All About Federal Vehicle Commercial Vehicle Loans

federal bank commercial vehicle loan
Purchasing a federal commercial vehicle can often be an intimidating process. There’s a lot of paperwork involved, and you need to make sure you choose a financing option that makes the most sense for your business.

The good news is that commercial vehicle financing can also be a really smooth process if you work with the right company. This makes it easy to access the business vehicle loan you need, to purchase your ideal truck.

This guide will break down what federal vehicle commercial loans are, and what is required to take out one of these loans.

Federal Vehicle Commercial Vehicle Loans

If you want to purchase a commercial vehicle, like a semi-truck, then you’ll likely need to take out a commercial vehicle loan.

Various business vehicle loan options are available for purchasing federal vehicles. Let’s break down how this works.

What is a Federal Commercial Vehicle Loan?

The Federal Vehicle Standards are a system that classifies all commercially available vehicles, governed by the Federal Motor Vehicle Safety Standards. These regulations specify things like the design, construction, performance, and durability requirements of commercial vehicles.

If you want to purchase commercial vehicles that fall under these federal standards, then you’ll likely need to take out a business vehicle loan.

When you take out a commercial vehicle loan, the loan will need to be administered based on the vehicle you have chosen. Of course, any new commercial vehicles in the US need to abide by the Federal Vehicle Standards.

small scale semi truck

So, a federal vehicle commercial loan is really just a form of vehicle financing that applies to classified commercial vehicles.

Best Way To Finance Your Semi Truck

There are a couple of different options you face when taking out a commercial vehicle loan for your semi-truck. These include taking out a loan amount to purchase the new vehicle, entering into a hire-purchase scheme, or even leasing the commercial vehicle (if you don’t purchase it).

While different options have their advantages for different people and types of semi-truck businesses, the best way to finance your semi-truck is generally to take out a term loan with competitive interest rates.

Let’s break down the different steps you’d need to go through to take out a commercial vehicle loan.

Establish Your Credibility

The first step to taking out any kind of commercial vehicle loan is to determine your credibility for the loan. Various checks are made to establish this, which include:

  • Looking into your credit history and credit score: Ideally, you’ll work with a financing provider that considers your entire credit profile, and not only your credit score. This helps people with bad credit access loans for their business needs.
  • Establishing how much of a down patent you can make: Often, a larger down payment can result in better interest rates. While a down payment is not always necessary, first-time customers generally pay a down payment of around 20% to 30% of the vehicle’s price.
  • Your time with a commercial driver’s license (CDL): The longer you’ve held a CDL, the easier it will be to vehicle financing loan schemes with competitive rates.
  • Considering the vehicle type and age: Of course, lenders provide customized solutions based on the type of vehicle you plan to purchase. Some vehicle financing providers accommodate buyers who are interested in older vehicles. However, it’s important to consider the cost of repairs and maintenance when purchasing an older truck.

trucks in field

These factors will help you determine how eligible you are for taking out a business loan. These elements also determine the maximum loan amount you can take out, and whether you can access flexible terms on the working capital.

Gather Your Information

Once you have established your financing credibility, the next step is to gather all of the documentation you need to apply for an existing commercial vehicle loan.

Vehicle loans require buyers to produce the following documents:

  • Bank statements
  • References
  • Your CDL
  • Contact details
  • Proof of insurance
  • Business incorporation documents or operating agreements (depending on the business loan)

By having all of these documents ready, applying for vehicle loans becomes a much faster process. This will help you get the funding you need as soon as you find the right vehicle.

Find the Vehicle

Now you need to find the semi-truck that matches your business requirements. Having very specific requirements in place will make it a lot easier to find the right truck for your needs. Of course, you will also have a very clear budget available for your business vehicle.

Once you have found the right truck, you’ll need to establish an exact price for the vehicle and get a written quote on the purchase of the truck. This is necessary for your business loan.

