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All You Should Know About Commercial Truck Trader Financing Facility

If you own and operate a trucking company and are considering adding a truck or trailer, use our guide to find the best rates on a truck trader financing facility.

Maya Friedman
Maya Friedman
October 13, 2020

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If you’re looking for a truck and need guidance in commercial truck trader financing, you’ve come to the right place! Whether you’ve just ventured into the trucking business or own a small fleet of commercial trucks, getting financial help is not a bad idea. Rates of commercial trader trucks can be very lofty, and it can get tough to gather funds for them. No matter which truck you go for, you can always get commercial truck trader financing.

Nowadays, many registered lenders have come up to provide financing facilities to truck owners who might need a little financial push. In this article, you’ll be enlightened about all the aspects of commercial truck trader financing. By the end of this, you’ll have enough knowledge about how these financing facilities work and what their prerequisites are.

How does commercial truck trader financing work?

When it comes to buying trucks, you may or may not go for a brand-new commercial truck. No matter new or used, you can get loans in both of the cases. This is where commercial truck trader financing comes into play. Such financial lenders help you buy the truck of your requirements by aiding you in the financial sphere. You can avail a loan amount up to $250,000.  Many of our readers report that they’ve had success applying for a Capital One Commercial Auto Loan.

In such financing, you are required to keep your traded truck as collateral for the loan amount. This helps the lenders to limit their risks on the truck loans. Such loans, like any other, entail an interest rate and a set of requirements that may vary from lender to lender. 

You will be able to get the sanctioned funds when you fulfill certain terms and conditions laid out by the financer. While most of them follow almost the same set of requirements, you’ll hardly come across any lender that undertakes hard inquiries.

The loan needs to be paid over the course of months that can be provided according to your suitability. The penalty for defaulting, however, entails the lenders seizing your traded trucks to act as compensation for the loan amount.

What does a commercial truck trader financing process entail?

You don’t have to spend hours and hours in hopes of getting an approved loan for your commercial trucks. Most of the commercial truck trader financing process is the same for all lenders. Most importantly – you won’t need to break a sweat to apply for them! Given below is the general process of commercial truck trader financing companies:

Online Application

No more making endless rounds to the banks, you can simply apply for your commercial traded truck online! Almost every online lender will ask you to fill a simple application form online on their websites. Past this, their associates will contact you for further processes. Here’s a great place to get started. Cardiff provides truck trader financing and is known as one of the best places to start a financing facility for newer truckers that may not have a cemented relationship with a commercial bank.

Discuss your needs

Post the application submission, you will be contacted by the lender associates who will discuss your needs. They will cover your business needs and also understand your preferences to provide a tailored solution. 

Document Verification

Once the commercial truck trader financing company has understood your needs, you’ll be required to get your documents verified. It is for the lenders to have the necessary information about you. 

Receive Funds

After you fulfill all the requirements and obtain a green signal, you’ll just need to wait for the funds. Most lenders can process your fund anywhere from 1 to 3 business days. 

What are the vehicle requirements for such loans?

When you go for the commercial truck trader financing option, you’ll need to fulfill some requirements for it. Since the collateral for the loan is the traded truck you want to buy, lenders want to make sure they get a good resale deal. They also want to make sure that you invest in a good truck that is a beneficial investment for you. It should also last the financial term opted by you.

Hence, most of the lenders look for the following while giving out the loan:

Can you get the financing facility with a bad credit score? 

As you might know, your credit scores do play a vital role in your financial endeavors. If you can be granted a loan with a bad credit history depends entirely on the lenders. However, most of them consider a credit score that ranges between 550 to 600 to not be the ideal for loan approval. 

Nevertheless, there are lenders that can grant you loans even with a bad credit score. However, in that case, they might increase the down payment and also increase the rate of interest for your loan. They can also approve your loan after thoroughly checking your business history and records to assess your ability to repay the loan amount.

Which factors can determine your loan eligibility?

Most lenders tend to check some eligibility factors before they can grant you the loan for your traded commercial truck. Some of the common factors observed in most financing companies are as follows:

Summing Up

A commercial truck, be it used or new, can get heavy on the pocket. However, thanks to the commercial truck trader financing option, you can get the monetary help you need. The lenders rarely have a harsh scrutiny process for giving out loans. It makes sure that anyone, even those with a bad credit history can grow their business with a helpful financial boost!

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