Tag Archives: commercial truck loans

An Easy Way to Get Commercial financing for Those with Bad Credit

If you are looking for commercial financing and you have less than perfect credit, you are not alone.

     Not every business is perfect, unforeseen events can happen and businesses can easily get behind on payment obligations which can have serious effects on their credit rating. Millions of people find themselves in this situation every day, especially with the economy the way it is today. While having bad credit isn’t helping it still does not mean the end of your businesses financing options. Many lenders offer businesses with bad credit financing through securing the loan with an asset, such as using your free and clear equipment for collateral. There are commercial truck financing companies that can get around these past issues and help you towards getting a new start and get you on the road.

     While tradition financial institutions, such as your local bank, will not lend you money due to your bad credit there are still other non-traditional lenders that will give you a bad or poor credit business loan. Some companies will accept cosigners which can be another way. Used truck financing helps because getting you qualified with a lower payment could be your answer.  Lower payments to a company that is having difficulties with obtaining commercial truck financing can very well be the answer for you at this time. There are also private party sales that may make a big difference for you. Your equipment is important in that it is the source of your income. This equipment does not need to be brand new in order to achieve that purpose. Keeping cost as low as possible is what your business needs.

     Typically you may have to obtain a loan with a higher interest rate, but if you can meet that payment obligation and this helps you repair your credit, than this is a step to improve your business situation. Remember, if someone is willing to help you out and lend you money when your situation is not perfect or ideal, the lender is taking a risk. You need to meet your end of the obligation as well by being willing to meet their requirements. The Commercial truck financing companies need to protect their investment as much as you do. They do this by placing a higher rate for the deal, or by taking on collateral, larger down payment or a cosigner. Used truck financing in this situation is going to be easier to obtain, so that is an option for your business as well.

     In any event, the point is to keep the business moving and growing. If you have had or do have credit problems, then you must going forward repair your credit now, so with future purchases for newer equipment or replacement equipment, you will have good borrowing history to back you up. Once this is established, you will no longer have to settle for higher interest rates or larger down payments.

Call TruckLenders USA today 877-233-1475 or visit http://www.trucklendersusa.com for more information.

Mistakes to be Avoided Before Choosing Commercial Truck Financing

     Have a solid plan before you begin. Understand what your goal is and how best to achieve it. Make a list and prioritize your needs. Ask yourself if financing is an option for you before you jump into it and commit to an obligation you are not ready for. Decide what makes sense for your business  at this time.

     Obtain a copy of your credit report and analyze it. Be prepared for what is on the report instead of getting big surprises when the lenders calls you back with questions.  Credit issues and slow pays will reflect on your borrowing credibility. If you find mistakes, get them fixed.  In addition, take time to save for a down payment. Anywhere from 10-20% will benefit you in the long run with lower monthly payments and let the lender know that you are serious and willing to invest in yourself and willing to take responsibility for some of the risk. Lenders do not want to bear all of the risk and it isn’t fair to ask them to. When you seek commercial truck financing with a good credit score and have a decent amount of money for your down payment, it will make you appear responsible to a lender and they will be much more willing to lend you the money you need for you company. Makes sense.

     Once you know your buying power, you can begin to shop for a commercial truck financing. Possibly you may get a referral from someone else in the industry who has been highly satisfied with their own experience. If not, make a few calls and ask a few questions. Don’t make the mistake of jumping to the first company in the phone book. Know your business needs and goals and find someone who understands and is willing to listen and work with you to achieve those goals. Explain what you plan to do and which direction you want your company to grow.

     Don’t throw all your truck buying savings into the deal. You don’t have to put a whole lot down. Remember, your cash reserves are going to be important and necessary sometime down the road. You may run into an unforeseen emergency that needs to be taken care of.  With fluctuating gas prices, it’s best to be prepared for all circumstances, maybe even some you never considered. Don’t buy too expensive of a truck. Stay within a reasonable budget. Used trucks are always an option and help you to get reliable equipment without breaking the bank. Later, when the profits are rolling in, you can get that shiny new Peterbilt!

Call TruckLenders USA today at 877-233-1475 or visit http://www.trucklendersusa.com for more information.

Understanding the Services Provided by Commercial Truck Financing

The search for commercial truck financing can be a daunting task to the uninformed consumer. There is a plethora of commercial vehicle lenders and different types of commercial truck loans. If you are in need of used truck financing it is important to understand the services provided by commercial truck financing.

 A commercial truck loan is when the entire purchase price is financed. In most cases a down payment or trade-in vehicle is required in order to achieve the loan, and the remainder of the purchase price is paid off through the monthly payments throughout the remainder of the term.  At the time of the purchase, taxes are paid on the entire purchase price. A tax deduction may be claimed on a portion of the interest paid throughout the year. A deduction may also be made for the depreciation of the vehicle, depending on the IRS depreciation schedules. 

