Taking out a truck loan is a standard for experienced drivers, new owner-operators, or companies with a large fleet. Depending on your credit score, the type of truck you’re looking to finance, and how long you’ve been in business, the loan term and rates will vary. You’ll find it easier to secure business financing if your trucking company has good credit. Even if you or your company has little or bad credit, you will still be able to find a trucking business loan.
If you haven’t been in business long, your trucking company may have little to no credit. If this is the case, the financing will be based on your credit score. It may be a good thing to consider improving your personal or business creditworthiness before trying to secure equipment financing. One way to do this is by leasing a truck short-term while you improve your credit score. It’s important to note that if you have little to no credit, interest rates will be higher, down payments will be increased, and the loan’s overall amount will be more expensive.
Another thing to consider before securing financing is how much money you have as a down payment for a truck. In the long term, you save money when purchasing a truck compared to leasing one.
As a business owner, it is important to make informed decisions regarding your company’s daily operations. Deciding whether to purchase a truck is one of the most significant decisions a trucking company owner will face. When looking to secure equipment financing, decide what truck or trucks you want to finance, the best price and rates, and the financing term’s length.
Equipment loans and equipment leases are two types of financing you can consider when getting your own truck. Depending on your cash flow situation and business needs, both are beneficial.