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BMO Harris Commercial Truck Financing

With an impressive live support, BMO Harris gives customers something unique, offering smart advantage checking. This eliminates the need for paper statements in favor of electronic checking, instead of going to the bank.

A well-established American banking company that operates in Chicago, Illinois. Their parent companies are the Bank of Montreal and the Harris Financial Corporation, and it has been providing fine banking to over 12 million customers in the past 140 years.

Shira Mizrachi A well-established American banking company that operates in Chicago, Illinois. Their parent companies are the Bank of Montreal and the Harris Financial Corporation, and it has been providing fine banking to over 12 million customers in the past 140 years.
Shira Mizrachi
May 5, 2022

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BMO Harris gives customers something unique; It offers you smart advantage checking. This eliminates the need for paper statements in favor of electronic checking. This is much more convenient than going to the bank and signing out forms; it's also safer. 

BMO Harris also offers impressive live support. They have 24/7 live phone support with over 500 branches in the United States. However, you should know that most of these branches are in the Midwest. 

There are many reasons you might be thinking it's time to seek the professional help of a bank when it comes to your finances – and there's no better out there than BMO. 

Why BMO Harris Can Be Beneficial To You

If you are looking for a Midwest-based bank that offers basic checking without the hassle of monthly fees and gives you free access to ATMs all across the country, then BMO Harris might be the bank for you. 

BMO Harris also offers an extreme amount of convenience for its customers. This is one of the few banks that can boast a number such as 40,000+ free ATMs all across the country. This means that your money will be accessible to you no matter where you are. The catch, however, is that these accounts will not earn you any interest whatsoever.

All you need to open up an account with BMO Harris is $25. You also have an option to open an account online, but you have to pay a monthly fee of $10. However, if your daily balance is at least $10,000 or above, this fee is waived. To apply online, all you need to do is visit the bank's official website and apply for the type of account you want. 

BMO Harris has an APY rate of 0.05, which is the industry average, although slightly lesser as the national average is 0.06. If you are the type of person who is interested in savings accounts, then you will be pleased to know that BMO Harris has great savings deals. Their statement savings account has an APY of 0.01% and numerous other benefits.

Regarding their terms, the period usually ranges from three months to five years. CDs refer to the certificate of deposit. This certificate is an account that lets you save money - usually at a fixed interest rate for a certain amount of time. 

Typically, this is between six months to a year to five years. As with most things related to finance, there always is a catch. You get this interest rate premium if you leave a deposit untouched for an agreed-upon period.

“With 40,000+ free ATMs all across the country, your money will be accessible to you no matter where you are”

Who Should Apply For Commercial Truck Financing With BMO Harris?

If you are interested in getting a commercial truck loan, you will be relieved to find out that BMO Harris also has you covered. BMO Harris has over 40 years of experience in the commercial trucking industry; with that kind of figure comes many benefits – Namely, insider knowledge and networking only a very experienced company would have.

BMO Harris can be best described as versatile. They have a wide range of loans and finance options for every customer with every need. They offer semi-trucks, specialty trucks, and top brand trailers to those and trucking. 

BMO also has something for those involved in the supply chain. For people who wish to loan and lend without the hassles of ownership, BMO has a fair assortment of loans and financing methods for them as well.

Commercial trucking doesn't only mean driving a truck and maintaining it. Some people may not appreciate the finer complexities of the trucking industry; however, you will find that BMO Harris is not one of them. If you want to contact a regional expert through their trucking page to find out how they can meet all your trucking needs.

How Will BMO Harris Assist You

At BMO Harris, it is understood that every part of the supply chain is equally as important. For that reason, BMO Harris offers original equipment manufacturers, their recycling services, and personal dealers. This covers the entire supply chain, so any trucking needs you have - whether that's at the very start of the supply chain or the very end - BMO Harris can likely help you out.

Their experience shows not only in the things they know but also in how they offer you commercial truck financing. BMO Harris has a group of experts specifically for the commercial trucking industry. The Transportation Finance group is a group of expert advisors to help guide you towards the best possible solution for your commercial trucking needs. 

Another benefit of BMO Harris is that a transportation finance expert will be available to you anywhere in Canada or the USA. You need only call their line, and they will connect you to a TF expert. 

“40 years in the commercial trucking industry mean insider knowledge and networking that only a very experienced company would have”

BMO Harris Loan Application Process

Unfortunately, BMO Harris does not accept personal loan applications online. You would have to contact the bank or visit a branch to begin the application process. There are also registration fees, rentals, tax, and title fees, but this is gathered under one payment for the customer's ease.

