A complete Guide to Commercial Pickup Truck Financing

Published September 26, 2020 by WC Team

A Complete Guide to Commercial Pickup Truck Financing

Pickup trucks are a great option to get into the trucking business as well as to boost existing ventures. It is an investment that has the potential for great returns. Although the initial financing might seem daunting, it is easy to navigate if you know about it. Loans and leases are available for individuals as well as for organizations. 

Looking for commercial pickup truck financing? Read on to know more insights about truck financing. 

Commercial Pickup Truck Financing: What it Entails?

Commercial pickup truck financing has varied options and is very different from financing a personal vehicle. However, more often than not, banks seem reluctant to participate in commercial pickup truck financing. This seems to be a trend among them for most small or new businesses.

It is probably because of the high rate of failure common among these ventures and the considerable risk factor. Nevertheless, there are several other options available that we will discuss more. Many money lenders also work for this purpose.

Commercial pickup truck financing is also often available in the form of equipment financing. This is exclusively for financing the equipment, such as pickup trucks or semi-trucks and any such vehicles. The equipment itself serves as the collateral for the loan. 

In addition to that, the terms of the agreement and the amount lent depend on the cost and expected longevity of the vehicle. Certain risk factors come with commercial vehicles due to regular wear and tear, much more than regular cars. This is also an important factor.

Usually, people turn to commercial pickup truck financing to either buy or lease a new (or previously owned) pickup truck. You can also avail of this financing if you want to make some upgrades on your pickup truck or make it undergo some major repairs. 

The Conditions Involved In Commercial Pickup Truck Financing 

The terms and conditions and interest rates for commercial pickup truck financing through loans and leases majorly depend on various factors. Some of them are the truck's weight, the condition, how old it is, and more. However, several factors are applicable in general.  

Usually, interest rates for commercial truck loans are low and depend on the borrower's credit score. Ideally, the borrower expects the full value of their truck to be available. However, it is often less than that when the down payment provided by the borrower is considered. 

To add on to this, the interest rates often include your credit check fee and appraisal fee (this helps determine the truck's market price). These impact the cost of the loan too. Therefore, it is important to get all the details from your lender to truly understand the loan's nature.  

Ways to Get Commercial Pickup Truck Financing

There are three major ways to obtain reliable and efficient financing for your venture. The choice largely depends on you and your ability to meet with the terms of them. A very small percentage of you getting good financing also depends on the bank or the money-lender and how accommodating they are willing to be. 

Lenders also refuse to put down money if there are any recent records of tax evasions or any sort of misconduct on behalf of your business. 

Commercial Pickup Truck Financing by Banks

It is usually difficult for new or small business owners to get commercial pickup truck financing from banks. Local banks see this venture as risky and too expensive to handle, which is why they often reject requests. However, large national banks usually provide suitable solutions for commercial pickup truck financing. 

Having a good credit score, putting down a substantial down payment, and a reliable co-signer also helps. Despite these reservations, this option is worth exploring because it provides the lowest interest rates and the longest terms. 

Commercial Pickup Truck Financing by Specialized Companies

Trucking is and is increasingly becoming a highly specialized industry. So, these specialized companies who are experts in the industry are often the best choices. They can not only provide specialized solutions but also provide the best knowledge about the industry. This is especially beneficial for all those who are new to this business. 

Consultations with these companies provide you with accurate estimations according to your venture. This is helpful to know exactly how much commercial pickup truck financing you would need. The whole process is also faster, more personalized, and requires a smaller down payment.

It is imminent to check out trustworthy reviews before approaching any company. It is a personal duty to check out the reliability of any company. Also, you must feel comfortable working with them. 

Commercial Pickup Truck Financing through Online Lenders

If the other two options seem a no-go, this one is great. Advantages of it include loose requirements for credit scores and simpler application processes. However, they charge higher interest rates, and their terms are also comparatively shorter. We found that Cardiff had a great program for commercial pickup truck financing. According to their website, you can be a start-up business, have low revenue, a 550+ FICO score and can be  buying a used high-mileage truck (<500,000 miles) and they’ll still approve you. 

There are a variety of online options available. It is up to you to browse through them to find the perfect one according to your requirements. Review them carefully and also look out for what others have said about them. 

Documents for Commercial Pickup Truck Financing

Like we know, this type of financing is asset-based, there are a variety of options available for everyone. Usually, everyone, even first-time buyers, or new businesses, can achieve a suitable solution. Here are some documents that everyone requires:

  • Commercial Driver’s License
  • Personal identification documents
  • Proof of business and business license
  • Tax returns
  • Business and balance sheets 
  • Bank statements

Endnotes 

To get a good solution for your commercial pickup truck financing, you have to do thorough research. It might be time-consuming, but the rewards are great. Knowing the terms and conditions along with the details will provide you with better investments. Accurate assessments will help you in the long run. 

Not only do you need sufficient financing, but you also need your lender to understand all the requirements for your business. This way, you can choose the best options for your commercial pickup truck financing.

Are you a business owner? Apply for financing. Start Now.

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