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Commercial Truck Financing for Bad Credit

If you have bad personal or business credit, follow these steps to find the best rate on commercial truck financing.

Sarah Klein
Sarah Klein
September 23, 2020

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If you begin counting and determining the expenses and their costs that you would have to cover while running your commercial trucking business, you might be stuck thinking about it for a long time. 

Fueling costs, replacing the outdated equipment, maintaining the fleet, making repairs to any damaged part, or getting the truck treated after a fender bender or an accident. The trucks and trailers will be the face of your company. You cannot compromise on their performance and appearance. 

Managing all these expenses or getting back on your feet after your business has witnessed a low can be very challenging. Unlike other businesses, it is tough to restore customer value and loyalty after a hit. So, for that purpose, you would need hefty amounts of money to improve your services and your trucks' performance. 

For this purpose, you might steer towards acquiring a loan. But all your efforts and panning will be in vain if you haven't assessed your profile and application for a loan. Securing hefty amounts at low-interest rates and flexible payments is a luxury kept just for eligible and highly qualified borrowers. If you have a low credit score, you may have to work hard and explore more. 

Why is it challenging to secure financing for the trucking business? 

You will find a few numbers of lenders who would willingly invest in this business. Many companies have introduced loans for trucking businesses to balance and provide an opportunity to all businesses equally. But the reluctance to finance this business is because of the following reasons:

Find Your Options

You can't get upset with the lenders if they hesitate to invest in a business that poses a high risk. They are just business owners like you who wouldn't want to face any loss. If you have bad credit or your business idea doesn't seem so exciting, you must empathize with the lenders.

But this in no way means that you cross your legs, sit and wallow in some corner. Believe me when I say there are options out there for every single individual. Don't let bad credit prevent you from launching your business. All you need is a solid idea, a strategic plan, and perfect execution of it. If you seem confident and determined to the lenders, they will invest in you and your belief.

National Business capital and Services are a business that will understand your problems and will recognize the difficulties you face. Like them, you will come across many financial bodies who will comprehend what issues you are facing, why you are facing them, and what can be done to rectify them. 

It may be like finding an oyster or a pearl in an ocean, but it will be worthwhile once you find such financing companies. You will get immense support for your business. 

Financing Options for Borrowers with Bad Credit

Equipment Financing 

This financing model will cover the expenditure costs for any equipment you will purchase related to the business. This will include vehicles, new trucks, tractors, and even heavy-duty trails, latest technology, and even office equipment. Such loans are offered solely for purchasing equipment. 

This way, you can spread the payments over a length of time and manage your cash flow quickly. You can try to contact the following companies:

Short Term Business loans

 These loans are available readily, and there is less risk posed in these loans. A lender can easily trust you with a short-term loan, and then you can gain their trust. This way, you can pay for any imminent expense or repair of the truck. You can easily recover from a collapse in business and acquire these loans and invest it in the trucking business. 

Engage with these companies to secure a short-term loan. 

A Business Line of Credit

This kind of funding can be secured whenever you feel your business is faltering, and you need to boost the activities and operations via a substantial investment. This bridges the gap between your handling expenditures and the time when you begin to earn proper revenue. 

This way, you are done with loan payments early, and you don't have to continue worrying about loan arrangements for a long time. You can secure this loan whenever you feel the funding needs a little push. 

Performance Advance 

This kind of cash is strictly offered only by National Business Capital and Services. This cash is being provided in advance of any revenue or payments. The terms of securing this cash are very flexible and convenient for a young entrepreneur who is indulging in the commercial trucking business. The payments are based on your sales and are proportionate to it. 

This way, you wouldn't have to worry about going low on your payback payments when the company doesn't make money in a certain period. 

SBA Loans

This financing method is a godsend for people with bad credit scores and financial profiles. If you are looking to secure a significant loan because you want to make a considerable purchase, then this option shall be your go-to. 

You can easily purchase a new truck or boost your business investment with this loan. The payment plan is extended over a long period. 

You can easily secure an SBA loan from these companies and give a kick-start to your commercial trucking business. 

Having a bad credit score doesn't rob you of all the right opportunities in the financing world out there. Don't sideline yourself because you believe that your financial history and circumstances will impede your business. In this game, you have to be headstrong. Because it's never the business in which companies are investing, but it's you, your idea, and execution.

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