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Commercial Financing

commercial truck tire financing

How To Go About Commercial Truck Tire Financing

commercial truck tire financing

If you’re looking for commercial truck tire financing solutions, you’ve come to the right place!

We’ll show you how to finance commercial truck tires in different ways, step by step.

Whether you’re looking to buy new tires or get financing for repairs and maintenance, we’ve got you covered.

After reading this article, you’ll no longer have to miss work and lose your income due to truck tire issues (or any other commercial vehicle problems)!

Most of the semi-truck tire financing options below also cater to future repairs and maintenance needs.

How Long Do Truck Tires Last?

There is no direct answer to this question. It depends on various factors, including:

  • Terrain: Rough terrains lead to more friction, which wears out truck tires faster.
  • Weather conditions: Extreme weather conditions like summer affect the longevity of commercial truck tires.
  • Design and technology: Some tires have in-built features that make them last longer than others.
  • Driving habits: Some driving habits, like lead foot driving, wear out commercial truck tires faster than others.

Generally, experts estimate that most tires can last about three to five years if you put in around 12 000 to 15 000 miles annually. You might want to inspect your tires regularly if you cover more miles than this.

Frequent tire inspection helps you promote tire safety and prevent sudden tire failure. Your long trips become safer this way!

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Commercial Truck Tire Financing

Some of the most common commercial truck tire financing options include:

Commercial Truck Tire Credit Card

A commercial truck tire credit card comes with a direct line of credit. It helps with unexpected and routine tire fixes, repair services, and other bumps during long hauls.

Many truck drivers prefer this financing option because it makes life on the road easier. You can use the card with various service providers.

Having a dedicated line of credit creates financial security for your business. You can buy the right tires for your fleet whenever you need them. Some examples of tires you can buy with a credit line include farm tires, commercial tires, and industrial tires.

Commercial Vehicle Repair Loans

Commercial vehicle repair loans cover various vehicle repairs, tire problems included. This article about the most common truck problems explains what commercial vehicle repair loans cover.

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In some cases, you’ll need to fill in and submit three forms for the lender you choose to work with. Simply follow these three steps.

Step 1

Complete the credit application form by providing:

  • Contact information.
  • Income specifications.
  • Information on your past and present employers.
  • Information on any previous financing.

Step 2

Fill in a vehicle spec sheet to outline details about your vehicle. You must provide accurate info about your vehicle:

  • Model.
  • Make.
  • Vehicle identification number.
  • Engine.
  • Transmission type.
  • Mileage.

The information you provide at this step will help determine the best loan to match your needs.

Step 3

Complete a sales order indicating your vehicle’s selling price, including all the taxes and fees you paid to get it.

Once you complete all three steps, submit your application and await approval to get your loan!

Lease To Own Programs

Lease-to-own programs are exclusively for making purchases. These employ a buy now, pay later payment strategy. You must purchase the item on lease terms and make regular payments to pay for it.

You’ll own the item as soon as you finish paying for it. The payments can be weekly or monthly payments made directly from your bank account.

Most lease-to-own programs are straightforward. You only need to apply for commercial truck tire financing or leasing when buying tires before checkout.

The entire process involves five simple steps:

  • Search for your new tires from selected brands.
  • Add them to your shopping cart.
  • Choose the place of delivery.

Truck wheel

  • Apply for your tire financing or leasing option. The application process involves creating an account and completing a no-credit required lease application. You’ll receive a response within seconds so you can proceed to checkout.
  • Finish the buying process and wait for your delivery at the location you picked in step 3.

Is It Hard To Finance Truck Tires?

It doesn’t have to be! There are several solutions for financing commercial truck tires on credit. Most of them have simple payment options. You also enjoy various credit card benefits such as:

  • Promotional financing: Financing commercial tires gets cheaper with promotional financing. You may make a purchase and pay the purchase balance following a payment schedule within a certain period. Lenders defer the interest. If you’re late on your monthly payments, or fail to finish paying the purchase balance within the specified period, they charge interest from the purchase date.
  • Low monthly payments: Most lenders set minimum monthly payments, taking into account your budget and pay dates. So, you can benefit from their deferred interest arrangement.
  • Fast application process: Almost all lenders ensure the application process is simple and seamless. One great option is Mission Financial Services. This company offers several other alternatives to cover the cost of truck repairs.

