Buying a new or used box truck is a major financial decision you will ever make for your business.
Besides, the funding process can be complicated and lengthy.
However, this useful guide will help you secure financing for your box truck.
Furthermore, you will explore some general guidelines on the qualifications required for financing.
Some of The Best Commercial Truck Financing Companies
- Box Truck Financing Lenders in the USA
The lender has years of commercial box truck lending experience and offers custom financing as well as leasing options.
The interest rate and terms will vary based on the type of box truck lease or loan you want to apply for.
The company offers financing facilities for everything, but you will have to make sure that the box truck should be seven years old and below.
The minimum loan amount is $15,000.
To get qualified for a loan requires you to have at least a credit score of 670 and more.
- Wells Fargo Commercial Truck Loan
Well, Fargo is well-known for offering the best types of commercial box truck loan programs. You can also enjoy impressive standard and open-ended leases, term loans, equipment loans, and more.
The repayment terms will vary based on the vehicles. For example, a box truck loan can last up to 84 months, and for a specialty vehicle, it can range from 36 months to 84 months.
- US Bank Box Truck Loan
If you want to get a commercial box truck loan without making any down payment, then US Bank’s box truck loan can be an excellent option for you.
Besides, it also offers flexible loan repayment terms. If you meet the eligibility requirements, you can also get pre-approved easily. Box truck loans can be up to USD 500,000.
The bank also has a faster process for getting a box truck loan of up to USD 15,000.
As the bank provides up to 125 percent financing, you can easily finance 100 percent of your box truck.
It also has some box truck loan options for people with lower credit scores.
How To Choose The Best Financing Company For Maximum Benefits?
When searching for financing companies to buy box trucks, you will find multiple options.
That makes the process of choosing the best one complicated.
However, here are some tips that you can keep in mind to make the process easier for you.
#1 Check The Interest Rates
Like other loans, you should try to secure the best equipment financing or truck financing with the lowest interest rates.
Interest rates can increase the total amount you will have to pay for the truck. The experts say the interest rates can be based on different factors.
The factors may include the loan’s length, the total amount you want to borrow, your credit history, the financing company you secure the truck loan from, etc.
Based on these factors, the interest rates can vary from 4 percent to 20 percent based on these factors. If you have a positive credit report, you can expect a loan with a lower interest rate.
#2 Length Of The Loan And Monthly Payment
One of the most important considerations is the monthly payments. Based on this, you can determine whether you will be able to afford the truck or not.
But this should not be your only factor of consideration, as you can adjust this to lower the payment.
As per the experts, if there is a higher interest rate and the length of the commercial truck loan is 15 years instead of 5 years, you will pay more, even though your monthly payment is low.
Before finalizing your option, you should search around and don’t forget to use an online truck financing calculator.
Enter the balloon payment amount, cost of the truck, interest rate, and loan tenure to get an idea about what you can afford.
#3 What About The Prepayment Penalties?
As financing companies earn money by charging interest, many companies would want the borrowers to be paying off the loan as long as possible.
So, while choosing a box truck financing company, you should check whether the company charges any penalty on prepayment.
The penalty can go up to 2 to 3 percent with some companies. But as you will be paying off your truck loan early, you should not be fined for that.
#4 100 Percent Financing Of Used And New Vehicle
If you have not yet decided whether to buy a used or new box truck, you should look for a financer who can finance both new and used trucks.
Besides, make sure that the company can finance the entire box truck.
This way you can save money.
Some companies can finance 100 percent of the price of a new truck and around 120 percent of the MSRP at a fixed interest rate on used or new box trucks for up to 90 months.
Choosing a financing company with different options will help you decide. Only the best company can offer competitive rates and meet your budget and needs.
Once you choose the right company, apply for a loan based on your requirements and get ready to buy your truck to expand your business.
What Credit Score Is Required To Get Box Truck Financing Programs?
Well, this will vary based on the financing companies. However, the average required credit score is 640.
If your credit scores are below 640, the financing company may ask you to submit additional documents to review your credit approval.
However, you can get commercial truck financing options whether you have a good or bad credit score.
Who Will Be Responsible For Taxes?
As you finance your truck or equipment and lease them, you will be responsible for the required taxes.
Remember that your tax rate will vary based on the state and county.
How Long Can You Finance Your Box Truck?
Well, it’s completely up to the fleet owners. Most financing companies offer different options to fit your cash flow requirements and budget.
While some companies allow a financing period of 36 to 60 months, some offer 180 months of the commercial truck financing period. Choose one based on your requirements.
What Are The Requirements For Financing A Box Truck?
Most of the transactions or application processes are approved with a credit application. However, your financing partner may ask you to submit some important business information.
For example, tax returns, bank statements, and more. Besides, they may review the credit history to fix a down payment option for you.
What’s more? You also need to submit the details of the box truck that you are buying.
There is no doubt that financing or getting a box truck loan for a new box truck or used one is a crucial investment for every business.
After going through this article, you will understand how to choose the best financing option to secure a good box truck financing.
It is advisable to shop around while looking for a box truck, a financing company, and an insurance service provider.
Besides, don’t forget to check the interest rate, monthly payments, and tax rates. Choose one that offers flexible terms. Don’t hesitate to take expert advice if required.