Intermountain West Commercial Vehicle Financing
If your business regularly uses vehicles for long-distance or local deliveries, providing services on location, or other operations, you may need a loan to expand your fleet. Commercial vehicle financing offers an excellent way to build and maintain your fleet without straining your working capital, helping your business continue to grow and keeping business operations efficient at all times.
Understanding Commercial Vehicle Financing
Commercial vehicle financing is when a lender offers a loan to a business owner looking to purchase or lease a vehicle for business purposes. Commercial truck financing typically requires the business owner to provide a down payment, although more qualified borrowers may be able to get financing without offering a down payment.
The average commercial loan term will usually be as long as the commercial vehicle’s useful life. The loan amortization may range between 3 and 10 years, with a loan term of 12 months.
Benefits of Commercial Vehicle Loans
Whether your company relies on your vehicles or owning commercial vehicles can boost company growth and sales, business auto loans can support your company finances in various ways. Here are some of the top advantages of commercial auto loans:
- Flexible repayment schedule: Depending on your lender, you may get a customized solution and flexible repayment schedule to meet your specific financial needs.
- Fast funding: Applying for commercial vehicle loans is generally easy, and with the right lender, the approval and closing process can be completed within 24 hours.
- Multiple vehicle financing: Commercial vehicle financing may allow you to gain financing for a fleet of vehicles and various types of vehicles, depending on the lender.
What Vehicles Can You Finance With a Commercial Auto Loan?
Here are some of the vehicles you may be able to purchase with a commercial auto loan, whether preowned or brand new:
- Light-duty trucks
- Over-the-road trucks
- Utility vehicles
- Pickup trucks
- Delivery vans
- Cargo vans
- Trailers
- Specialized equipment vehicles
In some cases, you may use commercial vehicle loans to finance vehicle updates, including:
- Certain repairs
- Tire replacement
- Operating capital
- Licensing and permits
How to Qualify for a Business Auto Loan
To improve your chances of qualifying for a commercial auto loan, you’ll need to prove or present the following information:
- You will use the vehicle for business purposes only.
- You have a personal credit score of at least 640.
- Your company has been in operation for at least one year.
- You earn a specified amount of annual income.
- You own a home.
- You are looking to borrow between $100,000 and $500,000.
Steps for Attaining Financing for Commercial Vehicles
Applying for a business auto loan generally consists of five main steps after you’ve chosen your lender.
1. Prepare the Relevant Documents
Your chosen lender will request a few documents to determine your eligibility. These may include:
- Business registration documents
- Any business licenses or certifications
- Past business tax returns of up to three years
- Past and current bank statements of up to one year
- Current business balance sheet
- Current year profit and loss statement
- U.S. Department of Transportation (USDOT) number
- Your commercial driver’s license
- Motor carrier number
2. Check Your Credit Score
Your lender will require a particular credit score for both your personal and business credit. Check this number and your credit report to ensure you meet the required standards. If you have a lower credit score, you may still be able to get a loan with a high-risk lender, but you’ll pay a higher interest rate.
You may be able to take time to improve your credit score to increase your chances of getting approved. You can do so by paying your debts off early or on time and checking whether your financials are up-to-date and accurate.
3. Choose Your Loan Term and Down Payment Conditions
Choose a loan term and down payment that works for you. A larger down payment means you’ll pay lower monthly installments. You’ll also have lower monthly payments with a longer term loan, but you’ll pay more in total. Many are opting for shorter loan terms for more convenient interest rates. Either way, you’ll want to consider your current cash flow and future needs when making this decision.
4. Choose a Vehicle
Since you can choose from numerous vehicle types, take time to review which vehicles will fit your business needs more accurately. Aside from choosing between trucks, specialty vehicles or vans, consider their mileage, fuel consumption rate and the vehicle’s life span.
5. Submit Your Application
After you’ve gathered the relevant information and documents, fill out the commercial vehicle loan application and submit it with the necessary documents. After receiving approval, you can review the loan documents to ensure you understand all the terms. You can then clarify information with your lender or make adjustments before signing the document.
Why Choose Solutions Financial Services (SFS) for Your Financing Needs
If your business operates in Utah or its surrounding states, Solutions Financial Services (SFS) may be able to offer you a commercial vehicle loan when you meet the necessary requirements. With SFS, you receive approval from our experts within 24 hours of sending us the relevant documentation.
Beyond our fast funding, our experts strive to understand your unique situation and provide you with flexible payment schedules and fixed interest rates to accommodate your company’s cash flow and support its growth as effectively as possible.
Get a Commercial Auto Loan With SFS
At SFS, our passion is helping your business succeed. When you have the loan you need, you can leverage the equipment and working capital required to facilitate growth at a lower cost. Commercial auto loans also allow you to make payments at a convenient pace. For a unique Intermountain West commercial vehicle financing solution, contact our experts for more information today.
FAQs: Commercial Vehicle Financing
While many loans require a good credit score, high-risk lenders may approve your loan when you have a lower credit score. Lenders like SFS approve borrowers with personal credit scores as low as 640, although they may evaluate your situation to create a personalized solution. Still, you may receive better loan solutions with SFS by improving your credit score.
Thoroughly review your loan agreement and ask your lender questions to ensure you understand the terms and your obligations. It may also help to evaluate your budget beforehand to determine whether you can afford it.
The most suitable lender will depend on your unique situation, including what your current credit score is and how much the lender offers. SFS is an excellent option when you need financial support quickly and a creative solution.
