Starting a trucking company without a lot of capital may seem impossible, but it is possible. There are many financing options available for trucking business owners, regardless of whether they want to start a fleet or become an owner-operator of a single truck. There are many reasons to start a trucking business.
The American economy’s backbone is commercial trucking. Even small businesses need one or more commercial trucks to connect with consumers and businesses. In terms of size, they range from semi-trucks 53 feet in length to light delivery vans. However, there is a shortage of drivers right now. According to an American Trucking Associations report, the industry needs approximately 60,000 drivers. This means that there are opportunities for expanding new businesses like yours.
How to get truck financing with no money down?
You can get no money down financing if you don’t have a lot of money but still want your trucking company to succeed.
There are two options for buying a personal vehicle: buy or lease. Although the terms of commercial truck financing are similar, they have different terms: capital or operating leases. You might also consider an operating lease. You can get a loan or lease for $0 down, but approval will be contingent on your qualifications.
Process
A no-money-down lease or loan allows you to finance or lease one or more trucks. This is a good option if you have little or no savings. You can use a no-money-down loan to finance a truck, just as a loan where you put down money. However, interest will be higher because you are financing 100% of the truck’s actual value, not a fraction.
An operating lease is another option. It is similar to a car lease and is not a form of financing. An operating lease does not give your company ownership of the asset. Operating leases are more like rental contracts. The title remains with the leasing company up to the end of the term. You then return the truck. According to Smart-Trucking, semi-truck operating lease terms are less than 75 percent of vehicle value.
Rates
Although rates for commercial truck financing can vary greatly, they are generally between 5% and 30%. A commercial truck lease or loan can have terms and rates completely different from another person’s. Different lenders offer different incentives to help you win your business. Financing is competitive. Some lenders advertise that they will work for borrowers with bankruptcy reports, while others offer $0 down payment loans. Decide which is most convenient for you.
Rates for borrowing money depend on personal and business credit scores. Rates will be higher if your credit is good. According to your credit score and the lender, rates can range from 5.99% to 36%.
Borrowers with a long operating history, substantial cash reserves, and impeccable credit histories are more likely to be approved for the best rates. Lenders may require a down payment to be approved for financing if you have bad credit.
What is the Maximum I Can Get?
A truck lease allows you to finance the full cost of the truck or trucks with no down payment. However, your criteria will play a major role in getting financing approved.
Lender qualifications can vary, so it is important to compare the different options. The following factors can affect the approval of financing: credit score for personal and/or business purposes, amount of the down payment, experience, truck Mileage, age of a truck.
According to your situation, you may be able to obtain all or some of the financing you need. It all depends on the individual.
Where can I get truck financing online?
National Truck Loans makes applying for truck financing online easy. Visit their official website will provide you with more information.