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Final Thoughts

As we’ve seen, there are several commercial truck tire financing options.

Most of them are flexible. They’ll help you afford a range of repair and maintenance services to keep your business rolling.

Others, like the lease-to-own programs, are better for making purchases only. They make the process of buying tires hassle-free.

Always define your commercial truck tire financing needs first to select the best option!

Truck

Top 3 Best Commercial Truck Financing Reviews

Truck

 

Are you in the market for new commercial vehicles, but don’t want to make hasty financing decisions? If you’re looking for the best commercial truck financing reviews, this article is for you!

We’re going to discuss the top 3 commercial truck financing options. This way, you can make the best decision for your business. Let’s explore the pros and cons of each option, as well as expected application processes, rates, and customer service.

Whether you’re a small business owner or a fleet manager, we’ve got you covered. Sit back, and read on, to find the perfect financing solution for your commercial trucks.

3 Best Commercial Truck Financing Reviews For You

We’ve selected the top 3 options that you should consider in your financing journey. These key players were ranked using the criteria outlined below.

Here’s how we reviewed the best commercial truck financing companies:

  • Financing options: Not all truck finance companies offer the same financing options. Some only provide repair loans, while others offer direct loans. The more financing options, the better!
  • Application process: Nobody wants to sift through hours of paperwork. The easier the application process is, the easier it is for you to finance your fleet.
  • Rates: Lower rates are highly sought after. This means less cash out of your pocket when you have to repay your loan.
  • Customer service: Commercial fleet financing can be complicated and daunting. Having superb customer service helps ensure you get the loan you deserve.

If you intend on financing a semi truck, you’ll want it to be as comfortable as possible. Read these articles to make the most of your journeys:

1. Mission Financial Services

On the Road to FINANCIAL INDEPENDENCE

As the best option for overall commercial fleet financing, we have Mission Financial Services. This company is a well-known choice for semi-truck owner-operators, as well as fleet services, seeking commercial fleet financing.

Mission Financial Services aims to streamline the semi-truck financing process. When it comes to financing anything of commercial use other than construction equipment, this company is your best bet.

They also strive to help owner-operators finance new trucks, repairs, or upgrades. Although this company will assess your credit report, note that credit score is not a determining factor in approving your loan.

Financing Options

Mission Financial Services provides professional commercial vehicle financing. They offer a wide variety of commercial and semi-truck loans, including:

  • First-time buyer loans.
  • An approved lender for 1000’s of Dealerships nationwide
  • Private party purchases
  • Truck repair loans.
  • Operating Capital.
  • Lease Purchase Buy-Outs.

Application Process

The application process at Mission Financial Services is as seamless as it gets. There are a few steps you’ll need to take to complete your loan application. We’ve outlined these below:

  • Determine eligibility: As with any loan application, your eligibility will need to be assessed. Mission Financial Services will consider your overall credit report and down payment, as well as your truck’s age and how long you’ve had a commercial driver’s license.
  • Gather documentation: The necessary documents you’ll need include bank statements, a CDL, references, cell phone contracts, and proof of insurance. Having the required documentation will help to streamline your application process.

White paper silver pen

  • Apply: Lastly, submit your documentation to Mission Financial Services. If all is in order, your new truck will be right around the corner.

Rates

Mission Financial Service offers affordable industry rates. The rates largely depend on the type of truck loan that you need. Chat with one of the friendly representatives at Mission Financial Services to determine the specific rates you’ll be liable for.

Customer Service

Mission Financial Services is known for top-tier customer service. Many customers praise their speedy application process and enthusiastic administration team. This team helps truck owners and fleet managers navigate the application process and find semi-truck loans suitable for their needs.

Summary

Applying for a commercial truck loan with Mission Financial Services is a breeze. The online application process is quick and easy, and you can complete it from your home or office.

The friendly and knowledgeable customer service team has received high praise from past customers. This team has been able to consistently help customers find the right loan deals. There are several loan options available, which makes it easy for customers to find the best fit for their needs.

