If you are thinking of financing your commercial vehicle business through Banks, you will most likely experience a tough time. Banks have lengthy procedures, and you will most likely face rejection if you have bad credit or no balance for a down payment.
However, some banks offer fantastic financing options for businesses of all kinds, including commercial vehicle business, and you must apply for it. After all, what's wrong with trying your luck?
The Bank of America
Bank of America has six various financing options available for different businesses. You can utilize any one of them for financing your commercial vehicle business. These financing facilities are:
1: Equipment Financing
You can utilize this facility to finance any equipment that includes commercial vehicles like trucks, trailers, and vans, etc. Bank of America charges a 0.5% origination fee, with a loan amount of $25,000 or more.
2: Business Advantage Auto Loan
This facility provides you the option of purchasing or refinancing your commercial vehicles with a 30-days rate lock guarantee, which gives you sufficient time to select your choice. To qualify for this financing facility, your vehicle's cost must not be lower than $10,000 or exceed the life of 5 years and should not have mileage more than 75,000.
3: Secured Business Loan
You can utilize Bank of America's secured business loan to expand your existing commercial vehicle business. This loan comes with the advantage of determining the loan collateral yourself. To be eligible for this loan, your commercial vehicle business must be running for at least two years, and the business should have annual revenue of at least $250,000.
4: Secured Line of Credit
Through Bank of America's secured line of credit, you can also finance your commercial vehicle business's existing operations. The requirements for acquiring a secured line of credit are the same as a secured business loan that are:
Commercial Vehicle Business should have a life of more than two years.
The annual revenue generation should be at least $250,000.
5: Unsecured Business Loan
This is similar to the secured business loan, but it does not have any collateral requirement. To be eligible for this loan, your commercial business vehicle, you should meet the following requirements:
Your commercial vehicle business should be running for at least two years.
The minimum annual revenue should be $100,000.
6: Unsecured Line of Credit
The unsecured credit line operates the same way as the secured line of credit, but it does not require any collateral, as evident from its name. However, the requirement for this finance facility resembles unsecured business loan's requirements. These are:
2-years operation of the commercial vehicle business.
$100,000 minimum revenue.
Wells Fargo is considered one of the top business loans providing banks in the United States. Through equipment financing at Wells Fargo, you can finance your commercial vehicles and equipment with the loan amount of $10,000 to $100,000. Its finance facility often comes with a loan term of 2 years to 6 years.
However, it would help if you met the following criteria to qualify for this loan:
Your commercial vehicle business should be operating for at least 12 months.
It should generate annual revenue of at least $100,000.
You should have a 600+ credit rating for acquiring this loan.
The U.S Bank
Through U.S. bank's equipment financing, you can finance your commercial vehicle business through its easy terms. What's more desirable is its zero down payment policy. It does not require any down payment and provides a loan amount of up to $500,000.
Furthermore, its financing comes with a loan term of 24 months to 60 months and allows you to customize your payment schedule. This financing facility also gives you the option to finance more than one vehicle under a single contract.
Santander bank has various financing options available for your commercial vehicle business. The following list contains information about its financing options:
You can easily finance your commercial vehicle through the equipment financing option available at Santander Bank. You can get finance for up to 100% value of vehicles if your commercial vehicle business has a life of more than two years and 80% for lesser than 2-years. The minimum limit available for the borrowed amount is $50,000.
Moreover, the finance will also cover other extra expenses related to your commercial vehicle, including taxes, installation cost, freight charges, training cost, software development cost, and more.
Business Line of Credit
Through the business line of credit at Santander Bank, you can get flexible short term finances for your commercial vehicle business. This loan gives you the flexibility of paying interest only on the number of funds you have utilized for your commercial vehicle venture's running operations.
The credit line often ranges between $10,000 to $750,000, and any credit greater than $750,000 requires annual renewal. It also offers an unsecured line of credit that does not require any collateral. However, the financing limit for an unsecured line of credit is just $150,000.
The PNC Bank offers small business vehicle finance loans for financing commercial vehicles. This finance option will enable you to finance the daily expenses of your commercial vehicle business.
Moreover, through this finance facility, you can get credit for your new vehicle for up to 100%. However, if you plan to purchase a used vehicle, you will get financed for only 80% of the purchased value. Furthermore, PNC bank offers a fixed competitive rate of interest for its credits to avoid unstable payments.
Like the other top banks in the US, Chase also offers some major financing options for small business units, including commercial vehicle business. You can have credit of up to 100% for your commercial vehicle through its equipment financing option, including 10% additional payment for the indirect charges and soft cost.
Moreover, it also offers a flexible payment structure to accommodate borrowers' repayment of the loan amount.