Trucks are an essential component of any business that needs to transport goods and services. Buying or leasing a new or used commercial truck is an important part of owning and operating a business, but it can be challenging to know the ins and outs of financing your vehicle.
There are many ways to finance a truck, including bank loans, credit unions, online lenders and equipment financing companies. Each type of financing has its own set of rules and requirements, so it’s important to find the right one for you.
Getting a Loan with Bad Credit
While it’s possible to obtain a commercial truck loan with poor credit, you may have a harder time finding financing if you have a history of red flags like tax liens or outstanding child support payments. This would impact the amount you could borrow and your chances of approval, said Todd Amen, founder and CEO of Lakewood, Colo.-based ATBS, a tax preparation and accounting firm for truckers.
Leasing a Truck
You can lease a new or used semi finance truckand avoid paying interest. However, you’ll still have to pay for insurance and other costs. Depending on the type of truck you want to lease, these expenses can add up quickly.
Term Loans from Funding Circle
A term loan can be a great option for small business owners who are in need of quick, affordable financing. With this type of loan, you can get the funds you need in as little as 24 hours after submitting your required documents.
This loan can help you buy new or used trucks and trailers for your commercial fleet without the burden of a high interest rate. You can choose from terms of up to five years and repay your loan in full or in installments.
Choosing the Best Truck to Finance
There are many factors to consider when purchasing a new or used commercial truck, such as year of manufacture, price and model. Taking the time to shop for a truck that will meet your specific needs is crucial in finding the vehicle that will work best for you.
Using a Loan Calculator to Determine Your Monthly Payments
Before you apply for a loan, make sure you understand your budget and what your repayment terms will be. This will help you avoid overspending and getting into a situation where you can’t afford your monthly payments.
Use a calculator to figure out your monthly payments, then work with a lender that offers low rates and flexible terms to fit your budget. This will also ensure that you can afford to pay back the loan over the agreed upon term.
When You Finance a New Truck
The first thing you need to do is decide what kind of truck you want. The choice of a new or used truck will have an impact on your overall financing options, including the type of loan and the amount of money you need to borrow. Some lenders require you to purchase from certain dealers or limit the year and mileage of trucks they’ll finance.