Getting the best commercial truck financing available means knowing what you need and where to look. This article explains how commercial truck financing works as well as a few different options.
Whether you are in the trucking industry or just need help getting a new delivery van, there are many different options available to you. However, not every choice is fitting for your situation.
To illustrate, let’s take a look at a few of the most common options available to business owners.
But first, how is commercial truck financing different from personal vehicle financing?
How Commercial Truck Financing Works
While it would be easy to assume that getting a loan for a commercial vehicle might be similar to getting a loan for a personal vehicle, these two types of funding can be very different.
In general, business vehicle financing involves a higher interest rate. Not as many lending institutions offer commercial vehicle financing as do personal vehicle financing, which means getting funding for your business car or truck can be difficult if you don’t know where to look.
Ultimately, the terms that you are offered for your commercial truck loan depend on several factors—the type of vehicle you need, your business’s financial health, and the lender you choose, to name a few.
Here are some options to consider.
Bank Loans
Some banks offer commercial truck financing. These banks are usually national chains because these types of loans are often too risky for small, local banks to handle. That being said, the loans that the large banks offer can be exceedingly difficult for small business owners to qualify for, especially if they have no credit or a history of bad credit. Additionally, a loan from a bank often requires a hefty down payment, which many small business owners and independent truck operators simply can’t afford.
Still, if you can qualify for such a loan, it is a good option. Big banks usually offer these types of loans through their equipment financing departments.
Specialty Financing Companies
An alternative to the big banks, specialty financing companies are often more in tune with what is going on in their respective industries. Some of the best commercial truck financing options for small business owners come from these types of companies because they are so knowledgeable of the space that they operate in.
Another advantage of working with a specialty financing company is that the process is often faster. Unlike general equipment financing companies, these kinds of companies know the true value of the type of equipment that truck operators and small business owners need, which can be helpful when securing financing.
Talk to AA Bankers about Your Best Commercial Financing Options Today
Now that you know some of your options for commercial vehicle financing, why not talk to a financial expert about your needs? At AA Bankers, we know all about commercial truck and vehicle financing, which means we can help you get the equipment that you need to succeed and grow.
Contact us today to learn more.