Bridgette

The 12 Best Semi-Truck Business Ideas

There are loads of different semi-truck business ideas out there. If you own a semi-truck or are thinking of investing in one, there’s a lot you can do with your vehicle.

All you need is the right truck and a Commercial Driver’s License (CDL), and the possibilities for starting a business in the trucking industry are endless.

In this guide, we’ve broken down a few of the best owner-operator business ideas anyone with commercial trucks can tap into.

Why Start a Semi-Truck Business?

If you own a semi-truck, then starting your own business is a fantastic idea. Starting a business puts you in charge of your own opportunities and lets you become your own boss.

Not only do you get this freedom, but there are also loads of different business opportunities and ideas you can access with a semi-truck. This lets you be picky and tailor your truck-driving business to your interests.

One great reason to start a business with your semi-truck is that you can do it independently. Once you have a truck and your CDL, you’re ready to start operating. You can do this relatively easily as a sole proprietor.

If you get tired of driving, you can also hire a semi-truck driver and focus on managing the operations yourself. This can be a great direction for anyone who wants to stay in the trucking industry without spending long hours behind the wheel.

Most importantly, there are endless business opportunities for someone with a semi-truck. Wherever there are goods that need to be transported, business ideas and opportunities exist.

12 Best Semi-Truck Business Ideas

If you’re thinking of investing in a semi-truck, the good news is that plenty of trucking business opportunities and ideas are available.

Here are some of the best semi-truck business ideas you can use.

1. Freight Transportation

One of the most popular trucking business ideas is to get into freight transportation. This is an enormous field you can join, with all kinds of different areas you can specialize in.

Freight may be transported between different transport links (like rail, air, or sea), or you could transport freight from a supplier directly to a customer.

If you start a freight trucking business, there are different types of freight you can choose to work with. You can choose to specialize in a certain type of freight or offer a range of services.

The most common freight types that truckers focus on are:

Less Than Truckload Freight (LTL): This popular form of freight shipping is when you carry smaller loads from different suppliers. This way, suppliers don’t have to pay for entire truckloads if they don’t need to fill a whole truck. This makes LTL freight more affordable and convenient for many businesses, which means there’s a large market for it.

Full Truckload Freight (FTL): This is when you use your entire truckload for a single supplier. This type of freight shipping focuses on larger suppliers and manufacturers. It’s also a better option for loads that require extra space or require special attention or packaging when shipping.

If you start a freight trucking business, you’ll probably have to work with other logistics and shipping businesses, as many use intermodal transportation.

2. Farming and Agriculture

The farming and agriculture industry needs trucks to operate. This is an enormous sector that you can build your trucking business around. There are also many different opportunities for agricultural transportation.

You could focus your semi-truck business on transporting livestock, grain, dairy, animal feed, or any other farming materials or produce. You could even focus on hauling farming machinery.

Of course, you’ll need to have the right equipment if you’re going to haul different kinds of farming or agricultural materials. This could include livestock trailers or even milk tanks.

If you do decide to focus on the agricultural sector, it pays off to specialize in a certain type of trucking. This will help you prepare your business with the right gear. It will also make it easier to find the right kind of clients who require your services.

3. Truck Rental

If you own your truck, you might even consider starting a truck rental business.

This can be a great idea if you want to be in the trucking industry but don’t want to spend all of your time driving.

Of course, this business idea works best if you own multiple trucks and not just one. In this business, you might find it useful to know all about truck financing.

This is also a good business idea if you use your truck on an occasional basis, but don’t drive it full-time. This way, you can capitalize on your downtime between trips.

You’ll just need to make sure you find the right kind of customers who also only need to rent a truck for short periods.

4. Moving Business

When it comes to starting your own trucking company, you can also look at going into the moving business.

Instead of transporting goods or raw materials, you can help to move people’s items from place to place. This can be residential or commercial moving.

Whatever the case, people always need to transport their things from place to place, and owning a semi-truck puts you in a great position to do this.

Of course, if you do use a semi-truck, you’ll need to be executing moves on a large scale. People normally choose a smaller box truck business for moving, so make sure to market your semi-truck moving business to people or businesses that need large-scale moving done.

5. Courier or Delivery Service

Trucking businesses can also consider going into local shipping or courier services.

This may not be the obvious type of business to start with a semi-truck, as couriers generally require smaller trucks or vans. However, there are always people ordering large courier items which require larger vehicles. This is where your semi-truck comes in useful.

Semi-truck courier services can haul larger items and larger loads. Consider looking for clients like furniture or appliance stores that require larger containers for their courier needs.

