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If you’re looking for a second-hand commercial vehicle loan, you’ve come to the right place.

This article explains everything you need to know about second-hand commercial vehicle loans. You’ll learn what they are, and their advantages and disadvantages.

We’ll also show you how to obtain a second-hand commercial vehicle loan step-by-step from one of the best lenders in the market today.

You should be able to get a commercial vehicle loan that works well for you once you finish reading this article!

Second-Hand Comercial Vehicle Loan Explained

Second-hand commercial vehicle loans are a commercial vehicle financing option for purchasing pre-owned commercial vehicles for business purposes.

They are also known as used car loans or old commercial vehicle loans and cover almost all models of commercial vehicles.

Some vehicles that qualify for these loans include light trucks, utility vehicles, heavy commercial trucks, or other specialty vehicles regarded as commercial vehicles.

How Second-Hand Commercial Vehicle Loans Work

Used vehicle business loans work the same way as regular car loans for new vehicles. They make a commercial vehicle purchase more affordable by splitting the cost of the vehicle into monthly payments.

You receive the money you need to purchase a second-hand commercial vehicle in a lump sum. Then repay the amount in regular monthly payments over a specific time.

The lender becomes a lienholder on your commercial vehicle throughout the loan repayment period. They may repossess the vehicle if you fail to pay back the loan.

Generally, the lending rates and loan terms can vary based on your eligibility, vehicle value, and any discounts offered by various dealers or manufacturers.

You can get almost 90% funding on a used vehicle’s value at an interest rate of 5% and 30%. Also, the repayment terms are flexible and manageable. The entire amount you’ll pay back on your loan and your monthly payments depends on three major factors:

• The loan amount: The funds you’ll get as a loan.
• The annual percentage rates (APR): The effective interest rates various financial institutions offer.
• The loan term: The duration you have to repay the loan. It varies from lender to lender and could last up to 60 months.

These types of business loans are popular within the trucking industry. They are the go-to commercial vehicle financing option most owner-operators use to purchase commercial trucks and expand their companies.

Commercial auto loans are also one of the best vehicle financing options for truckers ready to start their commercial trucking companies. You can purchase almost-new or used vehicles to begin your business without breaking the bank.

Other customer segments that can get commercial car loans include:

• First-time users and buyers.
• Public limited and private limited companies.
• Partnership and proprietorship firms.
• Trusts and societies.

Eligibility Criteria For Second Hand Commercial Vehicle Loan

The minimum eligibility criteria for a commercial auto loan focus on four main factors:

• Your overall credit: Good credit will help you get a high commercial auto loan amount at better rates and more flexible loan terms. However, you can still get a business auto loan if you have bad credit. Often, you’ll have to use alternative lenders for commercial vehicle financing arrangements tailored to your situation. You’ll get a better deal this way compared to using a regular bank. Many lenders, like Mission Financial Services, have loan vehicle financing solutions for people with bad credit scores.
• Age of truck: The age of the used business vehicle will determine the loan amount you can get.
• Down payment: Some lenders require you to make a down payment based on the current purchase price of the used business vehicle you wish to get.
• The time you’ve had your CDL: Your time with your Commercial Driver’s License (CDL) determines your eligibility for a commercial auto loan.

Required Documents

You must provide several documents to prove that you meet all the minimum qualifications for getting a business auto loan. Different vehicle and equipment financing companies may request different papers from their customers.

Some second-hand commercial vehicle loan documentation you must provide include:

• Know Your Customer (KYC) documents: These include government-issued photo identity cards and utility bills to show proof of identity and residence.
• Proof of experience: This can be your current CDL or valid evidence to show relevant experience in the trucking industry if you’re a first-time buyer.
• Proof of income: You may need to provide your salary slips or bank statements and tax returns as evidence of your income and personal credit situation.
• Proof of insurance.

Once you confirm your eligibility and have all the documentation ready, you can start the application process for a business auto loan online.

How to Get A Second-Hand Commercial Vehicle Loan

There are a few steps you need to follow to get a used car loan. Let’s discuss these.

Step 1: Find Your Truck

Perform extensive research to find the truck that’ll meet all your business needs.

Ensure it can haul all the goods of your business. Also, consider its condition relative to its age. You don’t want to get a vehicle in bad condition because you may have to deal with truck problems and repairs. It might be costly for you in the long run.

Very old vehicles might lack the latest technology for maximum comfort and safety. Another factor to consider is the vehicle’s depreciation value. Remember, the vehicle will continue to depreciate throughout the loan period.

You don’t want to end up with a completely outdated vehicle after you finish repaying the loan. This is often the main drawback of getting a car loan for commercial purposes.

Step 2: Select The Seller

You can get second-hand commercial vehicles from franchised pre-owned dealers, small-scale used car brokers, and individuals. Be careful to select a legit seller who’ll provide valid documentation you use to verify the vehicle’s details for your loan application.

Step 3: Inspect The Car

Once you’ve found the truck you’d like to purchase and a seller, inspect the car thoroughly to ensure it’s in good condition. Specifically, check to confirm that the engine works properly as engine-related issues are costly.

