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When looking to finance a semi-truck, know that you must meet specific requirements. This guide will look at the main semi-truck financing requirements and explain them simply. No complexity here!

Are you a first-time buyer, or someone with bad credit? We’ll help you navigate the financing process and understand what you need to qualify for a loan.

Semi-Truck Financing Requirements

To qualify for a loan, you must meet standard semi-truck financing requirements. These requirements can include a down payment, a specific time in business, a commercial driver license (CDL), semi truck information, and truck history. Let’s take a closer look at each of these requirements below.

Down Payment

Most semi-truck financing requirements include a down payment. The down payment can range from 2.5% to 10% of the whole cost on average. Some options even allow borrowers to save money on fees and interest by making a larger down payment of 40% to 50%.

It’s important to note that the larger the down payment, the more favorable the semi-truck loan terms will be in the long run. You can still apply for financing even if you can’t make a sizable down payment.

Time In Business

Having experience in owning a business is not necessarily a semi-truck financing requirement. Still, it can significantly benefit you when applying for semi-truck financing. Having a couple of years of operating experience can make the semi-truck loan application process faster and easier.

It shows lenders that you are experienced in running a business and have a good understanding of the industry.

Lenders may also see your experience as an indicator of your ability to manage and repay a loan. This can make you a more favorable candidate for semi-truck loan approval and potentially secure better loan terms.

Having experience in owning a business also means you already have a revenue stream and a history of paying bills on time, which is a positive factor for lenders to consider.

Overall, having experience owning a business can make the process of obtaining semi-truck financing smooth.

Commercial Driver’s License

If you’re an owner-operator, you’ll need to provide a copy of your commercial driver’s license for the commercial vehicle loan process.

However, this is not set in stone. What if you won’t actually be driving the trucks? If this is the case for you, read this article: “Can I Buy A Semi Truck Without CDL?”

Lease Or Purchase

Lenders will also consider your choice of leasing or buying when evaluating your loan application. Leasing a semi-truck means lower starting cash, and lower monthly payments. But, the term is shorter, and you won’t own the truck at the end of the lease.

On the other hand, buying a semi-truck requires a larger down payment and higher monthly payments. You will own the truck at the end of the loan term. So, leasing a semi-truck may be a better option if you have a limited budget and prefer lower monthly payments.

However, buying a semi-truck may be a better choice if you have the financial means and plan to keep the truck for an extended period.

It’s essential to consider your financial situation and long-term goals when making this decision.

Semi-Truck Information

One of the main semi-truck financing requirements is providing detailed information about the semi-truck you wish to purchase. This information is used as collateral for the loan and helps determine how much capital can be lent to you.

You’ll need to provide information such as the type of truck, year, make, model, vehicle identification number, and any accessories. Providing an invoice or the listing web link for the semi-truck can also help speed up the semi-truck loan approval process.

Truck History

When purchasing a used semi-truck, it’s crucial to ask the vendor for documents related to any repair work done on the truck. You should also obtain the number of miles it’s driven. This information is vital in determining the truck value and loan amount.

For example, if a truck has a high number of miles and has had a lot of repairs, it’s likely to have a lower value, which can affect the loan amount you can secure. On the other hand, if the truck has a low number of miles and hasn’t had any major repairs, it’s likely to have a higher value.

A higher value can result in a more considerable loan amount. Knowing a truck’s history can also help you identify potential issues that may arise in the future and help you negotiate a better price with the vendor.

Remember that a truck’s history can also be an indicator of its reliability. This can help you make a more informed decision.

What Isn’t Required To Finance A Semi Truck?

When financing a semi-truck, there are a few things that are not typically required:

• Cash flow statement: Financial reports for your business are not typically required. This is because market conditions can change quickly in the trucking industry, and cash flow may slow for months.
• Tax returns: Personal or business tax documentation is not a semi-truck financing requirement.
• Driving experience: A minimum number of years with a CDL or a spotless driving record is not typically required. Although, this may depend.
• Financial history: Many small businesses have their ups and downs financially. You can still qualify for commercial truck financing with unstable financial history.

It’s worth noting that some lenders may require a specific number of years of experience, but most of the time, it’s not needed. The most important thing is that you have the capital to make a down payment.

Lenders may focus on your ability to make payments on time and the overall condition of the truck you want to buy. This information is more important than your credit score.

Can You Finance A Semi Truck With Bad Credit?