2. Calfund

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Next on our list of best commercial truck loan options is Calfund. Since 2002, Calfund has been a direct lender that provides titled equipment financing. They aim to help transportation industry customers and dealerships pursue new business opportunities through funding.

Financing Options

Whether you’re looking to acquire your first semi-truck or finance upgrades, consider looking at Calfund’s financing options.

Calfund will also assist with any maintenance or customization that could be necessar at a later stage. This financing option is available to even those with a C or D credit score. This makes it easier to receive a loan if your credit score isn’t the best.

Application Process

To apply for a semi-truck loan with Calfund, simply visit their website. All you need to apply for a quick, direct loan are key details about your vehicle and the down payment.

Rates

Since Calfund offers direct loans, their rates are higher than the industry standard. Some clients have found Calfund’s interest rates to be too high. With higher rates, fleet managers and truck owners take longer to repay loans.

Operator

Customer Service

Clients looking for a commercial truck loan have found Calfund’s customer service to be up to scratch. Customers can receive assistance through direct calls, emails, and an easy-to-navigate website. To reach Calfund, consider an immediate call. This seems to be the best way to get in touch with a friendly loan manager.

Summary

Calfund offers commercial truck loans to even those with subpar credit scores. This is a good opportunity for those looking to finance businesses that they may not be able to otherwise. Calfund’s application process is simple, and their customer service is accessible.

As Calfund is a direct lender, its rates tend to be higher than other companies in the industry. Higher rates mean that loans will take longer to repay.

3. Dakota Financial

 

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Dakota Financial is one of the oldest commercial truck financing companies around. They have over 20 years of experience in the industry and has served over 10 000 companies.

They offer great national funding programs to their clients, specifically those with prior bankruptcies, tax liens, judgments, repossessions, or slow pays.

Financing Options

This company offers commercial loans that range from smaller to relatively large amounts. Unlike bank truck loans, customers can be approved despite low credit scores. Dakota Financial’s options are geared to assist customers who have a past of bankruptcy, tax liens, or judgments.

Dakota Financial offers a custom loan solution for startups and companies with no credit record.

Application Process

This option does not offer a quick or easy online application process. Customers wishing to apply for a loan with Dakota Financial must contact the company via telephone or email to start the application process.

Customer Service

Dakota Financial has good customer service. Past customers have been happy with the capabilities of the team, and most have been satisfied with the level of assistance they received. This makes Dakota Financial a good option for individuals or companies who feel they will need extensive support.

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Summary

Dakota Financial has been in the truck-loan industry for many years. This company is a reliable, well-known fleet financing option. Their customer service is  accessible and helpful. However, if you’re looking for the easiest application process, note that you’ll need to jump through a few more hoops with Dakota Financial.

Applying online is quick and easy, while starting an application process over the phone or by email might be a bit more staggered.

Final Thoughts

We’ve discussed the best commercial truck financing reviews for you. Each of these companies is a key player in the industry and is sure to help you finance your semi truck dreams.

Whether you’ve got one truck, or a small fleet, a loan can help you take your business to new heights. If you’re eager to start the financing process today, follow this link. Mission Financial Services promises a range of financing options, easy application processes, competitive rates, and great customer service.

Used Truck Prices Continue to Skyrocket in 2021 – Here’s Why

The market for used trucks has hit one of its highest points in history—with no sign of slowing down.

ACT Research reported that in March the average used Class 8 truck brought the third-highest price on record, jumping to $52,388 per sale from $43,791 just a year before. The all-time high of $55,000 was recorded in 2015 and may be in jeopardy over the coming months and years. Technavio, a global technology research company, estimates that the used truck resale market will expand at a compound annual growth rate of more than 4% between now and 2025.

But what’s driving this growth, and why do experts believe it will continue for the immediate future? Let’s look deeper at this explosive growth in used truck prices.

A Shortage of New Trucks

The COVID-19 pandemic created shortages and delays throughout the supply chain, including the raw materials and parts needed to build new Class 8 trucks. Meanwhile, demand for new trucks continues to rise. FTR Transportation Intelligence reported that more than 42,800 new trucks were ordered in January, up 144% from the year before.

With more trucking companies looking to purchase vehicles and manufacturers unable to keep pace, the secondary market for used trucks has increased. There is hope, however, that as the pandemic fades away, the supplies needed to build new trucks will return to normal levels—but it may take some time for the price of used trucks to recover.

