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Commercial Truck Financing Bad Credit, No Money Down

If you're cash strapped, but also plagued by poor credit, worry not! We've uncovered a step-by-step plan to get you a commercial truck loan fast and easy!

Talia Stern
Talia Stern
September 26, 2020

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“I have a very unsatisfactory credit history and an empty pocket; I will never be able to open my own business.” This is the kind of thought that hits every passionate entrepreneur’s mind, especially if he has no money down with an additional challenge of bad credit history. 

But you can’t just sit around hand in hand and wait for a miracle to happen. You have to flounce around, search for potential creditors, dig out available options, and get your fantasy fulfilled. 

Starting from the companies that can entertain your request to finance your commercial truck business to other options available, in this article, you will explore all the possible methods you can try out for financing your commercial truck business even with bad credit and no money for a down payment. 

Anderson Trucking Service (ATS)

The first option available on the table is the Anderson Trucking Service. This company neither requires any credit check nor any down payment for financing your commercial truck. Through its lease-to-purchase financing program, you can lease a truck of your choice from their wide range of trucks, and then afterward, when the lease is paid in full, you can get the option to own the truck. ATS requires its lessees to lease their truck signing as an “owner-operator”. 

Perks and Benefits of ATS

ATS’s lease-to-own program comes with a sign-on bonus. When you complete your lease duration, you will receive a completion bonus of $4,000. That’s a lot of money! You can utilize the money as a down payment for purchasing another truck, reinvest it in your commercial truck business, go on vacation, or even party; it will be all up to you. 

The lease-to-own program at ATS has a duration of one year, which is an ideal period. Most people drop the leasing idea due to its long payment schedule running for as long as ten years or even more. But with ATS’s lease-to-own financing program, you will convert from a lessee to the owner in a brief period of one year.

Contract Transport Services (CTS)

Contract Transport Service is a trucking company that operates like ATS. This company also offers a “lease-to-own” financing program. In addition to zero down and no background credit check, CTS also ensures no balloon payment at the end of the lease term. 

CTS aims to provide a lease for a truck with the lowest possible duration. The short lease duration at CTS is designed to prevent the chances of the lessee’s inability to complete lease payments. 

Lease Features and Benefits

CTS not only offers a fuel surcharge payment to its lessees on loaded trucks but on all the dispatched miles. Moreover, this company has an excellent program for fuel which will allow you to purchase fuel at the minimal price of 10 cents per gallon, which is lesser than the whole week’s DOE average at Midwest and if you purchase fuel from truck stores at Kwik Trip, you will have to pay at just 2 cents above cost. 

All the trucks leased through CTS come with a warranty of 30 days. If you don’t like the truck or find it hard operating it, you can return it within 30 days. 

All the trucks leased through the lease-to-own program at CTS are inspected and thoroughly cleaned before delivering to the lessee. Moreover, you will also get the truck with a tank full of fuel. 

CTS will provide you an extra 15 cents per mile for the maintenance of your truck. This maintenance cost will be provided throughout the lease term until you get the ownership of the truck. And for instance, you did not utilize the money provided for maintenance. You can also use it for paying off the remaining leased amount and claim the ownership earlier.

Form a Partnership

If you have exhausted all the options mentioned above and still left with no finance, then try forming a partnership with somebody having credible credit history and a good bank balance to pay for the down payment. This way, despite having zero down payment and a bad credit score on your side, you will still get money to start your commercial truck business.  

This is normal; the majority of the businesses around the globe run on partnership. In most cases, one partner invests money, the other provides services and run the business. It helps boost the business. A person with a better credit score and good bank balance is more likely to bring more cash flows in terms of loans due to his credibility. 

Try Semi-Truck 

Big commercial trucks are expensive; that’s why most lenders are reluctant to finance it. But you can operate your commercial truck business through semi-trucks. These are the least expensive and more viable options. And lenders will most likely lend you money for semi-trucks or even provide you with the lease. 

In this way, you don’t have to dismantle your mental piece worrying about the down payment and your bad credit history and still start your commercial truck business.

Instead of Purchasing, Rent Trucks

Purchasing or owning a truck is not the only option for starting your commercial truck business. If you have bad credit and zero down, don’t ask for a loan to purchase the truck; simply opt for a rent option.

Numerous organizations are willing to provide trucks on rent. Start your commercial truck business using rented trucks, save money from the profits earned, and then purchase a truck for your business. 

Work as Intermediary 

The majority of the commercial businesses work as intermediaries. And that’s a more feasible option if you don’t have a good credit score and much investment available on the table to start your own commercial truck business. 

Connect truck owners and businesses with buyers and suppliers. Earn your profit by connecting them. It is not as simple as it seems; to make it successful, you will need to have a good connection in the industry. 

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