Your credit score is important but doesn’t necessarily affect your ability to qualify for commercial truck financing. Even if you have bad credit or have gone through bankruptcy, you can still get a loan or lease for your transportation business.

A low credit score is not an obstacle for startups to get financing. While a fair credit score (around 600) can be beneficial, it’s only necessary for certain lenders.

How To Finance A Semi Truck With Bad Credit

Mission Financial Services specializes in helping people apply for semi truck financing, even if they have no or bad credit.

We understand that only some have perfect credit, and that’s why we are a common-sense lender. We consider your current life situation, not just your credit score. We have been able to help owner-operators get semi-truck loans regardless of their credit history.

The loan application steps with Mission Financial Services are as follows:

• Credit Application: To apply for a loan, you must complete a credit application. We will require certain documents to complete the loan process, such as vehicle pictures, proof of insurance, and potentially a current driver’s license or CDL.
• Spec Sheet: Provide a spec sheet for the semi-truck you wish to purchase. This should include the year, make, model, vehicle identification number, actual mileage, engine, transmission type, and any accessories.
• Purchase Order: Provide a purchase order for the semi-truck, including the cash sales price and applicable fees, such as sales tax, DMV, and dealer fees.
• Truck History: If you are interested in buying a used semi-truck, ask the vendor for documents related to any repair work done on the truck and the number of miles.

• Additional documents: In some cases, we may require other documents to process your loan application. These could include two months of bank statements and a complete telephone bill.

Mission Financial Services can process your loan application quickly by providing all the necessary documents. The truck loan process doesn’t need to be tricky!

Keep in mind that even if you have bad credit, we can help you with a bad credit loan. If you can demonstrate the ability to make payments on time and have a stable business, you can secure semi-truck financing.

Final Thoughts

Semi-truck financing requirements may vary depending on the lender. However, these requirements generally include a down payment, time in business, a CDL, semi-truck information, and truck history.

It’s important to note that even if you have bad credit, there are still options for financing a semi-truck. Mission Financial Services can help guide you through the process and determine the best loan option for you. Contact us today!

Have you been wondering how to become a semi-truck driver? Well, you’re in luck. This guide is here to break down all the important information you’ll need on your journey.

You must follow all the initial steps correctly to abide by the Federal Motor Carrier Safety Administration (FMCSA)’s regulations. Failing to do so might cause inconveniences later on and prevent you from getting your Commercial Driver’s License (CDL).

How To Become A Semi Truck Driver

Truck driving is a rewarding career. According to the Bureau of Labor Statistics, you can earn a decent annual salary as a new driver. Your pay will increase as you gain more experience in the trucking industry.
To start your new career as a semi-truck driver on the right foot, follow the steps below.

Step 1: Determine Your Eligibility

Before you get on the path to becoming a semi-truck driver, you must first ensure that you meet all the minimum requirements. Some of these requirements include those listed below.

Age

By law, you must be at least 18 years old to become a truck driver. But, you’ll be under strict restrictions regarding the type of trips you can make at this age. In most states, young drivers between 18 and 21 years can only make local trips within their home state.

You’ll qualify to ride across state lines at 21 years. Most truck companies prefer working with drivers 21 years and above.

Regular Driver’s License

You cannot get a CDL without having a current driver’s license.

So, if you do not have a regular license, get one first. Ensure you pass your home state’s standard driver’s license exam and spend some time behind the wheel of a non-commercial vehicle.

It’ll help you build the courage and confidence you need to drive tractor-trailers when the time comes.

Clean Driving Record

Your chances of joining the trucking industry as a truck driver are higher when you have a clean driving record.

Most companies and driving schools may overlook minor traffic violations like wrong parking. But a history of reckless driving, or driving under the influence (DUI), minimizes your chances of getting trucking jobs.

That’s because driving a combination vehicle, such as a semi-truck, requires responsibility. All stakeholders in transportation, including the Department of Transportation (DOT), must ensure commercial drivers are competent to keep all road users safe.

High School Education

Most truck companies, especially those that employ long-haul truck drivers, require applicants to have a high school diploma.

A GED equivalent works well too. Some driving schools also request these documents for you to join.

It might be a good idea to get your GED if you don’t have a high school diploma. It’ll keep your driving school options open and help you qualify for more employment opportunities.

Drug And Alcohol Tests

Drug testing isn’t necessary for getting a CDL, but it is for being employed as a truck driver.

You should know from the start that drugs and alcohol testing will be frequent throughout your career as a truck driver.

