- November 9, 2024
- Posted by: Sergey Grushetskiy
- Category: Semi Truck Financing
Businesses of all types can find themselves in need of commercial truck financing to handle their everyday operations. Knowing how to properly secure funding can make the process flow smoothly.
Whether you are looking to finance one truck or an entire fleet, here are a few common mistakes to avoid when applying for commercial truck financing.
Not Assessing Your Financial Situation
Diving head-first into a new truck purchase is not always the best thing to do. Rather, you want to take some time to assess your financial situation. Getting in over your head financially will not only hurt your business, but it will hurt your credit and may impact your ability to obtain future financing.
How much are you able to comfortably afford for a truck payment right now? How is your credit? A good credit score gets you more favorable loan terms. If you have time, you may want to see if you can improve yours before applying.
Not Reviewing All of Your Options
There are many different ways to obtain commercial truck financing. You can use the bank for a traditional loan or seek alternative financing solutions. Never just assume that one option is better than the other as it all depends on certain key factors.
Take the time to see what is available to you to make sure you are getting the best deal.
Underestimating the Down Payment
When it comes to commercial truck financing, there are a lot of factors that are taken into consideration. One, in particular, is the down payment. The more money you have to put down, the greater chance you have of securing financing with favorable terms.
A larger down payment not only reduces the loan amount but also improves your approval odds as you are no longer seen as a high-risk borrower.
Incomplete Business Plan
Before agreeing to finance your commercial truck purchase, there is a good chance that your lender will want to assess the health of your business. This may include reviewing your formal business plan, including the most recent financial records and your financial projections.
Details about your taxes, bank statements, the truck you want to purchase, and how it will fit into your plan are all important things your lender will likely want to take a look at. Have it organized and ready to go when applying for financing.
Failing to Acquire Insurance – And Account For the Cost
Commercial trucks require insurance to protect against any accidents, damage, or injury. Lenders who are agreeing to finance your purchase are going to want proof of this extra layer of security. This lets them know that should something happen to the truck, it is insured.
Most commercial truck owners forget that this insurance policy is an additional expense. It needs to be accounted for when you are purchasing your truck. And you will need it in place for your financing to go through.
Apply For Commercial Truck Financing Today
Don’t make the mistake of going elsewhere — stick with the best financing source available for truckers and dealers in America. At 10-4 Financing, we offer commercial truck financing to get you up and running as quickly as possible with plenty of options. Bad credit? No problem!
What are you waiting for? Apply today to get started.