Commercial Truck Loans & Financing: All You Need To Know in 2020

By: Harnam Singh

Commercial Truck Financing and Commercial Truck Loan have always been a subject that is of concern to all Owner-Operator, Small Businesses, and those who want to land transportation services.

So as a business consultant, I am glad to help you to get through a hassle-free financing option and a guide to lend your first commercial truck in 2020.

Because Trucks are expensive, truck loans have always been there as solutions for owner-operators and first-time buyers to procure a new truck.

However, approaching the right commercial truck financing company or a lender matters the most from whom you procure the business loans.

Although, Lenders have always been there to serve the needs of first-time buyers, keep this in mind not all financing companies or lenders are the same.

So finding the best financial solutions for your truck loan can be a cumbersome process especially if you are a newbie.

commercial truck financing

Most of us carry a good credit score and some not, however, it doesn’t matter anything about the credit score that you carry.

We are here to help you depending upon what credit score you carry.

Singh Lending Solutions is aware of it, so we deal with almost everything and every issue that comes across financing a truck.

Because we understand that without trucks, it is hardly possible for owner-operators and businesses to think about doing the transportation services.

So we provide unparalleled services to our fellow brothers on granting the appropriate truck loans for their business needs.

Singh lending solutions have years of experience in dealing with truck financing and loans including all business loans, equipment loans, and other finances.

So our expert consultants can guide you through a hassle-free financing option, that includes low rates financing, 0 down payment, and other best options depending on the credit score that you carry.


Who is an Owner Operator?

Owner Operators are self-employed truck drivers who own a truck through commercial truck loans and financing.

So rather than working for a company they run their individual business as like a proprietorship business.

According to the American Trucking Association, nearly 70% of freight transportation is carried out by commercial trucks and most of them are owner-operators.

So the demand for trucks and transportation is widely affected if there is a shortage of owner-operators or trucking companies who rent their truck for transportation.

Trucking has always been a demanding business in America and Truck loans matter to all of our fellow brothers who want to get started and also those owner-operators who want to scale their truck transportation business.

So anyone who wants to lend up with a commercial truck, heavily depend on trucking loans and financing.


Why Truck Loan matters most to businesses and owner-operators?

Commercial trucking is the lifeblood of the American economy and when it comes to financing a truck, we know it all comes at a cost and a big budget.

So loans are a comfortable way to establish your business by using lender’s money rather than being tight on capital.

And it matters most to owner-operators because starting your own trucking business without capital or money in the bank feels impossible, however, it’s not.

When it comes to working as a truck driver in intermodal drayage, there are two paths, either you work for a trucking company or be an owner-operator.

So if you are new to the business and you want to take the career path of an owner-operator.

You obviously have to get through commercial truck loans and financing to get your truck finance by a lending company.

And this is where Singh Lending Solutions plays a significant role in commercial truck loans and financing for owner-operators, startups, and small businesses.

We know how important it is for you and your business to have a small monthly payment instead of starving yourself of capital.

So if you are just starting, you need to ask yourself all these questions.

  • What is your current financial condition?
  • What are your future financial goals?
  • Are you particular about the truck you drive?
  • What amount of borrowing money raise your total cost of doing business?
  • Do you still have to put up some money?
  • Do you foresee the future of the entire business on your ability to make monthly payments?

If you are sure about your career path Singh Lending Solutions can help you.


Helping Owner-Operators with Commercial Truck Financing and Truck Loan

We are passionate about loans and financing.

Commercial truck financing and truck loan matter to all of us and undoubtedly it matters most to an owner-operator struggling to finance a new truck.

So we look forward to providing the best rates for owner-operators and businesses and accept your loan application to get things done at all costs.

We offer exclusive and premium lending solutions throughout California and the United States for all levels of credit.

So whether you have good credit or bad credit we can get you the loans for financing a truck and you can take your truck away with hassle-free financing options from Singh Lending Solutions.

We are partnered with financial companies and experts to make sure that your requirements and needs are fulfilled.

And when it comes to getting the things done, we personally support all the way to finance a truck for your business.


Frequently Asked Questions: Commercial Truck Financing & Truck Loan 2020

commercial truck loans

What is commercial truck financing?

Commercial truck financing usually is a loan that is offered to small businesses, self-employed individuals, owner-operators, firms, or trust for the purpose of purchasing a commercial truck which is meant for business purposes.

So these loans are offered to individuals who are involved in the transportation business.

Commercial Trucks are vital for all carriage transportation company, however, even news or used trucks come at a cost which involves a lot of working capital.

It is hard to raise funds overnight to get a truck for your business and this is where commercial truck loans become mandatory.

So owner-operators and small business can raise the needed funds from financing market or lenders who deal in commercial truck loans or business loans

There are lenders who are willing to lend you the money as commercial truck loans, so you can take advantage of it.

However, startups and owner-operators need to keep this in mind that it can also be risky because you are borrowing and investing money in a new business which is not certain.

It may work well for someone and may not be the same for another, so there is also a risk factor involved with commercial truck loans and financing.

But you need not worry, financed trucks can be used as collateral, so it is of no issue if a borrower defaults on the commercial truck loans the lender can repossess the financed truck.


