Commercial Truck Financing – Can You Get One With Bad Credit?
When you plan to buy large commercial vehicles and are short on money, you mostly think of settling down for poor quality ones. Well, this is not how it should go. Have you ever considered how expensive it will be in long run to spend on repairs and maintenance of such poor quality vehicles? Well, fortunately today we have commercial truck financing and it can certainly help you get trucks you always wanted to boost your business.
Nevertheless, the key is to understand how to select the most beneficial financing option. For this, it is crucial that you have a little idea about how commercial truck financing companies work and where can you find them.
How does it Work?
When you are looking forward to obtain a commercial truck financing, you will find many financing companies operating online. Most of these companies will require you to have a CDL and a minimum of 2 years of experience in the field of commercial vehicle business. Also, they will look into your incomes to verify whether you will be able to pay your loan back or not. Once you are clear that you are eligible to apply, you can expect getting a no credit check semi truck financing deal.
As soon as you come across some genuine financing companies online, all you will have to do is fill out their application form. This will hardly take any time and you can expect the response in a short time period.
Considering the Idea of Leasing Commercial Vehicles:
For many people, this type of financing option is not appealing. Well, this financing option comes with its own list of benefits. Generally, you will be offered two types of leasing options, they are – Operating lease and Capital lease.
If you acquire an operating lease, then you cannot include the vehicle in your company assets. This type of lease is specifically designed to give an opportunity to business owners to purchase the vehicle at the market price as soon as the lease period is over. The amount used to pay for operating lease is usually deducted from taxes, since it is considered as operating expense for the business.
On the other hand, Capital lease is a good option for those who want long term ownership of the vehicle. This financing option is just like a traditional bank loan. It will show in your balance sheet as a long term liability.
Obtaining a Commercial Truck Financing with Bad Credit:
Having a bad credit not necessarily stands in your way of acquiring a commercial truck financing. There are several companies out there who are looking forward to offer you different financing options and help you get your finances back on track.
Fortunately, acquiring a traditional personal vehicle loan and acquiring a commercial vehicle loan are two completely different things. It is quite easier to acquire a commercial vehicle loan because of the amount of collateral value, which comes with commercial vehicles. It gives the lender a sense of relaxation that they will be able to recover their investment back even if you don’t pay your loan payments.
Lastly, the entire decision of purchasing or leasing the vehicle depends on you. However, it is good to go through all the possible options before finalizing one.