Comparing Traditional Lenders vs. Online Lenders for Semi-Truck Financing

If you want to buy a semi-truck, then you are going to need to secure financing. After all, it’s a larger investment than your typical automobile. 

Two of the most common options for semi-truck financing include traditional lenders and online lenders. While going with a brick-and-mortar bank has been the most common option over the years, many are finding that online lenders have a bit more to offer. 

Which one is right for you? What is the best option for semi-truck financing? Let’s compare them. 

Semi-Truck Financing with Traditional Lenders

A traditional lender is a bank or credit union. These are well-known options for financing as they have been around for so long — at one point they were the only option for loans or lines of credit. Many who are interested in using a traditional lender for their semi-truck financing often find that they do come with a few perks, such as: 

• Established history in the industry
• Immense experience
• A number of different loan products to choose from
• Great APR rates at times for those who can meet their high credit standards

Of course, just because traditional lenders have been around a long time does not always make them the best option for financing. 

Banks tend to be a bit more stringent in their approvals, looking for those who have a high credit score and clean credit history. Most people will find it tough to meet their standards. 

What’s more, their processes work well, but they are not always the most efficient. Here you will usually find a lot of paperwork and a lot of red tape. 

Looking to get into your semi-truck quickly? Traditional lenders may not be the best way to go. It is often a very slow process.

Semi-Truck Financing with Online Lenders

Online lenders are fairly new to the financing arena and are viewed as an alternative to traditional options. However, don’t let this fool you. Many borrowers looking for semi-truck financing find that online lenders are much easier to work with — and much faster. 

With online lenders, you get a streamlined process. You can fill out your application online and it can then be reviewed and approved right away using various automation software programs. There is no long paper trail or waiting around for the application to be processed. 

You get your money fast. 

Online lenders have more wiggle room in who they work with, as well. They are not stuck with needing borrowers to meet approval requirements that are high above the bar. Rather, they may offer loans for those who are first-time drivers and those with poor credit. 

Simply put, more people have more options when they choose online lenders.

As for downfalls, online lenders do tend to have higher APRs than traditional banks. But whether you want to pay a little bit more for the swift action and convenience or require a more lenient option due to poor credit, it is easy to see why online lenders are becoming such a popular choice. 

Semi-Truck Financing with 10-4 Financing

If you are looking to finance your semi-truck purchase, contact 10-4 Financing today. We have options for you. 
Contact us today at 888-908-7701.