Commercial Truck Financing Companies and YouA quick search of the web will find you more than a few commercial truck financing companies. Researching all of them, weighing the positives and negatives, will take some time. If you’re an owner-operator or small business owner, however, this is time you probably don’t have. To make your job a little easier, we’ve put together a shortlist of the top things to look for when searching for the best commercial truck financing companies.
The Truck Financing BusinessFirst of all, let’s understand that the truck financing industry has a lot in common with many other financing industries. In fact, it is kind of a hybrid between a business loan and an auto loan. There are, however, a few key differences. These differences actually provide added benefits for many people. Some people might not qualify for either a $100k business loan or a $100k auto loan but might easily qualify for a 100k commercial vehicle loan. Similarly, the ideal lending situation for one person may not be the best for another. Finding the best lending company for you will depend on many different factors.
Financing the Perfect TruckSome owner-operators and business owners will start with the perfect truck. They know exactly what they want: model, year, and mileage. They want to shop around between the various commercial truck financing companies to find the best deal. If this is you, and you have good credit, and can be flexible in down payment and loan terms, you are probably in a position of borrowing power. Once you find the truck you want, then look for commercial truck financing companies that will work with the seller. The best lenders will provide excellent customer service, 5-star reviews, prequalification loan programs, and company policies that give you peace of mind. Remember, prequalification loan programs are designed to help you at this stage of the process and do not count as a hard credit check. Use them to help get a feel for where you’re going to get the best deal without hitting your credit score with too many hard hits.
Financing the Right TruckOther owner-operators and business owners start with the money. They know they need a certain type of truck, but are flexible regarding the brand, age, and mileage, as long as they can get a good deal from a reputable truck financing company, and a commercial vehicle they can trust. They often have a set number in their mind that they are willing to pay, regarding monthly and down payments. The great news for this type of buyer is that there are commercial vehicle loan programs for almost every situation, from established companies to new start-ups, good credit to repossessions, short haul or long haul. Because of this flexibility in lending, there are many personalized considerations that go into each lending decision. This allows more owner-operators and small business owners to qualify for financing, even if they do not have a perfect credit history. These factors include:
- Credit Score (Good, Fair, or Poor; as well as any Bankruptcies or Repossessions)
- The overall cost of the commercial truck to be financed.
- The age and mileage of the truck.
- Usage: long or short-haul.
- Down payment amount.
- Number and frequency of installment payments.
- Age of business.
- Length of CDL possession.
- Size of the fleet.
- Monthly revenue.