Trucks play an important role in a wide range of industries. As more people take on jobs in the long haul and heavy lifting industry, both trucks and truck financing are rapidly growing in demand. If you are on the market for a truck, then you’ll have a wide variety of options to choose from. This article provides information on how to get truck finance.
Before applying for any truck financing, you’ll need to first make sure you qualify. Most financing options have similar qualifications requirements since the truck serves as security for the loan. The amount you pay in down payment combined with the trucks value eliminates most of the risk, making it easy to secure a loan.
The most important qualification requirements include credit score (600+), age of truck (Less than 10 years), time with CDL license (above 5 years) and down payment (5% and 10% to 20% for new owner-operators)
While the requirements will vary from one loan provider to the next, meeting the above requirements will increase your chances of getting approved.
Prepare all the Needed Information
Lenders will require certain information from you before they can consider your loan application. Having all the documentation ready before approaching a lender shows that you’ve done your homework and are ready to make a huge purchase, and will most likely speed up the process.
Here’s a list of documentation to have ready when you approach lenders.
-Proof of business registration, business tax returns, business certifications and licenses, your commercial drivers license, motor carrier number, current business balance sheet and current business P&L. Once you’ve prepared all the mentioned documentations, you’ll then be ready to contact lenders for a way forward.
Choose the Right Truck
Finding the right truck is tough work when you require financing as opposed to paying cash. It is therefore advisable that you look for a truck that suits your individual needs perfectly. It is also advisable that you avoid trucks that are too old as this will lower chances of getting approved. Consider going for trucks less than 10 years old, with less than 700k mileage and preferably sold by a dealer. Once you find an ideal truck, make sure you negotiate the price and getting a written quote. In addition to this, get information on mileage, make and model of truck, condition report, serial number and pictures of the truck. If the truck is used, make sure this fact is specified.
Find the Insurance
Finally, commercial truck accidents can cost up to $59,000 in loss. This can significantly damage your business’s cash flow as well as your lender’s collateral. This is why it is important to have proper insurance when approaching lenders. Providing proof of this will improve your chances of getting your loan approved as well protect your business from loss.