At Commercial Truck Lender, you have the option to buy either a new truck or a second-hand truck. You also have the option to choose between a regular truck and a semi-truck. They also offer the autonomy to purchase from any dealer or private seller.
Commercial Truck Lender offers a wide range of financing plans and favorable financing options to choose from. A variety of financing options allow you to choose the one which suits your needs and reservations. Moreover, the rates offered at Commercial Truck Lender, starting with just 5.99%, are very reasonable. The flexible loan terms and conditions make the financing program very convenient and agreeable for most consumers.
The Four Main Services Offered By Commercial Truck Lender Are:
Commercial Truck Loans
Commercial Truck Loans are a fixed-rate loan option for people setting up a commercial trucking business or aiming to expand an already existing one. Commercial Truck Lender aims to support new and growing businesses with convenient and affordable loan options.
Semi-truck loans are offered for people who require semi-trucks instead of conventional trucks. Semi-trucks are essentially a tractor unit joined to one or more trailers to carry the goods. This unique design to better suit the transportation of goods with the extra care makes a semi-truck different from regular trucks or trailers.
Bad Credit Loans
People with poor credit history and scores stand a fair chance at Commercial Truck Lender to secure a favorable loan plan for themselves. At Commercial Truck Lender, it is believed that there should be equal opportunity for all to progress. Hence, there are specific financing plans specially designed for those with credit scores towards the lower side.
Commercial Truck Lender partnered with motorcycle lenders to offer loans for buying motorcycles too.
“A variety of financing options allow you to choose the one which suits your needs and reservations. Rates starting with just 5.99%, are very reasonable”
Who Should Apply For Commercial Truck Lender's Truck Financing?
The commercial truck loans and financing options are for the people who aim to start their own trucking business or expand their newly set up businesses of leasing out trucks. Other than that, Commercial Truck Lender also supports financing needed for licensing fees as well as money needed for training of the truckers. People who require funds to pay for other necessities of their trucking businesses, such as repair and maintenance, can also apply for commercial truck financing.
People from the transport service industry also tend to turn towards Commercial Truck Lender to increase their number of trucks. As a general rule, the more trucks you own, the more revenue you generate. More trucks mean better efficiency of your transport services to the customers and increased reach and overall efficiency.
Apart from transport services, all local businesses require and benefit from trucks. It becomes way more economical if the business has its own trucks to make deliveries and transport commodities; leasing out trucks from lenders costs you more in the longer run.
Therefore, local businesses like grocery and retail stores, furniture and appliance companies should consider commercial truck lenders. This would relieve their reliance on lenders and other rather inconsistent transport services.
Professional truckers can make the most out of their skill to drive a truck if they own the truck. One can earn a better living and enjoy job satisfaction if they are the owner of the truck they drive.
Renting a truck or working as an employee for transport companies takes away a large fraction of what you can potentially make while having your own truck. Thus, for a secure future plan, truckers should consider the commercial truck financing options at the Commercial Truck Lender.
How Do You Qualify For Commercial Truck Lender's Truck Financing?
To qualify for Commercial Truck Lender's financing, the clients are supposed to meet certain requirements of the bank. Some of the factors that are considered are:
Credit History And Score: credit history and credit score are important aspects kept in consideration by the lenders. This allows them to gauge whether or not the customer is suitable for the financing program and, if so, which plan would be appropriate for them. However, Commercial Truck Lender provides everyone with multiple financing options regardless of the credit score.
Requirement For The Down Payment: the bank will require at least some assurance that your current assets make you capable enough to put down some amount as down payment and insurance costs. Your ability to meet your regular expenses must not be compromised during this. This is an essential step to ensure the sustainability of the financing plan in the best interest of the client and the lender both.
Business History: Typically, in financing organizations, a history of successful and profitable business immediately gives the lender the impression that the potential contract between the two parties will be smooth. Experience of at least two years or more is preferred, reflecting the business's stability in its field.
Generally, lenders look at startups skeptically due to no business history. There is a lot of uncertainty involved as to whether or not the startup will progress and be able to repay. But at Commercial Truck Lender, they have separate financing plans, especially for startups. Commercial Truck Lender believes in giving startups the chance they deserve.
Security: there is always a possibility of unforeseen circumstances due to which there can be a failure to pay the installments. There can also be damage to the truck by any means during the course of the contract. To retain some security in such unfortunate situations, the finance companies require collateral.
Other Requirements: clients are required to submit photocopies of their national identity card, the proof of their business and its authorized registration, tax returns, balance sheets of the accounts, bank statements. According to the specific financing plans, any other personal and business-related documents may also be required.
