Bad Credit and Semi Truck Financing
Is it possible to get financing for a semi truck with bad credit record?
While the economy has been in the toilet for the last year or two, you are not alone in having a poor credit history. Many people have been late with paying bills and credit commitments, and bankruptcies have soared while foreclosures have reached all-time record highs across the country.
But guess what?
The dark economic days are coming to an end and right now truckers and owner-operators are in excessively high demand as consumers head back to shops and malls with money to spend.
So how do you go about getting the financing to buy your new or used semi truck?
Commercial leasing and finance is underwritten and processed using a very different set of guidelines when compared to personal credit applications. Commercial applications tend to be underwritten based on the "deal" for which the money is being borrowed for – if you want to buy a semi truck, new or used, then how you intend to use that truck to go out and make money in future and pay back the credit is much more important than what your credit history has been.
A further reason why commercial semi truck loans and financing is easier to get is that the truck itself acts as collateral for the loan. While you still have to make the payments and there is the risk you may default on the agreement, the finance company stills has the security of being able to take the truck back and sell it – they are in a much stronger position than a consumer credit provider. Also, these loans are business loans – the finance company and you are subject to a very different set of credit laws which govern how both of you must behave. This makes it easier for the lender to get their property back if you do screw up on the payments, which means while it is easier for you to get financing it is also essential that you stick to the terms of the agreement to protect your business.
Business credit providers are in the business of making money and to do that they have to lend money. While this may sound like a simple job, it is not as easy as you may think – this in turn is a highly motivational factor when it comes to loan and financing companies finding a way to get a deal through the system. You need to have someone who understands what the business credit system is and how it works, plus someone who is experienced in putting together credit and leasing applications with just the right information to give the underwriter what they need to approve the lease or credit.