First Star Capital was able to finance 2 Brand New Isuzu Reach Vans for a Home Delivery Contractor out of the Carol Stream Terminal. Here is his story:

Rivera’s.com Courier Service operated 6 vehicles on their Home Delivery routes, but Luis needed a couple more to add to his growing business. Luis realized that the Reach Work Truck would fit his routes perfectly, and First Star Capital was able to quickly source and finance 2 Brand New Reach Vans for Luis. Here is what he had to say:

” I just wanted to thank you and your team for making this transaction for my company’s two new Isuzu Reach’s a pain free experience. Everything about the process was extremely straightforward and really fast considering the large purchase. In my past experience, dealing with financial institutions is not a comfortable experience when you start talking about the FedEx business model…but you and your company’s knowledge about our business…gives your company a leg up. Hopefully business continues to grow and you will hear from me about a new truck soon.” – Luis Rivera

First Star Capital is a resource for all FedEx Contractors. Whether you’re FedEx Ground P&D, FedEx Home Delivery, FedEx Ground Linehaul, or FedEx Custom Critical, we have competitive and customizable programs for your growing FedEx business.

For the most part delivery contractors have always preferred diesel vehicles over gas. Reasons such as, decent fuel mileage, “bullet-proof” engines, and cheaper to operate than gas vehicles, have been true for decades. But with a new crop of gasoline fueled work trucks, the traditional diesel platform is getting a run for its money.
In today’s work truck market we see much more variety than we have ever seen before. In a world that used to be dominated by diesel Freightliners and Workhorses, we now see manufacturers such as Chevrolet, Ford, Isuzu, and Nissan offering both gas and diesel options.

Are these gas work trucks just full of hot exhaust or are there reasons why they have become popular as of late? Let’s look at some pro’s and con’s of both gas and diesel vehicles.

 

Gas Vehicles

Gas Pros:

• Lower initial cost – Gas work trucks in the 1,000 – 1,200 cubic foot range tend to be $10,000 – $15,000 cheaper than their diesel alternatives.
• Lower maintenance cost – Gasoline engines are the most popular engine in the United States. Gasoline engines don’t need special mechanics or special parts to stay up and running. A Ford gas V-10 in a F59 P1000 is the same Ford gas V-10 in a consumer F-350.
• Noise – Gas engines tend to be quieter than diesel engines. For the average person that drives a couple of hours a day at the most this isn’t a big deal, but when your vehicle is your office and you are on delivery routes for 8-10 hours a day, engine noise is a difference maker.
• Fuel Prices – With the nationwide average of gas selling at $3.50/gallon and diesel at $3.80/gallon, it is becoming much cheaper to fill up on gas rather than diesel.

Gas Cons:

• Fuel Mileage – While gasoline engines have become more efficient over the years, they are still not as fuel efficient as diesel engines.
• Durability – Diesels are known for being “workhorses”. Gas motors have never been able to tick the odometer as high as a diesel engine. While advancements in technology have made gasoline engines more durable, diesels still take hard beatings the best.

 

Diesel Vehicles

Diesel Pros:

• Fuel Mileage – Diesels typically get 20%-30% better fuel efficiency than the average gas engine. This can be a huge $$$ saver when your delivery route is 150 miles a day!
• Durability – As mentioned before, diesels take a beating (and usually) keep on ticking.
• Torque – Diesel engines have the unique ability to move heavy loads without straining engines. While they will not win any top speed tests, diesels can move outrageous cargo loads slowly but surely.

Diesel Cons:

• Initial cost – Diesels can be pricey, with price tags about $10,000 – $15,000 higher than comparable gas vehicles.
• Maintenance cost – While diesels may not need as much work as gas engines, the work they do need can often be more expensive. Also newer diesel engines often require special additives to create cleaner emissions. This additive is fairly cheap in the grand scheme, but if that additive isn’t replaced when required, it effectively turns your $60,000 investment into a stationary storage unit, as the engines are programmed to not operate in the absence of the additive.

 

Whether it is gas or diesel, both engine options their up’s and down’s. It is up to you to figure out which works best for you and your business. Work Truck Direct makes available all the most popular Gas Work Trucks and Diesel Work Trucks, pick your poison.
Work Truck Direct is the vehicle sourcing division of First Star Capital. Whether it is a fleet of vehicles or single vehicle, Work Truck Direct can source it. We help commercial drivers and delivery contractors find the vehicles they need to operate their business and provide the industry’s best funding solutions to acquire the newest addition to your fleet.

Find Your Next Work Truck Here →

 

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Keeping your borrowing information organized and at the ready is a key to receiving quick decisions from any lender.

For most leases under $75K, one-page credit application and a few months bank statements. However if you are looking for a higher dollar amount or a special circumstance arises, more information is often needed. To save time, frustration, and possible declines take a few steps each year to keep updated information at the ready.

At First Star Capital we look at applications at many different levels of preparedness. Having seen our fair share of applications, our initial screeners have a good idea of how far an application package will go based on how well prepared the application is.

The following is a list that Sam Thacker from Allbusiness.com has put together, with a synopsis from our own experiences at First Star Capital:

1. “Make sure all shareholders who own more than 20% of the company, know what their credit scores are.” Shareholders that own large portions of the organization (20% or more) should know about any negative characteristics on their personal credit. If these shareholders are not in the process of fixing these negative aspects of their credit, they should do so quickly. These negative marks on credit can become easy targets for lenders to focus on. Fixing these aspects or having an explanation as to their reason will be necessary for many transactions to get past initial screeners.
2. “Keep accurate and up to date business organization records available in one place.” Having easy access to organized business formation documents is a great way of streamlining the application process. Many lenders will not just take your word on how long you have been incorporated. In fact, most of them will a copy of state supplied documentation. Having these files at arm’s length will greatly reduce any questions as to the legitimacy of your company, and speed along the lending process.
3. “Keep good accounting records.” First Star Capital does not require financial/accounting records for deals under $75,000. However, for transactions that require larger lending amounts, financials are almost always required, and having detailed, organized, and audited accounting records will reduce many headaches in your borrowing future. The reports that are most commonly requested are Income Statement, Balance Sheet, Statement of Cash Flows, and Tax Returns.
4. “Have all shareholders who own more than 20% of the company, keep a personal financial statement up to date.” Personal financial statements for large stake holders in the organization are often just as important as their credit score. Typically up to date personal financial statements are best, but it is acceptable to receive some up to a year old.
5. “Management should keep busy.” Corporate information is easier than ever to retrieve. Management should make sure that all taxes and governmental reporting has been done properly and on time. Lenders initiating due diligence will quickly discover any discrepancies in these records, and will quickly disengage.

85% of all U.S. based companies are currently or have leased some sort of equipment to operate their daily business. Is your small business prepared when it needs to submit an application for a lease? Here is part one of two of a “Borrowing Checklist.”