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Hills Bank Commercial Truck Financing

Years have passed by, and Hills Bank has grown to become a big name, but the ambition remains the same as when it was founded; to put the customers first and serve the community with sincerity.

Hills Bank came into being in 1904 when a group of citizens of Hills, Iowa, with only $10,000 among them, joined hands with an ambition to build a community bank. The aim was to serve the locals and create ways for them to progress and prosper.

Talia Stern Hills Bank came into being in 1904 when a group of citizens of Hills, Iowa, with only $10,000 among them, joined hands with an ambition to build a community bank. The aim was to serve the locals and create ways for them to progress and prosper.
Talia Stern
April 13, 2022

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With the changing times and evolving business techniques, Hills Bank remains focused on maintaining its connection with the community. They make sure they have access to financial assistance and the resources they need to thrive and flourish.  

Currently, Hills Bank has a branch at 19 locations and has more than 500 co-workers. It is based in three eastern Iowa countries. This incredible progress was not possible without the trust of the valued customers, which was gained by the efforts and hard work of the dedicated employees of Hills Bank. 

Moreover, finance policies of the Hills Bank are accessible and customer centric, as it makes managing finances very convenient. Its unique manner of doing business is its main tool to earn the customers' confidence.

Today, Hills Bank has a very large work base, and it can provide the services as per the standards of a regional bank. Yet the responsiveness and approachability of a good community bank have never been compromised. 

Furthermore, Hills Bank also adapted advanced level digital banking to provide modern banking facilities to its customers. So that they can avail themselves of the perks whether they visit their local branch or use their digital devices to connect to the bank.

Total assets of the bank exceed $2.9 billion, while Trust and Wealth Management division assets make up to $1.5 billion. Hills Bank is indeed one of the largest banks in Iowa, with over 120,000 valued customers. With a history of resilience and determination in times of despair and with high aims and ambitions, Hills Bank aspires to expand further and beyond.

It is fair to ask why you should choose Hills Bank for commercial truck financing when there are so many other options out there. The answer to that is the bank's representatives' prompt responsiveness and easy approachability make Hills Bank the place to go to for all your financial concerns. 

Face-to-face meetings and equally intent online communication with highly committed and experienced professionals, give the customers every information and assistance they require. Since the professionals have a thorough understanding of the dynamics of the local market and the people's reservations, they are empowered to give the best advice to their customers.  

With technology comes convenience. Thus, in addition to 19 convenient branch locations and 90 free ATMs across Eastern Iowa, Hills Bank has the latest digital system, which offers online and mobile banking. It also includes a direct digital chat line with one of the bankers at Hills Bank.

The vast range of services offered at Hills Bank includes online banking, automatic payment of the bills, in-branch services such as coin counting, night depository, notary service, clickswitch, safe deposit boxes, U.S saving bonds, and special promotional offers. 

Other than this, interesting schemes to cater to all types of customers are pleasing. The Friends Club scheme for people over the age of 50, retirement planning, investment planning, and financial education are among them. The most significant and crucial service of all is the mortgage and loans, which give people the chance to avail themselves of amenities that would otherwise be unaffordable for them. One of such services is: Commercial Truck Financing.

Commercial truck financing gives people the opportunity to get the funds they need to either buy a new or second-hand truck or be able to pay for upgrades or repairs of a truck they already own. Commercial truck financing comes under the broader umbrella of equipment financing. In equipment financing, the goal is to make the commodity affordable. This is done by spreading out the payments over a time period and creating installments, which makes it different from personal loans or vehicle loans. 

Commercial truck financing eventually makes the customer the owner of the truck once payment has been completed. Hence each monthly payment moves you a step closer to the ownership of your asset. Once the truck is transferred to the purchaser's name, there is no further obligation. For a lot of customers, this method is more appealing than leasing a commercial truck; which is basically borrowing the truck in return for making regular, monthly payments or, in other words, paying a rental fee for the vehicle. 

Leasing may have its advantages when it comes to flexibility of the contract and involves less commitment than financing. The monthly payment may even be lower than commercial truck financing, but it does not take the client towards ultimately owning anything. Thus, commercial truck financing seems like the most favorable option in the longer run. 

“Hills Bank representatives' prompt responsiveness and easy approachability make it the place to go to for all your financial concerns”

Who Should Apply For Commercial Truck Financing With Hills Bank?

Trucks play an important role for all kinds of local businesses and have become the backbone of USA's economy. Truckers would earn a better living if they would own the truck instead of having it leased. So truckers who are tired of paying rentals for the truck they drive should certainly opt for commercial truck financing. 