6. Waste Removal

The waste removal industry is estimated to be worth $1.4 trillion globally. This is a lucrative opportunity for anyone looking to start a trucking business.

Where there’s waste that needs to be moved, there is demand for large trucks. This is an important service for all kinds of businesses and homeowners, which means there’s always a strong demand for it.

You can focus on providing general waste removal services. You can also specialize in moving certain types of waste. Some waste removal services require special licenses and equipment for safely transporting the waste. If you decide to go into one of these areas, it could allow you to charge a premium for a specialized service.

So, choosing to do a waste removal trucking service has many possibilities. You could either specialize in a specific type of waste or move any general waste that doesn’t require specialist knowledge and equipment.

7. Car Transportation

If you’re after semi-truck business ideas, then car hauling can be a great venture. Car transportation truck businesses require the use of a special trailer. You also need to be properly prepared to haul an oversized load.

If the gross vehicle weight rating of your truck is large enough, then you can move new cars from manufacturers to dealerships. This can be a great business idea to make a consistent income.

You can also haul vintage cars, or used cars that need to be moved from place to place. This type of business could even turn into towing services if you have the right kind of flatbed trailer.

Car transportation is one of the best trucking business ideas as its versatile. There are many different ways you can transport cars, and you could do this as short haul or long haul trucking.

8. Construction Hauling

Major construction projects are happening all the time, all over the country. This means there are plenty of opportunities for hauling construction materials or waste. The waste removal industry in the US is worth billions, and it’s only growing as infrastructure projects increase.

Make sure you’re set up with a good strong truck with the right kind of hauling equipment. You can do this with a box truck, but using semi-trucks with open trailers is often better, as it allows you to haul a more significant load.

The larger your truck capacity, the greater load you can haul. This could help you access bigger jobs and work on larger-scale construction sites.

If you want to start a haulage trucking company but are struggling to get clients, then you could also opt to be a haulage services affiliate. This is when you put your truck in the hands of other trucking companies and earn commission from them.

By working with an already successful business, you won’t have to worry about finding clients in the highly competitive haulage trucking industry.

9. Junk Removals

Wherever you go, people have junk that needs to be moved. As long as you have a powerful truck and the right lifting and moving equipment, this is one of the best semi-truck business ideas.

You can offer junk removals to carry and clear any kind of household or commercial junk. Whenever a new construction or renovation project takes place, chances are there will be some junk that needs moving.

This is one of the easiest types of short-haul trucking business opportunities. As long as you have a large enough truck and a CDL, you can collect junk to move to the dump pretty easily. You can reach out to contractors, construction firms, property managers, and developers to advertise your junk removal services.

10. Snow Plow

This is an interesting trucking business idea that you can start with semi-trucks. If you’re based in an area that experiences heavy snowfall, then you could convert your semi truck’s tractor into a snow plow.

You can advertise snow plow services to local businesses, residents, or your local government. This is one of the easiest semi-truck business ideas as you won’t need to transport anything. Get ready to drive around town clearing snow!

This is also a clever way to make some extra money from your semi-truck during the winter months.

11. Oversized Load Transportation

With a powerful truck and a large enough trailer, you can offer oversized load transportation services. This can be a great way to access a niche area of the competitive trucking industry.

Oversized loads include anything from farm vehicles to wind turbines. You can offer oversized moving services, or provide delivery services between manufacturers and customers.

Of course, you’ll also need to make sure that you have a suitable CDL to handle extra large loads.

12. Semi-Truck Driving School

Another clever way to make extra money from your truck is to offer semi-truck driving lessons. This is a great idea if you’re looking for an additional stream of income for your traditional long-haul trucking business.

Many people are interested in entering the trucking industry, and they need to practice driving a semi-truck to get their CDL.

To offer lessons, you’ll need to have the right knowledge for being a commercial truck driving instructor.

Conclusion

Starting a profitable business in the trucking industry is very possible.

You just need the right vehicle, the right license, and to find a business opportunity that matches your expertise and interests. Semi-trucks are useful in different industries, so you have quite a few opportunities to consider!

These semi-truck business ideas cover a range of areas. Understand the market and find a business idea that works for you. There are endless opportunities out there!

If you’re looking to finance your commercial vehicle, consider using Mission Financial Services. We’ll help you get the best financing deal to match your semi-truck business needs.

Commercial Vehicle Loan Defaulter: What Now?

Are you in a fix and unable to make your auto loan payments? Perhaps you’ve already missed your payments for days or weeks and are wondering what’s next.

