Expanding your fleet – finance vans or tap your line of credit?

Replacing or adding vehicles is expensive, and using your working-capital line of credit to buy trucks ties up funds you need for payroll and supplies. SBA 7(a) loans offer 10-year terms for equipment purchases, making them ideal for vans and installation tools. You can also lease vehicles through a dealer or fleet management company; leases free up cash but may be more expensive over time.

Compare the total cost of ownership, including maintenance and mileage caps. A small term loan or equipment lease keeps your revolving credit line free for emergencies. Whatever route you choose, maintain your vehicles—nothing drains cash like a dead van in August with five installs scheduled.