Knowing How to Get Loans for Trucks

Knowing How to Get Loans for Trucks


It is true that the United States is home to a vast manufacturing infrastructure, not to mention many farms of all sorts. The finished goods from those factories, and food from farms, must be delivered right on time, and that’s where the transportation industry comes in. Carrier companies vary widely, and some of the larger ones own fleets of trade ships that can carry many tons of goods in steel shipping boxes and deliver them anywhere in the world. Freight jets are useful for making fast deliveries or delivering to remote islands, and trains can carry enormous loads of good at a time.

Trucks are smaller than planes and trains, but no less essential. Many of today’s carrier companies are on smaller side, and they will have a modest but hardworking fleet of semi trucks that can deliver goods nearly anywhere, anytime. This also includes most of the land-based trade done between the United States and Canada. But running a truck company requires some smooth finances, and not all small business owners are savvy with business credit scores and ensuring a smooth cash flow. A truck carrier owner can get some good loans when looking for used trailers for sale, and semi-trailers can be bought with some smartly executed loans. This may apply when looking up “lease 53 foot trailer for refrigeration delivery,” for example, or “lease 53 foot trailer with bad credit.”

Getting a Loan

When a carrier company owner is looking up trucks and trailers to buy or lease, such as when looking up “lease 53 foot trailer near me,” banks will probably not be involved. Overall, big banks are reluctant to lend to small companies, even truck companies, as these loans are seen as highly risky. Many truck companies go bankrupt or fail, for example. Fortunately, there are specialized lenders out there who will be more generous, and a carrier company owner may approach them for a loan. But even those specialized lenders will have some standards, so a borrower is advised to have a good personal credit score as well as a good business credit score. Around 40-45% of business owners are not even aware that business credit scores exist, but they do. Higher is better where those scores are concerned.

A truck carrier owner may look up “lease 53 foot trailer” or “used trailer for sale” and decide on a model, then move on to financing it. Such companies are often thin on cash, so they can get loans for those trailers. Often, that means taking out a loan on the trailer itself, and a lender is likely to agree since the trailer itself will serve as collateral for that loan to make it secure. If the borrower has a good business and personal credit score, they may get as much as 100% of the trailer’s value in the loan, and pay it off at low interest rates. Many lenders will still cooperate even if the borrower has a moderate or poor credit score, though the loan may be smaller, and at a higher interest rate.

What else factors in? The loan may be impacted by how far the carrier will use that trailer on the job, as well as the truck or trailer’s age and condition. The lender may also look into the borrower’s financial history to find any red flags, such as defaulting on previous loans or going bankrupt in the past. This may influence their decision when making truck loans.

Finding a Trailer

A truck carrier owner may look for either new or used trucks and trailers, and while newer models will cost more, they will be in perfect operational condition, and may meet modern fuel efficiency standards. A used trailer may be bought at a greatly discounted price, though the buyer is urged to first look it over in person and check for any defaults or defects, and look into the vehicle and trailer’s history of repairs and upkeep. The buyer should also make sure that a trailer is the right size for their needs, since a too-large trailer is a waste of money and space and a too-small trailer can’t hold enough items during delivery. Specialized trailers, such as reefers, can carry cold items with refrigerated and insulated interiors.

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