There may come a time when you want to purchase a new semi-truck for your business. When this time comes, you must take your time with the decision. The truck you buy, and the terms under which you purchase it, will have a major impact on your business. There are several steps involved with commercial truck financing, and you’ll want to give your attention to each one to ensure you end up with the best possible truck at the right price. Below, we’ll outline the five steps you should follow the next time you want to choose in-house semi truck financing for a new semi-truck for your business.
Research Lenders for In-house Semi Truck Financing
The first thing to do is spend some time researching potential lenders. A lender is an organization that will provide you with the funds for your semi-truck and who you will need to pay back over time. It’s important that you choose the right commercial in-house semi truck financing lender, as you’ll have a relationship with them for years to come. In addition, the right lender will provide you with favorable loan terms, which makes affording your truck a lot easier. When looking for a provider of in-house semi-truck financing, consider not only their loan rates but their history of previous customer satisfaction.
Determine Your Eligibility
The next thing you’ll want to determine is whether you are eligible for a semi-truck loan. The factors that determine your eligibility vary from lender to lender, which is why it’s a good idea to research potential lenders before you get to this stage. That way, you can discuss with the specific lender what eligibility requirements they have. Some common eligibility requirements you may come across include:
- A down payment
- The age of the truck you want to buy
- The number of miles on the truck you want to buy
- Your credit score
- How long you’ve had a CDL
Find Out What Documents You Need
Next, you’ll need to start rounding up essential documents. Again, these documents depending on the specific lender with which you’re working. However, there are some documents you’ll likely need regardless of provider, such as:
- A copy of your CDL
- An invoice with specs of the truck or web link showing the details
It can take a little time to gather these documents, so starting early is a good idea. That way, once you decide on a loan provider and begin the application process, you can move it along quickly.
Choose Your Semi Truck
If you haven’t already, you’ll want to pick out the semi-truck that you want. Keep in mind that the semi-truck you choose may impact the financing terms. For example, a truck with more miles or a lot older is considered a bigger risk by lenders, who may charge a higher interest rate as a result. In addition, this truck is an investment for your business. You don’t want to spend all this money on something that will break down in a couple of months. Before purchasing any semi-truck, be sure you’ve given it a thorough evaluation and that it’s a good use of your money.
Get Covered with Insurance
Once you have your loan and bought your new semi-truck, the last step is to get it insured. Insuring your semi-truck is not only required by law, but it can protect your business in the event of an accident. In some cases, you may not even receive your loan unless you provide proof of insurance. The type and amount of insurance you’ll need varies based on where you live and the value of your truck. Find a trusted insurance provider and talk to them about your needs. You’ll likely want a few different coverage options, such as liability, cargo bobtail, and physical damage.
One step drivers don’t consider, or maybe they are not aware is available, is Freight Financing. Freight Factoring is a great tool for people who might need help with getting paid faster on their freight deliveries. This step is safer to do before the closing/funding on your vehicle. This will help the business owner get paid sooner and faster on those invoices. This extra capital will come in handy especially for those who might have repairs, fuel, insurance, or equipment payments. Ask your advisor for more details, they will be able to point you in the right direction.
Contact First Capital Business for In-house Semi Truck Financing
With the steps above, you can make the process of buying a semi-truck a lot less stressful. However, much of it still comes down to which financing provider you work with. You want to choose a provider who knows how important semi-trucks are to your business and makes it easy to get the truck you need.
If you’re interested in securing in-house semi truck financing, contact First Capital Business finance today. We specialize in providing businesses of all sizes with the funds they need to purchase their next semi-truck. With our help, the process of buying a semi-truck will be as smooth and easy as possible. To get started, please get in touch with us today. The sooner you do, the sooner we can get you approached for that in-house semi truck financing that you need, and your business can be the proud owner of a new semi-truck.
Get In-House Semi Truck Financing in 5 Steps | First Capital Business Finance