Moreover, anyone who owns a local business that requires trucks for transportation can apply for commercial truck financing. Owning a truck can boost the business by increasing its reach and reducing its reliance on other rather costly transport services. For those who own a trucking business or plan to start one in which they lease out their own trucks, commercial truck financing is a good option. This allows them to buy trucks on installments if they initially do not have enough capital to invest.  

Hills Bank favors commercial truck financing because it realizes the necessity of this financial scheme and its potential benefits to the community. Thus, Hills Bank has a relatively easier process of application and lenient criteria for qualification. As a local community bank, Hills Bank facilitates people with economic rates, no application fees, and quick approval time for the financing. 

How Do You Qualify For Hills Bank Commercial Truck Financing? 

To qualify for Hills Bank commercial truck financing, the clients must meet some requirements of the bank for them to be eligible candidates. Some of the determining factors are:

Credit Score:

Most of the lenders consider the business credit score as well as the personal credit score history of the client. This allows them to decide whether or not he is eligible for commercial truck financing. However, one can always find an option for themselves, even with a poor credit score. At Hills Bank, the accommodating policies allow everyone to find a solution.

Assurance For A Down Payment: 

The bank will require an assurance that you own enough money currently to be able to pay for the down payment and the insurance costs, while still meeting your other expenses. This is vital for drafting a sustainable financing plan. 

Experience In Business: 

Sufficient amount of experience in the field of business of at least two or more years is important to let the lenders see your potential and capability. For startups or newer businesses, chances of financing are typically slim. But, at Hills Bank, they have separate schemes for startups as they realize the need for trucks that every new business has.

Truck Insurance: 

In case the truck or trailer gets damaged in any shape or form; the finance companies will have to have security that the collateral's value is sustained. 

Other Requirements:

Clients must have their driver’s license, proof of their business and its registration, tax returns, balance sheets of the accounts, bank statements.  Any other personal and business related documents may also be required to avail Hill Bank’s Commercial Truck Financing.

“Anyone who owns a local business that requires trucks for transportation can apply for commercial truck financing”

What Is A Credit Score And How Does It Affect Qualifying For Commercial Truck Financing? 

A credit score is a value calculated using a scale ranging from 300 to 850. It is used to signify the client's creditworthiness. The better the score, the more trustable the client seems to the lenders. The Fair Isaac Corporation formed the credit score scale, known as FICO for short, and it is widely used by banks and other financial institutions. 

A credit score is determined by taking into account the credit history. Credit history contains the number and status of open bank accounts, total amount of dues, payment clearance history, and other factors. Lenders use credit scores to evaluate the capability of the client to repay the loans or make timely payments for the financing program.

As a general rule of financing or leasing, the credit score greatly determines the rates one will get, be it for personal purposes or a business. The better the credit score is, the better the rate one may qualify for. 

Generally, the rates fall in the range from 5.99% to 36%, depending on the credit score and lender. Typically, a credit score of at least 620 or a higher FICO score is essential for someone to qualify for no money down financing. However, even without an excellent credit score, one may avail the commercial truck financing by paying at least 20% of the money as a down payment.

A strong credit score history and stable and profitable businesses are proof of reliability which assures the lender of timely payments and makes the client more likely to qualify for the best rates. However, a poor credit score isn't very uncommon in the trucking industry. 

Thus, there always is a lender to support you through a hard time, and Hills Bank makes sure that there is an option for everybody out there. Additionally, at Hills Bank, clients are counseled and educated about what they must do to prevent their credit score from going down further and how to raise their score. 

Hills Bank Loan Application Process

The plan for commercial truck financing is usually customized for each consumer and also varies from lender to lender. However, the general procedure for securing the financing is the same. It is a step-wise process and has an organized method of taking things forward in both the lender and the customer's best interest.

To sign up for commercial truck financing one has to get in touch with a Hills Bank representative. There are three ways of doing so; meeting in person by visiting the nearest branch, over the phone using the local contact number, and reaching out online via email. 

Later a meeting with a professional consultant will be arranged so that all of the client's queries are catered to, and he is made aware of all of the financing options available and suitable for them. After that, the customer is required to apply for commercial truck financing formally.

Step 1: Qualifying Process 

The bank will initiate an evaluation for the eligibility of the customer to determine whether or not he is a candidate for commercial truck financing. This is a pre-approval process in which the financial history, income and reputation of the client and his business are taken into consideration. 

The lender will also investigate and assess the previous loans that were taken and the existing debt of the business. He will also need information about the reason for requiring commercial truck financing to gauge the genuineness of the need.

Via this process, the lender develops an awareness of how much the client would be able to pay as part of the monthly installments, how much he will be able to submit as down payment and a general idea about the overall risk involved in the contract. 

