Commercial Truck Financing Terms
For the latter, factors like business revenue, personal credit score, and time of operation are taken into account before deciding the eligibility for these loans.
Commercial truck financing is different because it is highly specialized. Besides, the trucks themselves serve as the collateral for the lenders. Hence, if you are not one of the ideal borrowers, you must still be able to qualify.
Even though most borrowers qualify for these loans, there are differences in terms and rates for semi-truck loans. The best among the borrowers are able to qualify with 100% financing and low-interest rates such as 5%. Further, if the borrowers have certain negative factors about them such as an old truck or unsatisfactory credit, they will receive pay rates between 7% and 30%.
Fundamentally commercial truck financing is offered for 3 reasons.
- To purchase a new or used truck;
- To lease a new or old truck; and
- To repair or upgrade a truck you already own.
The borrower’s specifications can bring about changes in the terms of the semi-truck loan.