Want to buy a commercial truck? Need a commercial truck loan from a renowned financing company in Abbotsford? If you are planning to buy a truck after getting approved for a truck loan, there are so many ins and outs you need to know. With a commercial trucking loan, the vehicle you acquire serves as collateral that not only reduces the lender’s risk but also increases your chances of qualifying. For the same reason, the conditions for applying a commercial vehicle loan are typically more varied and flexible.
So, when it comes to qualifying for a truck loan, a lot depends on the truck make and model you want to buy, as well as the rules and regulations of the lending companies you approach. Nonetheless, there are few borrowing strategies to follow to boost your chances of loan approval.
A Good Credit Score Is A Jackpot
The lower your credit score, the larger the down payment you’ll need to pay. More than any other criteria, your credit score can have a significant impact on your ability to qualify for commercial truck finance, especially if you are a new owner-operator.
A good credit score will not only make it simple and easy to get approved for a loan, but will also allow you to negotiate better repayment conditions. This will save you hundreds of dollars in the long run.
Down Payment Really Matters
Though many leasing and financing companies claim to offer commercial truck financing with zero down payments, in most cases it’s just a trap. While it is possible to receive up to 100% of the value of your commercial vehicle and obtain a loan with no down payment, most lenders will want borrowers to pay a specific amount upfront.
In majority of cases, the amount of your down payment could be 10%-30%.
Other Factors That Impact Truck Loan Approval
While a solid credit score is important, lenders check for other factors before accepting commercial truck loans, so your goal should be to minimize risk for lenders. Some of the factors that can help you out include:
Driving Experience: The more truck driving experience you can demonstrate, the better gets the chances of getting approved for a loan, especially if it leads to a continuous revenue stream.
Detailed Credit History: The longer and detailed a lender can look at your credit history, the better your chances of approval are. Make sure you have more than seven years of credit history accessible.
Find an established co-signer: If you have a friend or family member with a strong credit rating who is willing to take responsibility for the loan if you default, lenders will be far more likely to consider your application.
Conclusion
As long as you meet the standards required by lenders, applying a truck loan is a reasonably simple process. And if you don’t have the necessary credit score to be approved for a commercial truck loan right now, keep in mind that there are numerous things you can do to improve it. If you are looking for a reliable truck financing company in Abbotsford, rely on none other than Sandhu & Sran Leasing & Financing. Over the years, we have helped hundreds of individuals and businesses in getting approved for a truck loan. For more details, give us a call today.