The factors which help you qualify for commercial truck financing may not exactly be a secret, but they are different from traditional business loans. Approval requirements for commercial truck financing are generally not quite as stringent as they are for traditional business loans, because the truck itself serves as collateral for the loan.
Here are the most important factors which will help get you qualified for commercial truck financing.
Since the truck itself serves as collateral for the loan, any lender will take a close look at the actual condition of the truck. It will be significant whether the truck you’re interested in is a long-haul truck or a vocational truck such as a dump truck or a garbage truck, primarily because of the anticipated wear and tear on a long-haul truck.
The main thing a lender will look at in terms of the truck seller, is that you’re buying from a reputable dealer as opposed to a private party. While a truck that’s in great condition might be purchased from a private party, lenders prefer that the seller be nationally known for its manufacturing quality.
While you can still secure commercial truck financing even with a relatively poor credit score, you’ll probably get much better rates when you have a good credit score, simply because you present less risk to the lender. A good credit score demonstrates that you are a responsible borrower, and that gives lenders more confidence in your repayment ability.
Down payment capability
While almost everyone will be required to make a down payment in order to secure commercial truck financing, it can be very helpful if you can put down more than the required 15% amount. This will demonstrate to a lender that your business is in good condition, and that you have good cash reserves.
If your business has any kind of delinquencies, repossessions, or tax liens on the public record against it, you may have difficulty securing commercial truck financing. A clean business on the other hand, shows a lending company that you have a good track record for managing your company finances, and that you would be a good candidate for a loan.
Financing for commercial truckers
The commercial trucking industry has its own set of needs for financing, and we at Goldendale Capital are familiar with those needs.
Contact us today to discuss any specific financing needs your commercial trucking firm may have, and to make any inquiries you might have.