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North Mill Equipment Finance Commercial Truck Financing

For small business owners looking to meet their equipment needs, North Mill Financing is the go-to option as it provides loans to almost all businesses operating in different sectors, and one of the few financiers willing to go out of their way to accommodate their clients, even with a bad credit score.

Headquartered in Norwalk, Connecticut, North Mill Financing has been in the financing business since 1957. The company sponsors small companies to a whopping $300+ million annually with a wide array of financing options.

Rachel Dayan Headquartered in Norwalk, Connecticut, North Mill Financing has been in the financing business since 1957. The company sponsors small companies to a whopping $300+ million annually with a wide array of financing options.
Rachel Dayan
July 22, 2022

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Imagine you are a small business owner facing cash flow problems. The expenses you incur exceed the revenue being generated by your business. You know that most of your costs are incurred in transporting the supplies and delivering the orders. In such a case, the need for a delivery truck becomes especially dire. However, you are hard-pressed for cash and cannot splurge the money on a delivery truck. 

Many lenders out there have created a special financing service called equipment (truck) financing to solve this problem. In this article, we will help you understand the process of commercial equipment/truck financing

North Mill Equipment Finance is one of the many financiers in the commercial financing industry that helps businesses finance new equipment. Read on as we help you navigate the process of obtaining a commercial loan from North Mill Equipment Finance. Oh! We forgot to mention that North Mill Equipment Finance is the oldest and one of the best commercial truck financing lenders in the equipment leasing business.

North Mill Equipment Finance

North Mill Equipment Finance is an equipment financing company that has been in the financing business since 1957. The company is headquartered in Norwalk, Connecticut. The company sponsors small companies to a whopping $391.4 million annually. North Mill Equipment Finance has a wide array of financing options. Its financing options include loans, leases, and equipment financing agreements (EFAs). 

Additionally, the firm also helps you refinance your business or get cash-out to solve your bad cash flows problem. The cash-outs or financing can be obtained by using equity from unencumbered (assets without any claim against them) assets to finance present loans. The range of options and the easy loan process mean that almost any business can get loan/financing from North Mill Equipment Financing. 

So, if you are a small business owner looking to meet your equipment needs, North Mill Financing should be your go-to option as it provides loans to almost all businesses operating in different sectors. Besides, North Mill Equipment Financing is one of the few financiers that will go out of their way to accommodate you even when you have a bad credit score. 

The finances of small businesses in North Mill Equipment Finance include construction, transportation, material handling, commercial printing, trailers, etc. The companies explicitly excluded from the above list are Deals (those that occur outside the US), computer/softwares, Makeup/sale equipment, vending, small trailers, exercise-related equipment, etc. 

Nevertheless, many of these businesses barred from North Mill Equipment loans can still request financing, as the restrictions on even these businesses vary on a case by case basis. Also, the flexible credit requirements mean that you will likely get funding without going through a dissuading application process. 

North Mill Equipment Finance ensures utmost transparency and clarity. Furthermore, the pricing, offerings, and preconditions attached with loans from North Mill Equipment can be directly checked on their website. So, you don't have to worry about the strings attached with the financing that you will receive, as everything that goes into your deal will be laid bare before you. 

North Mill Equipment Finance works with types of industries with completely different credit profiles, and that's what makes this platform truly one of its kind. Whenever it comes to securing a loan for truck financing of your small business, you should go for North Mill Equipment loans as they are both easy to obtain and charge lower back interest rates. 

“Every business has unique problems and solutions to those problems”

Who Should Apply for Commercial Truck Financing with North Mill Equipment Finance?

North Mill Equipment Finance understands that every business has unique problems and solutions to those problems. That's why all the deals designed by the teams at North Mill Equipment consider the nature of the issues faced by the individual clients. 

The portfolio of solutions, as well as the structure of a solution to any/all the financial problems of a client, is flexible plus comprehensive so that it is ensured that the customer gets the right kind of deal, whether it's a lease/loan (that comes with interest rates that the customer can bear). 

Below are a few of the financing options used by North Mill Equipment Finance:


Equipment Finance Loan is a type of loan where the underlying asset secures the loan. The amount borrowed for equipment borrowed is paid over some time. In most cases, this period stretches from 36 to 60 months. 

The pros of a loan from North Mill Equipment include the transfer of legal to the borrower forthwith, tax benefits of direct ownerships, and less paperwork required in this type of financing. Lastly, this is one of the customer-favorite options as it works with virtually all credit scores. 

Terminal Rental Adjustment Clause (TRAC)

This type of lease is specifically designed to help finance the trailer or truck for a customer's business needs. In this deal, the customer (individual business owner) can get a residual value from the North Mill Equipment manager when the lease ends. 

So, to get complete ownership of your truck/trailer, all you will have to do is pay the asset's residual value to your manager and be the owner of your first truck. However, if you don't seek to purchase the asset, you can re-lease or return it. 