Strangely, it’s one of the smallest components that’s holding up production. A shortage in the semiconductor supply chain has reduced the availability of computer chips, which are used in both tractors and passenger vehicles. The average tractor can use anywhere between 15 to 35 chips, but pandemic-related slowdowns, two factory fires, and congested West Coast ports have greatly decreased availability.

While things like wiring harnesses, foundry parts, axles, or tires can be added after a truck is assembled, a lack of microchips can slow the entire assembly. These challenges combined with increases in new orders have created an unbalanced market.

As of March 1, the reported backlog of trucks ordered and waiting to be built stands at 228,000. At the current build rate, it would take almost a year to simply clear the backlog if no other orders were placed. Part of that problem is also staffing. The COVID-19 pandemic impacted the ability for manufacturing workers to be on-site, resulting in a labor shortage.

The Benefits of Used Trucks

Auction and retail prices for late-model, low-mileage used trucks, in particular sleep truckers, are up. These models are at their highest point since J.D. Power began tracking the segment in 2015. Used trucks tend to hold their value more than other vehicles as drivers must adhere to strict standards to stay on the road. A lot of truckers also invest in their vehicles, adding amenities once they own the truck—both to make it more comfortable while on the road and to increase potential resale value.

According to J.D. Power, the average sleeper tractor retailed in March was 68 months old and had approximately 458,000 miles on it. Its selling price of $57,489 cost almost 30% more than just one year ago. Due to new truck shortages, companies that traditionally cycled trucks out on a three-year or five-year cycle may hold on to them longer, further reducing the availability of used trucks.

High Demand + Low Supply = Pricey

The need to carry freight has remained strong, and trucking companies with staffed drivers on the road can start charging higher fees. Those extra funds could, in turn, be used to purchase more expensive vehicles if and when they become available.

Contract freight rates are near record levels, as are spot rates, after season adjustment. This has been exacerbated by people leveraging online ordering and delivery, along with the distribution of stimulus checks that provided many families with additional income.

That said, the trucking industry as a whole finds itself in an odd predicament. There is a strong need for drivers and trucks but not enough of both. Companies and owner/operators will have to decide if they want to invest in a newer used vehicle, make improvements to their existing ride, or get in line for a new truck now. With the end of the pandemic hopefully in sight, there is hope that the production of new trucks can increase in the coming months.

6 Tips for Financing a Food Truck During a Pandemic

6 Tips for Financing a Food Truck During a Pandemic What You Need to Know About Food Truck Financing

What You Need to Know About Food Truck Financing

The food truck industry grew steadily between 2014 and 2019 as these mobile restaurants became a trendy way to serve different cuisines to a hungry clientele. In fact, the industry grew 6.8% year over year during that time, peaking at more than $1 billion.

Then the COVID-19 pandemic hit.

Like many industries, food trucks were hit hard by the impact of the coronavirus. While food trucks could continue to operate during the pandemic, the customers they relied on to stay afloat disappeared, especially in urban areas. 

Food trucks have long benefitted from parking in downtown metropolitan areas, feeding lunch to the masses of office workers. With more employees working remotely from home, the lunch crowd vanished. So did the demand for food trucks to attend large gatherings or other well-attended social events, forcing many to close their doors.

The Coming Food Truck Resurgence

Hopefully, for food truck owners the worst is now in the past. With states lifting restrictions and more people returning to normal life, the opportunities that originally spurred massive growth will soon return. Entrepreneurs interested in starting a food truck—or those who stopped during the heart of the pandemic—will soon want to re-enter the market.

Many, however, will require financing, both for the truck itself and equipment used inside. Here are a few things to consider when shopping for food truck financing.

1) Choose a commercial vehicle lender.

Food truck financing can be a little different than getting a loan for another small business. If you have good credit, you should be able to get a loan—but instead of approaching a bank, find lenders that specifically offer vehicle loans. Some companies even offer vehicle financing tailored for food trucks. As with other loans, food truck owners will need to make a down payment, put down some collateral, or include a co-signer.

2) Plan to purchase a truck in good condition. 

