TFS and WEX launch equipment financing for carriers after 3-year freeze
Multi-lender platform matches WEX fuel-card customers with truck and trailer loans. Fleets delayed replacement cycles from 3-4 years to 6-plus during the freight recession.
TFS Financial and WEX launched a joint equipment-financing program June 22 for carriers who put off buying trucks and trailers during the three-year freight downturn. The program gives WEX Over-the-Road fuel-card customers access to TFS's multi-lender platform, which matches borrowers with financing providers based on credit profile, asset type, and loan terms.
What does the TFS-WEX equipment financing program actually do?
The program connects WEX fuel-card customers to TFS Financial's network of lenders. TFS matches a carrier's credit profile, the type of equipment (truck, trailer, or other transportation asset), and the loan term to a financing provider. Aaron Case, president of TFS Financial, told FreightWaves the goal is to become "the one-stop shop for transportation finance."
WEX is a payment-processing company based in Portland, Maine. TFS Financial is based in Vancouver, British Columbia. The program covers carriers across North America.
Why are fleets buying equipment again now?
Fleets delayed equipment purchases for more than three years during the freight recession. Noel Glasgow, vice president of sales for WEX's Over-the-Road business, told FreightWaves most trucking companies replace equipment on a three-, four-, five-, or six-year cycle. Many extended that timeframe because of the downturn.
"We've been asked a lot about financing equipment, especially this year," Glasgow said.
Carriers are returning to the market now even as they face high operating costs, rising equipment prices, and tighter lending conditions. The program launch signals TFS and WEX see demand picking up.
What this means for a 1-to-10-truck fleet
If you run a WEX fuel card and you've been holding off on replacing a truck or trailer, you now have a direct path to multiple lenders through one application. The multi-lender model means TFS can shop your credit profile to several financing sources instead of you applying to each one separately.
The sources do not specify interest rates, down-payment requirements, or monthly payment examples. If you're considering a purchase, ask TFS for a quote based on your credit score, the truck's age and mileage, and the loan term you want. Compare that quote to your bank and to any manufacturer financing the dealer offers.
Fleets that stretched replacement cycles to six years or longer are now running older equipment. Older trucks cost more to maintain and burn more fuel. If your truck is past its normal trade-in point, the financing cost may be lower than the combined maintenance and fuel penalty of keeping it another year. Run the math on your actual repair bills and fuel consumption before you decide.
