Tractor trailer financing: best options for tractor trailer financing and leasing in 2020

0

If you run a trucking business, the tractor-trailer is probably the most important commercial equipment you need. And they are not cheap. Whether you need a fleet of trucks or a single tractor-trailer at a time, commercial vehicle finance programs can help you save money for other uses while getting the equipment. you need to run your business successfully.

Financing and leasing of tractor trailers for 2020

So what is trucking commercial loans for small businesses in the trucking industry looks like right now? With unprecedented interest rates, commercial truck loans and leasing programs are more attractive than ever.

We’ll look at both buying and leasing a truck or tractor-trailer, and look at some of the options available to you for equipment financing.

3 options for financing a tractor-trailer

When it comes to commercial truck financing, your business has plenty of financing options no matter what type of qualifications you have.

TimePayment

If you are interested in leasing a commercial vehicle or other equipment, TimePayment worth considering. Even if you are a startup, you can benefit from funding.

Rates

TimePayment offers a factor rate of 0.0219 to 0.0626, depending on your credit profile and the length of your lease.

Terms & Conditions

You will need a FICO credit score of 550 or higher to qualify.

The amounts

TimePayment can help you obtain financing for equipment valued from $ 500 to $ 100,000.

Park Loan

Park Loan is a great financing option whether you want to buy new or used equipment or vehicles. The company also offers equipment rental.

Rates

LendSpark rates start as low as 5%, depending on your credit, and can go up to 35%.

Terms & Conditions

For working capital loans, you will need to prove that you have been in business for at least six months and that you are generating income. For equipment financing, you must have been in business for at least two years.

The amounts

You can borrow up to $ 2 million.

SmartBiz

If you prefer to work with a more traditional lender or even get an SBA loan, SmartBiz can help. SBA loans can often take months to process, but SmartBiz can speed up yours in 60-90 days.

Rates

SmartBiz offers low rates at 4.75-7%.

Terms & Conditions

You must have been in business for at least two years and you may be asked for financial statements.

The amounts

With the SBA loan program, you can borrow anywhere from $ 30,000 to $ 5 million.

How to qualify for tractor trailer loans

Lenders each have their own requirements, but there are a few things your business can work on to qualify with all finance companies.

First, make sure you have the business licenses or permits you need for your trucking business. If you’re not sure what it is, check your secretary of state’s website.

You (and any other business partner you have) may need to provide personal collateral for a loan, so make sure you are financially able to do so.

Each truck dealership or bank will have different credit history and credit rating requirements, but in general, expect to need at least a personal credit score of 600. But be aware that you have always have financing options even if you don’t have good credit.

(Get your free business credit scores here.)

Beyond that, you shouldn’t have any bankruptcy on your credit report for the past seven years, or any unresolved tax liens.

Can you get semi-trailer financing as a startup?

Even if your business is brand new, you still have the option of obtaining equipment or tractor-trailer financing. However, you can pay more interest and you may need to make a down payment up front.

Is It Possible To Qualify For Tractor Trailer Loans With Bad Credit?

Rest assured, there are business loan options for less than perfect credit. Yes, you’ll pay a higher interest rate for the lien, but if having the business vehicle or equipment is critical to growing your income, the investment may be worth it.

Should you buy or lease semi-trailers?

When you start your research on lenders, you will notice that many offer rental options. Rather than buying the tractor-trailer and owning it, you lease it for several years and then give it to the finance company (you may also have the option of buying it at the end of the lease) .

Benefits of buying tractor trailers

The advantage of buying a tractor-trailer, especially with financing, is that you get the equipment you need while keeping your cash flow. You can use the vehicle you buy as collateral, and later you can sell it for more working capital.

Disadvantages of Buying Tractor Trailers

One downside to obtaining financing through commercial truck finance companies to purchase a tractor-trailer is that you will pay more for the equipment in interest. If your business has bad credit, you’ll pay even more.

Benefits of renting tractor trailers

On the other hand, leasing a tractor-trailer or commercial equipment gives you a low monthly payment without having to sell the vehicle when you’re done. Plus, you don’t have to deal with outdated equipment.

Disadvantages of renting tractor trailers

You can end up with higher monthly payments by working with leasing companies than if you made payment for the purchase of a truck.

Alternative financing options for semi-trailers

In addition to the semi-trailer and equipment financing options mentioned above, here are other solutions.

Nav’s last word: financing of tractor trailers

The trucking industry relies on commercial loans to cover the expenses of trucks, large rigs and fleets. The key is to maximize your cash flow by purchasing affordable and easy financing for your business.

This article was originally written on July 7, 2020 and updated on October 21, 2020.

Rate this article

This article currently has 9 ratings with an average of 4.5 stars.

class = “blarg”>

Leave A Reply

Your email address will not be published.