Get Your Insurance

It’s possible to get vehicle loans pre-approved without insurance, but having an insurance policy in place will make the process a lot easier. This is essential for finalizing your truck financing.

hands writing

There are many different types of insurance policies available, each with its own pros and cons. Make sure that you choose a policy that makes sense for your vehicle and business.

Apply for the Loan

Now you just need to submit all of your documents to your vehicle financing company to access the business loan.

Mission Financial makes applying for vehicle loans an easy process. Anyone, regardless of credit history, can access loans with a great interest rate. This makes it simple to purchase the semi-truck of your dreams.

Final Thoughts

There can be quite a lot involved in taking out a commercial vehicle loan. The most important thing is being well-prepared, and having a good understanding of your requirements. This will help you find a loan and vehicle that makes the most sense for your situation.

At Mission Financial Services, we help truck drivers and businesses of all sizes access the best possible commercial loans for their needs. Get in touch today to see how we can help you purchase the ideal federal commercial vehicle for your requirements.

How Hard Is It for Minority Truck Drivers to Obtain Financing?

How Hard Is It for Minority Truck Drivers to Obtain Financing

Minority truck drivers often face unnecessary difficulties in securing financing for starting a trucking company. There shouldn’t be barriers in place preventing minority drivers from entering the transportation industry!

As long as you work with the right vehicle financing company, obtaining funding for your truck doesn’t have to be a challenge.

In this guide, we’ll explore whether minority truck drivers face funding challenges, and provide a step-by-step process on how to get around this.

Minority Truck Drivers: Who is a Minority Truck Driver?

Of all the truck drivers in the United States, over 84% of them are men, and over 58% are white. These trucking industry professionals are considered the majority.

Minority truck drivers refer to any professional driver that falls outside of this category. This includes women truck drivers, or truck drivers of different genders, sexualities, and racial backgrounds. For example, Latino or Hispanic, Asian, and Black truck drivers can all be considered minorities.

While these minority drivers were once a rarity in the transportation industry, trucking is becoming increasingly diverse. There’s greater minority representation across the industry, which means more career opportunities are presenting themselves for minority drivers in the trucking industry.

Is it Harder To Obtain Financing as a Minority Truck Driver?

Despite increasing diversity in the trucking industry, minority-owned trucking companies still face many added difficulties in securing financing. This is because minority groups tend to be marginalized socially and economically.

truck driver

Some minority truck drivers face discrimination in the form of refusal to be assisted, while some may face harsher application requirements. Some minority truck drivers have a weaker economic background than others and will be disadvantaged by financing options that require a strong credit history or a long history of stable bank statements.

This makes it harder to obtain financing than those who are not marginalized.

With so many owner-operated trucking companies operating in the country, restricted access to funding can make it very difficult for minority truck drivers to pursue innovative ideas and start a transportation company. This will continue to create a divide in the trucking industry.

Obtaining Truck Financing as a Minority Truck Driver

While obtaining funding as a minority truck driver may seem like a major challenge, with the right financing provider it doesn’t have to be.

Mission Financial does not discriminate against minority truck drivers and works hard to help everyone secure vehicle loans. When buying a semi-truck with financing through Mission Financial, bad credit or a lack of financial history is not taken into account. This provides a far more equal playing field for any truck drivers to get into the industry.

Here are the steps you can take as a minority truck driver to easily gain funding for your transportation business.

1. Determine Your Eligibility

The first step in securing financing for your truck is to determine your eligibility. This is where most minority truck drivers have a hard time. With Mission Financial, earning your eligibility success is an easier process.

man in truck

Four main factors are considered when determining your eligibility. These are:

  • Overall credit: Like with any financing provider, having a strong credit history will make it easier to secure funding. However, Mission Financial is a common sense lender, which means we consider more than just your credit score. This means we review your overall credit situation to understand your eligibility. Even if you have a bad credit history, it’s still possible to gain truck financing.
  • Down payment: The down payment required is based on the cost of the truck, and is usually around 20% – 30% of the truck’s purchase price. Mission offers financing on various older truck models, so paying a down payment on a brand-new truck is not necessary.
  • Time with CDL: The longer you’ve had your Commercial Driver’s License (CDL), the easier it will be to obtain funding. Drivers who’ve had their CDL for less than three years may need to pay a larger down payment.
  • Truck’s age: Mission Financial finances trucks that date back to 2000, so it’s possible to gain financing for a second-hand vehicle. However, it’s important to also consider the higher cost of maintenance and repairs if you do choose to finance an older truck.