The benefits of this type of deal include an actual purchase option when you lease the help, getting a share in the proceeds when you sell the asset, lower monthly installments compared to loans, and using monthly installments as tax deductions. 

Fair Market Value Lease (FMV Lease)

Using this option at North Mill Equipment Finance, you can obtain any equipment (for a preset number of months) you will need for smooth business operations. 

When the lease is going to end, the buyer usually has three options: purchase the asset for its fair value on that date, continue leasing the asset if needed, and return the support and upgrade to a new one (again if required by the business). The customer benefits for this deal are a lower monthly charge than a loan and the ability to use equipment loan payments as tax deductions. 

One Dollar ($1) Buyout Lease

This unique type of lease allows customers to buy the equipment for just one dollar when the lease is ending. However, there is one string attached; the monthly payments with this type of deal are higher because you get to own the asset for just one dollar at the end of the lease. 

If you need the equipment after the lease ends, it's better to go for this option. The advantages of this agreement are the probable improvement of cash flows, the opportunity to purchase the equipment, and lower monthly installments.

$101 Buyout Lease

This type of lease is available only in California and Arizona. This deal is similar to a $1 lease in its structure. Like a $1 lease, this lease entails a higher monthly payment than a Fair Value lease. If the equipment is a major part of your business operations in the future, you should go with this lease. The benefits of this lease include potential tax deductibles in the form of monthly payments and lower monthly payments. 

Other special services by North Mill Equipment Finance include Brokers Welcome, Custom Structures, Franchise Specialty, Monetary Incentives, Poor Credit/Bankruptcy, Portfolio Purchases, and Titled Vehicles. 

“At North Mill Equipment Finance all the different credit scores are considered”

How Does a Customer Qualify for Commercial Truck/Equipment Financing for North Mill Equipment?

North Mill Equipment Finance has very liberal and far from stringent credit criteria. North Mill Equipment Finance doesn't want stellar credit scores as a lender. All the different credit scores are considered. Even if you have a category C credit score, your application will be considered, and the applications from clients with category A and B credit scores. 

However, like most lenders, North Mill EF has a minimum FICO score threshold set at 550. Besides the minimum FICO requirements, you must also be in the business for at least three years to get a loan/lease from the North Mill EF. 

Nevertheless, this lender does not go as far as to ask for proof of home ownership before it lends you equipment or a loan. You can also use other unencumbered assets (if you have any) towards the down payment. You will also need a guarantor for your Application at North Mill EF. After a rigorous background check on the customer and the guarantor, financing is granted. 

North Mill Equipment Finance has a brilliant policy for customers who need immediate loans. This program to rescue customers with quick loans is called Application Only (App Only). Under this initiative, to avail loan, all you need to do is sign a credit application and bring the equipment invoice along with the equipment specifications. That's how easy-breezy the entire quick loan process is. 

Moreover, if you don't have the cash to meet the down payment requirements on your leases, you can pledge your other assets as down payments. However, the collateral pledged like this must be owned by the customers and free from any underlying claims/charges. 

Even though some businesses are barred from applying for loans/leases at North Mill Equipment Finance, such companies too can avail loans from North Mill EF as they decide all applications on a case-by-case basis. 

Application Process for Obtaining North Mill Equipment Financing

North Mill Equipment Finance is straightforward to follow. The entire process is online and entails flexible requirements to avail loan. Also, the application process finishes in a few short steps. Following documents are required for your Application for a loan/lease to be considered:

However, as said earlier, you can also get a loan separately under a program called Application Only. The loans or leases under this scheme can only be financed upto $150,000. For loans exceeding $150,000, you should file a separate application. 

It is also important to stress that, unlike other lenders, North Mill Equipment Finance understands that some customers are looking for an immediate solution to their problems. That's why North Mill EF processes loan applications in under 48 hours. 

North Mill Equipment Finance understands the importance of the Third-Party Referral Agents (TPRs) in streamlining the loan/lease process. The company has hired many agents to help its customers have a smooth loan/lease financing experience. 

“North Mill Equipment Finance ticks all the right boxes that a good lender should”

North Mill Equipment Finance: Services in the Financial sector

Unlike most lenders, North Mill is a direct lender and has extensive capital to finance equipment and commercial truck financing loans. Using North Mill's services, you can refinance loans anywhere from $50,000 to $10 million. North Mill EF involves other lenders if the loan amount exceeds the limit above. 

North Mill Equipment Finance is one of the few firms that gives asset-based loans. North Mill Equipment Finance broadly helps businesses by issuing a new credit facility and refinancing existing loans. In addition, North Mill is also interested in acquiring new portfolios that may include purchasing loans from other lenders and banks. 

North Mill EF offers other unique lending options. One of these includes a little something called '10-10 program'. This entails a 10 percent reduction in down payment and a 10 percent reduction in interest rates. The program applies only to vintage equipment. 

