The trucking industry is vital for the American economy. Every sector depends greatly on trucks for different transportation purposes. Starting a trucking business requires more than just a set business mind. It requires time, effort, money, and a lot more.
Commercial Truck Financing makes it possible for such businesses to maintain their work capital. Without paying loads of money at once, you can own a commercial truck for your daily work use.
Instead, you can borrow a specific amount for your truck and repay the loan over monthly installments with a certain interest. Various financial institutions assist business owners and individuals start their trucking journey through their platform.
If you have good credit with years in business, you can opt for traditional banks for commercial truck financing. However, if you are a startup or have faced challenging credit in the past years, online lenders can help you further your business.
First Capital is one of the many reputable financing firms that have financed various commercial trucks to help small and medium market businesses with their growth.
About First Capital
First Capital Business Finance is a California-based full-service commercial lending company that helps businesses and developers get a fund that would help them grow. They do not require you to have a stellar credit score as they try to accommodate everyone through their platform.
The company specializes in commercial truck financing and works hard to help you and your business grow. Through their various financial programs, they cater to the financial needs of several companies with diversified financial histories.
They provide their services throughout the nation and provide convenience and ease in all sorts. First Capital is determined to help businesses through their constant financial advice and affordable solutions.
Where most traditional banks worry about investing in a risky business, online lenders like First Capital make sure to give such companies a fair shot. These companies might require you to pay a certain down payment and pay higher interest rates each month. They are a good option for businesses that other financial institutions have shut off.
First Capital, through its constant customer support and exceptional services, First Capital has won over the hearts of its customers. They have gained immense and rapid growth with a reputable name in the market over the years in business. The financial advisors and employees have extensive knowledge to guide you through the process and inquiries. Their main initiative has always been to help sustain and manage the cash flow.
“First Capital is determined to help businesses through their constant financial advice and affordable solutions”
Services Offered By First Capital
First Capital offers various financing plans to its customers with different requirements and criteria. Further, each loan provides other loans and terms to the customers. The company mainly focuses on providing financial help to high-risk industries.
- Health care
- Waste management
There are many other businesses that First Capital accommodates other than the once mentioned above. In order to see if your business qualifies for financing through this firm, directly get in touch with a representative at First Capital.
First Capital finances the following individuals:
- Owner Operators
- Existing Transportation Companies
- Private Party & Vendor/Dealer Sales
- Fleet Owners
- All industries
There are a variety of loan options present under their platform. The terms and conditions vary. Here are the services provided by First Capital Business Finance:
- Equipment financing
- Merchant cash advances (unsecured business loans)
- Invoice factoring
- Purchase order financing
The types of commercial trucks financed by First Capital are as stated below:
- Commercial Trucks
- Vans, Step Vans & Sprinter Vans
- Bucket, Water, Utility, Box, Tow, Dump Trucks
- PTOs, Blowers & APUs
Who Should Apply For Commercial Truck Financing Through First Capital?
The financing company based in California, First Capital, is known to help and provide loans to various businesses. Commercial Truck Financing is their main point of focus; from semi-trucks to dump trucks and new to use, they provide it all through their platform.
The company offers equipment financing and personal business loans to all sectors, along with truck financing. They claim that they assist businesses turned down by other companies no matter the reason.
Owner-operators without CDL, startups, businesses with bad credit, bankruptcy, or tax liens can get commercial truck financing through this forum with minimum requirements and a simple application process.
A company with as low as 540 credit is accommodated at a low-down payment as First Capital Business Finance has multiple loan options available for almost everyone. The other loan options might require the owner-operator to pay a down payment of 10% to 25%, but they do not further need any particular credit score to be eligible for financing.
First Capital works with the business owners to curate a plan that sits well with both parties. While withholding a strong brand reputation, the company offers customized rates and terms to suit your business plan. The monthly repayments are set as per your convenience and ease.
First Capital should be your pick if you are looking for a reputable firm with good reviews and a solid name. They offer exceptional customer service to cater to the needs and queries of its customers.
Moreover, if you are in a hurry to kickstart your business, the company provides as early as same-day approvals to some businesses. They offer the ease of applying online or getting in touch with a loan specialist and applying on call.
In case of bad credit or bankruptcy, you can expect a little restriction with the mileage and vehicle. However, if you have a good standing business, you are safe from that and in for a smooth financing experience. With a steady cash flow and 10% down payment, even companies with bad credit can have their businesses on the go.