Most employers perform random drug tests from time to time to ensure their drivers are always fit to drive.

In addition to the above, there are some factors you should take keen note of if you want to become a truck driver. These issues can prevent you from obtaining your CDL in most states. We’ve outlined some below.

• Medical conditions, like sleep apnea or high blood pressure.
• Certain prescription medications.
• Felony convictions for extortion, arson, and kidnapping.

Address these issues before you start your journey to becoming a truck driver. For example, you could get a written waiver from your physician to show the medical conditions won’t interfere with your ability to drive safely.

Once you’ve met all the requirements for becoming a semi-truck driver, you’re ready to begin training.

Step 2: Attend A Professional Truck Driving Program

Finding a high-quality truck driving school or program is essential for your career.

You want to find FMCSA-accredited truck driver training programs to go through your training. This is required by law.

There are several truck driving training options you can choose from to get your CDL training. Some take a few weeks to complete, while others may take a few months.

Different options also charge different amounts to go through their courses. But there are FMCSA-approved programs that offer financial aid to reduce your costs.

The most common types of CDL training you can go through include:

Private Schools

Although tuition costs vary from one school to another, private CDL schools are generally the most expensive CDL training option.

You may have to pay thousands of dollars upfront to complete the training in a few weeks or months. But this depends on the specific school you attend.

Private driving schools are also one of the most flexible options because they run all year round. You can attend and finish your CDL training anytime.

Some reputable private driving schools have partnered with truck companies to offer students a truck driving job placement once they finish training.

Community College Training Programs

Community colleges take longer than private CDL training. They’re also less flexible since they only run a few times annually.

Consider this option if you’d like to get your CDL part-time. It’s the best option if you’re in no hurry to get behind the wheel of any commercial vehicle.

You may have to pay tuition fees for most programs. But there are several funding options to help with the costs, like the federal Pell Grant.

Paid CDL Training Program

If you wish to pay the least money for your CDL training, choose this training option. It’s also known as company-sponsored CDL training or free CDL truck training.

In this program, large trucking companies sponsor students to get their CDL. In turn, students commit to work for the sponsoring company for a while (approximately one year) once they complete their training.

The vast majority of potential truck drivers go for this option for two reasons:

• There are no upfront costs.
• It guarantees a truck driving job right after training.

If you choose this option, do your research! Ensure you commit to a company you genuinely want to work for in your career.

Paid CDL training is always ongoing. They also take the shortest time. You can have your CDL and start working within a few weeks (around 4 to 6 weeks).

Here are a few factors to consider when selecting a training program:

• How much money do you wish to spend on training?
• How much time do you have to spend in training or driving school?
• How fast would you like to start working as a truck driver?

Step 3: Get Your Commercial Driver’s License (CDL)

CDLs come in different classes. You get class A, B, and C licenses.

Each CDL class allows you to drive a specific type of commercial vehicle, depending on its weight and size.

The more the weight limit you can drive, the more commercial vehicles you’ll be in a position to drive. In addition, the more career options you’ll be able to explore.

For a commercial truck driver, the class A CDL license might be the best option for you. It has minimum restrictions and allows you to drive large trucks internationally. This gives you more versatility in your career.

How To Get A CDL

There are a few steps that all potential semi-truck drivers must follow to get a CDL license. We’ve outlined these steps below.

Submit Your CDL application

Whether you want a class A or class B license, you must fill in and submit your application. You’ll need to provide a few personal documents, such as identification, proof of address, social security number, and a utility bill.

Pass Various Tests

Next up, you’ll need to pass physical, hearing, and sight CDL tests from a certified Department of Transportation (DOT) physician. You’ll get a DOT medical card indicating that you’re medically fit to be a long-distance driver.

The knowledge test is also important. This includes a written CDL exam that may cover the technicalities of driving a truck and road regulations. Once you’ve passed all the tests, you’ll get your commercial learner’s permit (CLP).

With your learner’s permit, you can practice driving a semi-truck while waiting for your final road test. A qualified commercial driver’s license holder must be with you when doing this.

Ace Your Road Test

Lastly, you’ll need to pass your road skills test. This will test your road skills with a qualified test evaluator. You may have to go through several tests to demonstrate that you can drive large commercial vehicles, like tractor-trailers.

Some tests may include handling common mechanical issues and a basic controls test.

After completing all these steps successfully, you’ll get your CDL. You can then get hired and become a truck driver on the road!

