This calculator from Orchardshore Advances in Cleburne, Texas estimates the monthly payment and total cost of financing roofing trucks, trailers and equipment. Rates in any example are invented; a partner's offer sets the real terms.
How to Finance a Company Vehicle for a Johnson County, TX Roofing Crew
A work truck or a dump trailer is titled equipment, financed with the partner listed as lienholder. Bring the dealer invoice with the VIN, and for a used unit the mileage and title. Johnson County, TX had 47 roofing contractors with paid employees in 2023, 38 of them with fewer than five employees (County Business Patterns), so a second truck can be the purchase that lets a small company run a second crew.
Company Vehicle Finance Calculator: What to Enter
- Price: the quoted price, including upfitting such as racks, a dump bed or a ladder rack if it will be financed.
- Down payment: cash or trade-in value.
- Annual rate: the rate on an offer, or a test figure to see how the payment moves.
- Months: the term on the offer.
Every payment the calculator shows is equal, and no fees are built in. Add documentation or origination fees to the total by hand if an offer charges them.
A Business Loan for a Larger Contracting Company: Checking the Calculator Against an Offer
Illustration only, invented figures: a $52,000 crew-cab truck with a dump bed, $5,000 down, financed at an annual rate of 10.5% over 60 months. Entering those figures gives a payment near $1,010 and a total of payments near $60,613 (our arithmetic). If an offer's payment is higher than the calculator shows at the same rate and term, ask what fees or add-ons were included.
EBITDA and Debt Service: A Partner's Quick Check
Larger requests bring a ratio partners use to see whether payments fit: earnings before interest, taxes, depreciation and amortization (EBITDA) divided by total annual loan payments, called debt service coverage. A result comfortably above one means the business earns more than its payments. To test it yourself, take the year's profit, add back interest, depreciation and amortization, and divide by twelve months of all loan and lease payments including the new one.
Roofing Material and Payroll Are a Different Calculation
The calculator covers equipment. Shingles, underlayment and labor bought before an insurer or homeowner pays fit a line of credit, and the article on covering materials before a job pays works through a roofing job with invented figures. Financing for contractors covers the rest of the trade.
By Orchardshore Advances · Updated