Commercial Truck Financing Rates and Terms
Commercial Truck Financing Rates and Terms
Below is a discussion regarding the rates and terms involved in commercial truck financing.
Lenders that offer commercial truck financing usually levy an annual interest between 5% and 30% depending on the creditworthiness of the borrower. Other conditions including the financial state of the business, condition, and type of truck are also taken into consideration. Terms to a maximum of 10 years are offered. Banks usually provide longer terms than alternative lenders.
The ideal borrower could get a maximum of 100% of the cost of the truck you are about to purchase. In these cases, you will have to provide a down payment. After this, they offer you 75% to 95% of the value of the truck.
The interest rate informed to you does not usually relay the whole story. Semi-truck financing companies commonly charge you additional fees such as appraisal fees (the cost of evaluating the cost of the truck on the market), credit check fees, and application fees. These can add up to a significant amount of your loan.