Double Check CDL Requirements

It’s worth noting that CDL requirements vary from one state to another. In most cases, you’ll need further endorsements to drive certain special vehicles like school buses or vehicles transporting hazardous materials.

Always check your state’s Department of Motor Vehicles (DMV) regulations to ensure you meet all the requirements.

You may also learn more about endorsements and restrictions from the FMCSA to ensure you’re always on the safe side.

Step 4: Get Hired

Once you have your CDL, you can become a truck driver in any trucking company. If you selected the paid training option, which offers CDL training and a truck driving job in step two, you might skip the job search!

Most schools have truck driving job placement programs. Many trucking companies hire their drivers directly from driving schools.

Step 5: Complete Employee Training And Orientation

Once recruited, you’ll need to complete the in-house training for the recruiting trucking company before you go out on the road.

The goal of such sessions, often known as driver finishing programs, is to introduce you to the company’s vehicles and equipment.

Such programs also cover the truck company’s mode of operation. They may last approximately 3 to 4 weeks.

How To Get Your Own Semi Truck

Because trucks are expensive, the best way to get your own is by getting a loan. There are two main types of loans you can apply for to get enough funds to buy your truck.

Small Business Administration (SBA) loans

The government helps finance small businesses so that they can grow. You can use an SBA- backed loan to get your truck.

These loans have lower rates and longer terms compared to conventional loans. If you’re an experienced owner-operator, they’re a good option.

To apply for an SBA loan:

• Visit the SBA loans page.
• Navigate to the ‘find lenders’ section and provide the necessary details to get connected to potential lenders. You’ll see a list of lenders interested in financing your loan.
• Talk to the lenders to find the best one for you.
• Apply for the loan, get approved, and buy your truck!

Company lenders

Many companies offer loans for purchasing commercial vehicles, including semi-trucks.

Most of them are flexible and can give you a loan tailored to your needs. Mission Financial Services is the perfect example.

You can get different types of owner-operator loans from company lenders. You can finance your semi-truck if you are a:

• Driver with limited experience.
• First-time owner-operator.
• Owner-operator with bankruptcies or bad credit.
• Small fleet owner.

Read this guide on commercial vehicle financing to learn more about your financing options.

You might also want to follow this step-by-step guide on how to get a loan for a semi-truck to apply for one today!

Final Thoughts

Becoming a truck driver is straightforward if you follow the steps we’ve laid out.

Once you pass the background check and meet all the initial legal requirements, you’ll get your CDL and can start your semi-truck driving journey.

If you’re interested in financing your semi-truck dreams, contact Mission Financial Services today. This lender can help you to realize your goals, and kickstart your trucking business.

So, what is the credit score needed to buy semi trucks?

Your score can play an important role in obtaining financing for your business. However, as we will discuss, this is not always the case. Often, the credit score required will depend on the lender.

Let’s discuss the typical credit score needed to buy semi trucks. We’re also going to look into other factors that can influence your loan approval, such as cash flow and monthly payments.

Read on to equip yourself with all of the credit score information you’ll need on your financing journey.

Credit Score Needed To Buy A Semi Truck

Typically, the credit score needed to buy semi trucks is around 650. Any lender will likely approve your commercial truck loan if your score is 650 or above.

But, what if your credit score is lower? In this case, you’ll be considered a high-risk borrower. You may be required to pay a higher interest rate. You also might have a less favorable commercial vehicle loan.

Some lenders don’t take credit scores into account, although they will almost certainly ask to look at them before approving your loan.

Understanding FICO Scores

To understand the credit score needed to buy semi trucks, you must understand FICO scores. FICO score ranges are a way to categorize credit scores into different levels.

The FICO score is the most widely used credit score, ranging from 300 to 850. The higher your score, the better your credit history and creditworthiness.

Here is a breakdown of the FICO score ranges in simple terms:

• 300 – 579: A score in this range is considered ‘very poor’.
• 580 – 669: A score in this range is considered ‘fair’.
• 670 – 739: A score in this range is considered ‘good’.
• 740 – 799: A score in this range is considered ‘very good’.
• 800 – 850: A score in this range is considered ‘exceptional’.

Statistically speaking, most people tend to score between 600 and 720. This means that most credit applicants fall in the fair to good range. Sometimes, a good credit score is needed to finance a semi-truck.

Semi Truck Financing With Bad Credit

At Mission Financial Services, we understand that not everyone has perfect credit.

