![]() With a bank, you may benefit from an existing business relationship, which may make it easier to get approved for a loan, or even get a discount on your rate. There are advantages and disadvantages to each. the banks that offer business checking accounts) and alternative online lenders offer semi truck financing. Alternative Lenders for Semi Truck Financingīoth traditional banks (i.e. Truck financing companies have plenty of experience working with businesses in the industry and are great if you want that level of specialization.īanks vs. Direct commercial truck loans: This financing comes from lenders that specialize lending to trucking businesses.Some of these loans can get funding into your bank account as quickly as the next business day. Alternative business financing: Online loans can be great if you’re looking for quicker funding than a bank might be able to offer.Lower interest rates mean you’ll pay less to borrow money over time. Traditional bank loans: If you’re looking for the lowest interest rates on financing, financing from a traditional bank often gives you the best rates.Most trucking business owners look to one of the following: There are multiple routes you can explore when you’re searching for commercial truck financing. You may also be required to make a down payment upfront as part of the application process, so plan for that possibility. They will present you with the interest rate you will pay on your loan, and if you agree to the financing terms, you’ll sign on the dotted line and start making monthly payments on your purchase. Once you’ve submitted your application, lenders will look at your qualifications (more on those in a bit) to determine which financing options they can offer. The one upside here is that you don’t have to find other assets to serve as your collateral. Should you run short of money for a few months and are unable to continue paying your loan, truck lenders have the right to seize that collateral to cover what you owe. With truck or equipment financing, the vehicle or equipment you are purchasing serves as your collateral against the loan. There are many banks and other lenders that specialize in loans specifically for heavy machinery and vehicles. You can finance the vehicles you are purchasing through a car dealer, but it can also pay to shop around. If you decide that truck or trailer financing is the best option, here’s more on how it works. See My Scores How Commercial Semi Truck Financing Works for You ![]() Take it slow, make sure you have plenty of cash in reserve to deal with additional expenses, and choose a financing company wisely.Monitor both your personal and business credit scores in your pocket. Leasing a commercial vehicle will likely be one of the most expensive transactions you make in your life. A good lender wants you to succeed so they can avoid the expense of repossesing a vehicle. Ask them if there are any other fees that you might be overlooking. Misc / Unknown Expenses: Do your own research. Call local diesel shops and find out how much it will cost to have a mechanic do a thorough inspection of the truck. You need someone who works on trucks for a living to tell you whether you are buying a quality truck or just a money pit that will look good sitting in a repair bay. Mechanic Inspection: If you don’t bring an independent mechanic to come look over your truck before you sign the papers on it, you might as well sell everything you own, go to Vegas, and put it all on a spin of the roulette wheel. You need to have insurance lined up before you drive your truck, and initial premiums will be several hundred or several thousand dollars.’ Insurance: commercial truck insurance, especially if you’re driving a Heavy Duty vehicle like a tractor trailer, is significantly more expensive than a car. Generally, you’re looking at several hundred dollars in mandatory fees ![]() Title / Plate Fees / Taxes: you need to register your ownership of the vehicle with the state, and there are significant expenses associated with that, especially for semi trucks. The total deposit is going to depend on your credit worthiness, and it might be only $2,000, or it might be 30%+ of the truck value. Here are some of the additional costs that you need to considering in the first month:ĭown Payment / Deposit: unless you have perfect credit and a history of business success, lenders are going to require you to have some skin in the game. It’s not! If you start your business thinking that the Monthly Payment amount listed below is all you’ll need to pay to drive your truck off the lot, you’re going to find yourself in a real cash crunch that might doom your business to failure. You need to read this if you think that loan payments are the only expense of financing a truck. The #1 mistake people make when using truck loan payment calculators
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