Finding financing for a truck as a first-time owner-operator can be a real headache. Many truck loan lenders are wary of first-timers and are often strict with their qualifications and requirements. That leaves a lot of good help out of the hands of those who are just starting out in the business. However, although it is often difficult, it is also far from impossible.
As a first-time owner-operator, it helps a good deal to know what to look for and what to do. Here are some fast tips you can learn from to get started on your financing journey.
Evaluate your qualities as a borrower as your potential lender would. If you are the lender, would you lend yourself the money? What makes you say so? Why not?
An honest evaluation of your finances and financial capacity is vital in helping you prepare well and work on what could possibly cause you a loan denial.
This includes your down payment capacity, your license and experience, your credit history, etc.
If you have good credit..
Borrowers with a credit score of 700 or above will have the opportunity to get access to the most beneficial financing programs with good interest rates and better loan terms. These benefits may include less to no down payment required at all. This is why it is most advised to check and build your credit before filing your application.
If your credit is average..
You will be expected to put down a down payment cost to make up for the risk.
And, if your credit is poor..
You will have limited options for financing. You may work with your lender to make up for the risk of your low credit such as showing a decent financial reserve, [an] alternative source/s of income, or putting down a down payment that is beyond the typical 10 to 20 percent requirement. Many lenders will be ready to work with you on special conditions.
Take it as a challenge. Prepare yourself and iron out your finances first. It can certainly be intimidating at first, but if you are adequately prepared, there should be no cause for worry.