How to get the maximum out of Commercial Truck Financing?

DougWhether you are just starting your business, or have an established record in business, financing one or more commercial trucks will be one of the biggest investments you make for your company’s future. Here are some tips to help you get the maximum benefit possible for your commercial truck loan.

Decide your vehicle needs: Each business has different needs when it comes to commercial truck financing. Decide not only how many vehicles you need, but in addition, decide whether to purchase new or used trucks, trailers, semi-trucks, etc. With the rising cost of fuel and the slow economic recovery, used vehicles are a smart option to get your business started or to invest cautiously with a lower upfront cost. If you decide on a used vehicle, be sure to have a mechanic assess the vehicle for mechanical issues. Costly repairs can be an unpleasant surprise.

Negotiate the sales price: Whether you are considering the purchase of a new or used commercial vehicle, compare sales prices online to be used in negotiating the final price with the seller. In a competitive market, sellers can be quite motivated to close a deal. The more research you have done regarding new or used truck features and technology, the better you can bargain. With used trucks, you can bring estimates from the mechanic to negotiate price if the truck might require minor repairs. If you have excellent credit, and/or a large down payment, this will give you more flexibility as well in determining your purchase power.

Research commercial truck lenders: With so many commercial truck financing companies, it is important to choose one that has a trusted name in the industry. Look for those that have a strong track record of reliable service, with a quick and easy application process and timeline. It is a good idea to compare commercial truck loan rates with the vehicle of your choice. Research companies on the internet, or get recommendations from your associates. Keep a list of questions to ask, and evaluate the company based on their answers and willingness to provide excellent customer service.

Arrange commercial truck financing: To make your request for financing go as smoothly as possible, have all of your documentation and funds in order. When contacting a commercial truck lender to request a loan, your approval will be expedited if you have selected your vehicle and can provide important information such as: an invoice from the vendor indicating final cost, copies of your current driver’s license, bank statements, tax returns, records indicating previous loans paid off, etc. All of these documents, and any additional information required by the lender will ensure that everything is lined up for a quick approval. Last but not least, having excellent credit is a necessity in determining loan approval in addition to getting the best loan rates for your commercial truck financing needs.

The most successful businesses plan ahead, and the best way to get the maximum benefits from the commercial truck financing process is to do all of your research and preparation well before you need a new or used vehicle.

Semi Truck Financing – Some Alternatives For People With Bad Credit

white-semi-truck-1465662-639x852In the past financing, a commercial vehicle required decent credit and a CDL. As many people in the industry are finding out, these days are long gone. With the economy in its current condition credit has tightened up considerably. And in the trucking markets, it has tightened up even more. So what’s a semi truck driver to do? Here are some ideas that might help you out if your in the market to finance a commercial truck (semi trucks and dump trucks primarily).


The first thing to consider is contacting smaller dealers that offer in house financing. These dealers will carry their paper, meaning they decide for themselves whether they want to approve a customer or not. Typically a dealer submits their customer to their financing source who then, in turn, approves or declines them. Be sure you ask the dealer whether they fund in house or submit to an outside underwriter. If they do fund the transaction, themselves be upfront about your current credit situation. Common reasons for bad credit is divorce, illness, loss of truck or contract, etc. These are normal and do not necessary reflect bad “credit character.” It’s also important to sell you good points. Having strong contacts in your area of expertise gives confidence to the dealer that you have the ability to pay. If the dealer can become comfortable that you will make the payments despite what has happened in the past, you stand a good possibility of getting financed.


Second on the list is looking for dealers that advertise for customers that are credit challenged. You can find these dealers in publications such as Truck Paper or online. The most important thing about this approach is that you call the prospective dealer and ask to speak to a sales manager. Again, be up front about your situation. Tell him about your credit. A sales or finance manager will be able to determine whether you a candidate or not.The salesman might be too eager to get you in the door to give you an honest answer.


The third option is to contact independent financing companies to see if your a fit. Once again, honesty pays. Be up front about your credit but also sell your good points. Like working with the smaller dealers who offer to finance, independent financing companies make the decisions themselves and can be swayed if there are strong factors in your favor. As the owner of one of these financing companies, we look at the ability to pay on the part of the customer as well as any additional collateral that the customer has. With this information, we can get around almost any credit issue. Another finance company might look at years in the business or upcoming contracts to make their decision.


Yes, it’s tough in this economy to get financing for commercial trucks. But with a little digging, you will probably find something to help you get into that truck.

