A Guide to Semi Truck Financing for Truck Drivers & Owner Operators

By: Harnam Singh

Semi Truck financing is a big step that most of the truck drivers want to take in order to start a new business of their own.

However, most of them are not aware of it and more of them have never tried to get into the business as it requires a hefty amount to purchase a truck.

So they often come to the conclusion that the ability to purchase their own semi-truck or rig just is not possible.

However, a Semi truck financing is a type of loan or lease where the vehicle acts as collateral to secure financing.

So owner-operators and truck drivers can take this advantage and get ahead of the risk involved in financing a commercial truck.

To apply with us you are just a click away, submit your application and we will get back to you.

Banks generally do not provide semi truck financing because of the risk involved in commercial truck financing and loans.

But there are several other financing options that can take you out of the difficulties to finance the truck you need.

However, getting the right truck selected for your business is the first and foremost step in semi truck financing.

And we at Singh Lending Solutions is always there for you to fulfil your needs and get the finance done for you against all odds.

Over 80% of the goods are transported by Semi Trucks and Trailers in the United States.

Knowing the demand for trucking business we are here to help our fellow brothers and the first time buyers on semi truck financing who are planning to get into this profitable business.

So let us take a look at how semi truck financing work so that you can land your own rig to start a new business of your own.


How does the semi truck financing work

Semi truck financing is very much different from a regular car or personal vehicle financing.

Usually, you won’t see any loans granted for semi truck that is financed by a bank, because banks don’t want to get into this risk.

Well some traditional bank may offer semi truck loans, but you need not worry because there are other sources that offer to finance a semi truck.

So who are they?

They are the lenders and equipment leasing providers who grant semi truck loans and commercial truck financing.

Whereas some other sources are the trailer financing companies, who are ready to provide financing for landing a semi truck of your own.

So in the case of semi truck financing, it is better if you have a strong credit score and a consistent record of a good income.

Because lenders will try to see the credit score and your consistent income proof over a period of 2 to 3 years at least.

The reason is semi truck financing works as collateral for a loan, so lenders and leasing providers are more interested in financing.

Some lenders ever work for you against all odds to get the best rate for you and get the job done so that you can start your business.

So semi truck financing is not so hard to get, what you need is to find the right lending companies especially small agencies who specialize in lending commercial vehicles of all types.

We at Singh Lending Solutions has helped several owner-operators, truck drivers and first-time buyers in getting the loans financed for their business.


Getting the loans for Semi Truck Financing

When it comes to trucking, it is one of the businesses which every truck driver has once dream about and wished.

But most of them have never applied for semi truck financing knowing that there are strict rules as like commercial vehicle financing provided by banks.

So they often end up in jobs which they never liked.

However, getting loans for semi truck financing need some requirement and it is easy to apply and can even be applied online.

There are good rates available for semi truck financing and loans from various vendors who are to finance these commercial vehicles for you.

So you simply need to fill out the applications, along with the necessary documentation required for the loan.

In the case of semi truck loans, you need to find lenders who will give you great priced semi truck loans.

Because lenders are more lenient with commercial truck loans and semi truck loans because of the high collateral value that these vehicles possess.

The requirement for getting the loans may depend on the type of truck you are buying.

Sometime lenders may restrict the loans in case you are buying a used truck which is more than 5 years old.

However, the minimum requirement would be like a CDL license, good credit score and FICO rating and verification that you have a way to pay your loan payments.

If you are able to show an experience of 2 to 3 years it would be great.

So the requirements may differ from a lender to another while you are buying a new truck or a used truck so in the event that you are not able to repay your loans amount the loans can become secure.

If you are first time buyer we at Singh Lending Solutions can help you get the desired truck you need for your business.

Apply below online and we will get in touch with you to get the most beneficial rate for semi truck financing.

You may also call us or write to us at [email protected]


Applying quickly for semi truck financing and loans

This is an era of technology, due to the technological advancement almost everything is shared and viewed online today.

So is the case for the loan application and filing, you do not need to use the traditionally time-consuming process to apply for the loan.

The most application is viewed instantly and approved online today, so it hardly takes any time to know what has happened to your application in a matter of a few minutes.

So you can search for one of the many online lenders that may be available on your google search results.

Once you find the lender you can navigate through the application process to see what documentation they need, so arrange all the documents as required by the lenders.

Also, check if the online lenders have mentioned any privacy policy and terms and conditions for filing an application online.

So you have to take care of proper documentation else your application may get rejected on the first attempt.

You may take the print outs of your income proof, license and other collateral required for filing the application, scan the copy and just upload it on the lender portal or website.

Thus you will be notified once the application made online is approved or rejected.

You may also get a call if your application does not provide any evidence of income proof or it is incomplete.

