Trucking is one of the fastest-growing industries in the nation. We use trucks to transport a variety of goods throughout the country regularly. However, establishing a great trucking company is no small feat.
Drivers must be trained, have a clean driving record, and have enough experience to start their independent companies. Additionally, you’ll need financing for trucks and equipment.
Especially if you want to have a fleet of refrigerated commercial trucks or be a semi-truck driver. Today, we will explain how to get this kind of financing to get your business off the ground.
Weigh All Your Financing Options
When it comes to financing, there are many options to choose from. Including commercial loans to buy trucks and heavy equipment. This is the most common option but the application process is quite complicated and people are often denied.
There are also financing options for trailers, semi-trucks, and trucking equipment available online. They’re offered by specialized lenders, but they often charge higher interest rates than financial institutions.
More often than not, the easiest option is to apply for a commercial loan directly with a dealership. All this to say that you need to weigh all your commercial truck and equipment financing options before you make a decision. Do your research!
Go Truck Shopping
If you decide to get a commercial loan directly from a dealership, you need to decide what vehicles or equipment you’ll be purchasing and choose carefully. Remember, if you fail to repay the loan, they have to confiscate the vehicle and equipment.
So, lenders want to make sure they can get their money back if that happens. You’ll have to provide the bank with a full condition report about the truck or equipment, including photos and all the necessary information. You also have to provide the signed offer from the dealership.
Insure Your Truck
Insurance is a must not only because it protects your property and your business, but also because it’s a prerequisite to obtaining truck and equipment financing.
Lenders will consider the types of trucking services you provide to determine the adequate type of insurance you need. You must follow that recommendation and prove that your employees, vehicles, and cargo have proper coverage.
Determine How Eligible You Are for Truck and Equipment Financing
Once you’ve done all your research and you know what financing option fits best, what products you want to buy, and what type of insurance you need, you have to choose a lender. That choice will depend on the lender’s requirements and how eligible you are.
The most important requirement when it comes to truck and equipment financing is your credit score. If your credit score is below 600, most lenders will dismiss your application automatically.
However, if you have bad credit, lease-to-own truck programs can help. Once you compare eligibility requirements and find the right lender with the most favorable terms, you can apply for the loan.
Need help finding the right truck and equipment financing option? Purcell Capital specializes in truck companies and understands the business. Schedule a call today!