2. Get Your Documents Together

Once eligibility has been established, you’ll need to prepare all of your documents for obtaining funding. This will help you quickly apply for a loan when you find the right truck.

Your documentation should include your:

  • Bank statements and tax returns
  • Your CDL
  • At least six references
  • Contact details
  • Proof of insurance

woman with truck

Depending on your employment situation, you may also need to provide:

  • A co-signer statement
  • LLC agreement and operating agreement
  • Articles of Incorporation and corporate resolution

3. Find Your Vehicle

When you are prepared to apply for financing, you’ll need to find your truck and negotiate its price. Make sure you carefully choose the right type of vehicle for the type of trucking business you plan to start.

4. Obtain Insurance

You’ll need to provide proof of insurance to finalize your truck financing process. Make sure to select the right type of insurance policy based on your vehicle and the type of business you operate.

5. Submit Your Documents

Once you have all of the above documentation sorted, you simply need to submit your documents to Mission Financial to get approved for truck financing.

Final Thoughts

If you want to quit your driving job and start your own trucking company, you’ll need to obtain funding. With minority truck drivers at an all-time high, there are various opportunities for new truckers to obtain funding and start their own trucking organizations.

This can help minority members of the industry achieve greater success!

By working with an organization like Mission Financial, anyone can obtain the funding they need. We have a commitment to providing fair funding opportunities to all professional drivers. Apply now to kickstart your trucking business success.

Where To Find Semi-Trucks For Sale With Financing

semi trucks for sale with financing

Has your semi-truck credit application been approved? Are you ready with your downpayment? We have great news if you want to learn where to find semi-trucks for sale with financing! Joining thousands of owner-operators in the trucking industry is a fantastic idea.

We’ll show you where to find semi-trucks for sale with financing, discuss the best places, and ensure you get your rig!

The Importance Of Finding Semi-Trucks With Financing

Investing as a semi-truck driver is a significant expense; only some have the cash flow to purchase one outright. That’s why finding semi-trucks for sale with financing is important.

Semi-truck financing allows you to spread the cost of the truck over time. This approach makes it more affordable and manageable for your business. However, some financing will require down payments.

Additionally, a loan can help you build credit, which can be beneficial when seeking funding for future business expenses. This financing allows you to grow your company and stay competitive.

Places To Find Semi-Trucks For Sale With Financing

With your first-time buyer semi-truck loan in hand, here are some places to approach for your future semi-truck purchase:


Dealerships are the most popular and common places to buy semi-trucks. These dealerships specialize in selling commercial trucks and have a wide range of inventory. They offer a variety of brands, models, and years. Here are some benefits of buying from a dealership:

load transportation

  • Wide Selection: Dealerships offer a wide selection of semi-trucks. This variety can be helpful when looking for a specific make, model, or year.
  • Warranty and Service: Dealerships often provide warranties and services for their semi-trucks. This can benefit drivers, giving them peace of mind knowing they can get their trucks serviced and repaired at the dealership.

Buying a semi-truck from a dealership can be an excellent option for drivers looking for a wide selection, warranty and service, and trade-in options.

Online Marketplaces For Semi-Trucks

Online marketplaces for semi-trucks have become increasingly popular. Websites like Truck Paper and Commercial Truck Trader are some of the most well-known platforms.

The benefits of shopping for semi-trucks on these online marketplaces are numerous. These platforms offer many truck models for sale. The variety makes it easier for buyers to compare and find the best one for their needs.

Many of these websites allow buyers to search for trucks based on specific criteria, such as make, model, year, and location. This can help make finding the right truck much more efficient.