What happens if you fail to repay your debt on time and become a commercial vehicle loan defaulter?

Well, the penalties of an auto loan default come into play. But, there’s a grace period before this occurs. Also, the severity of these loan default penalties varies depending on the type of loan, terms, and lender.

Let’s talk more about commercial vehicle loan defaults below.

What Does It Mean To Default On a Loan?

To default on a loan means failing to pay back a loan as per the terms of the loan agreement.

When you borrow money from a lender, you must sign a contract agreeing to repay a specific amount, in a certain way, for a certain period. It could be daily, weekly, or monthly payments for one, two, or more years.

Defaulting happens when you fail to repay the agreed amount as regularly as you’re supposed to for several consecutive days (more about this below).

How Auto Loans Default Work

When a borrower misses their regular payment, the lender will send reminders to inform them of the contract breach.

These reminders serve as notifications that the borrower needs to take action to return to compliance or risk becoming a defaulter and getting penalized.

Usually, lenders give borrowers enough time to save the situation before categorizing them as defaulters.

The period between a borrower’s last loan payment and their categorization as a commercial vehicle loan defaulter is often called the delinquency period. It varies depending on the type of loan being repaid and the lender.

For commercial vehicle loans, borrowers have between 1 and 90 days of non-payment before it becomes a loan default.

So some lenders can set the delinquency period for their commercial vehicle loans as a minimum of 1 day, others the maximum of 90 days or anything in between. For other loans, like a mortgage, the maximum period of loan delinquency is usually 30 days.

We always advise consumers to contact their lenders when their vehicle loan is in delinquency to avoid defaulting.

Most lenders, particularly non-bank vehicle loan financing companies, are always willing to create new payment plans that their consumers can manage. You could get a payment holiday or have the vehicle loan terms extended based on your situation.

It’s essential to note that banks may not offer similar options to prevent loan defaults. Their loan repayment process and overall financial products are less flexible than alternative auto loan finance options.

Because of this, alternative commercial vehicle loan lenders, like Mission Financial Services, are changing the credit market. They’re becoming the leading finance solutions among business owners.

If the delinquency period ends before you contact your auto loan financing company and revisit the loan terms, you become a vehicle loan defaulter.

The lending company can penalize you and attempt to recover their funds according to the loan agreement.

You’ll have a 10-day grace period before you face the consequences of defaulting on your commercial vehicle loan.

What Happens If You Are a Commercial Vehicle Loan Defaulter?

If you become a car loan defaulter, your credit rating decreases drastically. It also affects your ability to get credit in the future, especially if you made a personal guarantee to repay the loan.

Loan default penalties for personal loans may differ from those for business loans. But, overall, the lender can do the following:

Repossess Your Vehicle

Vehicle repossessions are the most common penalty when car loan borrowers fail to pay their debt. This is because the vehicle acts as security for auto loans, and unless the loan gets paid in full, the car legally belongs to the lender.

Sell Your Vehicle

In this case, lenders aim to make enough money to cover the outstanding loan balance.

So if the vehicle fetches less than the principal plus interest amount owed after the sale, the lender can mark a lien on your other property to clear the debt.

This means the lenders can get court orders to repossess some of your other property and sell to clear the remaining cost. It all depends on the loan documentation.

Loan Agency Collection

Debt collectors can harass you, especially if you made a personal guarantee to pay the loan.

Can You Get A Commercial Vehicle Loan With Bad Credit?

Yes, you can get a commercial vehicle loan with bad credit. However, it might be tricky, especially now that the number of loan defaulters is growing.

Last year, vehicle loan defaults increased by 16.9% from the previous year (2021). So lenders are careful to only loan out to business owners with good credit to minimize their risk of getting losses.

Also, lending institutions are stepping back from financing vehicles. Meaning your chances of getting a car loan to purchase or repair business vehicles if you have bad credit are fewer.

Consider getting your vehicle loan from a non-bank lending institution instead of a bank. You’ll have better luck with them as some won’t check your credit score to offer you a loan.

You may have to make a down payment and present your recent bank statements plus proof of income to get approved. Ensure you have these documents when applying for a loan with alternative lenders.

An example of such a lender is Mission Financial Services. The company has specific loan products for people with bad credit scores. If you’re interested in partnering with Mission Financials, check out this article on how to get a loan for a semi-truck for step-by-step instructions on financing your trucks.

Final Thoughts

As you can tell, defaulting on your loan has a long-term negative impact on your credit. It could also affect your business’s credit and prevent you from expanding your business operations.

