These steps will help you get your trucks and trailers up and running quickly if your trucking business has damaged trucks or trailers.
Repair financing is available for all vehicles, regardless of whether owned by an individual or a commercial company. If your commercial truck breaks down or is out of service, you know your livelihood is at stake.
Many small trucks have companies that need more funds to purchase new trucks. The trucks must be in good working order to sustain their livelihoods and businesses.
Commercial truck repair financing is one of the most efficient and cost-effective ways to get your business back on track. Commercial Truck Repair Financing will provide you with a sufficient and specialized loan to cover your repair costs. They are also available to borrowers with lower credit scores.
What are the requirements for commercial truck repair financing?
Commercial truck repair financing is available to help with the high cost of maintaining semi-trucks. You may not be able to get a loan for your truck from a bank, but you have an advantage if you work with a specialist commercial truck financing provider.
They will consider your credit score regardless of what it is. Sometimes, experience in commercial driving may also be an asset to provide you with truck repair loans.
Commercial truck repair financing works like any other business loan but with additional requirements such as truck licenses. Truck repair lenders will look at your credit and business banking history to determine the best rate for your truck.
When applying for truck repair financing, you must have some documents.
- Commercial driver’s license
- Phone/Mobile Number
- Original proof of insurance
- Bank statements or tax returns
You should also select the best truck repair financing option to finance your commercial truck.
Four Best Options for Truck Repair Financing
Here’s a list of places you can find financing for commercial trucks.
Truck Repair Financing through an Equipment Leasing Company.
An equipment leasing company could be a good option for financing truck repairs if you have a vehicle or other equipment you can use as collateral. Your credit score and profile will determine truck repair rates and terms.
Three challenges might arise when you lease equipment from a company.
- It would help if you had enough collateral equipment to be able to finance the truck repairs
- The company uses auction or liquefaction values to evaluate the equipment. This will result in a 50% lower value than the equipment’s worth.
- It is not a good idea to pay the financing in advance with the leasing company.
Small Business Term Loans
A small business term loan is available to those who have worked in the trucking industry for at least 2 months and have a credit score of over 500.
This feature allows you to borrow almost twice the amount of your monthly income. You will also be able to repay the loan within ten years without any prepayment penalties. The credit score will affect the payment arrangement.
Work Capital Loans for Truck Repairs
Commercial Lending USA is an option if you need money urgently for truck repairs. Commercial Lending USA lenders can provide short-term repair financing in as little as 24 hours.
The model of daily payments is the most common way to work capital. During the 6-12 month period, the money will be deducted from your account.
The borrower may have to pay a small amount, which could be a problem with commercial lending usa. An advance payment that can be repaid within 6 months could lead to daily grossing, which can drain the liquidity value of your company. The annual percentage rate (APR) can range from 50 to 200 percent. These lenders offer a few programs that are targeted at commercial trucking companies.
Factoring can finance your receivables.
In general, receivables are money someone owes you for work already done. If you keep the receivables, a factoring firm can get you money for truck repairs.
Factoring works when receivables have been paid in invoices. They offer money to repair the damaged items as soon as possible or the equivalent amount. Factoring companies must be honest with you. It could be challenging to transact money, and it may take up to 1-2 weeks to complete the transaction.
These are just some of the options. You can also visit traditional banks to get a second opinion or repair your truck at one of their shops.
Traditional banks offer more honest loan amounts and terms than other commercial truck financing programs. To be eligible for the loan, you must have a good credit rating.
Ask a local truck repair shop about repair loans. It might be simple to navigate the site and stay in touch with them. Before you sign on to the agreement, make sure that you have read the entire terms and conditions.
Last Thoughts
Commercial truck repair financing is the best option if you need to purchase truck damage. Numerous truck financing companies offer a range of services, including semi-truck maintenance and commercial truck financing. They also provide 24X7 roadside assistance and competitive truck repair loans.
There are many options to choose from when it comes to financing your truck’s repair. Many of these options are available for trucks with poor credit scores. You can also search for alternatives by applying for a loan through a truck repair shop or traditional bank.
