The trucking industry is one of the most prospering industries in the United States. With every good going through a truck at least once after its production, it is a leading business idea. If you are working in this industry or thinking of starting, you would require significant working capital to own a personal truck or fleet of trucks.
The way to grow your company is to expand your fleet and operation. Many businesses that do not have enough capital on them or plan on saving their money for future investments opt for Commercial Truck Financing.
Commercial Truck Financing is curated explicitly for trucking businesses covering different sectors. In addition, these loans can help to save cash for other investment areas. There are multiple banks and online lenders in the industry with their primary motive to assist customers with commercial truck financing. Santander Bank is one of the reputable banks in the United States that is offering commercial truck financing through its platform.
About Santander Bank
Santander Bank was initially established in Spain about 160 years ago, and ever since then, it has taken over the world with operating offices throughout the nation, including the United States. The bank has its current headquarters in Boston, Massachusetts and it offers retail and banking services to its customers along with financing of auto, mortgages, personal loans, and more.
The auto loans provided by Santander Bank finance are used as well as new vehicles to its customers. Private dealers generally offer these loans. If you are willing to finance a Chrysler vehicle, you also have the opportunity to get a pre-approval through Chrysler Capital online. Chrysler Capital is a program that partners with FCA US LLC and Santander Consumer USA.
Other than that, Vroom is another auto retailer in partnership with Santander, which provides finances through Santander Bank's platform. In addition, various other programs facilitate the customers with lending even if they have a challenged credit history or no history at all.
The platform offers a wide range of equipment financing, including vehicle funding, commercial vehicle loans, heavy-truck funding, etc. Santander Bank, through its platform, has made it easy and convenient for customers to chase their dreams and start their own business with a restricted pocket.
Types Of Business Financing Offered By Santander Bank
Santander Bank covers the basics of business lending. It has different programs established for other cases. The SBA loan programing is a lending opportunity for businesses that have not been in business for an extended period of time or have faced challenged credits, which led to rejection from other financing firms. The non-SBA loans have different criteria for companies that can't qualify.
Business Term Loan
This particular financing plan is for business owners who require a large sum of money to cover the cost of big projects, investments, or require refinancing. The greatest thing about this plan is that it has fixed interest rates that do not vary and continue till the end of the term plan.
In such scenarios, unpredictable payments should be the least of your concern. Generally, a loan of $10,000 over three to seven years is granted with an opportunity of early payoff.
The Business Line Of Credit
A business line of credit is a good option for businesses facing difficulty keeping up with their daily expenses. In such cases, the bank allocates a certain amount to your company that you can withdraw in the time of need. The line of credit varies from $10,000 to $750,000.
For loans over $150,000, the company is requested to submit collateral along with previous account statements for verification. However, loans under $150,000 are unsecured and easily granted to the applicant. In order to apply for either of the lines of credit, you are required to pay an origination fee of $250 along with an annual fee of $250.
Unsecured lines of credit are provided with an APR of 0% to 3.5%, while secured lines of credit are available at the introductory rate of 0% to 3%. After the expiration of the introductory rates, there is an increment, and the expected rates can range between 0.5% to 8%.
Business Equipment Financing And Leases
With the help of this financing, many small businesses and large firms can lease out or buy equipment or vehicles for the growth of their company. For example, if your company has been in a trade for more than 13 months, you are eligible for 80% equipment financing with starting rates of $50,000.
In addition, the funding can cover the taxes, training costs, warranties, software, etc. Moreover, if your business has been in standing for over two years, you can qualify for 100% financing through Santander Bank. Each loan term under this plan ranges from the span of 3 to 10 years.
“Santander Bank has made it easy and convenient for customers to chase their dreams and start their own business with a restricted pocket”
Who Should Apply For Commercial Truck Financing Through Santander Bank?
Santander Bank has worked on its offerings and services for over ten decades. They have excelled in the banking and financing aspects within these years. As a result, they have established a reputable platform for their customers, making it an ideal and go-to for all the businesses or owner-operators.
In terms of equipment financing, including commercial truck financing, it offers its customers a smooth and seamless experience. They deal in new as well as used trucks through different programs and partnerships available on their platform.
Santander Bank has opportunities for everyone with different credit backgrounds, so getting a loan to fit well with your requirements is relatively more accessible than any other bank. In addition, as they provide the facility to deal with local vendors, promotional rates and other incentives are easily achievable for everyone.
Suppose you are looking to finance a new truck with reasonable rates. In that case, their partnership with Chrysler Capital comes in handy as you have the option to look for your desired vehicle through the inventory of FCA dealers and apply for online financing through them.
