Credit Report-Related Requirements for Commercial Truck Financing
Credit Report-Related Requirements for Commercial Truck Financing
They also look into the cash reserves and your ability to pay back what you borrow. Below is a discussion of these factors.
No tax liens, Repossessions, or Delinquencies on Your Business
Lenders run a check of your delinquencies and repossessions and the recent liens of your business. These factors may appear on your personal credit report or your commercial credit report.
Tax liens are a major negative attribute for the commercial truck lender, as they show that you owe money to a different lender or government. Lenders want to see that things are fine with your finances. Keep away from bankruptcy or vehicle repossession if you want to qualify.
Down Payment Ability & Business’s Cash Reserves
A down payment is a requirement in almost all commercial truck loans. The average down payment is 15%, while the figure itself can be between 0 and 25% in most cases.
Furthermore, you have to prove that your cash reserves are adequate and that you will be able to make timely payments. Lenders check for a minimum reserve of $10,000 and if you own other businesses, and whether you have a low credit score.