Auctions For Semi-Trucks

Auctions are another option for those searching for semi-trucks for sale with financing. Here are some benefits of buying from auctions:

  • Competitive prices: Auctions offer competitive prices, which can save you money compared to buying from a dealership or private seller.
  • Access to exclusive inventory: Auctions sometimes have exclusive inventory that is not available anywhere else. This means you can purchase a rare or unique semi-truck that fits your needs perfectly.

Buying from auctions can be an excellent choice for those who want to find a good deal on a semi-truck.

Private Sellers

Private sellers can also be a good option when looking for semi-trucks for sale with financing.

signing a contract

Here are some benefits of buying from a private seller:

  • Lower prices: Private sellers are usually motivated to sell their trucks quickly and may be willing to sell for a lower cost than dealerships or online marketplaces.
  • Less competition: Since private sellers are less visible than dealerships or online marketplaces, there may be less competition for the trucks they sell.
  • Negotiation: Private sellers may be more willing to negotiate on the price. They may also have flexible terms of the sale since dealership policies or regulations do not bind them.

However, it’s essential to remember that buying from a private seller may also come with risks, such as limited warranties or guarantees and a lack of financing options. It’s important to thoroughly inspect the truck and ask for maintenance records before purchasing.

Become Your Boss With Mission Financial Services

We hope our information will help you find the perfect truck to suit your needs. Remember, at Mission Financial Services, we make the financing process easy, so you can focus on finding the right truck.

Whether you’re looking for a dealership, online marketplace, auction, or private seller, we’re here to help you every step of the way. Contact us today to pre-qualify to get started on your journey to owning your dream truck!

Should I Put My Semi Truck In My Business Name (+ Other FAQs)

should i put my semi truck in my business name

Should I put my semi-truck in my business name? This is one of the most common questions from truck owners when purchasing a vehicle.

If you run a trucking company, your vehicles are your biggest and most important business asset. Owning trucks comes with many costs: insurance, maintenance, taxes, and more.

This means you need to be smart about how you purchase and register trucks. If you sensibly do this, you can optimize your expenses.

In this guide, we’ll cover whether you should put your truck in your personal or business name, as well as some related questions.

Should I Put My Semi Truck in My Business Name?

If you own a semi-truck as a business vehicle, one of the most common questions you’ll ask yourself is whether you should put your semi-truck in your business name or keep it as a personal asset.

While there’s no right or wrong answer, there are advantages to taking either approach.

Why Put Your Semi-Truck in Your Business Name?

Putting your semi-truck in your business name lets you separate the truck from your personal self. This can offer valuable protection of your personal assets in case something happens.

For example, if someone files a lawsuit against you, they could go after your truck as it is your personal property.

long road

This kind of issue can happen in the event of financial troubles or even a divorce. If your truck is registered as a business asset, it’s separated from your personal self. This means the truck is protected.

If you have a poor financial history or credit rating, then it could also be worth registering your truck as a business asset. This can make it easier to gain semi-truck financing for your business – instead of applying for it personally. This can also help you access semi-truck repair loans.

If you own a trucking company with multiple vehicles, then it makes sense to register these vehicles as business assets. This will help you provide coverage for all of your business vehicles more easily. It also reduces any risks associated with owning these vehicles, which can be big when you have multiple trucks.

Why Keep Your Semi-Truck in Your Personal Name?

The main reason why putting your semi-truck in your personal name is a good idea is that it’s easy.

If you are an owner-operator, there’s a good chance your business might be operating as a sole proprietorship. In this case, you have no choice but to register the truck in your name as there is no separation between yourself and your business.

In many cases, owner-operators will purchase a truck first and then register the business. In this case, the truck will first be placed under the owner’s personal name, which can make transferring the truck to your business difficult.

person reading contract

Personal or Business: Which is Best?

While it’s often easier to register your semi-truck in your name, it’s generally considered a smarter move to register it under your business. Doing so helps to protect your truck as a business asset and legally separates you from your truck in case any issues arise.

Owning the truck as a business vehicle can be beneficial for tax purposes, as maintenance costs associated with the truck can be recorded as business expenses.