For used vehicles, including trucks, they are partnered with Vroom. Without impacting your credit score, the applicant can get their desired vehicle delivered at their doorstep through online applications and get pre-qualified. Bankruptcies or bad credit put a lot of businesses on hold as they do not get qualified for various facilities through different organizations.
Santander Bank, through their RoadLoans, has made it easier for such business owners as this is an online direct lending platform established for such cases.
Santander Bank has it all under their platform. For companies facing difficulties moving forward with their challenged credit, bankruptcy, or tax liens, the bank helps them start over and get themselves out of the difficult times.
Moreover, if you are eligible for 100% financing, then an equipment financing loan can cover all the costs to come your way. You wouldn't need to worry about taxes, installation charges, or other relative expenses. SBA loans help startups or new businesses get the funds to grow.
Plus, once you have enough to pay off your loans, you can do that through early payoff without any additional penalties or charges through Santander Bank.
Santander Bank is a good option for companies that require financing over $5,000. However, if you are a startup looking to start with something small, this might not be for you as they do not offer financing below $5,000 to its customers. Moreover, you must be a resident of certain states to apply for funding through them.
How To Qualify For Financing Through Santander Bank?
Santander Bank has various partners under its forum with extensive knowledge. The bank does not have a strict criterion that must be adhered to by each and every individual. Instead, any owner-operator program opts for different eligibility criteria to fit the needs and requirements.
You can better understand whether you are qualified for the loan by talking to them personally on-call or connecting via email. The general eligibility criteria that Santander Bank considers while approving its applicants are as follows,
- Credit Score: Having a good credit score makes it easier for applicants to qualify quickly. Like the other financing companies, Santander Bank has multiple offers and services for businesses with a good credit score and a reputable name in the market. A credit score of 600 and above is considered good as per the bank. For example, with a credit score of 650, the applicant is eligible for a Chrysler Capital loan. However, if your company does not have a good credit score, then in such cases, your application is made to go through certain verification and review before further progress.
- Annual Income: An excellent annual income ensures that the applicant will be able to pay the loan borrowed by the bank quickly. Santander Bank does not mention the exact eligible annual income for their programs on their website. However, if you have been through bankruptcy or are facing challenged credit, then applicants with a yearly income of $21,600 are preferred and prioritized over others. In such cases, the interest rates on loans can be relatively higher than your expectations.
- Time in Business: The time that your business has been in business plays an important role when it comes to qualifying for commercial truck financing. A loan of $150,000 or less is granted to companies along with 80% financing if they have been in business for more than 13 months and less than two years. On the other hand, if your company has been in the market for over two years, you can expect Santander Bank to provide 100% financing covering all the expenses when you apply for commercial truck financing.
As mentioned earlier, to know if you can qualify for commercial truck financing through Santander Bank, it is better to get in touch with them directly as they try to figure out a way to make it work for both parties. Santander Bank has been in business for a long time. Over those years, it has helped and accommodated several companies with good and bad credit to re-establish themselves in the market.
Apart from the basic requirements stated above, your business must be located in Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, or Rhode Island in order to qualify for financing through Santander Bank.
Since the website does not have enough information regarding their criteria, we can't say for sure that they won't ponder over other factors while approving your application. However, if you have a good credit score with a good cash flow, you will most likely get commercial truck financing through this platform quickly.
“Santander Bank has worked on its offerings and services for over ten decades. They have excelled in the banking and financing aspects within these years”
How To Apply For Commercial Truck Financing Through Santander?
Santander Bank does not have a direct online application for commercial truck financing or financing on its website. Instead, it requires you to get in touch with them through a simple form. Once they have your details, they will reach out to you accordingly and assist you further. The first step form requires you to provide the following information:
- Personal information (name, email, contact)
- Business details (name, contact, industry)
- Annual revenue
- Zip code
- Best time to contact you
Once they get to you and provide you with all the details about how your eligibility and how to take things further with the correct documents, they provide you with an extensive application for commercial equipment and vehicle financing, which is required to be emailed at firstname.lastname@example.org
This application is relatively thorough and might take up more than a few minutes. The details required in this form are as mentioned below:
Business Applicant Information
- Federal ID
- Time in business
- Billing Address
- Equipment Address
- Bankrupt (over the years)
Equipment and Financing Description
- Amount requested
- Term requested
- Equipment description
- Number of trucks required
- Fleet Size
- Vendor details
Reference To Previous Contracts
- Personal information (name, contact)
- Previous Installments or Debt (if any)
- Previous contacts or hauling (if any)
Guarantors Personal information (name, contact, address, residency)
Once you have filled out the required fields, there is a particular passage stating the terms and conditions of Santander Bank that is a must to read. Before signing and submitting, ensure that you are clear with all the terms and conditions mentioned by the bank and you are in favor of them.