It may be tempting to buy a fixer-upper, but many companies will not provide commercial vehicle financing if the truck is not a worthy investment. Plus, there is nothing more frustrating than losing potential income from a lengthy breakdown. It may be worth it to pay a little extra for a reliable vehicle.

3) Consider a business credit.

A business credit card or business line of credit may be required. It can be difficult to start any business, and some creditors may want more information or a history of success in the food business before offering a loan. If you are starting new, it may be difficult to get a traditional loan. You may need to use business credit until you prove your business acumen to a larger lender. If that’s the case, food truck owners will need a good credit score and may have to offer personal collateral.

4) Don’t forget about equipment loans. 

Of course, food trucks require more than just the truck. They house special equipment, like a stovetop or a deep fryer, to cook food on demand; they also need refrigeration to keep ingredients safe. Equipment loans typically use the cooking items you are leasing as collateral, so if you default on a payment they will be taken away.

5) Leverage an SBA microloan. 

Perfect for food trucks, the US Small Business Administration’s Microloan Program provides up to $50,000 to borrowers. Borrowers can use these funds to purchase supplies, equipment, and food inventory. These can be an excellent way to get a food truck off the ground once the vehicle has been acquired.

6) Explore other ways to finance your food truck. 

Crowdfunding can be a viable method as well. Think Kickstarter or GoFundMe. Food trucks have boomed during the time of social media with trucks using Twitter, Facebook, and Instagram to announce their location, share pictures of what people are eating, and even release special deals. Food truck owners can get creative, offering loyal customers a small cut of the profits or a special per—five free meals per month, for example—in exchange for an investment.

The Bottom Line

The COVID-19 pandemic has brought great uncertainty to the food and beverage world, but it’s also time to rethink how things are done. Food trucks have proved to be a solid business for those who can make delicious food and find a market to sell it to. There are multiple ways to finance a food truck, so if you have the desire to get started, you can find several paths to lead you to your dream.

5 Common Tax Myths Debunked

5 Common Tax Myths Debunked

Tax season is here, bringing the usual avalanche of tax-related questions. While truck drivers do not need to be experts in the tax code, certain tips and tricks can make this time of year a little less painful—both for your wallet and your mental health. Let’s look at five common tax myths truckers need to know.

Myth 1: April 15, 2021, is the deadline to file. 

Usually, April 15 is the deadline for tax returns to be postmarked to the Internal Revenue Service without facing a possible fine, but that has changed this year. Filers now have until May 17, 2021. Better yet, there is no requirement to be granted the extension; it is immediately given to everyone. Truckers who currently feel rushed to finish their returns—or are figuring out when they will put them together between long trips—have a little bit of extra time. The April 15 deadline is scheduled to return in 2022.

Myth 2: Owner/operators do not need to pay quarterly taxes. 

This is a big misnomer that gets many independent contractors in trouble, regardless of industry. Owner/operators work as their own business and as such must manage their tax payments to the federal and state governments (this is compared to a traditional employee who will have taxes withheld). Owner/operators need to set aside money each quarter—think about 25% of income after deductible expenses—and pay it to the government.

Failing to make these payments can result in penalties but owner/operators also have to make sure not to pay too much. While the federal government will give you a return, an overpayment is akin to giving the government a free loan of any earned income that could be spent, saved, or invested. It may take some practice, but owner/operators need to be cognizant of their income, what existing taxable deductions they can take, and keep track throughout the year for an accurate total.

Myth 3: Truckers need to keep receipts for every meal they eat.

Over-the-road truckers can spend weeks on end without ever going to their permanent home. As a result, they can benefit from the per diem food benefit allowed through the IRS. Truckers with work that takes them away from home overnight are allowed to charge the government on the IRS Schedule C form. This directly reduces self-employment taxes and does not need to be itemized. As long as a trucker eats below $60 to $70 on food each day, they will make that money—and more—back with taxes. 

Myth 4: You can deduct deadhead mileage and days off for illness. 

Sadly, this one is not true. Owner/operators can only deduct actual expenses while working on the profit being made. Things like time off and deadhead miles cannot be deducted. However, some things that truckers occasionally overlook can be. Truckers who travel with a dog can write the dog off as a security expense if the dog is always with the truck. Permits and license fees can also be deducted along with accounting services, repairs, and interest paid on business loans. There are lots of valuable deductions if you know where to look.