Of course, one important consideration also comes down to whether you have business partners or not. If you do, then registering the truck under your business will give them a share of ownership of the truck. If it’s just you that runs the business, then this is an easier decision to make.

If you’re considering registering your truck as a business asset, it’s important to first consult with a business lawyer on the matter. They will be able to offer specific advice based on your business and personal situation.

How Does Commercial Auto Insurance Work?

If you’re wondering whether you should put your semi-truck in your business name, you’ll also want to consider commercial auto insurance.

Properly insuring your semi-truck is essential, and one of the best ways to do this is through a business vehicle insurance policy.

This type of insurance only applies to business vehicles, so you can’t access these policies if the trucks are registered as personal assets.

signing document

If your truck is registered as a personal asset, then you will also need to insure it under your personal name. Many household and vehicle insurance providers don’t have policies for semi-trucks unless they’re used as business vehicles. This can make insuring the truck a complicated and expensive process.

Commercial auto insurance gives you higher insurance amounts and will help you cover the vehicle under circumstances where a personal insurance policy wouldn’t pay the claim. This includes insurance coverage of the vehicle but also insurance for things like injuries, property damage, or collision insurance.

If your employee drives the truck and gets into an accident, then your commercial auto insurance will pay out. If the truck is insured under your name, then claiming for accidents involving other drivers can be very difficult. You might not be able to claim from a personal policy at all if you were using the truck as a business vehicle.

Commercial auto insurance can be significantly more expensive than personal insurance policies. This is because of the extra liability a trucking company has compared to a personal vehicle.

Of course, this all depends on your specific insurance policy and provider. However, as a working business vehicle, you’ll probably want to have commercial auto insurance on your semi-truck.

Should I Buy a Semi-Truck as a Business Expense or Out of My Budget?

Beyond thinking about how you will register your semi-truck, you also need to consider how you will purchase and finance the truck. Should it be a personal or business expense?

misty road

Many businesses purchase a business car, and for very good reason. By purchasing the semi-truck as a business expense, you can record your mileage and operating costs as business expenses. This can help you access some tax benefits.

Sure, you can still track your truck’s mileage and separate personal mileage from the mileage your trucking company racks up. However, it will be a lot easier to do this if the truck is a business expense.

Separating the truck financing as a business expense can also make it easier to manage your business’s finances and separate your business expenses from your personal expenses. If you finance the truck from your personal bank account and name, separating the truck as a business expense can get tricky.

However, whether you should purchase the truck as a business or personal expense comes down to your individual situation. Consider how your business is structured, and how you plan on financing the vehicle.

It’s best to speak to your tax practitioner about this to see how the cost of the vehicle can help you with taxes.

If you do purchase the vehicle under your business name, just be prepared for a different process. You’ll have to produce the right documents and ensure the vehicle is registered to the address on file with the Department of Revenue.

Should You Transfer Your Semi-Truck to Your Business?


If you already own a semi-truck as a personal asset, you might want to transfer it to your business. This often happens if someone starts as a sole proprietor and then registers their trucking company as an LLC later down the line.

If you do plan to transfer ownership of the vehicle, there are some important things to keep in mind. Most importantly, the cost.

If you want your vehicle in your business name, you’ll have to repay the taxes associated with the value of the vehicle. This is because you will have to resell the vehicle from yourself to your business.

Even if you only sell the semi-truck to your business for $1, there are still taxes involved. By transferring the vehicle, you’ll have to pay these taxes for a second time. This can be an annoying and significant expense.

Should You Buy or Lease Your Vehicle?

The question of whether to buy or lease your semi-truck is one of the first things to consider when acquiring a new vehicle. As always, both options come with their advantages and disadvantages.

The obvious advantage to leasing a truck is that it’s more affordable in the short to medium term. If you don’t have a large down payment to make on the vehicle, you can start to lease the semi-truck at a relatively low monthly cost.

Depending on the type of leasing agreement you enter, you may be able to take ownership of the truck at the end of the agreement. This could make leasing a vehicle financially viable.

hands writing

The other advantage is that there’s less risk involved because you don’t own the vehicle.

