In the current economic climate, there is a chance that you will not be able to get loans from your local bank, regardless of your good credit score. Banks across the nation are cutting down on lending. In addition, those that remain open to business have more documentation and a higher down cost. This guide will provide you with an understanding of the options.
The first place to seek out a semi-truck loan is your local bank. You've built trust with them over time and know the person behind the counter. It would help if you informed him of how long you've been banking at the bank and that you're a long-term customer.
On average, you will require 20% down on your truck. The majority will require an excellent credit score within the 700 to 900 range and a minimum of 2-3 years' worth of taxes. They'll have your banking statements in their database, so you don't have to be concerned about this. It is also necessary to supply them with a specifications sheet of the truck you're considering buying. The bank will require proof of insurance too. You will receive a fair rate in light of the points discussed above. Now that you have a proposal for financing, you can proceed to the next source.
If you're unable to obtain a loan from your bank or wish to compare quotes, I suggest you find an online lender with good ratings. Some big-name institutions offer semi-truck finance; however, don't overlook smaller lenders like that offer ether. There is a good list of lenders by typing "semi-truck finance" in an internet search engine. It should provide you with credible names to pick from. Many of these lenders advertise only for applications, but they are becoming difficult to locate in today's financial world. A down payment of 10-20% is required as well. You'll require a credit score of around 700 and two years of working experience to receive a fair estimate. Based on the lender, you may be required to provide additional documents similar to what you'd need from the local bank. Most lending firms will require an application form and a specification sheet to get approval. The rest of the paperwork can be submitted later. The majority of lenders will be approved within two or three days after you've submitted all of the required documents.
Last but not least, ensure that you know the conditions of your loan. It's not easy to comprehend quite a bit of paperwork, but it's your business, and it's your duty as an owner to be aware of your loan and to ensure you'll succeed. It isn't a good idea to be confronted with a bad loan, only to be forced to refinance later. Be careful when choosing an "specialized" loan program to ensure that it will meet your specific needs. If you're using a lease-purchase loan, ensure that there is a one-dollar buyout or a 10% buyout clause to be in effect at the close of your loan. Do not be pressured to make a decision because it is your company and your purchase of a truck. The lender's role is to provide the services similar to the dealership.
Liam Ross has over five years of experience within his profession. semi truck finance and leasing business. He has worked as a consultant in the past for various companies like Lehman Brothers, Prudential Leasing as well as Resource Diversified Services.
