Commercial trucks can be difficult to acquire funding for, particularly if you’re a small business owner. If you don’t have the capital on hand to purchase or lease trucks, then you need to come up with a different solution: commercial truck loans are available.
Low interest rates and small payments are the ideal, but a loan agreement with the best terms often requires a credit score of 660. Many loans also require you to give a down payment.
If your credit score falls 550 – 650, you might be worried about your financing prospects.
Even with poor credit, you can still acquire commercial truck loans. Most of the lenders willing to help you secure a loan will be online. The caveat is that you might have higher interest rates and a larger down payment requirement. While the traditional route asks you to put down a 5% payment, you might need to give even more.
Even so, there are loan options available that don’t require a credit check or initial payment at all.
If you’re looking to begin or expand your fleet, here are some tips for securing a loan with poor credit.
Map Your Budget
Figure out your monthly income and expenses. Whatever is left over will be a rough idea of how much you can afford to spend on monthly payments. Keep in mind that this is a rough estimate, not an amount set in stone. The loan you end up with might require a lower monthly payment. Keep this number in mind and be sure not to overestimate how much you can pay.
If you have bad credit, it will be a little more difficult to find a bank or company that is willing to lend to you. Most of the popular commercial banks will not be likely to lend you funds. Find online lenders that specialize in lending to those with low credit scores. While most will probably ask for higher rates and a larger payment, some don’t require a credit check or down payment at all. Many lease-to-own providers end up in this category.
Want to learn more about your commercial truck funding options? AA Bankers is here to help.
Save Up For a Larger Down Payment
Maybe you don’t have the capital to purchase or lease a truck, but you can acquire enough capital each month for a large down payment. The more money you can procure for commercial truck loans, the more likely you are to be approved. This larger payment might also lower your interest rates and monthly payments.
Make On-Time Payments
Be sure that you can actually afford the terms before agreeing to them. You don’t want to make your credit worse or stress yourself out. That’s why creating a budget should always be your first step. Procuring a loan and making on-time payments is a great way to begin rebuilding your credit score. This will help you in future endeavors if you choose to expand your business. You’ll have a better chance of being approved for loans in the future, too.
Commercial Truck Loans for Your Business
Ready to begin the loan process for your trucking business? Reach out to us today.