Being a driver behind the big wheels and working for a reputable company is great. However, with the shortage of truck drivers in the industry, it is the perfect time to start your own thing. The shortage is directly proportional to a great business opportunity in such a saturated market. As per previous research, there was a shortage of 60,000 truck drivers, with online retailers like Amazon and Walmart taking the lead in the market.
Compared to the demand of trucks and drivers, a truck driver does not get paid enough in the States. Therefore, if you have the means to purchase, loan or lease your commercial truck, then it is time to be your owner-operator. A transition from a truck driver to a truck owner can be difficult and come along with great challenges, but it isn't impossible. Whether you want to start a fleet or own a single truck, some various online lenders and banks provide individuals with the opportunity to start with them.
If you are short on cash and are skeptical about getting a truck for yourself, then commercial truck financing can help you through. There are various platforms available that provide loan and lease options to small businesses. This can do wonders for them as it helps them start their journey. From the options available, a widely beneficial one is Commercial Fleet Financing.
All About Commercial Fleet Financing
Commercial Fleet Financing is a Texas-based firm mainly known for transportation financing. Over the 25 years it has been in business; it has accommodated over 10,000 clients with over $150 million per year. The company has offered commercial truck loans and leases and specializes in semi-trucks.
Besides semi-trucks, trailers, tow trucks, construction machinery, and other fleets are offered. If you are a part of the transportation industry, then Commercial Fleet Financing can assist you with almost every piece of equipment you might need for your business.
Being one of America's leading independently owned transportation equipment finance companies, Commercial Fleet Financing is a perfect lending choice to provide growth to your business. It is a company with great trucking expertise and over a decade of experience. Compared to other financial institutions, they are flexible with their terms and conditions as they lend their own money.
If you have been in business for a fair amount of time, CFF does not need a personal guarantee as they go after your assets at the time of any mishap. In order to qualify for their loan and leases, an individual needs a good potential business with steady personal credit.
Commercial Fleet Financing offers a program named, Auction Line of Credit. Through this platform, you can purchase trucking equipment from an auction. An individual interested in this program can bid as per the desired amount and make a full payment once they have withdrawn the amount. This option provides businesses with a flexible and convenient financing opportunity.
The repayment terms and schedules depend on the equipment you have bid on, which can vary from 36 months to 108 months. The best thing about CFF is that it does not burden its clients with any hidden or additional fees at the end of their term. Moreover, you can get your funding approval within an average of 24 hours.
Mentioned under Magazine's top 5000 fastest growing companies, Commercial Fleet Financing has seen rapid growth ever since its start. Since its early days, $1 billion funds have helped many individuals and families start with their own company. Further, it has received an overwhelming response from its clients. You can check what the clients say about Commercial Fleet Financing under their testimonials on their brand page.
“If you are a part of the transportation industry, then Commercial Fleet Financing can assist you with almost every piece of equipment you might need for your business”
Who Should Opt For Commercial Truck Financing Through CFF?
With the help of commercial truck financing, one can buy, lease or upgrade an already purchased truck with the least inconvenience. As in such financing programs, the vehicle is considered collateral; the terms and monthly payments vary with the cost and lifespan of the vehicle financed.
Many available platforms provide business owners with such opportunities. It depends on your terms and conditions, desired equipment, and personal or business account statement to determine which is the right pick for you.
If an individual is able to ratify itself or its business as a strong borrower, then they can easily get a loan through a bank or an online lender at a good interest rate. However, if you are a startup or a business with a bad credit score, you might only be eligible for a loan or a lease through an online lender. Commercial Fleet Financing is an alternative to traditional banking institutes.
Through this leading financing firm, you can build equity in the equipment while paying off your monthly installments until you are the sole owner of the vehicle. Moreover, commercial truck financing comes with lower insurance rates and depreciation expenses on your taxes. If you are not looking to loan a truck, you can always opt for a commercial truck lease.
Through this service, you can lease a truck for a set period of time with low monthly payments. As appealing as low rates might sound, you won't possess the truck after a few years. Therefore, leasing is only a good option for businesses that require a commercial fleet for three years or less.
Business owners looking for an easy financing procedure with instant funding have found themselves the perfect place to fulfill all their truck financing needs. Here are all the transportation financing services offered by Commercial Fleet Financing:
- Truck and Trailer Financing
- Tow Truck Financing
- Moving Truck Financing
- Construction Equipment Financing
- Light and Medium Duty Fleet Financing
Commercial Fleet Financing is an online lender; they modify its terms and conditions to cater to its clients' needs. Over the years that they have been in business, they have ensured customer satisfaction at all times through their platform.