For this reason, we don’t consider the credit score needed to buy semi trucks. Having a history of bad credit or bankruptcy does not impact our decision to approve your loan.

If you have poor credit, options like a bad credit loan are available to you. Let’s discuss the steps you can take to finance your semi truck with an imperfect credit score.

1. Complete The Credit Application

The first step in the semi-truck financing process is to complete a credit application. You’ll need to include certain documents in your application. These include pictures of the vehicle you wish to purchase, proof of truck insurance, and potentially a valid driver’s license or commercial driver’s license.

These documents help lenders to better understand your current situation. From here, they can make an informed decision regarding your loan application.

2. Provide A Spec Sheet

Next up, you’ll need to provide a spec sheet for the semi-truck you wish to purchase. If you’re looking to finance a lease agreement, rather than purchase a semi-truck, you’ll also need to provide a spec sheet.

Spec sheets document detailed information about the vehicle you want to buy, such as the motor carrier number. You can expect to include the following information in your spec sheet:

• Year: The year the truck was manufactured.
• Make: The manufacturer of the truck.
• Model: The specific model of the truck.
• Vehicle Identification Number (VIN): This is a unique 17-digit number that identifies specific vehicles.
• Mileage: The current mileage of the commercial vehicle.
• Engine: The type of engine in the semi-truck.
• Transmission Type: The type of transmission in the semi-truck.
• Accessories: Any additional features or equipment on the semi-truck, such as an auxiliary power unit, refrigerated trailer, or GPS.

Providing a detailed spec sheet will help lenders to understand the value of the semi-truck you’re interested in financing. The information on the spec sheet must be accurate and verifiable to help determine your eligibility.

3. Secure A Purchase Order

The final step in the semi-truck financing application process is to provide a purchase order for the new truck.

A purchase order is an agreement between a buyer and a seller. It outlines the details of the sale, including the cash sales price or purchase price and any applicable fees such as sales tax, DMV fees, and dealer fees.

Assessing a purchase order allows the lender to understand the total cost of the new truck. It also helps them ensure that the loan amount is sufficient to cover the purchase.

Other Factors Influencing Semi-Truck Loans

While the credit score needed to buy semi trucks can be important, depending on the lender you choose, other factors can also influence your financing eligibility. Understanding these factors will ensure a smooth and favorable loan application.

1. Driving Experience

Lenders want to ensure that you have the necessary skills and experience to operate a semi-truck safely and efficiently. A proven driving experience record can help boost your case for semi-truck financing.

For example, if you’ve been driving for 10 years, have a clean driving record, and have completed a commercial driver’s training program, this will be viewed favorably by a lender. This is applicable if you will be driving the truck.

2. Annual Revenue Stream

Lenders want to see that you have a stable source of income to make monthly payments. A steady annual revenue stream is important for self-employed individuals or small trucking business owners.

For example, can you demonstrate that your business has been profitable and that have enough cash flow to cover monthly payments? You can do this by providing bank statements. In this case, you’ll probably be viewed favorably by a lender.

3. Different Types Of Credit

Different types of credit, such as installment credit, can also help you to look favorable.

Examples of installment credit include a mortgage or business auto loan. Having a mix of different credit types, such as revolving credit and installment credit, shows lenders that you can handle different types of credit responsibly.

4. Co-signer

If the credit score needed to buy semi trucks from your chosen lender is a touch too high, the lender may require a co-signer on your commercial truck loan. A co-signer is someone willing to take on the legal responsibility of repaying the business auto loan if you cannot make the payments. The co-signer can be a family member or friend with a good credit score. Of course, they must be willing to co-sign the loan!

5. Down Payment

A down payment can make you more attractive to lenders. The down payment shows that you have skin in the game and are invested in the purchase. A larger down payment can also help you secure a lower interest rate and better loan terms on your semi-truck financing journey.

It’s important to note that different financing companies may have other requirements and may weigh these factors differently. However, by understanding these factors, you can better prepare yourself for the loan application process and increase your chances of getting commercial fleet financing.

Final Thoughts

The credit score needed to buy semi trucks varies depending on the lender.

If your chosen lender takes credit scores into account, a score of 650 and above is considered suitable for semi-truck financing. Other factors, such as driving experience and an established revenue stream, can boost your loan eligibility.

If you have an imperfect credit score, consider financing your semi truck through Mission Financial Services. We take your current situation into account, rather than your history. Contact us today to kickstart your semi-truck loan process!