Commercial Truck Financing Qualifications

commercial truck financing qualifications

The Pre-Qualifying Questions of Commercial Truck Financing

Do you need a truck, but are having trouble finding out what the commercial truck financing qualifications are? Let’s cover some major key points every owner/operator or small business owner wants to know before financing a commercial vehicle.

Do You Need Good Credit for Commercial Truck Financing?

If you end up calling our office chances are you might get me on the phone, and I would say that is the most common question we get from our clients. The simple answer is “no”, you don’t need to have good credit to purchase a truck. There are programs for just about anyone out there, they might not be the lowest down payment or the best priced, but if you’re looking to get into a truck and if the payment makes sense we can get you going!

Here are some of our pre-qualifying questions we typically have if you tell us you have challenging or bad credit:

  • Why do you think your credit is bad? We need a basic idea. If you had a few late payments with your creditors, or if it’s something more serious like a bankruptcy. You would be surprised how many people we’ve spoken to that think they have bad credit because they were late on a credit card payment 3 years ago. If we can figure this out early one, we can pre-qualify you for our better credit tiered programs!
  • Have you had a previous repossession? Some programs have limitations on previous repossessions, and some of our programs won’t have an issue with a previous repossession, even if it was last month!
  • Have you had a previous bankruptcy or are you currently in a bankruptcy? We have many programs that allow for previous bankruptcies, even if it was last month, however if you’re currently in a bankruptcy we can’t help until it’s fully discharged.
  • Do you have any open tax liens? Depending on the type of tax lien, how much the tax lien is for, and if you’re in a payment plan we can still possibly work around this. So we’ll go into more details on the tax lien if you have one to best qualify you for a program.
  • Do you have any Child Support payments that are in arrears, or overdue? This is a touchy subject, and we understand that and try our best to be sensitive with it. In most cases financing is not possible if an applicant is past due on child support payments. Before you give up, however, it’s always best to call our office and speak to one of our advisors directly. There are more details that goes into this subject and there still might be a way to get you the financing you need!

Can I Still Finance a Truck if I’m a First Time Buyer?

Congratulations if you’re looking to get your first truck! Being a first time buyer can be exciting and nerve-racking at the same time. We try to make your first experience as smooth and simple as possible. We have a wide variety of programs for first time buyers with good and bad credit.

Here are some of our pre-qualifying questions we typically have if you tell us you’re a first time buyer:

  • Are you currently a company driver right now? We like to understand where the client is coming from, what their current income situation is. This will help us determine what your budget might be for a down payment and what your goals are. Our goal is to make this a reality for you!
  • How long have you had your CDL for? Some of our programs require the application to have CDL experience and some of our programs don’t require you to have a CDL at all.
  • What experience do you have in the industry? Some of our programs require you to have experience in the trucking industry if you don’t have long enough CDL experience. Even if you’ve worked in dispatch or other positions in the trucking industry may qualify you for experience depending on the program you are qualifying for.

Does the Age of the Truck or Truck Mileage Matter?

When talking about commercial truck financing qualifications, some programs have age and mileage restrictions. For others there aren’t. Let’s touch on why there are programs that have mileage and age limits. For example, if your freight hauling ever takes you into California, you need to be aware of the CARB restrictions against pollution. (California Air Resources Board) And your truck must be compliant. And we don’t just mean load distribution and tandem position, we’re talking engine pollution.

Here are some of our pre-qualifying questions for truck age and mileage:

  • What year truck and how many miles does the truck have? Depending on your time in business, credit, type of semi truck (sleeper or day-cab), intended down payment amount, and fleet size will determine if there are any restrictions on the age or miles on the truck. For example, if you have decent credit and you’re looking for a day-cab truck to do local hauling we have a program that has no age or mileage limit on semi trucks.
  • What About Financing Old, High-Mileage Trucks? For trucks that are older or have higher miles, we also have several programs that’ll consider those older units even if you have bad credit. Keep in mind, the older the unit, the shorter the term will be on the financing.

How Much of a Down Payment Will I Need to Buy a Semi-Truck?

Probably the biggest hurdle for clients who are buying a truck is the capital outlay. The down payment for these trucks can vary, from just making your first months payment all the way to 50% down. Most of those previous qualifying questions were determine the amount required for a down payment. So when our advisors are on the phone asking these specific questions, it’s because they are trying their best to give you the best information so you can make the best decision for you and  your business.

Contact Us to Learn More About Commercial Truck Financing Qualifications

Hopefully this article on commercial truck financing qualifications was helpful to you. Obviously we weren’t able to cover every qualifying question, but we did cover quite a bit. The best way to see what you are qualified for is to give our office a call and speak to one of our advisors. The call only takes about 5 minutes, and you’ll know the answers to most of the questions right of the top of your head.
First Capital Business Finance is a leader in commercial vehicle financing, with programs suitable for almost every kind of buyer. Contact us online to learn more about commercial truck financing qualifications. Or call 888-565-6692 to speak to an expert financial advisor today.
Commercial Truck Financing Qualifications | First Capital Business Finance


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