Road projects, site work, demolition and material supply contracts often need more trucks than you have today. When you win one, the clock starts: the job has a start date, and the trucks need to be ready. The good news is that a signed contract can be one of the strongest parts of a financing request, if you present it well.
Why a contract helps your approval
Lenders want to know how the new payments will be covered. A signed contract shows exactly where the revenue will come from, how long the work will last and who is paying. That's much stronger than "we expect to be busy."
What lenders look at
- The contract itself: who it's with, the scope of work, the length, the rate structure and how many trucks it requires.
- The customer: work for an established general contractor, municipality or material supplier is easier to rely on.
- Your track record: years hauling, similar jobs you've completed, and how long you've worked with this customer.
- Your current business: bank statements, and tax returns for larger requests, to show the business is healthy beyond this one job.
- The trucks: year, make, mileage and condition of the dump trucks you plan to buy.
Build a simple contract summary
Along with the contract, a one-page summary makes the lender's job easier:
- Who the contract is with, and the start and end dates
- How many trucks the job needs and how many you're adding
- Expected monthly revenue per truck, based on the contract's rates
- What the trucks will do after the contract ends, such as other accounts or the next season
That last point matters. A five-year loan on a six-month job needs a plan for the other four and a half years.
Timing: start early
Begin the financing conversation as soon as you know you've won the work, or even while the bid is pending. Finding the right trucks, getting quotes, approval, documents, insurance and registration all take time. Starting early keeps you from scrambling, or renting at high rates, when the job begins.
New or used dump trucks?
New trucks qualify for the longest terms, which keeps payments lower, and come with warranties. Good used trucks cost less up front and are often available right away, which can matter when a job starts soon. Many haulers mix both. Terms on used trucks depend on age, mileage and condition. Read new vs. used equipment financing for more on the trade-offs.
Seasonal and short-term work
If the contract is seasonal, say so up front. Some programs offer payment structures that account for slow months, and a lender who understands your season can structure the deal around it.
Don't forget the rest of the setup
Dump bodies, tarps, and equipment trailers can often be financed with the trucks. Line up insurance before delivery, and check registration and permit requirements for the work.
Checklist before you apply
- A copy of the signed contract or award letter
- Your one-page contract summary
- Three to six months of business bank statements, plus tax returns for larger requests
- Quotes for the trucks: year, make, model, VIN, mileage and body details
- Your USDOT number and insurance agent's contact
Just won a hauling contract? Send us the details and we'll tell you what the deal will need. See everything we finance for dump trucks and work trucks, or estimate payments with our loan calculator.