Getting information about financing a commercial truck can be difficult, especially if you’re dealing with poor credit. Just because it seems challenging, doesn’t mean it’s impossible.
There are many owner-operators on free load boards . Load boards are great ways for new or established companies to grow their business and relationships with brokers and shippers.
So how do you take advantage of these resources if you’re needing financing to purchase a truck?
First, it’s important to remember that financing for commercial trucks to carry truck loads is much different than looking for a loan for a traditional vehicle. We’ll go and lay out everything you need to know to see if financing a new truck makes sense for your situation.
How to Finance a Truck with Poor Credit
Whether you’re lacking capital, have poor credit, or no credit, you may still have options to financing a truck to become an owner-operator.
- Seek Special Programs: Sometimes used truck dealers and lenders offer special lending programs specifically for buyers with poor credit or first-time buyers. If you’re looking at purchasing a used truck, ask around for different options and program availability.
- Work on a Cash Reserve: Owner-operators need a healthy cash reserve to sustain their businesses. Work on building yours up before starting your hunt for a truck. Then when you start looking for a truck, you’ll have a down payment ready!
- Use Collateral: If you have less than perfect credit and not much cash to spare, but you own other vehicles, you may be able to use them as collateral (if you don’t have loans on them). This may even help you ditch any down payments.
- Find a Partner: If you’re worried your credit is too poor to get you the truck you want, you may need to look for a partner. If your partner has a good credit score, that can do a lot to tip the scales in your favor and potentially offset your bad credit.
- Put More Money Down: Going off of tip #2 and saving up cash, it always helps if you can put more money down because every dollar you can pay upfront brings you much closer to approval. Sure, lenders love to see good credit, but they also love equity and more money down means more equity.
Even if it takes you a little longer or through a different process than others, it is possible to finance a truck with poor credit. Make sure you take the proper measures and are organized as you start the process. Once you’ve secured financing, it’s crucial that you follow a few steps or you risk causing your entire operation falling apart.
- NEVER miss a payment.
- Have 1-2 months of payments saved up before applying.
- Always read the fine print.
Doing the above can ensure that you aren’t struggling to keep your head above water as you venture out on this new career opportunity.
We hope that these tips have been able to provide some clarity on the necessary steps to securing financing with less-than-perfect credit. For other resources and access to the world’s largest FREE load board, check out our site!