If you’re struggling to make your loan payments, contact your lender and request loan restructuring before you become a defaulter. Many lenders are willing to work with you to make the loan manageable and avoid the cost of dealing with defaulters.

For any questions or concerns about commercial loan defaults, contact us. We’re always available and ready to help!

Everything To Know About Small Business Commercial Vehicle Insurance

Small business owners understand that reliable transportation is crucial to their daily operations. From delivering products to servicing clients, commercial vehicles play an essential role in the success of any business.

However, accidents and other unexpected incidents can happen at any time. Statista reports that there are over 12.15 million auto accidents yearly. So, having small business commercial vehicle insurance is essential.

Let’s discuss everything you need to know small business commercial vehicle insurance!

Small Business Commercial Vehicle Insurance

Business commercial vehicle insurance is a type of insurance policy that protects your business’s commercial vehicles from physical damage and liability. It’s similar to a personal auto insurance policy with a few significant differences.

For instance, business auto insurance is a must-have if your company owns or leases vehicles like trucks, vans, or cars. It covers damages and accidents that can happen while your vehicles are being driven for business purposes, such as making deliveries or transporting goods.

As financial advisors specializing in semi-truck financing requirements, we’ve seen firsthand how essential it is for small business owners to have commercial vehicle insurance. Small business commercial vehicle insurance can help safeguard your business from financial loss due to accidents, theft, or damage to your commercial vehicles.

How Does A Commercial Auto Insurance Policy Work?

The typical commercial auto insurance policy will include several types of coverage, such as liability, collision, and comprehensive coverage.

Liability coverage is required by law and helps pay for damages and injuries your business is responsible for in an accident. Collision coverage helps pay for damages to your commercial vehicle in an accident. In contrast, comprehensive coverage covers non-collision-related incidents such as theft, fire, or natural disasters.

When you purchase a commercial auto insurance policy, you’ll pay a premium to the insurance company in exchange for coverage. Your premium will depend on several factors. We’ve learned the most important factors that influence small business commercial vehicle insurance coverage include:

The number of vehicles you insure
The type of vehicles
The driving record of your drivers
The level of coverage you select

If you ever need to file a claim, you’ll pay a deductible, and the insurance company will pay for the rest of the covered damages.

It’s important to note that every commercial auto insurance policy is different. At Mission Financial Services, we recommend you always work with a knowledgeable agent or broker. They can help you understand the coverage options available to you and select the right policy for your business.

Who Should Get Business Commercial Vehicle Insurance?

Like standard business insurance, any business that owns or leases business vehicles should consider getting commercial auto insurance coverage. Here are some examples of the companies that should have small business commercial vehicle insurance:

Delivery and courier services: If your business involves transporting goods, you’ll likely need commercial vehicle insurance. For example, if you own a package delivery service and use vans or trucks to deliver packages, you’ll need insurance to protect your vehicles and drivers in case of accidents.

Construction companies: Many construction companies use heavy-duty trucks and other commercial vehicles to transport materials and equipment to job sites. These vehicles are often subjected to harsh conditions, so having insurance coverage is critical.
Landscaping and lawn care services: Commercial vehicle insurance is a must-have if your business uses vehicles to transport lawn equipment and supplies to job sites. This coverage can help protect your business from financial loss if your vehicles are damaged or involved in an accident.
Food and beverage businesses: If your business is in the food and beverage industry, such as a food truck or catering company, and you use commercial vehicles to transport food and supplies. In these cases, commercial vehicle insurance can help protect your business in case of vehicle accidents or damages.
Any business with company-owned vehicles: Even if your business doesn’t fit into one of the above categories, if you own or lease vehicles for business purposes, you should strongly consider commercial vehicle insurance. It’s always better to be safe than sorry, and having insurance can provide peace of mind and financial protection in case of unexpected incidents.

What’s Covered By Commercial Auto Coverage?

A typical commercial vehicle insurance policy includes several types of coverage, each of which is designed to protect your business’s vehicles and drivers in different ways. Let’s look at some of the most common types of small business commercial vehicle insurance coverage included in a typical commercial auto policy:

Liability coverage: Also known as auto liability coverage, this type of coverage is required by law in most states. It helps pay for damages and injuries you are responsible for if you or one of your drivers causes an accident. For example, suppose one of your delivery drivers causes an accident, and the other driver is injured. In that case, liability insurance can help pay for medical payments, property damage, and other related expenses.
Collision coverage: Collision coverage helps pay for damages to your commercial vehicle if it’s involved in an accident or collision, regardless of who is at fault. For example, if your driver accidentally hits a curb and damages the front end of your delivery truck, collision coverage can help pay for the vehicle repairs.
Comprehensive coverage: This coverage helps pay for damages to your commercial vehicle caused by non-collision events. Non-collision events could be anything from theft, vandalism, or fire to weather-related damage. For example, comprehensive coverage can help pay for the repairs or replacement if your truck is stolen or damaged in a hailstorm.
Uninsured or underinsured motorists coverage: Another typical coverage, this one, protects your business if one of your drivers is involved in an accident with an uninsured or underinsured driver. For instance, if an uninsured driver hits your delivery truck, this coverage can help pay for damages and medical bills for your driver and passengers.

