The Minimum Time in Business and the Truck Insurance Required for Commercial Truck Financing
The requirements and terms in this are different from other traditional loans. Below is a discussion on the required time in business and the truck insurance in order to qualify for this financing option.
Time in Business
Commercial truck financing is a difficult option for first-timers in the trucking business. This is because commercial truck lenders usually do not normally consider those who have been in business for less than 2 years.
New trucking businesses find it difficult to qualify for any kind of truck financing. Generally, you require a strong credit and being able to spend 10 to 20% in down payment to qualify for any form of commercial truck financing.
Commercial truck lenders will check if you have insurance for your truck. It is a general requirement before you can acquire funds from the lender. Insurance is necessary because of the possibility of costly damages in the event of accidents. The kind of insurance you require will depend on the business which you run. Truck insurance brokers would be able to assist you to get the appropriate coverage.