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Friday, October 19, 2012

Bad Credit Commercial Truck Financing


This is a guest post by Dale Jackson of Capital Solutions, a commercial truck financing firm out of Tuscon, Az. He has some good tips below if you are looking to finance a truck. I would certainly include them when comparing financing options. A link to their site follows below. I also wasn't aware that they had a referral program where you can earn fees by referring other drivers if you are a satisfied customer!

In today’s economy getting a business started can be a nightmare for anyone. This is especially true for truckers and those hoping to become Owner-Operators so that they can enjoy the benefits of being their own boss. Getting that first truck financed is sometimes the biggest road block in getting your business off the ground. Here are some tips that will help you to get that first rig on the road:

Know Where You Currently Stand
Before you even think about buying a truck you MUST have some sort of collateral, credit history, and at least some spare cash. A Truck can cost anywhere from $15,000 used to $150,000 new. There are companies that will work with you if you have little or bad credit history but you’ll have to offer some sort of collateral such as another vehicle, house, etc. Use credit bureaus like Experian, Equifax, and TransUnion to get a free credit report. If there are any red flags get them squared away before you try to get a loan.

Business Plan
If you go to a bank, credit union, or anywhere legitimate to get a loan you need to have a mapped out business plan. Lenders are going to want to know how exactly you plan to pay them back. Here it is best to have a few jobs line up right out of the gate so that you can assure them you’re good for it.

Mishaps
Every trucker has setbacks. If you are buying a used truck odds are you will have to put in some money for maintenance and repairs into it before long. Then there is always the possibility of a blown tire, blown engine, auto accident, you name it. It is very important that you have some sort of safety net in case these things happen because if your truck’s in the shop, it’s not on the road, and if it isn’t on the road you are making money for payments.

Referral Programs
A clever way to make extra cash, especially if your still working with a leased truck is referring fellow truckers looking to get their own trucks to finance companies. Some finance companies will offer you 3% of the financed amount for every customer you refer. That’s $600 on a $20,000 deal, $900 on a $30,000 deal. This amount can really add up while still driving for your current company and overtime can put you on steady ground to finance a truck of your own.

Get A Partner
Now obviously you are trying to get your own truck so you can get in business for yourself but with times the way they are today any financial deal you make is easier with a reliable co-signer. This could be an even better idea for truckers because you may know somebody that either has collateral or credit history you don’t. Or even better, a fellow trucker. Another mishap that can occur is to your own health. If you get injured or fall ill and can’t drive it would definitely be nice to have someone who can still get out on the road and ensure the next payment on the truck gets made. Lenders will take this into consideration as well.

I hope this information is useful to both beginning truckers and veterans trying to make that transition to Owner-Operator. Good luck and God Bless!

Dale Jackson is the son of a former trucker and has always been passionate about the open road. In order to help other people realize their dreams, he writes for Capital Solutions, who specialize in Commercial Truck financing.


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