Myth 5: More deductions increase your chance of an audit. 

The IRS will closely look at your returns but there is no guarantee you will face an audit. It is best to be honest with all your deductions and only use the ones that pertain to your situation. The IRS knows how to spot potentially fraudulent deductions, so be honest and upfront. 

Take the time to understand the deductions you take and keep detailed records where possible. These records can prove invaluable, ensuring first that you get all the deductions owed but also holding up to the scrutiny of an audit. Owner/operators must face a lot of difficult tax issues to run their business. It may be beneficial to hire a professional or take a course to fully understand how to manage your tax situation. While the IRS does not want to charge penalties and conduct audits, they also want to ensure every person pays their properly owed amount.

Buying vs. Leasing a Semi-Truck: An Owner Operator’s Guide

Owner/operators are in the position to make important business decisions that impact their future success. Your semi-truck can either be the means to your financial gains or a detriment—which direction you go depends on the choices you make around your truck. When it comes to buying versus leasing, there’s not a clear-cut answer. Your unique situation and goals play a large part in your decision to buy or lease a semi-truck. Ultimately, it comes down to the type of truck you want and how you prefer to spend your money. 

Buying a Semi-Truck as an Owner/Operator

The average price of a new or newer truck is well over $100,000. Do you have the capital to make this purchase? If not, take a look at financing. Either way, you’ll start to accrue equity. The purchase can also be used as a tax write-off; talk to an accountant or tax professional before you make the purchase to understand all the tax considerations. Additionally, you’ll save money on insurance as rates are often cheaper than those for leased vehicles. If you have good credit and the truck is not terribly expensive, you may not have to make a down payment, depending on the company issuing the loan.  

With a new truck, you’ll also get the latest in mechanical technology. This may mean saving money on operating costs and fuel, as many are more energy-efficient than older models. It’ll also come with a factory warranty which covers service issues and any problems that come up during the warranty period. 

If you want to purchase, but a $100,000-plus price tag is outside of your investment range, you can buy a used truck for as low as $15,000. Keep in mind that you may end up paying to keep it up and running. 

Leasing a Semi-Truck as an Owner/Operator


If you’re not able to buy your truck or you want to limit your financial risks, leasing may be the best option. A lease contract usually lasts anywhere from three to five years. Once your agreement is over, you’ll return the truck, and you can start another lease on a new truck. If you choose to break your lease before it ends, you’ll pay a penalty; the amount of the penalty is a lump sign that’s stated in the contract. 

Make sure you read the fine print on your lease agreement. Often, there are rules and requirements you must follow while you have the truck. Like a personal vehicle, you may have a limit on your mileage. When you turn the truck in at the end of the lease, you’ll have to pay for each mile you go over it. 

Lease Types

There are two types of lease: conventional or lease-to-own. With either, you don’t need to put down a large amount of money upfront. Oftentimes, you don’t need good credit; some leases don’t even require a credit check.  

A conventional lease has a set period of time in which you make monthly payments. You’ll have the freedom to walk away from your truck when your contract is over. Another benefit is gaining insight into the real-life costs of owning a truck without some of the hassles. Many conventional leases come with a servicing agreement for any maintenance or service needs that the vehicle needs during the extent of the contract. 

A lease-to-own agreement means you have the option to purchase the semi-truck at the end of the agreement. There will be a buy-out price set in the contract which may be negotiated before you sign the lease. With this type of lease, you’ll need to haul enough merchandise or goods to pay the monthly payment. If you don’t, the leasing company can repossess your truck.

What Should I do?

Commitment is the biggest difference between the two options to purchase or lease a semi-truck. A conventional lease can be a short-term commitment that may provide the freedom to walk away from your truck. Though you’ll spend less money upfront, you won’t build any equity. Overall, you may pay more money than if you were to buy it outright. Insurance is typically higher on a leased semi-truck than one that you’ve purchased. You also can’t make it your own by modifying or updating it the way you would if you owned it. 

Buying or leasing a semi-truck is ultimately a financial endeavor. But it doesn’t end there; it also comes down to your goals and long-term vision for yourself as an owner/operator.

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