When you’re looking into commercial truck financing rates and terms, it can be a confusing process. After all, there are many different financing options, rates, terms, and other factors to consider when choosing how you will purchase a semi-truck or other commercial trucking vehicle.
If you would rather not go through the bank, an alternative semi truck financing option may be right for you. With so many different choices to make, the last thing you want to do is look through hundreds of pages of information. That’s why we have condensed all of the necessary information about how to navigate financing options for buying a commercial semi-truck below.
How do I finance a commercial or semi-truck?
Essentially, once you find the truck that you want, you can either finance it directly through the dealership of the truck or find another way to obtain your truck. When you take out a loan or other form of financing through a bank or alternative lender, your truck will act as collateral in the terms of the loan. This means that if you fall behind on payments and can’t pay for the truck anymore, the lenders will be able to seize the truck to cover the remaining balance on the loan.
On one hand, this can be helpful if you either do not have other assets to post as collateral or you would prefer to keep your other assets outside of the agreement. On the other hand, it can be frustrating because you will lose the truck if you can’t make payments on it anymore.
After you have turned in an application for the loan, lenders will evaluate how the qualifications you bring to the table fit their financing options. Then, they will give you all of the necessary information about the loan, such as the loan’s interest rate and other terms of financing. If these terms are agreeable to you, you can sign the paperwork and start making payments on your commercial semi-truck purchase.
Alternative Semi-Truck Financing Options
When you’re looking for alternative semi-truck financing options, it can be overwhelming. Thankfully, there are a few typical choices that truck business owners make when it comes to these financing opportunities. Whether you have certain challenges that make it difficult to get a loan from a traditional bank or you want a faster approval rate, alternative lenders can be a great choice.
Common alternative lenders for truck businesses include Commercial Fleet Financing, Quest Capital Group, and Balboa Capital. Commercial Fleet Financing is well known for quick credit decisions and fast funding. Quest Capital Group is a great choice if you don’t want to put money down on the truck. Balboa Solutions is ideal for folks who want same-day funding. As long as you have twelve or more months of documented business history, $100K annual revenue, and a minimum credit score of 600, you may be a good fit for them.