These types of coverage are essential for any business that uses commercial vehicles. Accidents and unexpected incidents can happen anytime.

The right small business commercial vehicle insurance coverage can help protect your business from financial loss and legal liability.

Without proper insurance coverage, you could be held responsible for damages and injuries and may have to pay out of pocket for repairs and medical expenses. If you don’t have the funds for repairs, you may need to consider a semi-truck repair loan.

Understanding Commercial Auto Insurance Cost

Like personal auto insurance policies, the cost of commercial auto insurance can vary widely depending on several factors. Here are some of the typical costs to consider when looking at small business commercial vehicle insurance:

Type of business and vehicles: The kind of business you own and the type of insured vehicle you use can significantly impact the cost of insurance. For example, a construction company that uses heavy-duty trucks will likely pay more for insurance than a catering company that uses smaller delivery trucks.
The number of vehicles: The more vehicles you need to insure, the higher your insurance costs will be. Many insurance providers offer discounts for businesses that insure multiple vehicles, so it’s worth asking your provider if you’re eligible for any commercial fleet discounts.
Coverage limits: The higher your coverage limits, the more you’ll pay for insurance. However, it’s essential to have sufficient coverage to protect your business from financial loss in case of accidents or other incidents.
Driving history: Your driving record and the driving history of your employees can also affect your insurance rates. You may pay higher premiums if you or your employees have a history of accidents or traffic violations.

Location: The location of your business and where your vehicles are driven can also impact your insurance rates. For example, companies in areas with high traffic or accident rates may pay more for insurance.

Overall, the cost of a small business auto insurance policy can range from a few hundred to several thousand dollars per year, depending on your business’s unique needs and circumstances. Working with an experienced insurance agent or broker is important to find the right coverage at a price that fits your budget.

Final Thoughts

If you want to become a semi-truck driver, you must understand commercial vehicle insurance. Having small business commercial vehicle insurance is a significant investment that can protect your business from financial loss and legal costs in case of accidents, theft, or other incidents.

At Mission Financial Services, we offer a range of easy financing options to help you purchase the commercial vehicles you need to keep your business moving forward.
Contact us today to learn more about our financing solutions. We can help you get the necessary vehicles to grow your business.

Will I Be Approved For Commercial Fleet Vehicle Financing?

If you’re considering vehicle financing for a commercial fleet but aren’t sure whether you’ll get approved, this article will guide you

First, note that you will get approved for commercial fleet vehicle financing only if you have the required licenses and documentation. Some lenders also set specific criteria you must meet to qualify for different commercial fleet financing options.

Others, like Mission Financial Services, aim to accommodate lenders regardless of their background.

We’ll discuss a few essential commercial fleet financing options and show you how to apply and get approved step-by-step below.

Commercial Fleet Vehicle Financing

What is commercial fleet vehicle financing?

In simple terms, commercial fleet financing is a type of loan that allows a fleet company to acquire commercial vehicles for commercial purposes.

The funding helps fleet owners to add more vehicles to their existing fleet and grow their business on credit. Some lenders also provide commercial truck fleet loans to relatively new drivers looking to finance a new fleet and start their fleet management business.

An example of such a lender is Mission Financial Services. You can qualify for a semi-truck fleet loan if you’re a new driver with at least three years of driving experience.

Generally, commercial fleet financing offers flexible terms to help you start or grow your business without overstretching your cash flow. You may get funding for different types of commercial vehicles, including commercial trucks, vans, and other specialty vehicles.

The interest rate for a commercial vehicle fleet loan varies based on the lender, financing option, and overall credit. It often ranges from 18 to 30%, paid in small monthly payments.

Commercial Fleet Financing Options

There are two main ways for small businesses to acquire a commercial fleet and expand: buying or leasing. Each is slightly different, and will require different financing options.

Purchasing Commercial Fleet Funding Options

You have two main financing options for buying a fleet.

1. A Finance Company or Bank Commercial Fleet Financing

You can get an equipment loan from a finance company or bank. This is one of the quickest and most popular ways to finance a commercial fleet.

