- April 18, 2024
- Posted by: Sergey Grushetskiy
- Category: Semi Truck Financing
Buying a commercial truck can be quite a hefty investment which is why most drivers seek financing. And, while commercial truck loans aren’t very different from every other type of loan available, knowing how to navigate through your options and choose the one that fits will ensure your growth rather than halt your progress in the industry.
This article will explore everything you need to know about the different types of commercial truck financing options.
Things to Consider When Financing
Considering a few different factors can help you narrow down the best option for your purchase. For instance, securing the best rate is going to require that you meet a certain standard. But, what if you don’t? Are you out of options?
Here are some factors that will help lenders determine your level of risk and impact your decisions when it comes to commercial truck financing.
- Your credit score
- Your CDL driving experience — and overall driving record
- The amount of your down payment
- What you are hauling
- Where you will be traveling
Once you know what is required and where you stand, you can determine your next step in securing your tractor-trailer.
Commercial Truck Financing Options
When you are ready to finance your commercial truck, below are your options to get the job done.
Bank Loans
When most truck drivers think about financing options, the first go-to option is a traditional bank loan. And, for good reason since this has been an ideal method for financing everything from cars to businesses and everything in between for decades. What’s more, many bank loans have low rates and great terms.
The downfall, however, is that these types of loans typically require you to meet some stringent criteria, including a solid credit history, extensive driving experience, an impeccable record, and so forth.
A lot of drivers find that they are ineligible for commercial truck financing through a traditional banking institution.
Alternative Financing
For those drivers who want to get their business going or are seeking to grow one that is already established, alternative financing may be the best option — especially when unable to meet the criteria for traditional financing.
These online lenders often provide quick approval and funding with more lenient eligibility requirements. This will keep drivers from getting stuck in a leasing cycle while giving them the same opportunity as those with traditional loans.
Alternative financing helps drivers, owner-operators, truck fleets, and dealerships keep truckers on the road and running smoothly.
Equipment Financing
Something that is not always considered is the fact that having the right equipment, such as a trailer or an auxiliary power unit (APU) is almost as important as having the truck itself. Yet, this is an additional expense. How can you pull it off?
With equipment financing — which is something you commonly find when working with the right alternative online financing team.
Commercial Truck Financing with 10-4 Financing
At 10-4 Financing we know that our drivers all come from different backgrounds and have different needs. Therefore, we have tailored our business to meet you right where you are. Whether you are looking to buy a truck or equipment, have great credit, or poor credit — let us help you get on the road so your business can thrive.