A platform is a good option if you want a hassle-free and easy financing experience. With their easy one-page application, instant credit approval, and zero-money-down loans, Commercial Fleet Financing has done it all for its clients.
How Do You Qualify For Commercial Truck Financing With CFF?
Applying for any form of financing requires going through a set of applications and business evaluations. The background check will determine if you are eligible for funding and, if so, then at what rate and under what terms.
Commercial Fleet Financing offers commercial truck financing to clients through an easy and hassle-free procedure. The eligibility criteria that they have set are easy to follow and basic. Therefore, it makes it possible for various businesses in the transportation sector to apply and avail of this loan.
As the truck collateralizes the loan, the main focus of Commercial Fleet Financing is to determine if your business will be able to pay off the loan. Due to this reason, it is preferred over the traditional banking system. Even with bad credit, these lenders find a way to assist businesses.
There are some factors that businesses must consider before they decide to finance a truck through an online vendor. To make it easy for our readers, we have listed them down below:
- Determine your down payment: One must check their bank account before opting for financing. Leasing and loaning through banks or financing institutes require down payments. As long as the lender does not provide a no-money-down option, a certain down payment is always required. Even if the required down payment is just 20%, it can result in a hefty cost in the case of a truck.
- Find the truck: Deciding on a truck for your business is your next step. Your pick will have an impact on your narrowed down financing options. Some lenders may have a funding limit, vehicle age or mileage requirements which might result.
Once you have the down payment and your desired truck or a fleet, this is when Commercial Fleet Financing comes in. As compared to other financial institutions, the eligibility criteria of this company are relatively easier to meet. Even if you cannot meet certain qualifications such as credit score, revenue, or business period, Commercial Fleet Financing can get you financed for your truck.
The minimum requirements to be eligible for finance through Commercial Fleet Financing are as follows:
- Credit Score: For Commercial Fleet Financing, its clients are more than just their credit scores. The company sees your business's potential and the brand name it has curated in the market when making a decision. A typical business borrower with a minimum credit score of 640 also gets accommodated by this lender. If you have a credit score lesser than 640, then your application is further reviewed extensively, and additional information is required for approval.
- Time in Business: It is preferred by CFF that the business they fund has been residing in the market for over 2 years. The more time it has been standing means better reputation or business potential. But don't worry, if you have not been in business for that long, you can still apply for financing. In such situations, a business borrower is made to set aside a down payment of 10% to 20%
- Annual Revenue: Every brand or online lender looks into the business's annual revenue to ensure whether the business will pay off the loan they are applying for. Commercial Fleet Financing understands that the vehicles are the collateral in the business. Therefore, there is no specified annual revenue that they look for when making a decision.
America's leading finance company currently only provides funds for the following industries:
CFF believes in a quick, straightforward and easy application process. They aim to provide funding approvals to their clients within 24 hours. In some cases, it even takes just 2 hours. This financing lender is a good start for a small business or a struggling business. Each application requires the borrower to fill in the following information:
- The amount required to finance
- When do you expect the funds?
- Truck details
- Personal information (name, address etc.)
- Credit score
- How much down payment can you put aside
Further, you would be required to fill out your credit details which would include:
- Funds you require
- Truck details
- Credit score
- Business type
- Personal information (name, designation, SSN etc.)
- Company details (name, date of establishment, address etc.)
- Federal tax ID
After filling out the information mentioned above, a financial advisor from Commercial Fleet Financing will contact you for further inquiry. He would ask you questions about your business plan to see whether you are the right fit for the financing.
Moreover, they require you to provide them with tax returns, driver's license and insurance contact information. If you are applying for funds below $150,000, you are not required to provide a tax return.
“Commercial Fleet Financing’s eligibility criteria makes it possible for various businesses in the transportation sector to apply and avail of this loan”
Loan Application Process Through CFF
Applying for commercial truck financing can result in long application procedures and strenuous criteria to be met. A new operator or one with bad credit can have a horrifying experience when applying for such finances. Even after approval, they might not be able to credibility, further resulting in additional documents and much more paperwork.
This is where online lenders such as Commercial Fleet Financing come in. Such platforms consider more than just your credit score or time in business. They look for the potential and whether you would easily get through the term of funds.
Commercial Fleet Financing states that their application process is as easy as 1-2-3, and they mean that literally. Why? Well, because you can apply and get your funds with just 3 easy steps through this platform. Mentioned below is the application process to get approval on your truck financing in less than 2 hours.