For an Auto loan, BMO Harris will ask for: 

BMO does accept people with poor credit. However - and this is standard with any bank - better credit will receive better loans. It is harder to prove that the person is creditworthy with poor credit. BMO Harris will pull up your credit report, but this is a soft pull – so it will not negatively affect your credit score. 

BMO Harris will also review your current income and your current debt, and naturally, people with better income and less debt will get better rates and terms. The more creditworthy you are, the better the deals you will get from any bank, not just BMO Harris. 

BMO will also ask you to possess a pledge of collateral as security. While this sounds very complicated, it is not. A pledged asset refers to the person taking the loan passing possession of an asset to the lender until repayment is settled. 

It can help reduce the down payment in some cases, and it is usually used when you do not have other ways to prove your creditworthiness. With BMO Harris's financial consultation, you can determine whether a secured or unsecured loan is the right option for you. 

Loan Requirements and Details

BMO Harris is unique because they do not have any specific loan requirements. They offer their customers great accessibility in customizing their terms and adjusting finer details such as repayment and the length of terms. 

Whether they want to purchase, sell, or re-lease – BMO Harris emphasizes allowing its customers to be involved in the process and create their custom financial solution. 

The usual terms start at around 12 to 72 months; they also have a financial requirement for their loans; the minimum requirement for a BMO Harris loan is $1500. Depending on what you are applying for, they may or may not review your fico score. If you wish to apply for a credit card with BMO Harris, they will check your FICO score. In this case, you will require a score of 600 or above.

“BMO Harris offers great accessibility in customizing terms and adjusting finer details such as repayment and the length of terms”

Types of Loans Offered at BMO Harris

BMO Harris also offers a variety of loans. No matter what kind of financial crisis you're dealing with, BMO probably has a loan for you. 

With BMO Harris, you get:

FMV Leases

An FMV lease refers to leasing equipment for a given period, and when the end of the term comes, you can purchase that same equipment for fair market value. 

It lets you have access to any equipment you may want that BMO can offer without dealing with any issues related to ownership. You have to pay a fixed amount per month for your usage. Fair market value is a term for an asset's current value. 

That is typically what it would sell for if it were being sold on the open market. You can upgrade it at the end of the lease, return it, purchase the equipment, or extend your lease terms. It is meant to be an adjustable leasing method, so if you are the kind of customer who likes flexibility, this kind of lease might be the one for you. 

TRAC Leases

A terminal rental clause agreement lease or a TRAC lease is a type of lease that allows you to adjust payment terms, the length of your lease, and any residuals throughout your lease. 

These kinds of leases at first may not seem so different from the one we just went over, but their main difference lies in what you can do regarding your residuals and monthly payments. 

For example, some people might prefer having lower monthly payments but having more residual leftover, and others might prefer the opposite. With this kind of lease, you can do both depending on your preference. 

Inventory and Lease Financing

Lease financing is what we have been going over so far. A lessor leases an asset – and a lessee uses it. The lessee will pay the payment upon periods agreed by both the lessor and the lessee, known as the lease rental. 

The lessee uses the equipment, but the ownership lies with the lessor. This form of financing lets both parties reap the benefits without the commitment – the lessee doesn't have to own and purchase equipment, and the lessor does not have to sell equipment but can still profit from it.

Inventory financing is a little different – Any business's inventory of products is a valuable asset. Valuable assets can be used as collateral when finances are short. However, this doesn't mean that you have to sell your assets. If your business has a decent chunk of money invested in its inventory, then this method of financing might be the one for you. 

Inventory financing takes some elements from accounts receivable financing and short-term business loans. In the former, money is made - 

which is then used to market products - through the value of receivables and inventory. It would be best if you kept in mind, though, that inventory does depreciate. You should also keep in mind the state of your inventory. If your inventory is not selling well, this method may not be the best because it might be hard to find a willing lender. 

Asset-Based Lending

Asset-based lending involves loaning money under an agreement usually secured by collateral. This collateral can be inventory, equipment, property that the borrower might own or possess, or even accounts receivable. Essentially, this form of financing uses the borrower's assets by turning them into collateral. 

You should note that liquid collateral is usually preferable to physical collateral such as equipment or inventory. This kind of financing is best for small or mid-sized businesses that need to inject some capital into their cash flow or have other short-term finances that need covering. 

If you can't qualify for a loan through your cash flow or your cash assets, your lender may offer you this form of financing as an option. 

BMO Harris Commercial Truck Financing Interest Rates

It can be hard to find decent interest rates in the market right now. However, it is worth looking into what BMO Harris offers. But first, let us understand the margins of a good interest rate and what impacts these rates. 