Buying a vehicle comes with the advantage of owning the semi-truck straight away. This means it’s your asset, and you can sell it if you want. You can also gain tax advantages from owning the vehicle more easily.

So, leasing may mean more affordable monthly payments, but buying gives you greater control over vehicle usage and mileage. As your semi-truck is the most important asset for your trucking company, buying the vehicle often makes the most sense. However, this does depend on your specific circumstances.

And then there’s the question of whether you should lease the vehicle in your business name or personal name. While leasing is different from purchasing outright, the same principles that we’ve covered above apply to this scenario. In summary, leasing it in your personal name has benefits, but leasing it in your business name is less risky!


Whether you should put your semi-truck in your personal or business name depends on your individual situation.

There are many factors involved, such as insurance, taxes, your business structure and accounting, employees, and how your vehicle is funded. There’s no right or wrong answer, it just comes down to what option offers the best advantages for your business and personal scenario.

Whatever the case, it’s always best to consult with professionals to help you purchase your semi-truck as efficiently as possible. If you have any questions about financing a semi-truck, consider approaching Mission Financial Services for top-tier assistance.

Your Top Guide: Financing Older Commercial Trucks

financing older commercial trucks

Looking to finance an older semi-truck? Financing older commercial trucks can be challenging, but it doesn’t have to be.

At Mission Financial Services, we understand the unique challenges of financing used commercial vehicles.

Let’s discuss why some seek to finance older commercial trucks, the disadvantages of financing older vehicles, and the steps you can take to finance these.

Everything You Need To Know About Used Semi-Truck Financing

In 2020, the North American used truck industry stood at a whopping 13 billion dollars. With so many older trucks on the market, financing older commercial trucks can take time and effort.

In this guide, we’ll walk you through what you need to know about used semi-truck financing so you can make an informed decision about your next truck purchase.

Why Do Some People Prefer Older Commercial Trucks?

Some truck drivers prefer financing older commercial trucks for various reasons. Some popular reasons for choosing an old rig could include any of the following:

  • Lower cost: Older commercial trucks are often less expensive, appealing to those on a limited budget or a first-time buyer. Lower prices also make it easier to get financing for the truck.
  • Simplicity and ease of maintenance: Older trucks typically have simpler mechanical systems and fewer complex electronic components than newer models, making them easier to maintain and repair.

big truck

  • Classic look and style: Some drivers appreciate older commercial trucks’ classic look and style! Yes, they have a nostalgic or vintage appeal. This can also set them apart from the more modern-looking fleet trucks on the road.

Disadvantages Of New Semi-Trucks

Another reason people prefer older trucks is that new trucks have a list of disadvantages. Some typical issues may include the following:

  • High cost: New semi-trucks can be very expensive, often costing several hundred thousand dollars. This high cost can make it difficult for owner-operators or smaller trucking companies to afford the upfront investment. Never mind the ongoing costs of maintenance, insurance, and fuel.
  • Depreciation: New semi-trucks can quickly lose value due to depreciation in the first few years of ownership. This can be a concern for those who plan to resell the truck. Depreciation can result in a significant financial loss.
  • Technological upgrades: Newer trucks often come with the latest technology upgrade. These can be costly to repair or replace if they break down. You can end up with increased maintenance costs. Some drivers may prefer simpler mechanical systems that are easier to repair and maintain.
  • Limited customization: New semi-trucks have limited customization options. They are mass-produced to meet industry standards and regulations. This can make it difficult for drivers to personalize their trucks to meet their needs and preferences.

It’s crucial to weigh the advantages and disadvantages of buying a new versus used semi-truck before deciding, as each option has its unique set of considerations.

cars on road

Why Do Some Companies Not Finance Older Trucks?

There are a few reasons why some companies don’t finance older trucks. One reason is that older trucks may not meet particular safety and environmental standards required by law.