This process is carried out according to the standard criteria by the professional and credible employees at Hills Bank. The use of standard criteria and authentic techniques of eligibility assessment by the credit analysts ensures that the decision made about qualifying a client or a business is always fair, and there is no room for bias.  

Step 2: Application Process 

After the qualifying process, the client is required to submit an application form along with some other documents which are necessary for commercial truck financing. To sign up for the commercial truck financing, the application form can be received from the nearest Hills Bank branch or can be sent to the client via email through the bank. 

The documents required include: the last three years of the fiscal end-of-year balance sheets, last three years of income statements, provisional balance sheets, cash flow and income statements, a personal financial record with signature and the last two years of state tax returns applied on the client and the business. 

If the business is a startup, then a detailed review of the business design and dynamics must also be submitted along with the application. If it's a corporation, then articles of corporation, if it's a partnership, then the partnership agreement and if an LLC, the articles of organization must also be attached with the application form.

Step 3: Acceptance Of The Financing Application

After the application has been submitted at the bank, it goes for approval from the higher authorities at Hills Bank. A financing officer then studies and reviews the application form and documents thoroughly. After that, the officer will investigate and assess other factors, which mainly include the credit history. This is where a good credit score really increases the likelihood of approval for commercial truck financing. 

Another aspect considered by the officer is the availability of collateral of the client or the business. Collateral is an asset or property owned by the client that he may offer to the lender as a security until the complete cost of the truck is paid off. It is a way of obtaining protection against any kind of loss in case the client fails to make the due payments. Another important factor in the financial analysis carried out by the officer is the current and the predictable revenue of the business.

Step 4: Finance Sponsoring Committee 

If the client qualifies and the application is approved by the financing officer, a comprehensive official credit application is submitted to the finance committee. The adjudicator of the committee has the decision power. After analyzing and taking into consideration the facts forwarded by the financing officer, he or she decides to approve or decline the financing plan. The whole process can take a week's time. 

Moreover, the client can be asked to provide any additional documents or proofs during the reviewing process and can be called for any relevant discussion as well.

Step 5: Term Sheet 

If the application gets approval from the financing committee as well, then a term sheet will be generated. An official document in which the involved parties agree to abide by the contract is known as the term sheet. 

The term sheet also includes the total amount of financing, the monthly installments to be paid and their deadlines. It also summarizes the terms and conditions related to the available collateral, and mentions the decided interest rate of the financing plan. 

After this, a thorough review of the term sheet is performed, and then a formal letter of intent is to be signed by an authorized person. This gives a heads up for the payment to be processed further.

Step 6: Closing Documentation

Once the third party reports have been completed, the completed financing application with all the prior approvals is resubmitted to the finance underwriter or the finance sponsoring committee for the final approval. If approved, both parties are required to sign the finalized documents for the commercial truck financing plan and enter the contract officially. 

A closing agent plays a vital role in this process. The closing agent performs integral tasks in the settlements of all transactions, ensuring that there are no issues such as unrevealed liens or any lacking documents. Basically, it is the closing agent's responsibility to carry out all the formal and final paperwork as per the legal requirements. After these formalities are done, the financial plan is set to be acted upon, and the client can avail of the commercial truck financing without any hassle.

“The plan for commercial truck financing is usually customized for each consumer and has an organized method of taking things forward in both the lender and the customer's best interest”

Hills Bank’s Commercial Truck Financing Interest Rates

The rates are always subject to change depending on market values, and the bank may change business dynamics and the rates without any notice. However, once decided with a client, the rates are followed according to the contract. The current rate has an average annual percentage of 3.502%, with a maximum term being up to 72 months. 

The rates are customized for each plan and each consumer, according to the security of the plan and the eligibility of the client to pay. As mentioned earlier as well, a good credit history is the main determinant of the best rates. 

Other than that, interest rates are generally dependent on the principal amount and the decided term for the payments. An amazing feature offered by Hills Bank on their website is the option to use their convenient 'personal financing calculator'. An estimate of the monthly payments can be obtained through the calculator, if one is wondering whether they can afford the financing plan or not. 

Commercial truck financing can be overwhelming due to the sheer necessity of trucks in almost every kind of business and the overburdening costs of the trucks. But Hills Bank aims to make this process smooth and convenient so that everyone has the opportunity to grow and flourish. For this purpose, Hills Bank offers the best rates and flexible financing options.

It also has an easy application process, fast decision making, no prepayment penalties, and even the option for automatic payments. With all this, commercial truck financing at Hills Bank brings benefits to not just the local businesses but the community as a whole.


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