The best and easiest commercial truck financing means lower interest rates and lower monthly payments. Companies that are not sure that they’ve got the best deal on their loan may have difficulty in making a profit if most of their revenue is expended on repaying loans. The easiest way to avoid this scenario is to have a good business plan in place before seeking commercial truck financing.
When purchasing a commercial truck, it’s important that you’re sure of which one you want to buy. For this, you will need to research details such as brand, condition, model, and year. By doing so, you’re basically starting your commercial truck financing application on the right foot. If you plan to buy a brand new one, you can discuss this option with your chosen commercial truck financing company. But of course, you shouldn’t discount the prospect of buying them used. For a new fully decked 18 wheeler, you may have to shell out anything from $100,000 to $280,000. The money you can save can be used to make larger down payment or for maintenance on the truck itself.
Commercial Truck Financing Requirements:
Your personal credit is going to be just as important as your business credit to your future lender. You will have to do careful planning to get best deal on commercial truck financing. This means obtaining business credit reports as well as personal credit reports to make sure there are no mistakes on them that may lead to lowering of scores. If you find these types of mistakes on the credit report, you can easily have them removed before your chosen lender checks them. You should try to keep this score as high as possible, because higher credit score means lower rate and easier repayment terms.
Do everything possible to save for a substantial down payment; at least 20 - 25 percent will encourage most lenders to offer you lower rates on commercial truck financing. Companies that are requesting the full purchase price of the truck gives lender 100 percent of the risk. When you as a business owner decide to take on significant amount of risk from the lender, your commercial truck financing lender will try to reward you with lower interest rates. Loans with lower rates do not take long to pay off, and they also allow businesses to make profits sooner than they would be able to make with higher interest payments.
When in process of buying commercial vehicles, you should take the opportunity to become pre-qualified for commercial truck financing. When you do this, you know what type of rates lenders are offering and you also know what all terms you may be able to obtain. When you go ahead and buy truck with this knowledge, you can immediately compare the pre-qualified deals and choose the best one according to your needs.
Thousands of trucks are being sold in US lately. The economy is such that all those who drive trucks to make living are now deciding to go into some kind of business due to high price of gasoline. In fact, its now possible to easily find many used trucks in excellent condition that will have you have a much lower ticket price. You can now easily find thousands of such trucks online, and lower purchase price will also make it easy for you to afford 20 - 30 percent down payment for commercial truck financing.
By setting yourself to receive lowest possible rates and best possible terms, you can make it easier to obtain the financing you need.
How To Find The Best Commercial Truck Financing?
As you know, heavy trucking equipment can cost you thousands of dollars and can be extraordinarily expensive. So most trucking companies now rely on commercial truck financing to buy or lease dump trucks, semis, and other equipment which they need to provide their services. However, finding the best company that offers commercial truck financing at great rates can be difficult in some cases. Understanding how these loans work is important when trying to find a loan or lease, as this allows truckers to improve their chances of getting affordable commercial truck financing.
As discussed above, most commercial trucking companies look at credit scores before issuing loans. There are numerous factors that a financing company considers to try to accurately ascertain whether a business will be able to pay off the loan in a timely manner.
These factors include specific information about the loan application, such as number of years they have been in business. Many financing companies will preferably issue commercial truck financing to established companies, as this vastly improves the chances of their loan being paid back. Strong financial records and great credit history will also improve company’s chances of getting a preferable rate, so before getting financing on any trucking equipment, it’s important that company prepares its financial records and be ready to provide a great deal of income and tax info. A long history of profitability shows that company has relatively low credit risk.
The other big factors are the type of loan being requested and exact equipment being financed. It’s difficult to find longer loans, as this means greater risk for lenders. It’s difficult to receive commercial truck financing from companies that are not familiar with benefits, uses and cost of equipment that is being financed. Businesses should try to choose lenders that specialize in providing loans for heavy-duty commercial trucks and other related equipment, as they are in a much better position to assess risk of loans and can also offer lower rates to buyers. Many lenders also have list of trucks or equipment they will easily finance and brands they do not support.
When commercial, truck financing is needed, it is often possible to vastly improve chances of approval by choosing inexpensive models or used trucks. Provide as much credit information about your business as possible, and try for loans that can be paid off quickly and are affordable. Buyers with bad credit or first-time truck buyers can look for companies that specialize in commercial truck financing for these situations. Know the interest and terms of your financing agreement and also work with lenders that understand the costs and risks of trucks which you need. With an organized approach you will be able to finance heavy duty trucks at most affordable rates.
Questions? Give us a call at (866) 835-7150 or fill out our inquiry form today.
Commercial Truck Financing
Prudential Leasing Inc. 6757 Arapaho Rd, Dallas, Texas 75248 USA: (866) 835-7150 LONDON UK: +44 (0)207 9935311