Obtaining the truck loans is not easy. Most lenders do not provide complete information upfront. They simply want you to apply first so they can determine the loan terms and conditions that are in their favour. However, if you complete this process as required and then find that you are not eligible for their loan or there are hidden charges, you will be wasting your time. Do your homework properly and research the truck loan providers before applying to a particular lender. More importantly, you should first gather all information about your business, finances and credit position.
The down payment and the loan repayment amount are the first things any loan borrower wants to know. You are unlikely to get straight answers to these questions immediately. There are hidden charges and fees associated with a commercial truck loan. It is difficult to find information about these costs. First of all, you have to inform the lender what type of commercial truck you are planning to buy. It is important to know this information in detail. There are different types of commercial trucks and each one is sold with or without many attachments. You should clearly determine which truck and what type of its attachments you plan to finance with the loan. You have to inform what purpose the truck will be used. Apply under the right category of truck loans. For example, if you will be using a semi tractor with a dump trailer, it is a transportation truck and not a vocational truck. In such a case, apply for a vocational truck loan.
Most truck loan lenders will not finance trucks that are more than 10-15 years old. However, there are lenders that specialise in financing of old trucks. If you are planning to finance a very old truck, apply for the loan to the right lender. You should know how much down payment you are ready to pay. This payment may not be required if you have a good credit, cash flows and business track record. Long haul trucks are difficult to finance compared to the vocational trucks. Some lenders do not give loans to the owner-operators who have been in this business for less than two years. Do your research on all these aspects of truck loans before applying to any lender. Be ready with the information that truck loan lenders require from the loan applicants. It will speed up your loan application process.