Looking To Buy A Semi Truck But Have Bad Credit or No Credit?
Well, if you are looking to finance a semi truck with bad credit or no credit, you should know that there are lenders out there that will finance your semi truck business with no money down.
Running a semi truck driving business is not an easy thing to do. It is hard work and long hours. However, with dedication, knowledge, hard work and the correct financing, you can make it work for you. Many people who decide to go into the semi truck driving business either have no credit or bad credit and therefore need companies who are willing to lend to them with little or no hassle.
When you decide to get into the semi truck driving business, you can choose to become an independent contractor or lease to a company as per your ability and your current personal and financial situation. There are pros and cons on both of these options. If you don't like the idea of reporting to someone else, the becoming and Independent Contractor is the route for you. You report to yourself, you make your own hours and you pay yourself. On the other hand, when you work in conjunction with another company, you will have a steady supply of jobs even though you may not make your own hours. Before you consider getting semi truck financing with no down payment, you need to decide if you are going to contract with another company or if you are going to be an Independent Contractor.
Buying a Semi Truck With No Down Payment
The average cost of a semi truck is $25,000 to $30,000. There are many commercial vehicle financiers that are ready to provide the financing to buy a semi truck to start your trucking business. The challenge lies in finding the right financier.
When you are in dire need to borrow money and your are at a credit disadvantage, it is easy for greedy financiers to try and take advantage of you. Although there are lenders who will lend to you even if you have bad credit, those who will lend to you on a "no money down" basis, want to see that you have a good payment history before they do that.
If you have bad credit and cannot get a semi truck business finance loan, there are many types of personal loans that you can get even if you have bad credit to use how you please. There are thousands of successful truckers who have made a good living for themselves in their own trucking business and they have found creative ways to finance their businesses if conventional ways failed them. You can do the same.
Their secret lies in finding the appropriate financier and dedication to your own success. It is quite easy for an established trucker to get a semi truck with no down money. It is difficult for a new owner operator to buy a semi truck with no money down. Hence, a new owner operator can first approach their local banks or credit union for semi truck finance. If you have an established connection with your local bank or credit union, they may be quick to over-look blemished credit or no credit from a member of their community. The second thing they can do is check out some trucking community forums online. These types of forums are great for bouncing ideas from other truckers in other parts of the country. It is also a great way to get ideas for financing a new truck or getting a used truck cheaper. The community forum is also checked by various commercial vehicle lenders who are looking for qualified customers. Here you may find a lender willing to lend to you with no money down whether you have good credit, bad credit or no credit at all. You can also check for local vehicle and surplus auctions in your neck of the woods or within driving distance of where you live. You can get great deals on semi trucks and both online auctions and in person auctions.
Commercial Truck Financing For People With Bad Credit
Your credit score is very important to get financing for a commercial vehicle or for buying construction equipments. It is not easy to get finance for new owner operator with bad credit. However, it is not impossible. If your credit score is less than 580, your credit history is considered as bad. There are still many lenders who provide financing for new owner operator with a bad credit score. The APR rates and other fees will be higher though, but that's to be expected since the risk is greater. If you have a damaged credit score, it is best to repair your credit score and then try to get a loan. You can approach a financial adviser to help you to build up your credit history. Otherwise, you may get your truck, but much of your money will go to paying off high interest rates from your loan. As mentioned above, you can also get a personal loan for people with bad credit if you do not qualify for a semi truck business loan because of your credit.
Ways to pay off your loan faster:
You new trucking business won't be successful if you are bleeding money. Of course you know that you should always have a business plan, but you should also have a way of paying off your loan faster, especially if you had to settle for a loan with a higher interest rate. Go through all your expenses and elimination unnecessary and excessive expenses. These unnecessary expenses may even include electricity bills that you pay since you are a trucker, you may only need to have electricity for a certain time period. The same thing with cable and telephone bills. Try to consolidate your credit cards into one payment to lessen the interest rates as well. Also, being a trucker, especially if you are an Independent Contractor, you will need to budget for times when you may not have a "job" that's bringing in steady cash. You can get extra cash to save for your emergency fund and pay off your semi truck business loan faster by doing things in your spare time to bring in extra funds.
Semi Truck Lenders Who Lend to New Operator Owner
Trust Alliance Capital
Trust Alliance Capital is nationally recognized financial company. They provide finance solution for new businesses as well as established businesses. Trust Alliance Capital has a program that provides guaranteed funding for buying a Semi Truck. The payment options can be structured according to your needs.
Jaguar Equipment Financing
Jaguar Equipment Financing encourages new owner operators. They have flexible financing programs. You will get finance even your credit score is bad. They accept a minimum credit score of 550. They have a one page hassle free application form. Jaguar Equipment financing also offers semi truck finance with low down payment and low monthly payments.
Truck financing is Capital Funding's main area of lending. They provide all types of commercial vehicle loan for new and used vehicles. Capital Funding also provide finance for new owner operator as well. They have an easy online application form and getting a quote is free and simple. They also have flexible payment terms from 24 to 72 months. Approval is very fast, usually within 4 hours. They also provide 100% financing; hence no money down for buying a semi truck.