The national average in the US for auto loan interest rates on 60-month loans is 5.27%. However, this is an average rate for businesses and trucking services. If you want to loan trucks as an individual consumer, the interest rates will depend upon:

Typically, a good interest rate for a semi-truck lies between 5% to 30% annually. The rate you can get will depend on your credit score, credit score, the age of your business, and the condition and type of truck you seek. You will often get loans with 3% to 10% APRs. 

Whether looking for a truck or a semi-truck, some factors affect every auto loan differently. The lender will calculate the final rate you will get, taking these factors into account. Let's discuss how different things will impact your auto loan rates.

Credit Score

A high credit score of 760 and above qualifies you as a prime loan applicant. As a result, you will be able to get an interest rate as low as 3%, but generally, lenders will settle for 5%. 

However, a poor credit score of 600 or lower can result in an interest rate as high as 20%. Because a poor credit score indicates a problematic financial history, lenders will see you as a risky investment. 

Term Length

Most banks will offer terms between 24 and 72 months. The shorter the auto loan term, the lower the interest rate will be. The most common term length is 63 months, with an average interest rate between 4.34% and 4.40%. 

However, as longer terms are becoming increasingly common, such as 72 and 84 months, interest rates can be as high as 4.45% to 5%. 

Even though a longer term allows for a lower monthly payment, the interest to be paid can become very hefty if the payments accumulate. These longer terms are more beneficial if you have a good credit score and are loaning a brand new, or at least a newer model truck. 

Various other factors will impact your interest rate on an auto loan – such as the car's model, age, condition, and the bank/lender you are taking the loan from. When it comes to BMO Harris, they look at your overall financial history before deciding on an interest rate based on your credit score. 

BMO Harris also provides plenty of wiggle room to customize a loan's terms and rates in the most manageable manner for you. 

You can go off of no fixed interest rates, except the average interest rates based on the different factors mentioned above. However, the best way to find out if BMO Harris works for you is to contact their truck financing team and discuss how they can help you. 

Conclusion

Commercial truck financing might seem like a very complicated process at first glance. But with the right assistance, you can find the best auto loans with suitable interest rates. There are many great banks to get auto loans from across the US, but BMO Harris is worth a shot.

They offer great customer support services, and applying for an account is comparatively easy. Even though you can not apply for loans online, the application process is ensured to be hassle-free by BMO Harris. 

It is one of the older banks operating throughout the US, so you know it is secure and reliable. Their main focus is customer satisfaction and convenience, so you can rest assured that they will do their best to help you with your trucking needs. 

FAQs

How can I finance my truck in the best way possible?

The best way to finance a truck is by cash – unless you manage to get an extremely low APR., it can help significantly be as pragmatic as you can when it comes to auto loans. 

If you are looking to pay less every month, a longer auto loan term might work well. However, you will be paying thousands of dollars more overall than you would for a short-term loan. Shorter terms equate to higher monthly payments, but in the long run, they are more cost-efficient. 

It is also advisable to thoroughly think about your financing abilities and requirements before speaking to a lender or lessor. It also helps to check various banks and dealerships before settling on anyone. Comparing the different terms offered can help you save money and get the best deals possible. 

What credit score do you need for commercial truck loans?

Most auto lenders will require a FICO credit score of 600 or higher. Credit scores between 600 and 700 can land you some reasonable loan terms and interest rates. However, if your credit score is over 760, you might get the best deals on the market. 

Your credit score matters a lot because it can assure lenders that you have a reliable financial history. A good credit score can provide affordable auto loans on vehicles in great condition, even with debts. 

If you have a credit score lower than 600 or even as low as 580, you might struggle to find good interest rates. A low credit score might also prevent lenders from providing you with reasonable auto loans. In this case, the best thing to do is to repair your credit score. 

How do I get an Auto Loan?

Getting an auto loan does not have to be as complicated as one might think. Let us simplify the auto loan process for you.

Before contacting any lenders, you must first check your credit report. If your credit score is not good enough to get the loan terms you want, hire a credit repair company to assist you. 

If your credit score is good, you can begin applying for auto loans from different lenders. Applying in multiple places allows you to compare payments, terms, rates, etc. When you have found the best offer, you can get preapproved for the loan you want. Pre-approval allows the application process to go by quicker. 

When you've been approved and happy with your offer, you can set a budget and look for the vehicle you need. Next, you should review the lender's loan offer before finalizing the loan. 

After that, all you have to do is receive the vehicle and make your payments on time to prevent interest rates from accumulating debt. 


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