We recommend making use of finance companies, such as Mission Financials Services, instead of a traditional bank for five main reasons

Loan terms are more flexible: You’ll benefit from quick credit approval processes and longer monthly payment terms. You’ll also require less documentation and can get customized equipment financing: a feature a traditional bank may lack.
Unique loan products: Some lenders also offer unmatched loan products like auction credit lines. These work best for business owners who prefer purchasing through auctions. You may not get similar loans from a bank. Also, a line of credit financing gives you more control over the loan usage and payment.
Most banks have high down payment requirements and may not consider a small business owner with poor credit.

Often, finance companies use the vehicles under purchase as collateral for the loan, whereas banks may ask for additional security.
Higher loan amounts: Finance companies offer more money than banks. They can cover the total cost of the commercial asset. It’s unlikely to get the same from a bank.

2. Car Dealership Financing

Car dealership financing allows customers to purchase commercial equipment from a car dealer through higher purchase agreements.

In this case, you make an initial down payment for the commercial vehicles, then pay the remaining balance plus interest in small monthly payments. You’ll only take ownership of the fleet after repaying the loan.

Leasing Commercial Vehicles for Your Business

Leasing is the other popular commercial fleet vehicle financing method. Many fleet business owners find vehicle leasing more cost-effective than purchasing.

This is because equipment leasing spreads the cost of vehicle acquisition for the period they’re in use instead of funding the total cost.

You can choose between two vehicle leasing options:

Operating Lease

An operating lease works like rental houses. You pay a fixed amount every month for the lease period. You can return the vehicles when you no longer need them without incurring additional costs.

Finance Lease

A commercial fleet finance lease works like an operating lease but offers multiple options when your lease period ends.

You make regular monthly lease payments, but instead of simply returning the vehicle at the end, you could:

Renew your lease agreement
Return the vehicle and lease another
Purchase the vehicle and take full ownership of the asset following the terms of the terminal rental adjustment clause in the leasing contract

How can you be approved for commercial fleet vehicle financing?

Here is a step-by-step process to get financing for equipment purchases or leases:

Assess Your Business Needs And Find A Fleet

Always determine your business needs first, then find a fleet to match.

Remember, you’re solely responsible for finding the fleet you need. Most lenders don’t sell vehicles unless you choose the car dealership option. If this is the case, ensure your vehicle selection process is thorough.

Also, ensure you get a detailed invoice for the costs. You’ll need it for the application process.

Pick a Lender

Once you’ve found your fleet, select an equipment financing lender that aligns with your business goals.

The company can work with you to tailor the best commercial vehicle financing strategy for your specific truck business and current situation. This way, a bad credit score can’t prevent you from accessing commercial vehicle loans.

Gather documentation

Lenders may request various documents, such as:

Personal identification documents: These include your I.D, driver’s license, and social security number
Proof of residence documents: For example, a recent utility bill
Proof of income documents: These may be your latest bank statements
Information about the vehicles: Their make, model, mileage, and engine or transmission details
Fleet invoice or purchase order: This includes the sales price plus all taxes and fees

Apply

After gathering all the documents your preferred lender requires, follow their application process and await loan approval.

Assuming you choose Mission Financials, visit the credit application page, and follow the step-by-step instructions to apply.

Final Thoughts

Commercial fleet financing is a game-changer for small businesses. Other than maintaining cash flow by offsetting vehicle acquisition costs, these loans help fleet businesses with vehicle maintenance.

We hope this article helps you see that you will be approved for commercial fleet vehicle financing when you take the required steps.

If you have any concerns or questions regarding vehicle financing, contact us. We’ve been helping truck businesses get vehicle loans since 2000 and are always ready to help.

All About Semi Truck Repair Loans

Truck repairs are a necessary business expense if you’re a truck driver or owner-operator.

When your vehicle needs some TLC, semi-truck repair loans can make a big difference. Repairs can be expensive, and sometimes you won’t have the budget for fast maintenance!

Let’s talk about what semi-truck repair loans are below. We’ll also discuss your options and show you how to apply for these loans, even with bad credit.

Semi Truck Repair Loans: What Are They?

Semi-truck repair loans are a type of commercial vehicle financing solution that helps cover the increasing costs of truck repairs.

Most lenders will use your commercial truck as collateral to give you the money you need to pay for truck repair jobs upfront. You then repay the loan amount plus interest over some time. This way, you can keep your truck’s downtime to a minimum and get back on the road fast.

