“I cannot afford to offer any down payment.”
“What kind of credit score should I have to secure a loan without any down payment?”
“Can we secure a loan or lease with 0 down?”
“I have so many plans for my business but limited finances; what should I do about the down payment?”
These questions are just a few of many questions that passionate and determined entrepreneurs who have just put forward their foot in the trucking business ask. You might have these ambiguities swirling around in your head, weighing your confidence down. But it would help if you fought this instinct.
Not being able to pay down payment is quite familiar. Many young entrepreneurs who penetrate this industry come up with a head full of dreams and empty pockets. But it’s the idea and strategies that fuel the business.
The link between Credit Score and 0 Down
Most of you would beat yourself up because you couldn’t acquire a loan with 0 down due to your bad credit score. But you must know that this is not always the case. A fancy score cannot get you anywhere. Most companies look for the quality of the score. Just some hollow up-keep would get you the desired score, but known agencies would identify the quality of your score in a breath.
If you have been good on your installment payments, have been regular in paying them, and have an adequately good financial history, you have not much to worry about. If you own a house or a property of your own, it will turn odds in your favor.
Not having a good credit score and being unable to pay down payment doesn’t go hand in hand. Lenders, too, need some security regarding offering you either equipment or loan. So, a good credit score can help you a long way down the financing road. It will earn lenders' trust and free you of the obligation to pay a loan percentage as a down payment.
If you do have a bad credit score, try to improve it. Pay off your debts or salvage your financial history. Make wise choices and optimized budgets. This will help you restore a considerably good credit score. Then you would be able to qualify for 0 down.
These are a viable option for you to consider. Usually, if you loan out this vehicle or choose to lease it, it is highly likely that this vehicle will be awarded to you with a bad credit score and no down payment. This will keep your trucking business lucrative, and you wouldn’t have to worry about down payment either. It’s a win-win situation.
Time to Gather All Details and Documents
No matter which option you decide to pursue to either secure a loan or set up a lease, you must keep all necessary documentation in the palm of your hands. If you are stuck in the collection of documents, it is highly likely that your financing process will slow down, and you will be shackled with the complexities of fulfilling the prerequisite only. It will be until much later that you step into the battlefield to acquire the loan.
A prepared and informed individual can impress the agencies and portray them that they will like. It will prove that you are serious and determined to launch your business and work hard to land it on its feet.
If your trucking company is an LLC, the lenders will be interested in reviewing your business records and financial documents. Make sure you have them ready. They will also cross-check these from the online record of companies published.
If you intend to become an owner-operator, you must put forward a compelling business plan that shows potential and growing prospects in the future. It must catch the lender's eye so that he is interested in investing in you and overlooking the 0-down clause. Keep your commercial driver’s license and motor carrier number in hand too.
Browse for Options
Without a doubt, we can claim a financing agency that will offer 0 down loans somewhere in the country. You must stay positive and explore every nook of the online world. Many agencies see potential and capability in the idea of a commercial trucking business.
If you work hard enough and do your homework, you will find a lender or a company that will look forward to offering a loan or lease you a piece of equipment at 0 down. The financial constraints are understandable and can be resolved. If the business has the propensity to grow and produce fruitful results, someone will recognize it and remove the obstacle of down payment from your way. That is why you'd have to look hard.
Get a Co-signer
If you can arrange a co-signer, you wouldn’t have to worry about your 0-down request. The lenders will have nothing to lose, and they will trust you with their investment or leasing of a vehicle.
A co-signer is someone at your back who agrees to pay the payments you will miss. This way, the lender will be satisfied that he won't receive any late fees or would have to let go of any missed one. He will keep on getting his money without any impedance.
Make a Case With Other Credentials
Lenders just want to make sure that they are not delving into a risky business with you. They want to ensure that you won't be late on their payments, or your company would collapse. So, impress them with your bank statement or the high annual revenue you are earning.
Finding ways to Commercial Truck Financing 0 Down can be quite challenging. But it doesn’t mean that it is impossible. You have to believe in yourself, in your idea, and your entrepreneurial ability to excel. If you are determined enough, you can achieve anything!