To narrow down the pros of First Capital, we can say that the company provides no money down financing, with low to moderate down payments as per the requirements of their customers. They offer financing options for various financing circumstances with a 24 hours easy application where the truck serves as collateral.
Where First Capital seems like an accessible option for many businesses, it does have a lengthy approval process in some situations with no assistance for repairs of the trucks financed.
“First Capital works with the business owners to curate a plan that sits well with both parties”
What Are The Eligibility Criteria Followed By First Capital?
As compared to traditional banks, online lenders have minimum requirements when it comes to commercial truck financing. First Capital has different criteria aligned for different loans under its platform. Where traditional banks do a thorough pull-up, online lenders softly look through your financial statements for the ease of their customers.
As we mentioned, the eligibility criteria for each type of finance differ; in terms of commercial truck financing, there are different programs for bad or average credits and good credits.
Bad Credit & Average Credit Program (Start-Ups & Existing Businesses)
- 10K to 50K financing with two months payment due at closing requires a 540 credit score. Startups are eligible for this financing, but they must provide two years of tax returns. There is no age limit, and a maximum of 750k miles is allowed.
- 10K to 100K financing with zero to two months payments due at closing requires a 600-credit score. Startups are eligible for this financing; however, certain limitations are applied to the finance amount. There are no age or mileage restrictions set on this low-down-payment option.
- In order to finance a fleet of 2, a 10K to 100K financing is provided by the company where zero-to-two-month payments are due at closing. There is a minimum requirement of 620 credit score with two years in business, but there are no age or mileage restrictions.
- Funds up to 150k are financed with a 2.5% to 10% down payment with a minimum requirement of 550 credit score and three years in business. A startup with a credit score of 650 and prior experience of 3 years is also eligible for this financing.
- First Capital provides funds up to 200K with a minimum down payment of 25% at closing. There is no certain credit score requirement, but their business should be standing for at least one year and have a gross income of 35k a month.
- With a down payment of 25%, the company provides 10k to 55k funds to the business. There is no particular credit score required for this financing option. However, the financed truck must be of 2013 or new with under 700k miles of running.
- The only large down payment option provided by First Capital requires a 40% to 50% down payment for funds of 10K to 400K. However, there are no restrictions on the credit score, age, or mileage.
Good Credit & Average Credit Program (Start-Ups & Existing Businesses)
- Finances of up to 50K with zero to two-month payments due at closing require a minimum credit score of 620 is needed for this option.
- In order to get up to 50k financing with one to two months payments due at closing, you would need a minimum credit of 620 with two years in business. The business must have a fleet of 2 trucks. If your company has been in standing for a longer period, you can expect a larger finance amount.
- Finances of up to 75k can be granted with zero to 10% down payment. The basic requirements in order to be eligible are that a business owner has a minimum credit score of 670 with three years in business and is an owner of a house.
- First Capital also provides financing up to 150k with a 2.5% to 10% down payment due at closing. The minimum requirement of a 650 credit score is necessary for such scenarios. Different guidelines are followed to finance a startup.
How To Apply For Commercial Truck Financing Through First Capital?
First Capital does not have an extensive online application form that needs to be filled out and submitted. Instead, once you are on their website, you will find a simple form that will require you to fill out personal details such as your name, your business name, contact number, email address, and type of service you are looking to finance.
Once you have submitted this form, you can expect a call from them shortly in the next few hours. As First Capital claims to provide same-day loan approval, they are very efficient with their application and customer dealing. The most it can take is two days for them to contact you, and after the application process, you can expect a credit in a maximum of five days.
If you'd like, you can even reach out to a First Capital representative at 888-565-6692 and get prequalified for your loan. Once you are past the application phase, you will be required to submit some documents for the next step. The company does a soft pull on your finances to evaluate your business' cash flow.
Therefore, they would request you to provide them with the most recent six months bank statement and some other documents depending on the financing option you pick for yourself. Moreover, you will need to provide them with the details of the truck you wish to purchase so that they can curate a repayment schedule as per your requirements.
First Capital has active customer support to help you with your queries and ensure that you are satisfied with their services. It is a legit online lender with a renowned name in the market as they strictly adhere to their rules and regulations. You can contact them for any assistance, and they ensure to answer you with utter transparency.
“As First Capital claims to provide same-day loan approval, they are very efficient with their application and customer dealing”
Terms And Rates Offered By First Capital
If we compare the terms and rates offered by an online lender to a traditional bank, you will find a bank to be a reasonable option. However, these banks have strict eligibility criteria that must be adhered to in order to avail those rates. The bank usually denies accommodation to businesses with bad credits. Online lenders like First Capital offer comparatively higher speeds as there is risk in such investment.
