Some tips to help you get truck finance…
It can be a real minefield trying to secure finance on a new truck, especially for owner-operators.
If you do find a lender that is willing to work with you, you have to be sure you’ve secured a good deal to help make your business as profitable and sustainable as possible.
There are some steps though that you can take to help get an approval on a truck leasing or financing deal that’s fair.
Giving us the inside word on truck financing is Dallin Hawkins from Integrity Financial Groups.
He says the truck finance process needs to be taken step by step.
Where to start:
Before a prospective owner-operator starts looking for financing, you need to take a good look at your financial situation.
Looking at yourself and your business from the perspective that financing companies will could give you a better idea of what kind of financing options you might have available to you.
If you have enough cash to make a healthy deposit you’ll qualify for different finance options, and this gives you an idea of the kind of truck you can afford.
How’s your credit rating?
Like in all finance applications, a healthy credit history is an advantage.
Truck Financing with a good credit history:
If you have a good credit rating you’ll likely qualify for the best truck lease/finance options, with a minimal deposit and potentially shorter terms.
Truck Financing with an average credit history:
If your credit score is only average then you are most likely going to have to come up with a larger deposit.
Monthly lease payments are also likely going to be higher and the terms of the arrangement could be longer.
Truck Financing with a poor credit history:
Having a weak credit history definitely limits options. But it doesn’t automatically disqualify anyone for a new truck lease/finance.
The owner-operator will have to come up with a bigger deposit, maybe 25% or more.
There’s also likely to be a cap on the amount they can finance and this will limit the value of the truck you’re able to lease/finance.
You will also have to ensure that you are as free of other financial obligations as possible.
Dallin says it can be intimidating going through the process of obtaining truck finance, however the key is to be open and honest.
“Ultimately, lenders want to be able to provide you with an option, the trick is to be patient and to try and work with potential finance providers to obtain the best possible deal.”
Interested in finding out more about vehicle financing options? Check out this article.