 A commercial lease is another option in commercial truck financing and can be used for used truck financing as well. Depending on the current financial situation of the business, many businesses opt for a commercial vehicle lease over a commercial truck loan.  A lease is a brilliant way to finance a commercial truck or trailer. The finance terms can range from 24 months to 60 months and the approval process is generally quicker than that of a bank loan; usually an approval can be received with in 24 hours. In most cases a down payment is not required; instead, some commercial lenders will request two monthly payments upfront. A lease does not appear on your balance sheets as a debt, where as a purchase will increase your liabilities. Another benefit of a commercial vehicle lease is the tax write-off. Monthly payments can be written off in their entirety because they are tax deductible because the cost of the equipment is considered as an operational expense and not a liability.

 Although the search for commercial truck financing can be a tad overwhelming, if you are armed with a general understanding of the services provided by commercial vehicle lenders, you will be well on your way to making the right decision for you company. Be sure to consider all of your options as well as your company’s financial strengths and needs. There are commercial finance options available for all types of businesses and business credit. If you do your due diligence, you will be able to find the perfect fit for you and your business.

Call TruckLenders USA today at 877-233-1475 or visit http://www.trucklendersusa.com for more information.

How Commercial Truck Financing Helps in Leveraging your Business

Commercial truck financing helps leverage your business in several ways.  Leverage is defined in part as “the use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one’s investment, to control a much larger investment, or to reduce one’s own liability for any loss.” A trucking company may be interested in expanding their fleet, acquiring a new truck and taking advantage of commercial truck financing. To do this, companies often acquire used truck financing. Commercial truck loans are one way of leveraging your business. They allow you to use someone else’s money to invest in the equipment, which will allow your company to use that equipment to make a larger return on your investment and increase your company’s monthly cash flow. The newly acquired equipment obtained through used truck financing is used to earn more money every month, thus increasing the cash flow of the business. Another advantage of commercial truck financing is the tax deduction for which your trucking company will qualify through a commercial lease. . In many commercial vehicle lease programs, no huge down payment is required. This is beneficial to your company’s cash flow because it preserves working capital and credit lines.  In addition to not putting out a large sum of money, by leasing a piece of equipment, your company can take advantage of more tax write offs.  Lease payments are tax deductible and help to reduce your company’s total liabilities.

Using a commercial truck loan is an advantageous way to leverage your transportation business.  Commit to a low monthly payment, use the equipment recover any additional expense, and then some, and you are well on your way to running a successful transportation business. Like the financial gurus say, “it takes money to make money.” So be smart, and use someone else’s money to make your own.

Call TruckLenders USA today at 877-233-1475 or visit http://www.trucklendersusa.com for more information.

How Does Commercial Truck Financing Really Work?

    Trucking companies all over will find  themselves at some time in need of commercial truck financing. They begin by obtaining information for commercial truck loans for new or sometimes used truck financing. Depending on their needs, there are many financial institutions that are ready to help out. How does one go about understanding the various programs for commercial truck financing? What is it going to take to get Commercial truck financing? Is a Commercial truck loan more beneficial than a lease?

     A commercial truck lease allows you to the right to use the truck as your own, within certain rules while the lease is in force. You will be required to make monthly payments and will have the option to ‘purchase’ the equipment when the lease is term. The residual value of the equipment is the purchase price. Monthly payments on a lease are typically lower than a loan and has smaller down payment requirements. In a loan, you will also make monthly payments and when the loan is paid off, you own the equipment.

     Let’s talk about the client needs. If this is a fairly young company, the idea of used truck financing might be more beneficial for them instead of looking at commercial truck financing for a new truck. The payments on a used truck financing will be far less than a new model and help them to grow the business with less investment in equipment, thus keeping more profit and conserving capital. As the company develops and their needs change, they will eventually seek and obtain commercial truck loans as they add to their fleet. Once the fleet and comparable borrowing grow, it becomes easier to obtain commercial truck loans.

     To begin with, a brand new company can face many challenges because they don’t have a track record with previous commercial truck financing. It is not the end of the line however. Sometimes having a strong financial backing can help in securing commercial truck loans. Used truck financing might be the way to go for them, as used equipment can be easier to finance for newer companies. It’s a place to start.

     The application process is simple. You will be asked to complete and application and supply bank statements to determine the strength of your borrowing ability. A credit report will be obtained to determine your borrowing history. Once all is compiled and examined by the credit department, you will receive your loan approval tailored for your needs, whether that is used truck financing or new commercial truck financing. Most commercial truck financing companies can tell you right away if you will qualify in obtaining a commercial truck loan. 

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