Financing a commercial truck for your business is very easy nowadays as it comes with fewer restrictions than conventional loans. For instance, most financial lenders ask for some type of collateral for you to receive a loan. This makes it difficult for a business that is just starting up to raise the amount of collateral required for the loan. Truck finance on the other hand uses the truck itself as collateral. This means that if a debtor failed to make payments, the truck itself is seized. Truck financing is also faster to process and even allows people with low credit to apply. Here are some tips on how to finance a commercial truck.
There are various options for you to choose from when looking to finance a commercial truck. You can choose between traditional lenders, alternative lenders or truck companies.
When working with traditional lenders such as credit unions and banks, you can easily find attractive rates on business loans. The downside of using banks and credit unions is the fact that their requirements are stringent. Some of these lenders will only finance companies that have been in business for more than 2 years with credit scores above 650. Some will only work with businesses that make $250K+ in revenue. However, if you meet these requirements, you can easily find truck finance with such lenders without any hiccups.
Alternative lenders are often sought by businesses that don’t qualify for loans from traditional lenders. Interest rates with alternative lenders may be higher than traditional ones but they will be willing to work with those with bad credit. These kinds of lenders hardly check your credit score when determining whether you qualify for a financing or not. As long as your company has been raking in descent income in the last six months, you can convince alternative lenders to offer you truck loan.
Truck companies, just like most auto dealers will be willing to offer truck financing to various individuals. While their requirements are stricter than those offered by alternative lenders, they are less strict than those with traditional lenders, making it easy for you to get truck loan.
The internet is a great place to start your search for truck finance. From the internet, you are able to find out whether you qualify for a loan and compare interest rates between different lenders. You can save a lot of money and time by searching online for different options available to you.