North Mill Equipment Finance Interest Rates

North Mill Equipment Finance ticks all the right boxes that a good lender should. For instance, it allows businesses with not-so-good credit rates to avail of loans. Similarly, the company serves many more industries than most of its competitors. 

Nevertheless, customers have often complained about the high-interest rates charged at North Mill Equipment Financing. Below we break down the interest rates (and other terms and conditions) part of the North Mill Equipment Finance deal. 

Term of the Loan

The loans obtained from North Mill Equipment Finance and the loan repayment term depends on the loan amount. However, generally, the loan term falls within 30-60 months. 

Amount of the Loan/Lease

Customers have usually complained about the 'illiberal' loan given by the North Mill. The complaints are not misplaced, but it is important to keep in mind that North Mill EF specializes in small-ticket equipment. The loan amount usually ranges between $15,000 and $300,000. 

Interest Rates

Like loan terms, the interest rate also varies with the amount of loan undertaken. The borrowers can expect the interest rates to fall anywhere between 7.5 to 30 percent

Down Payment

Down payment demanded by the North Mill is another bone in the throat for most customers. The company asks for a whopping 10-50% of the value of the underlying equipment as a down payment. In contrast, most companies in the lending business ask for virtually nothing when it comes to the down payment. Customers with cash flow problems may find it difficult to meet the conditions for the loan given by North Mill EF. 

Other Costs

Other costs may include an application fee and a documentation fee. North Mill charges $600 for documentation of its loans and leases. Besides this, additional fees may also be charged depending on the services asked for. For instance, if you want North Mill to inspect the site where the asset is supposed to be installed, you might be charged additional costs. 

Similarly, insurance for the underlying equipment is also borne by the customer. In some cases, the lender directly insures the equipment and then charges you the insurance cost. In the absence of such service, a third-party insurer is usually hired to ensure the asset. In either case, the price is part of the loan/lease. 

Effective Interest Rate

Interest rates are compounded over time. That's why it's important to know effective interest rates (the interest rate that adjusts for the effect of compounding). After adjusting for the impact of compounding, the annual effective interest rates paid by North Mill customers range between 7.5 to 30 percent. 

While the down payment and interest rate requirements are rather dissuading, we would like to point out that it rarely happens that a customer is asked to pay a 50 percent down payment or is charged a forbearing interest rate of 30 percent. If you have a decent credit score of 600 FICO, you can expect your down payment to be 11-15 percent. Similarly, the interest would also be much lower than 30 percent or 25 percent. 


What is commercial truck financing?

A commercial truck is a special kind of loan agreement designed to meet the transportation needs of small businesses. At North Mill Equipment Finance, customers are given the Terminal Rental Adjustment Clause (TRAC). These are special kinds of loans designed to help customers buy trailers/trucks for their business. 

Similarly, commercial truck loans can also be obtained to buy a car. However, getting loans from banks or other traditional lenders entails a cumbersome process. 

What should I do to obtain an equipment loan?

A business is usually only given the equipment loan if the industry has been doing business for at least two years. The loan is given to companies that seek to expand their business or take on more portfolios. The loan is also contingent on your credit scores. 

It is important to check the interest rates, down payment, and loan terms of the lender you seek to obtain the loan. It is quintessential for your business to have the ability to pay back the monthly installment. Otherwise, a defaulting situation may occur. 

Which is better: a loan or a lease?

Choosing a commercial lease over a loan depends on several factors. All of these factors are decided by the circumstances of your business. If you need a truck for just a short period and it's not going to be an essential part of your business, you may lease the truck. Leasing allows more flexibility in installments and down payments as the interest rate is also lower. 

In this case, you won't own the asset at the end of the lease period. If you are looking to own your truck that will help improve the cash inflow of your business, then you should go for a loan. 

Can I finance a truck with bad credit?

It depends on your lender. Most lenders will not give you a loan if your credit score is below 500 FICO. The credit score is generally divided into three categories: category A creditors, category B creditors, and category C creditors. However, lenders also finance start-ups under certain conditions. 

How does truck/equipment financing work?

When it comes to a loan, the customer should fill out an application form wherein you will fill in all the relevant details. Afterward, the Application will be reviewed, and the loan will be granted if the application is approved. To get a loan, the customer should show a decent credit score, a business standing exceeding at least two years, and a consistent revenue exceeding the business's costs/expenses.

Lenders also give equipment leases with varying interest rates and down payments. Some lenders don't take down the charge and instead demand the finance cost of the complete purchase. Similarly, the repayment schedule also differs across lenders. Lenders may ask for monthly, quarterly, and annual payments. 

What is the difference between an equipment lease and an equipment loan?

There are different kinds of leases. In Operating leases, the title of the equipment doesn't transfer to the customer, while in the Finance lease, the ownership stays with the lender. Leases are financed via monthly payments until the lease term is complete.

Commercial loans, on the other hand, entail down payment. Moreover, the title transfers to the customer when the loan is repaid.

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