How Does Commercial Truck Financing and Loans Work?

If you are new to truck financing this is all you need to know.

The first and foremost thing to understand is that financing a truck is very much different from financing a personal vehicle loan.

Personal auto loans may have interest rates below 5% whereas business auto loans such as a truck or a semi-truck financing range 5% to 30% interest rate.

Now when it comes to financing a personal car loan, banks are your best option but this is not the case with truck loans.

Most banks will never lend you money for commercial truck financing because there is considered as high risk and uncertain in the trucking industry for new ventures.

But there is an alternative to commercial truck loans and financing, where lenders are willing to take the risk and lend you the money for financing a truck.

So commercial truck financing is available mostly for buying a new truck, buying a used truck, leasing a new or used truck and repairing or upgrading a truck.

For more details on commercial truck loans and financing get a free consultation today.

commercial truck financing


How long can you finance a commercial truck?

Since most of the bank doesn’t agree on commercial truck loans so you have to find a good lender who understands your business needs and goals.

The good news is that most borrowers, even first-time owner-operators and those with some red flags in their credit history, are able to secure commercial truck financing.

So terms may go up to 5 years or even up to 7 years depending on the condition of truck used or new, however, banks that do commercial truck financing generally offer longer terms than lenders.

But before you finance a truck you must spend some time to find the truck that you are particular about in driving.

Then talk with your lender and decide what are the terms on condition upon which a lender will grant the loans for the particular truck.

In most of the cases, if the lenders find your credit score worthy, they will provide loans up to 100% of the value of the truck that you are purchasing.

Whereas for those with red flags 100% of the loans may not be granted by the lender.

But there is good news, you will find at least one or the other lender who will be ready to lend you the money for the truck you have selected for your business.

Lenders are able to lend you the money for a certain period of time depending on the type of truck new or used truck.

If the truck is new they may provide more time than expected.


Will My Credit Score Affect Commercial Truck Financing?

As an Owner-operator, you have nothing to worry about anything if your credit score is good.

A good credit score is always welcome by all lenders and bankers for any kind of loan.

The issue arises with a poor credit score, but here at Singh Lending Solutions, I have personally tried to fulfill the loans and financing for my fellow brothers with a poor credit history.

A good credit score is similar to a credit card score, where banks increase the limit of your spending if banks find your credit to be really good.

You can assume the same for your credit score for commercial truck financing however we will work hard to get you approved the truck you need for your business.

Over the years, Singh Lending Solutions has released various commercial truck loans even to those owner-operators whose credit score has not been so good.

We have always listened to the problems of owner-operators at large over these years and granted approval easily to land their trucks on the road.

So if you are looking for simple truck loans or financing with good to bad credit, Singh Lending Solutions has always been helpful to owner-operators for almost decades.

We are specially dedicated to commercial truck and trailer financing, and commercial equipment financing.

If you are just tired of being rejected by traditional banks or leasing companies, we can help you finance a truck for you in hook or crook.

Because we understand your problem and all kinds of challenges, that banks simply don’t understand, we get the financing done for you at all costs.

Give us a call or fill out our simple online application today. We’ll get in touch with you to work immediately and to get you approved fast and easy.

commercial truck loans


What do you need to qualify for commercial truck financing and loan?

As discussed above commercial truck financing is very much different from personal vehicle loans.

When it is about personal vehicle loans or business loans, banks are the best option and banks mostly emphasize the credit score, your turnover and how long have you been in business.

But this is not the case with commercial truck loans, because trucking is a specialized industry.

Commercial truck loans are usually made by lenders, so lenders don’t follow terms and conditions as banks do.

Most lenders can provide you with 100% financing and interest rates as low as 5% depending on a certain few conditions to minimize risk.

But borrowers with bad credit may need to put some money down and pay interest rates between 10% to 25% annually depending on the nature of your credit score and value of the truck.

However, most borrowers will qualify for the loans because trucks can be used as collateral, but for those with red flags, the rate may increase a bit higher.

So anyways you should be able to qualify for a truck loan from a lender irrespective of either good credit or bad credit.

However, if your credit score is poor, you may get loans based on certain caveats.

So before you consider to apply for Commercial Truck Loans and financing here are seven things to consider:


a) Business Information:

Having the correct business information is necessary for owner-operators and small businesses before approaching a truck financing company or a lender.

Your business information shows the credibility of your existence in business.

So depending on your business information and your income tax return statement, you will be able to get the commercial truck loans more quickly and easily.

However, if you are a sole proprietor owner-operator, a lending company might see you as a higher risk than a trucking corporation.

On the other hand, if you are running a trucking company that hires out its own drivers, lenders will provide you with the priority because you can keep your fleet constantly running and generating revenue, without interfering with your cash flow.

Truck financing companies and lenders are able to judge your credibility better if you can provide rock-solid business information to them.

So it is important for you to keep your business information up to date which would help you to keep yourself away from all the hassles during the finance approval process.


b) Time in Business:

Your time in business the most, the longer is the period of your business, the more risk-free it is for a lender to grant a commercial truck loan.