Depending on the financing option you pick for yourself, the rates, down payment, and terms vary. However, First Capital ensures to provide competitive market rates with flexible policies. They offer financing for used as well as new trucks to set a plan that meets your expectations and sits well with your business plan.
First Capital's website does not state the exact rates and terms offered for commercial truck financing. The rates will depend on the type of truck you finance and the term period you pick. As commercial trucks fall under equipment financing, it is stated that they provide loans ranging from $5,000 to $5 million over the term of 1 to 6 years.
There is no certain minimum requirement in terms of time in business or monthly revenue. It is suggested that you contact the employees working at First Capital to understand rates better as they have extensive knowledge about their services.
The Better Business Bureau only shows one review on its page from 2018. First Capital is not BBB accredited. However, since that single review is positive, it marks 5 out of 5 stars on the platform.
Apart from that, there are testimonials available on First Capital's website, which shows a satisfactory response from the consumers. The easy application process and customer service are to be praised as per the customers.
However, some reviews claim the company has offered high rates and denied loans to some businesses that fall under the eligibility criteria.
Frequently Asked Question (FAQs)
What is commercial truck financing?
Commercial Truck Financing is a wide investment technique to reserve your work capital for future or other investment areas. Instead of paying an extravagant amount upfront, you can purchase a truck for your company's use through monthly repayments. This is a great option for companies with limited investment or who prefer to reserve money.
What is the difference between leasing and loaning a commercial truck?
Leasing and loaning a truck are similar concepts as they fulfill your needs and help the business grow. However, they serve different purposes in the long run. Leasing is a short-term commitment; the owner-operator signs a lease for a certain period of time and makes monthly payments through that period. Once the term ends, they part ways with the truck.
Loaning is similar to making an investment in your business. The owner-operator is required to pay off the price of the vehicle with a certain interest within the time and repayment method structured by the financing company. By the end of the term, the vehicle is in the owner's possession.
Is commercial truck financing with First Capital easy?
First Capital has been in business for years, and over those years, it has made its platform a go-to stop for commercial truck financing for all businesses. They have flexible terms and low-interest rates compared to other online lenders in the market. The exceptional and accommodating services have made many customers have a satisfactory experience with them.
How do repayments work with First Capital Finance?
Your loan repayment depends on the type of loan you finance from First Capital. As these schedules or plans are not mentioned on the website, it is recommended that you go over them with a representative at First Capital to get a better understanding of everything.
There are daily and weekly repayment methods as per short-term loans. However, for equipment financing (including commercial truck financing), generally, the repayments are made monthly.
Will I qualify for commercial truck financing as a startup?
Yes. First Capital's motive is to finance and help every business in every industry. Within their variety of financing programs, they have specialized plans for startups.
In such cases, however, the business owner might be required to put aside a larger down payment than usual. You can get further details after contacting First Capital's representative.
Do you need a commercial driver's license for truck financing?
In most cases, CDL is necessary for commercial truck financing and years of experience in the trucking industry. However, with First Capital, CDL is not the utmost priority. First Capital accommodated business owners without CDL with commercial truck financing through its platform.
Does First Capital accommodate bankrupt business owners?
Yes. First Capital has made commercial truck financing easy for owner-operators who have faced bankruptcy challenged credit and tax liens through its platform. They have specialized programs that are structured in accordance with these situations.
Do I need to provide proof of income or provide tax returns to qualify?
Most financial programs only require an application to be filled out, which means that it does not require proof of income. The type of financing offered depends on various factors such as your credit score, time in business, equipment type, and the amount you would like to get finance. You are not required to provide tax returns in order to qualify for any financing type.
Commercial Truck Financing is a smart way to invest in a business and help it grow. However, in such a saturated market, it can be intimidating and difficult to find a financial institution that would meet your expectations or assist you with financing despite your challenged financial background.
Unlike traditional banks, online lenders such as First Capital have made it easier for customers to give their businesses the push they need. This California-based company specializes in commercial truck financing of all sorts.
The firm offers financing opportunities for all types of business varying over different industries. Through LRM, businesses with bankruptcy and repossession have the chance to get commercial truck financing through this platform.
First Capital has received an overwhelming response from its customers that has helped the company grow and prosper. They ensure transparency and great customer service to all their customers.
If you are looking to get commercial truck financing through a legit and trustworthy lender with a simple application and approval procedure, then First Capital should be the one for you.