Step 1: Application
The first step to getting funds is to fill out an online application. CFF has a one-page application available on their website that has all the details they need in order to provide you with approval. The application will ask you for your personal information, business information and the truck detail you wish to finance through their platform.
Moreover, you would be required to provide them with a bill of sale before proceeding further.
Step 2: Approval
Once you have submitted your loan application, it is read over by the finance advisor at Commercial Fleet Financing. If your filled-out application is up to their criteria or needs a little amendment, then they reach out to you via call. You can get a call from them in just 2 hours of applying.
Over the call, they provide you with all the details you would need to get started with them. The advisors know what they pitch and provide to their clients and never deliver false expectations. They would review your application with you on call and provide the rates and term plan that would best fit your business plan. You are free to ask them your questions and clear your doubts.
Step 3: Get the Credit
Now that you have your questions answered and your financing plan in front of you, you get to decide whether you want to continue further. If yes, the financial consultant would forward your application into processing and request you to wait for your approval. With CFF, you can expect this approval and credit in as little as 24 hours.
One thing CFF offers its client that other platforms don't is called Fresh Start. The company has a Fresh Start program that provides clients with bad credit or bankruptcy to re-establish themselves. The rates and terms are a little different from a normal truck loan, but it is still a great option for businesses facing a hard time.
Interest Rates at Commercial Fleet Financing
You must be aware of the interest rates in the market when you are planning on opting for financing. Many financing institutes charge their clients heavy interest rates when they sign up. We understand that even though financing provides financial ease for each month, we wouldn't want our readers to be stuck in the procedure and pay double the amount.
Each firm's taxes and rates that provide financing opportunities differ and vary based on the business borrower's circumstances. As observed, businesses with good market standing and great credit are provided with a low rate of 3%.
At the same time, a business with bad credit and less than a year in the industry can be requested to start its journey at a higher rate of 20%. In general, new businesses that possess no assets and have bad credit are not eligible for truck financing through any firm.
Further, the rates offered also depend on the loan term and the lifespan of the vehicle you wish to fund. Therefore, you must make sure that you are able to afford the monthly payment with your annual revenue before signing up.
Commercial Fleet Financing has it all under their platform. They provide commercial equipment loans, lease and auction lines of credit for its clients. As compared to the traditional banks, CFF has a better and more flexible criterion with market competitive interest rates.
Even with bad business statements and credit, they tend to give businesses a shot by charging them higher interest rates and certain down payments for security. It is safe to say that it is by far easier than finding a commercial truck through any bank in the United States.
CFF offers competitive interest rates as that of a local bank. However, before such an offer, they review your account credit and much more to ensure that you fit their requirements. They believe that they provide their clients with the best rates in the transportation equipment industry. Therefore, they ask you to give them a chance, and if they are not appealing enough, you can always turn them down and take your business elsewhere.
As easy as it is to finance with Commercial Fleet Financing, you must be well-informed of all their requirements and the services they are able to provide within your term period. The company can provide funds ranging from $10,000 to whatever you bring to them.
Most of these loans and leases vary from 36 to 108 months, depending on the type of equipment you pick for yourself. Another great thing about CFF is that it does not require you to buy your truck from a dealership. If you prefer that, then you can always go through that route. However, CFF helps its clients find the truck and finance it without causing trouble to its clients.
Due to the easy and convenient terms and conditions provided by CFF, fleet owners from all around the States partner with them to grow their business and help them reach heights. Over the course of 25 years, CFF has helped hundreds of businesses build their fleet of trucks.
The Bottom Line
Financing expensive equipment when you are starting a business can come in handy. Even if you have the means to purchase a truck, it is always great to have cash in hand for future investment, especially when you have an option to loan or lease an item. There are various platforms that provide you with such facilities at reasonable rates and terms.
Commercial Fleet Financing is one of the many platforms out there. Being a competitive alternative to traditional banks with minimal requirements and an easy funding process, CFF has seen rapid growth in the transportation financing industry. Their programs like a fresh start or auction line of credit help businesses facing difficulties in their progression. The company can help businesses with their short-term as well as long-term needs.
If you have a minimum credit score of 640 and have been in business for over 2 years with no tax lien or bankruptcy, then you can get instant approval through this Texas-based firm.
The only downside of financing through CFF is that it does not provide complete transparency with clients that most people look for. As per their website, they only mention the good side of financing with them. Every financing opportunity comes with some difficulties or additional charges, but no such information is mentioned on their website.