The interest rates and terms of semi-truck repair financing vary from lender to lender. But you’ll always have to make regular payments to repay your loan, based on a daily or monthly payment model.

Owner-operators and fleet owners use truck repair financing when they need major repairs for their commercial trucks. But there are truck repair loan options for small repairs, including common truck problems like wheel bearings issues.

Understanding how various types of semi-truck repair financing options work will help you choose the right one for your needs.

Types of Truck Repair Financing

Here are a few common types of truck repair loans:

1. Title Loans for Commercial Truck Repair

You can use commercial vehicle title loans to fund semi-truck repairs. They are one of the best truck repair financing options for those who own their semi-truck and have less-than-perfect credit.

The lender uses your commercial truck’s realistic market value to give you the money you can use for repairs and other business expenses. Generally, commercial vehicle title loans have higher interest rates than other loans.

2. Personal Loans for Semi-truck Repair

If you’re a professional truck driver, you can get a personal loan to pay for your truck repair needs.

These loans come with an attractive interest rate and flexible repayment terms, especially if you have good credit. But, the money you get from personal truck repair loans can be less than what you get with title loans.

3. Small Business Loans

Small business loans are great for financing semi-truck repairs. But, you require an established business plus a good minimum credit score to qualify. You’ll get the funds you need fast, usually within the same day of application, and you can repay these over several years.

4. Equipment Financing

Many trucking business owners use equipment financing to cover repair costs for their commercial trucks. It is a short-term loan readily available from online lenders and equipment leasing companies.

5. Business Line of Credit Financing

If you’re a fleet owner who deals with expensive repairs often, consider this type of truck repair financing. It lets you borrow exactly the amount you need and pay interest on it. You can also use the credit again whenever you pay back your loan, so you’ll always have money for repairs ready.

6. Business Credit Cards

Business credit cards are among the best semi-truck repair financing options for owner-operators who want to earn rewards while covering truck repair costs. The approval process for these cards is also the least strict of all truck repair funding options.

7. Working Capital Loans

These truck repair loans operate almost the same way as small business term loans. You get the money you require on the same day. The main difference comes from the payment model.

With working capital loans, the lender deducts money from your account daily, for example from Monday through Friday. But, for small business loans, you can make small monthly payments over a period to pay the loan.

How To Apply For A Semi Truck Repair Loan

The application process for semi-truck repair loans is simple. You can do it online with just a few clicks!

Different lending institutions will request various details and certified copies of documents.

With Mission Financial Services, you’ll need to provide the following information:

Contact details: These may include your name, phone number, email, residential address, driver’s license or commercial driver’s license (CDL), and social security number.

Financial details: These include information about, for example, your credit history.
Commercial truck details: Provide the vehicle identification number, make, model, engine transmission type, actual mileage, and accessories.
Sales price details: These include all applicable fees and taxes.

Once you’ve gathered the necessary information, the rest of the application process should take a few minutes:

Go to the credit application page.
Click the ‘get preapproved; button.
Fill in the information as required and click next to proceed until you reach the last page.
Confirm that you’ve provided all the necessary details, then click submit.

We’ll reach out after reviewing your application.

Repair Loans and Bad Credit

You might be wondering whether you can get truck repair financing if you have less-than-perfect credit. The answer is yes. But, it largely depends on the lender.

Most lenders require a minimum credit score to offer truck repair financing. Mission Financial Services doesn’t consider your credit score.

Other factors also contribute to the truck repair loan you qualify for and the loan terms you can get. Some can include your records of on-time payments toward other loans and clean accounts of repossession or bankruptcy.

Do You Need A Truck Repair Loan To Grow Your Trucking Business?

In short – no. You don’t need a truck repair loan to grow your business. However, truck repair loans have several benefits, especially for professional truck drivers, owner-operators, and fleet managers.

Apart from being able to pay for your repairs fast, you can keep enough cash flow for other business operations. Also, paying off your repair loan helps you build credit for your commercial truck business. It may come in handy whenever you need more financing to expand your venture.

Final Thoughts

Overall, truck repair financing is a good idea for all stakeholders in the trucking industry. You’ll keep your truck moving and have the cash flow to expand your business when you’re ready.

If you have poor credit, choose financing companies with specific programs for individuals with bad credit scores. Contact Mission Financial Services today to find out how we can help!

Your Guide To First Time Buyer Semi Truck Loans

Buying your first semi-truck is an exciting step in your career as a commercial truck driver or owner-operator.

However, securing financing for your first truck can be challenging, especially if you’re new to the industry or have limited credit history.