“As a general rule, the more trucks you own, the more revenue you generate. More trucks mean better efficiency of your transport services to the customers”
Credit Score And Its Role In Making You Qualify For Commercial Truck Financing
A number on a scale of 300 to 850 that represents a consumer's creditworthiness is known as Credit score. A higher score on the scale represents the financial stability of the consumer to their lenders. The Fair Isaac Corporation formed the credit score scale, known as FICO for short.
Banks and other financial institutions very commonly use credit scores as a tool to aid their assessment of the client's credibility. A credit score is calculated by taking into account the credit history, including the number and status of open accounts, total amount of debt, repayment history, and other factors. Lenders see the credit scores to evaluate the capability of the client to repay the loans and meet all the deadlines for the monthly installments.
Usually, a credit score of at least 620 or a higher FICO score is essential for no money down financing. However, an average or even below-average credit score does not take away your chances for financing at Commercial Truck Lender. A bad credit score is not a rare finding in the trucking industry.
With a down payment of up to 20% of the total cost, you would easily avail of commercial truck financing. Thus there will always be a lender to give you a hand to make it through the hard patch in life. Commercial Truck Lender believes that there has to be a solution for everybody; hence it makes sure to find you the right lender.
What Is The Loan Application Process At Commercial Truck Lender?
The plan for commercial truck financing has flexibility for customization at Commercial Truck Lender. The financing plan is tailored according to every client's needs and reservations to suit their requirements better.
However, the application process mostly remains the same and is rather simple for every financing plan. It is a chronological process and has a systematic way of taking things forward in both the lender and the customer's best interest. The steps for application are as follows:
Reach out to Commercial Truck Lender via the easy modes of contact. You may visit the office and see a representative in person. You may call and communicate over the phone or write at the email address available on the website.
Once you express your wish to avail of commercial truck financing, you will be guided by the representatives about the following steps. A meeting or chat over the call, as per your convenience, will be arranged with one of the officials.
They will bring to your knowledge the financing options available for you, the interest rates, terms and conditions, etc. If you decide to pursue the commercial truck financing with Commercial Truck Lender, then the qualifying process will be initiated.
An evaluation will be carried out to assess the customer's eligibility to determine whether he is the right candidate for commercial truck financing. This is a pre-approval practice in which the client's financial history, income, and status of the business are considered.
The lender will also investigate the previous loans taken and the existing debt of the business. They may also interrogate the reason for requiring commercial truck financing to assess the authenticity. Through this process, the lender gets a fair idea of how much the client would be able to pay as part of the monthly installments and what amount he will be able to submit as a down payment.
According to the standard criteria, this process is carried out by the professionals at Commercial Truck Lender. The use of standard criteria and realistic techniques of eligibility assessment by the specialists of the field ensures that the decision made about qualifying a client or a business is always fair and no bias is practiced.
The client is required to submit an application form along with some other documents required for commercial truck financing. The application form can be received from Commercial Truck Lender's office and can even be sent to you via mail through the bank.
The documents required include:
- Last three years of the fiscal end of year balance sheets
- Last three years of income statements
- Provisional balance sheets
- Cash flow and income statements
- A personal financial record with signature
- Last two years of state tax returns applied on the client and the business
Following documents will also be required in the given case:
- A detailed plan about the business dynamics if the business is a startup
- Articles of corporation, if it's a corporation
- The partnership agreement, if it's a partnership
- Articles of organization, if it's an LLC
Approval Of The Application:
After the application form and prerequisites have been submitted, they go for approval from the higher authorities at the Commercial Truck Lender. A financing officer then studies and reviews the application form and documents thoroughly. After that, he or she investigates and assesses other factors, including the client's credit history.
Another important factor that aids approval is the availability of collateral proved by the client or the business. Collateral is an asset or property owned by the client that they may offer to the lender as a security until the complete cost of the truck is paid off. It is a mode of obtaining protection against any financial loss if, unfortunately, the client fails to pay the dues.
Financial Funding Committee
If the financing officer approves the application, the next step is to submit a comprehensive official credit application to the financial funding committee. The chairperson of the committee reserves the authority to decide whether to approve or decline the financing plan after analyzing the facts forwarded by the financing officer.
The whole process can take up to a week. During this period, the client will be updated on the progress and may be asked to provide any additional documents or proofs during the reviewing process.
The Term Sheet
Approval of the application by the financing committee is followed by drafting the term sheet. A term sheet is an official document in which the concerned parties agree to abide by the terms and conditions of the contract. The term sheet also includes:
- The decided amount of loan or financing.