For example, newer trucks may have better emissions controls and safety features that help prevent accidents and reduce their impact if an accident does occur. Financing older commercial trucks that do not meet these standards could result in legal and financial liabilities for the lender if the rig is involved in an accident or causes harm to the environment.

Borrowers must research their options and find a lender willing to work with them and their specific needs.

Securing Your Older Truck Loan in 5 Steps

It’s easy to finance older commercial trucks when you work with the right commercial fleet financing company, like Mission Financial Services. Here’s our easy 5-step truck financing process.

Step 1: Decide Between a Commercial Truck Lease or Loan

When securing financing for an older commercial truck, the first step is to decide whether to pursue a lease or a loan.

A commercial truck lease allows you to use the truck for a set period while making regular payments to the lender. At the end of the lease, you may have the option to purchase the rig, return it to the lender, or trade it in for a newer model.

On the other hand, a commercial truck loan involves borrowing a set amount of money to purchase the truck outright. You will then make a regular down payment to the lender, including principal and interest, until the loan is paid off.

Each option has pros and cons. The decision will depend on your specific needs and financial situation. Commercial truck leasing may be more attractive for those who want to avoid the upfront costs of purchasing a truck.

At the same time, a loan may be a better choice for those who wish to own the semi-truck outright and have more control over their vehicle.

Step 2: Understand Your Credit History

One of the most important factors lenders consider when evaluating a commercial truck loan is your credit history.

man in suit

Before you apply for financing, it’s essential to understand your credit history and score.

Your minimum credit score will determine the interest rate, loan terms, and the amount of funding you qualify for. A higher credit score will generally lead to better loan terms and a lower interest rate. On the other hand, a lower credit score can limit your options and may result in higher interest rates.

Even if you have poor credit, don’t worry. At Mission Financial Services, we understand that only some have perfect credit. We provide financing options to truck drivers and small trucking business owners, even if they have no or bad credit.

Step 3: Get Pre-Approval For Your Commercial Vehicle

Once you’ve decided whether to lease or buy your truck and understand your credit history, it’s time to get pre-approved for your commercial vehicle loan. This process involves submitting a loan application to a lender.

The lender will then review your application and determine if you qualify for financing. At Mission Financial Services, we make it easy for you to get pre-approved by offering an online credit application that you can fill out from your home or office.

Step 4: Choose Your Older Truck

When choosing a second-hand commercial vehicle, looking for a few key factors is essential to ensure you’re making a sound investment. Here are some things to consider:

  • Age and condition: While you may be looking for an older truck, you still want to ensure it’s in good condition and well-maintained. Inspect the vehicle thoroughly, checking for signs of wear and tear.

trucks in the sunlight

  • Mileage: High mileage can be an indicator of potential future repair costs. Make sure to factor in the mileage when considering the overall cost of the truck.
  • History: Check the truck’s history report to see if it has been involved in any accidents or has had any major repairs.
  • Purpose: Consider the truck’s intended use and ensure it meets the necessary specifications and requirements for the job.

Considering these factors, you can make an informed decision when choosing an older commercial truck that meets your needs and budget.

Step 5: Start The Financing Process

Once you have decided on the older truck you want to purchase and have received pre-approval, it’s time to start the used truck financing process. This step involves providing all necessary details about the vehicle to Mission Financial Services, including:

  • Make and model
  • Year
  • Mileage
  • Purchase price

Our team will then review the application and all related documentation, such as the truck’s title and registration, to ensure everything is in order. Once we’ve confirmed everything is in place, we’ll provide the funding necessary to purchase the older truck.

Work With A Commercial Truck Financing Company That Understands You

Financing a used semi-truck can be a wise investment for many owner-operators and small fleet owners. By following the five steps we outlined, you can get pre-approved for financing older commercial trucks, choose the right vehicles for your needs, and start the financing process with confidence.

And remember, Mission Financial Services is here to help. So why wait? Apply for financing and take the first step towards owning your used semi-truck.

Commercial Vehicle Loan Defaulter: What Now?

Commerical Vehicle Loan Defaulter

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.

signing contract

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!

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