The world of commercial truck financing has lots of moving parts. Companies with the best cash flow and longer time in business are the most likely candidates for loans with good terms.

So startup companies and an owner-operator looking for financing a truck might run into more difficulties for obtaining the loans.

Usually, most startups don’t exist after 5 years, because there is a high risk for startups to guarantee success during the first few initial years.

So there is a huge risk on the part of a lender to grant the loans to startups in business with a short period of time.

However, Singh Lending Solutions can tailor financing to the needs of even new businesses.

See, how Truck Financing can become easy with Singh Lending Solutions

If you need a truck but not sure if you can get a loan, simply check out our online short approval form by hitting the Submit your application below.

So whatever is your financial position, just present your updated information, time in business, and credit history in place before you make the application process forward with us.

And secure your commercial truck financing with no sales pitch, no pressure, no credit pull, or no personal information.


c) Credit History:

Good Credit history is a valuable asset for the borrower of loans and finances.

However, a good credit score is not an absolute requirement to qualify for commercial truck loans

But it helps you to lower the rate with your lenders on negotiation depending on the amount of down payment you make.

If you are able to demonstrate a good credit score to your lender that you have the ability to repay the loan, it is an added advantage.

So having a good record of paying off your own personal liabilities can help you a lot in commercial truck financing.

If you’re a startup, you might not have much to show your prospective lender in terms of operating history or business credit, so having a spotless personal credit report might be particularly important.

However, if your business is an LLC or a corporation, you aren’t personally liable for the finances of the company.

But a good credit score can nevertheless demonstrate that you take your liabilities seriously and that you aren’t likely to simply walk away from what you owe.


d) Down Payment:

Commercial truck loans and financing doesn’t come easy for good finance companies or lenders, usually, if your credit history and credit score are too poor.

And if you are an individual opting for loans for the first time to finance a truck or a semi-truck, there is a high potential risk behind a lender or financing companies making a term loans against all odds.

For an ideal borrower, commercial truck financing or loans can be up to 100% of the value of the truck that you want to purchase.

So, in this case, you have to have to make a down payment to reduce the amount you borrow and you’ll receive financing for the 75% to 95% of the truck’s value.

The average down payment on commercial truck loans is 15%, but it can range anywhere from 0% to 25% depending on the strength of your application that you carry.

However, it depends on the type of lender so you have to see that all your money goes towards the down payment to reduce the amount you borrow so you can save thousands of dollars.


e) Type of Truck:

Trucks are of several types, viz.  long haul truck, vocational truck, dump trucks Semi-trucks, etc.

So you need to know what truck you’re interested in buying before applying for the loans.

Usually, commercial truck lenders want to see that you’re buying the truck from a dealer, rather than buying a truck from a private party.

Because when you are buying a truck from a dealer a lender has the great assurance of its condition.

Buying it from a private party involves risk as in most cases there are no adequate papers available to prove the condition of the truck and therefore lenders may not agree for the loans in such cases.

However, it does not mean that you will not get the loans.

If the truck condition seems good and it has all the paperwork complete you can get the approval though you are buying it from a private party.

The trucking business is a completely different industry because trucks act as collateral for a loan or lease.

Lenders and finance companies will try to place a lot of value on the type of truck you choose for your business and check the condition of the truck before processing your application.

So you have to make sure that you choose a truck always in good condition that will prove worthy to lenders to grant the commercial truck loans for your business


f) Truck age and condition:

The age and condition of the truck are very important when it comes to financing a truck.

Because if you choose the truck that is used to more wear and tear, with more miles on the truck the more likely it is that you have to repair the truck often putting your business at risk making your installments harder.

And this risk factor equally falls on the lenders’ side as well who is lending you the money to finance the truck.

You won’t generate as much income if your truck is used to wear and tear, so make sure you choose a truck that is at least less than 10 years old and also check how many kilometers it has run.

Long haul trucks usually are more likely to wear and tear because these trucks are garbage lifting trucks which are also known as dump trucks.

That being said, what I mean is that the condition of the truck should be good so that you get the best rates for the truck that you are financing for your business.

And at the same time reduce the risk of doing your business.

You can evaluate your truck simply by checking the following parameters for your truck

  • The Serial number
  • Mileage of the truck
  • Make, Model & Year
  • Condition of the used truck
  • Images of the truck
  • Major repairs (if any)


g) Truck Insurance:

The last thing that you need to know about commercial truck loans and financing is, of course, the insurance.

Your’s truck safety should be in your own hands, so insurance of the truck is a must.

And your lenders will also evaluate the insurance of your truck so make sure you don’t neglect insurance.

Some lenders may approve your loans without any insurance but you need to secure your own commercial insurance for your truck.

Apply for commercial truck loans and financing here at Singh Lending Solutions and let us take your all worries.

Submit your application now.

commercial truck financing


I hope the above information would help you to select your required truck that is efficient for your business.

And take the right decision to take a life-changing experience by applying for commercial truck loans.

Whatsoever, Singh Lending Solutions is always there to help you and take your calls if you have any kind of doubts.

For further queries on commercial truck loans and financing email us at [email protected]

Wish you all a happy trucking business.

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