Benefits Of Freight Factoring For Trucking Companies

DwlPNHrIrrespective of your trucking company’s credit score or size like small truck fleets, freight factoring can easily help the operations in many ways.

Flexible options will help you gain access to the capital of working you require fast while dealing with your costs, without any challenge involved in getting a bank loan traditionally. Factoring freight is really not a loan; you can therefore turn the freight bills into quick cash without producing another debt on the current balance sheet!


Fast Funding Of Cash

Freight factoring companies verify the freight bills for deliveries that are completed and then advance up to 95 percent of their worth in 24 hours only. Many factors accept scanned or even faxed copies of the freight bills, helping you to save mailing costs and also putting money in your account quickly.

Quick Approval

Processes of streamlined underwriting make it possible to really begin factoring truck freight in just 3 or 5 days when you have submitted the application firstly. Freight factors only need a concise list of document supporting to help in completing their due diligence, and as soon as your account is ready you can just start factoring quickly.

No Minimum Volume

You’ll have full control over the bills factor as well as how you always post freight bills to be funded. You can factor at a frequency and volume that maintains at a workable level your cash flow.

No Hidden Costs or Setup Fees

It’s free to begin a freight factoring scheme, and all fees are shown up-front in the agreement of the factoring. You can easily factor freight bills having the confidence of exactly knowing what you’ll pay for every transaction, and without border with any particular surprises down the line.

Fuel Benefits

Fuel advances factoring & fuel cards give additional help to small truck fleets companies which have issue obtaining a load normally from the origin to the destination.

Credit Checks Free And Access to Load Board

Freight factoring companies give load board access, credit checks free to your small truck fleets company free. You should try to avoid credit running overhead and going after collections and then focus your attention on taking the loads which pay the bills.

No Any Long Term Contracts

This is a great financial option which, depending on your company’s requirements, may be temporary. Companies carrying out freight factoring don’t really get you in a long-term contract which you don’t need; instead, many contracts renew annually or semi-annually therefore you can always evaluate the factoring freight benefits for your small truck fleets company.

Freight Factoring and Your Business

freight factoring funding your businessFactoring is a method where a financial company will buy your invoices or accounts receivables for a discounted price, usually ranging from 80% to about 95%, depending on the terms of the arrangement. This company is then referred to as the factor. Keeping that in mind, if you were working with a client and agreed to be paid $100,000 after 30 days, you can factor your invoices and get $85,000 in just two days. On the date that the client pays the $100,000, it will be given to the element, earning them a handsome profit.

Whether you are an individual trucker or a freight and trucking company, it is always going to be a hassle to make ends meet. You know there are times when the job is done, but you won’t get paid until the end of the month so how are you going to pay for vehicle repairs, equipment maintenance, driver compensations, freight charges, and other maintenance fees until the client or broker can pay you? The Business Factoring or Invoice Factoring Solution You can sell your invoice for 90-95% of its value.

This means that the freight and trucking business factoring company will pay the amount in your invoice and then collect it from the freight broker on the date you were originally supposed to get paid. Looking At How It Works Here is an example to help you understand how it works. Trucking Company A acquired a contract for shipping cargo for six days, but the payment of $12,500 is at the next pay cycle, two weeks later. Of course, the company needs compensation to pay for fuel, driver salary, and maintenance fees. So instead of waiting for the payment weeks later, they can factor the invoice.

The freight factoring firm will buy the invoice’s value at a discounted price, say 90%. So now the trucking company will get at least $11,250 right away instead of having to wait two weeks. When the client pays the $12,500, it is the business factoring company that will collect the whole amount, earning a small profit in return.

Pros of this System: – You get paid right away, no need to wait for the payout. – Many factoring companies offer credit coverage, meaning if the client does not pay the invoice, they will cover the risks instead of you chasing after the customer. – Transactions are fast and straightforward. – You can qualify even with poor credit standing.

If you look at the pros, you can get everything going in one swift move. This is crucial to maintaining business cash flow. You want to be able to meet the financial demands of your company, especially for one as rigid as freight and trucking, so getting your compensation early is key to keeping things running. Otherwise, you’ll need to keep taking out loans, and this diminishes your overall returns.

Should You Consider It? If you want to ensure a steady cash flow in your trucking business, this is a viable option for you. Ensuring the stability of this type of business is crucial especially if you are just starting out. With no need for high credit standards and low risks, why not consider getting your payment as soon as possible with a freight and truck factoring today?