of 1 Platform Truck | $568.17 |
| Cost of 6 Platform Trucks | $3409.02 |
| Interest Rate | 1.5% |
| Term | 1 year |
| Sales Tax | $34.09 |
| Monthly Payment | $286.40 |
| Total Payment | $3470.87 |
In this situation, the usefulness of an equipment loan makes itself clear. You get the benefit of the equipment throughout, without having to make a four-figure initial investment. It keeps your monthly costs minimal while giving you the utility benefits of the platform truck. While interest rates may vary depending on your credit (and several other factors), with these smaller-scale purchases, even a higher rate of interest will likely not break the bank.
Additionally, note that this is set to a year-long term. If you are looking to reduce your monthly payments, you will be able to do so by looking for a longer loan term. While it will result in you paying a higher price on the equipment in the long run, it can free up funds in the short term for you to invest in other aspects of your business.
Learn more about how you can finance your truck.
Who Finances Platform Trucks?
There are many different approaches to getting financing for a platform truck. Since this equipment is reasonably priced, it enables you to use several approaches to access the funds. If you have a line of credit, for example, you would be able to use these funds toward your equipment. However, if you are a newer company or one without well-established financial approaches, there is good news: you can still get equipment financing to help your business thrive.
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Equipment Financing
This type of financing is designed specifically for use on machinery and equipment. While, for these purposes, the loan refers to the purchase of new equipment, it can also be used for repairs. For example, if all of your platform trucks break down in the future and you need to fix them, but the cost is too high, you can use an equipment loan.
Equipment financing is straightforward. You approach a lender with the purpose of getting an equipment loan to invest the funds into tools for your trade. It gives you immediate access to the capital you need in order to purchase machinery (simple or complex) for your business. The equipment becomes the collateral for the loan. Provided you make your regular payments on time and in full, you continue to have access to the machinery which you purchased.
Conversely, if you default on the loan (miss a payment, make late payments, or don’t pay the loan installment in full), then the lender can repossess the equipment. With platform trucks, the monthly cost, even if you purchase multiple pieces, is relatively low. As a result, defaulting on the loan is far less likely. Plus, this kind of secured loan can help you build credit and make your business more likely to qualify for a larger loan in the future.
Where To Get Equipment Financing
While there are multiple approaches to getting financing for equipment, the right method depends on many different factors. The best thing to do is to consult a loan comparison platform. It will give you real numbers so that you know what to expect in terms of eligibility, interest, and more. Major financial institutions are often looked to for their competitive interest rates; however, if your business is new or doesn’t have an active credit profile, then you may not qualify.
Learn more about how an equipment loan can help finance your platform truck.
That’s where alternative lenders enter the equation. These companies orient their services toward individuals and businesses with poor credit. They are also a good approach for companies who are new to the market and have not yet established a credit profile. While these lenders are likely to offer moderately higher rates of interest, even if you have bad credit, you can still access an equipment loan.
Term Loans
A term loan is another approach to financing your equipment. This type of loan is most commonly offered through major banks and large financial institutions. That said, many alternative lenders also supply term loans. Unlike a line of credit, where once you pay off the amount spent you regain access to the full amount of funds, a term loan is for a fixed amount.
When you get a term loan, otherwise known as a regular installment loan, you borrow a specific amount of money for a set term. The lender and borrower agree on a set schedule for repayment, with common approaches being either biweekly or monthly. Depending on the situation, you can get either floating or fixed rates of interest on the loan.
Keep in mind that the duration of term loans differs depending on the situation. Longer loans have a fixed payment schedule while shorter loan terms are likely to result in a balloon payment (substantial amount to pay off at the end). The structure for your term loan will depend on both the lender you choose and your personal and business financial situation. Do your research in order to access a loan with the most competitive terms possible.
Final Thoughts
Proper equipment is essential to the smooth operation of any business. Resultantly, equipment loans are a very critical part of the economy. Whether you need a loan for your platform trucks or require a larger-scale approach to overhaul your factory’s equipment, there are options available. By financing the cost of your equipment, you can avoid high costs upfront and use your business’ funds to benefit the company in the most prudent way possible.
