Buying a truck may be exciting but isn’t financially feasible for all, especially if you are a small business owner. Truck financing is not much different than financing a car or any other vehicle. The borrower makes monthly payments to the financing company they have chosen for the number of months specified in the financing agreement. The lender will charge an interest rate that reflects the market and the risk of borrowing.
When getting a truck loan in Abbotsford or scheduling a truck financing consultation, make sure to bring all the necessary papers or documents needed to get an easy finance approval.
Documents You Need To Prepare For Truck Financing
To finance a truck, a business owner should have the following documentation and personal information ready for a smooth process:
- Personal Identification
When asking for finance, be sure you have your SIN number and business or personal address accessible. This, as well as other financial information, such as proof of income, will be required by the lender to guarantee your loan.
- Your Overall Business Plan
What do you want to do with the new semi-truck after your financing is approved? Many lenders want to understand your business plan, including your growth and revenue targets. If you don’t have one, we recommend working on one as soon as possible.
- Proof of Income and Revenue
Financing a truck requires some level of income. To analyze the risk of lending, several statements, including bank statements, cash flow statements, and other financial documents may be needed. Having a proof of regular income and a healthy cash flow can help.
- Existing Assets as Collateral
If your company has any current assets, these might be leveraged to obtain truck financing. Cars, heavy equipment, or other trucks can be utilized as collateral when applying for finance. Obtain an appraisal of your assets or consult with your financer to determine their value.
- Know Your Down Payment
Higher down payments allow you to get approved faster. A bigger down payment reduces risk for the lender while also lowering your monthly payments on the new truck. So, these were some aspects of truck financing in Abbotsford you need to know. If you are looking for a reliable truck loan company near me, rely on no other than Sandhu & Sran Financing & Leasing. We are a full-service equipment financing company assisting small and mid-sized business owners in owning equipment by paying in instalments.
