Commercial trucks are vital equipment for companies that need to haul goods, make deliveries, or transport materials. However, semi-truck financing can be a challenge for many business owners because of the substantial costs involved. Commercial truck financing is an option for businesses that don’t have the budget to purchase a truck outright.
How Commercial Truck Financing Works
Many commercial truck financing loans involve using the truck as collateral for a loan. This works similarly to an auto loan. The lender places a lien on and retains the title until the borrower pays off the loan. If the borrower fails to meet the loan terms, the lender may take possession of the truck.
Where To Obtain Commercial Truck Financing
Traditional banks and alternative financing companies offer commercial truck financing. Alternative lenders, such as First Capital Business Finance, can often complete the process more quickly than traditional banks and offer a wider variety of options.
What Commercial Truck Financing Options First Capital Business Finance Offers
First Capital Business Finance specializes in commercial vehicle financing. We have loan options for borrowers with all types of credit and can approve loans for both start-ups and established businesses. Even borrowers who have recent bankruptcies or late payments may be able to qualify. We finance a variety of commercial trucks:
Heavy and medium-duty tractor and trailers
Our bad and average credit programs are available in low, moderate, and large downpayment options. You can be approved for some programs regardless of your credit score. For others, you will need a score between 540 and 620. You may also need to provide tax returns or meet other minimum requirements. The larger your down payment, the more likely you are to qualify.
We also have low and moderate down payment options for borrowers with good and average credit. To qualify for these programs, you will need a credit score between 620 and 670. Larger finance amounts may be available to those who have established businesses.
Title Loan Financing
First Capital Business Finance also offers truck title loans. You can get approved for a title loan in as little as two hours and have your funds in as soon as three days. You can use any commercial vehicle or trailer as collateral, and this program is open to borrowers with bad credit.
What the Benefits of Commercial Truck Financing Are
Commercial truck financing offers a variety of benefits. The best financing option for you depends on your financial position and your business goals.
Many small or new businesses do not have the cash on hand to purchase a commercial truck outright. Commercial truck financing can reduce the strain on your cash flow by dividing the purchase price into small monthly payments instead of one large lump sum. The downpayment required is usually lower compared to other financing options, such as a personal loan.
By financing a truck, instead of leasing it, you can use the truck however you want without the restrictions on mileage and modifications that may come with a lease. This may also save you money if you drive the truck a lot because there is no need to worry about paying additional fees for mileage.
Financing a commercial truck allows you to immediately classify the vehicle as an asset, making it possible to offset taxable income with deprecation. Additionally, you may be able to claim tax relief on the interest charged.
What To Look for in a Commercial Truck Financing Company
Evaluating a commercial truck financing company is similar to assessing other types of lenders. There are several factors to consider:
Experience with commercial truck financing
Look for a lender with a reputation for excellent customer service and positive customer reviews. Prequalification programs can help you determine what type of financing you qualify for without negatively impacting your credit score. Choose a lender who has been in business for a while and has experience specifically in commercial truck financing. Look for customer-friendly policies, such as allowing early payments without penalties.
Commercial truck financing is a valuable tool for companies that need to purchase commercial trucks without paying a large cash sum upfront. Contact the team at First Capital Business Finance to discover the right financing program for you.
How Commercial Truck Financing Works | First Capital Business Finance
First Capital Business Finance is committed to helping you meet your cash flow needs to grow your business. We serve small and middle market businesses and large corporations with range of loan and financing options