- The monthly installments to be paid.
- Their deadlines.
It also states the terms and conditions on the collateral and mentions the decided interest rate of the financing plan. After this, a final analysis of the term sheet is performed, and then a formal letter of intent is to be signed by an authorized person at the Commercial Truck Lender. After that, the processing of the transaction will be initiated.
Once the processing has been completed, the finalized financing application with all the prior approvals is resubmitted to the finance funding committee for ultimate approval. If approved, both parties are required to sign the finalized documents for the chosen commercial truck financing plan and enter the contract officially.
At this step, the role of a closing agent is integral. The closing agent performs essential tasks of settlements of all transactions, ensuring no loopholes such as concealed liens or missing documents. It is the closing agent's responsibility to carry out all the formal and final paperwork as per the legal requirements.
After the paperwork is completed, there is no delay in enacting the financial plan. After that, the client can avail of the commercial truck financing.
“Commercial Truck Lender believes that there has to be a solution for everybody; hence it makes sure to find you the right lender”
What Are The Current Commercial Truck Financing Rates?
At Commercial Truck Lender, the rates are kept low and terms and conditions flexible so that the plan is economical for all. With rates as low as 5.99%, affordability is a priority at Commercial Truck Lender. The range of interest rate is 5.99% to 35.36%. You can choose the loan or financing plan period according to your feasibility. It can be as short as 1 year to as long as 5 years.
You may rest assured that the interest rate, once decided, will never vary during the course of the loan period.
The amount offered for financing by Commercial Truck Lender can be up to $40,000 for a personal loan and $250,000 for a business. With such affordable rates and flexible financing plans, getting a truck has been made easier and accessible to all.
On their website, Commercial Truck Lender offers a Loan calculator that will allow you to calculate the monthly installment by putting in the loan amount and the interest rate.
For example, if the loan amount is $4,000.00, the APR applied is 5.99%, and the loan period is 24 months, the monthly installment would be $177.27. Ultimately, the total Loan Cost will be $4,254.48. You can change the loan period and see what interest rates better suit your situation using the calculator.
It is essential to note that the values shown by the loan calculator are mere estimates. The rates and terms offered to you ultimately can be different. You may also apply on the official website to find out more about the rates according to your particular amount and loan period. Commercial Truck Lender assures that applying will not affect your credit score.
Some Frequently Asked Questions Are:
What Is Commercial Truck Financing?
Commercial Truck Financing helps people by funding the finances they need to buy a new or second-hand truck or pay for upgrades or repairs of a truck they already own. There is no restriction upon what you could do with your commercial truck financing to get your trucks on the roads and head towards accomplishment.
The purpose of commercial truck financing is to make trucks affordable for those who cannot buy them through a one-time payment. Thus, commercial truck financing is done by receiving regular payments over a period of time till the complete cost is paid off.
How Is Commercial Truck Financing Different From Loans?
In commercial truck financing, the total cost of the truck is paid in installments, and interest is applied to them. This makes it different from personal loans or vehicle loans. In loans, the client takes the amount altogether, and returns as monthly installments with interest applied.
How Is Commercial Truck Financing Different From Leasing?
Leasing is paying a monthly rental fee for borrowing a truck until the contract lasts.
How Is Commercial Truck Financing Better Than Loans And Leasing?
The security of the plan for both the lender and the client is what gives commercial truck financing an edge over loans. In a loan plan, the risk involved is greater because the transaction is one-time and whole. This results in the qualifying process being generally tougher and stricter for loans as compared to commercial financing programs.
As for leasing, it is a temporary solution and may cost more in the longer run. Whereas, in commercial truck financing the documents of the truck are handed over to you upon completion of payments. Each monthly installment moves you towards equity in the ownership of the truck.
Is It Necessary To Have A Commercial Driver's License To Apply For Commercial Truck Financing?
No, the license is not required at Commercial Truck Lender. In fact, the amount can be used to pay for your training and licensing.
Does Bad Credit Make Me Ineligible To Apply For Commercial Truck Financing?
No, bad credit does not disqualify you from applying at Commercial Truck Lender.
Will Applying For A Loan Or Financing Affect My Credit Score?
No, applying for a loan generally does not affect the credit score. Only after you choose to take the loan may an inquiry be carried out.
In How Much Time Will I Get The Money After The Approval Of The Application?
You can get up to $40,000 deposited in your account right after approval within 2-4 working days.
Will I Be Able To Review My Interest Rate And Financing Terms Prior To Committing To The Contract?
Yes, you may review and take your time to understand the clause properly before making the final decision.