So you can re-upload all the required documents which are required for the successful completion of your application.

Many buyers are still sceptical about this online process because it is relatively being used less and there being a concern over entering personal information into the computer during the application process.

But believe it, this is one of the easiest ways out to reach out to a lender and get the job done instantly and get a brighter future in just a short period of time.


Factors that affect your approval process on financing & loans

In today’s economy, due to competition and layoff in companies, most of the truck drivers often lose their jobs.

So these people often want to apply for loans in order to start a business of their own to find more stable employment.

However due to the economic slowdown and no jobs on hand people often get into the trouble of some kind of bad credit history due to loss of income.

So it is important to remember that when seeking financing to purchase a new or used semi truck you need to keep your credit history clear.

A good credit history ensures that you are able to pay off the loans with minimum risk and a lender is able to have trust in your application.

Otherwise, it may affect your application and there can be a delay in the approval process unless the things are not clear to a lender.

Often it is seen that in most cases lenders may require that you have a down payment which may be approximately between 20 to 25 Percent of the selling price of the truck.

So being able to include some down payment on your loans shall make your monthly instalment light on your pocket and keeping the loan payment to a minimum.

Doing so you will give you the ease of starting your trucking business and bring your finances back on track.

So this doesn’t mean that having a poor credit has no chance of financing a semi truck, but we have to face it.


What if you are not being able to present a good credit score?

There are special financing and leasing companies who can still help you get the loans if you have a poor credit history.

But this does not mean that you will get a loan instantly or immediately failing to provide enough documentation.

Loans are applicable only on the basis of good applications and able to show solid proof of income that you can repay the loans on time.

A good income proof will give Lenders the peace of mind to take your application instantly for approval.

However, failing to provide income proof it was quite difficult to get the loans on demand.

Most of the companies, in this case, handle your case to a credit specialist who will investigate your profile and help you with their best efforts.

We at Singh Lending Solution help you get of out of the wheels with our rigorous consulting services so that when an opportunity arrives, you have the ability to get the commercial equipment financing.

Because unlike traditional personal vehicle finance and leasing option which has many strict guidelines, commercial equipment finance is much easier to get approved.

Commercial trucks have a good resell value so commercial truck financing is easier to get approved.

So a lender is able to approve your finance if your credit score is still not too good.

This provides Lenders with the confidence to get their investment back but even with negative marks, there are companies who will try to make your loan approve and welcome you to the business.

But it depends from one lender to another, from one leasing provider to another and from one financing company to another.

So there is still an opportunity that your application may get approval until you try and get into financing to land your trucking business.


Watch out the advertisements for best deals on trucks and semi trucks

If you try to search for a lender, you will be able to find lenders who advertise their rates from time to time.

Most of the advertisements come as zero per cent deposit or no money down, however only people will solid credit are able to get this offer.

The rest of the people who have a negative record in their history fall under the down payment deposit of up to 30% in advance.

So due to poor credit history, you may end up paying more upfront cost to bear the negative marks on your credit score.

In this case, if you want to buy a truck that cost around $60000 you will have to pay $18000 (30% as the down payment) and the rest $42000 shall be paid by the lender.

Coming to the realistic point of view, once you have your truck you have to be cautious about your monthly instalments failing which a lender repossesses your truck.

So never be late on your monthly instalments, not even a single day else you may lose your truck and the down payment you made to acquire your own truck.

And once you are late on your payments, it will be hard for you to justify a lender even with the most sincere excuse.

Because truck financing is not like a landlord or a mortgage company who might let a tenant get a month behind with some excuses.

For more information on semi truck financing submit your application online and we will get back to you soon.


Finding the right semi truck for yourself

Finding the right semi truck first for yourself is as important as finding a lender for financing a truck.

However, when you are trying to finance it is much harder to find a truck as opposed to dealing on the basis of cash.

There can be several others who are waiting for the same truck in the queue but with the cash.

So a dealer will give more preference to them who are directly handling the purchase through the cash.

In this case, if you have found the truck for yourself you have to hurry to get the finance done by your truck financing company.

However, the truck that you have chosen must fit the profile with some key attributes such as

  • It should be less than 10 years old
  • The truck has not run more than 700,000 miles
  • It should have all other papers ready
  • Condition of the truck new/used
  • Truck details such as Make Model & Year
  • Insurance is a must
  • Must be sold by a dealer

So once these things are fine, you can approach semi truck financing vendors with all the details required for processing your application and loan.

And if you need any help Singh Lending Solutions is right here to help you get out of the wheels on financing a semi truck for you.

It does not matter whether it is a new truck or a used truck, depending on most basic conditions we can get you your truck for you.

We would love to hear more from you if you have any other query regarding semi truck financing and loans.


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