First-time buyer semi-truck loans can help you finance your first semi-truck purchase. It’s important to understand what this process entails, and how to navigate it.

Let’s discuss the different loan options out there, and how to apply for one as a first-time buyer!

Different Types Of Semi-Truck Loans

Semi-truck financing can be complicated, but it doesn’t have to be.

There are different commercial vehicle loans available to entrepreneurs and fleet managers. Here are some popular commercial truck financing options for owner-operators and experienced drivers.

Commercial Vehicle and Semi-Truck Loans

These loans are best for individuals or companies looking to finance the purchase of a semi-truck. Banks, credit unions, and specialized commercial vehicle financing companies typically offer them. They usually require a downpayment and have fixed interest rates.

Semi-Truck Loans With Bad Credit

These loans are best for individuals with bad credit who need financing for a semi-truck. They may have higher interest rates or require a larger down payment to mitigate the loan risk.

Commercial Vehicle Title Loans

These loans are best for individuals or companies needing fast approval. In this case, owners are willing to use their commercial vehicles as collateral. These loans can be easier to obtain than traditional loans. Still, they often have higher interest rates and may put your vehicle at risk if you cannot make your payments.

Semi-Truck Repair Loans

These loans are best for small business owners who need financing to cover the cost of unexpected repairs for their semi-truck.

Used Semi-Truck Loans

These loans are best for individuals or companies looking to finance the purchase of a used semi-truck. They are similar to standard commercial vehicle loans but may have different requirements or interest rates.

First-Time Buyer Semi-Truck Loans

First-time buyer semi-truck loans are designed specifically for individuals buying new and used trucks for the first time. Specialized commercial vehicle financing companies typically offer these loans. They may have different requirements and interest rates in comparison to standard commercial vehicle loans.

These loans are best if you’re new to the commercial trucking industry, or don’t have an established credit history or a large down payment.

These can help first-time buyers get started in the industry by providing the financing needed to purchase their first semi-truck.

The application process for a first-time buyer semi truck loan is similar to that of other commercial vehicle loans. If applicable, you must provide documentation of your income, employment, and credit history. You may also need to provide a down payment, although the amount required may be lower than that of a traditional loan.

Once approved for the loan, you can use the funds to purchase the semi-truck. You must then make regular payments on the loan until it is fully paid off.

How To Secure A First-Time Buyer Semi Truck Loan: 7 Easy Steps!

Applying for first-time buyer semi-truck loans is relatively straightforward. Here’s how you do it:

Step 1: Determine Your Budget

Determining the budget is the first step in securing first-time buyer semi-truck loans. You’ll need to consider the cost of the semi-truck and any associated expenses, such as insurance and maintenance costs. It’s essential to clearly understand your budget before applying for a loan.

Step 2: Research Lenders

The next step is to research lenders who offer first-time buyer semi-truck loans. You’ll want to look for lenders specializing in commercial vehicle financing and who have experience working with first-time buyers.

Mission Financial Services is one such lender that can help!

Step 3: Gather Documentation

Once you’ve found a lender, you must gather the documentation required for a commercial vehicle loan. This documentation will support your loan application. It may include proof of income, bank statements, employment history, and credit reports.

Suppose you don’t have an established credit history. Some semi-truck finance programs may consider alternative factors like your rental or utility payment history.

Step 4: Apply For The Loan

With your documentation in hand, you can apply for a first-time buyer semi truck loan. You can typically apply online or in person, depending on the lender. You’ll need to provide all necessary documentation and answer any questions the lender may have.

Step 5: Review The Loan Terms

If you are approved for the loan, the lender will provide you with the loan terms, including the interest rate, repayment period, and any associated fees.

It’s important to review these terms carefully and ask any questions you may have before accepting the loan.

Step 6: Purchase The Semi-Truck

With the loan secured, you can use the funds to purchase a semi-truck. Work with a reputable dealer and thoroughly inspect the vehicle before making the purchase!

Step 7: Make Payments

Once you have purchased your semi-truck, you’ll need to begin making monthly payments on the commercial vehicle loan. It’s essential to make your payments on time and in full to avoid any penalties or late fees.

Final Thoughts

We hope you found this guide helpful in understanding the loan application process and finding the financing you need for your first semi-truck.

Mission Financial Services specializes in providing commercial vehicle loans and financing. We help new owner-operators start the semi-truck business of their dreams.

Our team of experienced advisors can help you navigate the loan application process and find the right financing solution.

If you’re ready to take the next step and secure a first-time buyer semi truck loan, or if you have any questions about our services, we invite you to contact us today. Why not start the credit application process?