Truck Financing for First-Time Owner-Operators
If you are a new owner-operator, you probably already know how difficult it is to secure financing for your first truck.
It’s not easy to find a financing company that’s willing to work with a first-time owner-operator on financing. If you can find one, there’s a good chance it’s not a company that you want to work with. Even worse, tracking down the information you need to be sure you’re getting a good truck lease deal can be next to impossible.
Fortunately, if you know how to get started and what to look for, you’re almost certain to be able to lease the new truck you need to get yourself into business. Start here to begin your search for truck financing and truck leasing.
Truck Financing: What You Need to Begin
Before you start looking for truck financing, take a good look at your situation. If you look at yourself the way that financing companies look at you, you’ll have a better idea of what kind of financing options are available to you.
Start by assessing your financial situation. If you’ve got enough cash to make a healthy down payment, you’ll qualify. Most first-time owner-operators are denied truck financing because they have no down payment. The other reason is that they lack cash flow. The state of your financial situation will also give you an idea of the kind of truck you can afford.
Look at your history too. You’ll be in a better position if your credit history is good. You’ll also be more attractive to lenders if you’ve had your CDL for a good length of time.
Truck Financing Programs for Owner-Operators with Good Credit
If you’ve got great credit with a FICO score of 700 or more, you’ll qualify for the best truck lease programs. These programs will give you financing with a low down payment. Some require as little as 10 percent down, and if you’ve got stellar credit, you might not need a down payment at all.
These programs also give you access to the newest trucks available with relatively short truck leasing terms.
Truck Financing Programs for Owner-Operators with Average Credit
Is your FICO score decent but not amazing? Then you’re probably going to have to shell out a little more for a down payment. Also your monthly lease payment is likely going to be higher.
You’ll probably be able to get into a new truck, however. If your FICO score is above 630 but less than 700, expect to put down about 20%.
Truck Financing Programs for Owner-Operators with Poor Credit
Having a weak credit history definitely limits your truck financing options. But it doesn’t automatically disqualify you for a new truck lease.
You’re going to have to come up with a bigger down payment, maybe 25% or more. There’s likely to be a cap on the amount you can finance, which will limit the value of the truck you’re able to lease. You’ll also have to be free from major financial liabilities such as tax liens or delinquent child support payments.
Taking the first step toward leasing a new truck when you’re a brand new owner-operator is intimidating. Equipment Finance Services has the expertise to help you do truck financing and truck leasing right.
Visit us or call us at 801-386-8222 today to start the process of getting you behind the wheel of a new truck.