Are you planning to buy a box truck for your startup? Well, for startups, it can be very challenging.
Box trucks are costly vehicles, and funding for such trucks can be difficult for most startups.
However, this is not an impossible task as you can take the help of commercial truck financing programs to get funds to buy a box truck.
Here you will easily learn how to finance your box truck. Keep reading to explore more.
Understand Your Eligibility
Every box trucking financing company has different requirements. So, you should confirm that with your lender.
However, some basic eligibility guidelines that you should keep in mind are:
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Gather All The Documents
Well, the document required by the lenders will vary. But some common documents that you may need to submit are:
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Choose The Right Truck
Choose the right box truck, and make sure it has functioned for less than 700,000 miles if you buy a used box truck. Besides, ensure that it is less than 8 years old.
Get An Insurance
You can’t apply for a loan if you don’t have the right insurance plan for your truck. So, get proper and sufficient insurance coverage.
You can also take expert advice on this to choose the right insurance plan based on the value of your box truck.
The Process Of Getting Box Trucks Financing
Making a smart choice with the best box truck financing solutions is important to small-scale trucking companies.
You should have updated equipment and trucks to enhance efficiency and remain compliant with the regulations.
To help you with this, financing companies have made the process easier and quicker. Let’s look at some basic steps of getting a commercial truck loan.
Apply Online
You can visit the official website of the financing company and then click on the get loan option. Now you need to fill up the contact form.
After that, one of their executives will call you back to understand your financing requirements.
Choosing An Option
A truck financing expert will call you to know more about your funding and business requirements.
They will understand your requirements to offer the best solutions to meet your goals.
Review Of Documents
Once done, documents will be generated, and they will email the documents for signature. Most companies accept an electronic signature.
Get Your Loan
After submission of all the required documents, your application will be processed. The entire process can take around 2 to 3 business days.
Different Commercial Truck Financing Options
You will enjoy multiple funding options when working with a professional box truck financing company for box truck leasing. Some of the most popular options are:
Working Capital Finance
This can be an excellent option if you don’t have a good credit score and want to secure financing faster. Before applying for this, prefer to check the eligibility requirements.
Equipment Financing
Some well-known financing companies easily offer loans to lease your box truck and other required equipment. Equipment financing is quite popular among small businesses.
Asset-Based Funding
If you want, you can use your box truck as collateral to get asset-based financing. In general, such a type of financing can offer you a better financing term and rate.
No matter what your business credit score is, many companies offer such financing options so that you can expand your business without any hassle.
FAQs
Should Your Lease Or Finance Your Commercial Box Truck?
If you are in the market for a box truck, financing can be a great option compared to leasing. Box trucks can cover a million miles before you need to take them to the garage.
That means your truck remains productive for around seven to eight years.
What Should Be Your Credit Score To Get A Commercial Truck Loan?
Most financing companies may require a personal credit score of around 650.
But you can also avail a loan if the score is below 650, but the interest rate will be more.
Will The Lenders Pull Your Credit With An Inquiry?
Yes, every lender will check your personal and business credit score during your credit application process. It helps them to offer you personalized service.
However, choose a firm that does a soft credit history pull as it will not affect your credit score.
Is It Possible To Get A 100 Percent Financing Option?
Yes, most companies have now started offering a 10o percent financing option to the customers.
Remember that such financing options can come with a higher interest rate. So, if possible, go for a loan with a downpayment.
Do Financing Companies Offer Startup Financing?
Yes, they offer such loans. But due to the risk involved with the startups within the trucking industry, getting 100 percent financing can be a challenging task.
So, they may ask you to make a down payment of around 20 to 30 percent.
Conclusion
Nowadays, you can easily get a box truck financing program, whether you have a small business or a large one.
However, it is advisable to maintain your credit score to enjoy some benefits, like better repayment terms, lower monthly payments, lower interest rates, and more.
Besides, you should choose a company that can offer customized financing plans based on your requirements. There are several financing options, and all you need to choose is the best one to get started with this.
