It is easy to say that most businesses rely heavily on loans early in their existence, since such a company will typically not have enough money on its own to keep running for long. Thus, the owner of a new business can and should look for ways to secure loans and attract investors, so that they have the cash to keep their business running and give it a chance to grow. All sorts of companies seek loans, such as restaurants, construction firms, and trucking companies. But some such companies may have iffy business credit, and the owner might have poor personal credit. So, can you get financing for your commercial truck with bad credit? This is possible, and financing fir first time owners and operators is a real option. But semi truck financing and owner operator truck financing is rarely done through big banks. To get financing for your commercial truck with bad credit, you may want to steer clear of big banks altogether and seek out specialist lenders.
Small Companies and Loans
A good business owner will be financially literate, and this allows them to make sensible and low-risk loans to get their company moving with early capital. The unfortunate truth is that many new company owners do not have that literacy, in fact, and that can ruin them. It is believed that fully 30% of businesses fail because the owner simply ran out of money, and worse yet, some 60% of business owners believe that they are not financially literate enough. In fact, around 45% of small business owners are not even aware that business credit scores exist (let alone know what theirs is). Getting business loans means having a good business credit score as well as a good personal credit score, and tracking all that information can go a long way.
What about get financing for your commercial truck with bad credit? Big banks are a poor option for this, since large banks approve only 26.9% of small business loans in the United States today. Big banks don’t like to work with small companies and risky businesses such as trucking companies, since they are likely to fail. Thus, to get financing for your commercial truck with bad credit or just moderate credit, try a specialized truck lending company instead.
Get Financing for your Commercial Truck With Bad Credit
Specialized lenders are often the best (or even only option) if you want to get financing for your commercial truck with bad credit. Big banks might turn these lenders away, but specialists may give them a chance. These lenders will not turn away borrowers right away due to a poor credit score, but they may still take some precautions first. Not only do these lenders look over the borrower’s personal and business credit scores, but they will also check for red flags in the borrower’s history. These may include previous bankruptcies or delinquencies on past loans, among other things.
A semi truck company owner looking for a loan may get a loan based on their vehicle’s value, and the better the credit score, the better the loan. With a good credit score, the borrower may get up to 100% of the truck’s value in loans, and at a low interest rate. Even with a poor credit score, the borrower might get approved for a loan, though for a smaller percentage of the truck’s value and at a higher interest rate.
The truck itself may be examined, too. The lender may ask for all sorts of details on the trucks, such as its age, repair and maintenance history, its model and make, and how far the owner sends it on trips. Longer expeditions may mean higher risk, and that may affect the loan. The lender may also ask to see numerous photographs of the truck from different angles, as well.