Now that you have read the terms and conditions, sign the application and your guarantors' signatures and send them over or hand them to a representative at Santander Bank for further processing.
Some documentation that you must keep ready while applying for commercial truck financing through Santander Bank are:
- Your credit score,
- Tax returns
- Bank statements (3 years at least)
- Business plan
- Personal financial statement
Once you have submitted the required documents and have moved past the application stage, you must ask the representative in charge of your case for your loan's repayment options. If needed, set up automatic repayments for your loan but always keep tabs on any unusual payment made from your account.
In case of any inconvenience, you can reach out to Santander Bank at 800-238-4009 for further assistance.
Terms And Rates Offered By Santander Bank
Santander Bank ensures that its customers do not have to face many inconveniences in terms of rates and payments. Therefore, they follow "simple interest loan contracts," which adhere to all the rules and regulations and follow a monthly payment schedule.
The bank tries to offer competitive market rates to its customers. For example, the lowest rates offered by Santander Bank upon commercial truck financing are 1.9%. Depending upon the financial plan you opt for, the loan amount can range from $10,000 to $75,000 with a term length of up to 72 months. However, when applying for an origination, an annual fee of $250+ is charged once you sign your deal with them.
Even though Santander Bank claims that it offers interest rates as low as 1.9%, it has been reported by a few customers that the annual percentage rates (APR) can go up to 20% while financing through this financial institution. However, since it makes financing convenient for many businesses who get rejected by another platform, it is a go-to for companies facing a hard time.
Santander tries its best to make its platform ideal for its customers. For example, Santander Bank offers early payoffs without any additional charges to make it easier for its customers. Instead, if you start making early and regular payments to your account, you can expect lower interest rates on your monthly expenses.
While there is a good side to it, the bad end is that if you are unable to pay your monthly payments on time, the interest on your account can result in an unmanageable amount and lousy credit.
Even though Santander Bank has worked hard on its brand, it still has a poor reputation in the market overall. As per Better Business Bureau, the bank has been ranked B- with a customer score of 1.1 out of 5.
In addition, according to the reviews and reports, Santander Bank has been subjected to class-action lawsuits and claims of unfair auto loans with extensive interest rates. Along with that, the customers were not satisfied with the customer support provided by the institution.
However, it's not all bad as multiple customers have encountered a satisfactory experience with Santander and its commercial truck financing as per the reviews online.
Frequently Asked Questions (FAQs)
What is commercial truck financing?
Commercial truck financing focuses on leasing or loaning a truck for your business through a financial institution. It is a great way to get the funds to get your business started early or give it a push in difficult times.
Does Santander Bank provide commercial truck financing throughout the United States?
Santander Bank is a European financing company established in the United States. It does not offer commercial truck financing or other services in all states of America. However, you are eligible for their offerings if you reside in Connecticut, Delaware, Florida, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, or Rhode Island.
Is Santander Bank good for commercial truck financing?
Santander Bank has received mixed reviews in terms of commercial truck financing over the years it has been in business. It has been subject to lawsuits and general attorneys, which do not make it an ideal option. However, there are some positive reviews as well. Therefore, it is still an option for individuals who other institutions have turned down.
Can I get commercial truck financing through Santander Bank with lousy credit, tax liens, or bankruptcy?
Santander Bank has multiple programs to meet the requirements of various different companies and individuals going through other circumstances. In order to accommodate companies going through a difficult period financially, they finance businesses with bad credit or bankruptcy. However, you can expect higher interest rates in such situations.
How long does it take for Santander Bank to approve loans?
Santander Bank claims that if an individual has an account with them, they can get commercial truck financing in as few as two days. However, each case varies; therefore, set your expectations after contacting the bank.
Commercial truck financing can be an easy way to distribute your financial expenses over a period of months. However, as appealing as it sounds, it comes with a lot of requirements and extensive research.
Multiple banks and online lenders are providing commercial truck financing at this point, but to make sure that you pick the best one for yourself, you need to keep in check with many things in the market.
Santander Bank is one of the many platforms that offer commercial truck financing. Similar to other financial institutions, it claims to provide competitive market rates and a smooth financing experience.
However, even though the bank has been in business for decades and operating worldwide, it has a fair number of negative reviews when it comes to financing.
It might seem like a tempting option since it accommodates bankruptcy and low credit score. However, in such situations, it requires applicants to pay a relatively large interest rate, which can bring damage in the long run. Nevertheless, it might be a good option for some if there is no other option.
Otherwise, it is recommended that before signing a contract with Santander Bank for commercial truck financing, you look into your other options and get more knowledge about what would suit your business plan in the long run.