Confirm the mileage, as some auto loan lenders have mileage restrictions and mileage limits for the vehicles they finance.

After you are sure that the vehicle is in good condition and works well, negotiate the price. Ask the seller for a written quote on your truck’s purchase.

Ensure the quote includes the vehicle’s price of purchase and the following information:

• Title and vehicle registration
• Guarantee of title
• Photos of the vehicle

Step 4: Choose Your Lender

You want to find a lender with the best interest rates and flexible terms for your new investment. In this case, you might benefit more from financing options like Mission Financials Services instead of regular banks.

This is because they consider your situation and will offer you better rates.

Many auto lenders also allow customers to make monthly payments through various online channels. This makes the process more accessible.

Step 5: Gather All The Documents You Need and Apply

Once you’ve identified your preferred lender, check the documents they require and apply for the truck loan.

The application process is straightforward for most lenders. With Mission Financial Services, all you have to do is visit the credit application page. Click the get pre-approved button, complete the form by following the instructions, and submit your application.

How Long Will It Take To Get A Loan?

The standard loan approval process for a second-hand commercial vehicle loan is quick. For most lenders, it takes about two to five working days after the relevant documentation has been submitted. This is why customers prefer commercial vehicle loans to other vehicle financing options.

Other benefits of these loans include:

• Multiple vehicle financing: You can get loans for various types of vehicles like commercial passenger cars and vans.
• Flexible repayment tenure
• No minimum credit requirement
• Excellent customer care and support

Final Thoughts

Getting an auto loan for your business is a good investment. You’ll have the funds to grow your business without the pressure of repaying the loan fast.

All the information we’ve shared in this article should help you get the perfect second-hand vehicle loan. If you have any questions, contact us today. We’ll help you understand your loan options and find the best loan to meet your needs!

 

Are you a veteran looking to start your own business? Have you considered the booming semi-truck industry? With commercial truck loans for veterans, you can realize your entrepreneurial dreams.

In this guide, we’ll explore why veterans should consider a trucking business, how Mission Financial Services can help secure business loans, and the easy steps to apply for a commercial truck loan.

Why Should Veterans Consider A Semi-Truck Venture?

There are many reasons a veteran should consider becoming a small business owner. From management and daily operations, it offers veterans unique challenges that they can tackle. Here are some more reasons why veteran entrepreneurs will love managing a successful business in trucking.

Independence and Flexibility

For many veterans, transitioning back to civilian life or the business world can be challenging. Starting a semi-truck small business can provide a sense of independence and flexibility. You control your schedule, routes, and load types as an owner-operator. You can also earn a higher income than in a traditional job. For veterans who value autonomy and self-sufficiency, owning a semi-truck business can be a great fit!

High Demand

The transportation industry is essential to the economy, and the demand for trucking services is always high. As the economy grows and consumer demand increases, so does the need for goods to be transported.

This creates steady work for semi-truck owners, allowing them to build successful businesses.

With many experienced truck drivers retiring, qualified drivers are still scarce.

As a veteran with experience driving large vehicles, you have an advantage in the trucking industry. You can leverage your skills to grow your small business.

Business Ownership

Starting a veteran owned business allows you to take control of their financial future by becoming their own boss. As veteran business owners, veterans can set schedules, make decisions, and be free to pursue their passions. They can choose their routes and clients, and work on their terms, making it a rewarding and fulfilling experience.

Additionally, owning a business allows veterans to build their legacy and create a company that can be passed down to future generations. This can provide a sense of pride and accomplishment that is hard to find in many careers. By starting a semi-truck business, veterans can significantly impact their own lives and the lives of their loved ones.

Commercial Truck Loans For Veterans With Mission Financial

At Mission Financial Services, we understand the unique needs of veterans entering the trucking industry. Unlike getting a bank truck loan, we offer flexible semi-truck financing options for small business owners with bad or no credit scores. Our team of experts will guide you through the entire business loan process, making it as easy as possible.

Semi-Truck Loan Process (4 Easy Steps To Success)

Securing commercial truck loans for veterans is straightforward. Here are the 4 steps to quickly obtain commercial truck financing for new veteran small business owners:

1. Pre-qualification

Pre-qualification is the first step in securing your first capital business finance loan for veterans with Mission Financial Services. The process is quick and easy and can be done online from the comfort of your home.

To get started, you only need to submit an online credit application with basic personal and business information. This information will determine your eligibility for a loan and give you a better understanding of what kind of small business loan terms you can expect.

The commercial truck financing application will ask for basic details, including your name, address, phone number, email address, and date of birth. Additionally, you’ll be asked to provide information about your business, such as your business name, business structure, and the type of truck you are interested in financing.

At Mission Financial Services, we understand that the pre-qualification process can be intimidating, especially if you have never applied for business loans before. That’s why we have a team of experienced semi-truck financing specialists available to help you through the small business loan process.

2. Loan Options

At Mission Financial Services, we understand that each veteran’s situation is unique. We offer various commercial truck loans tailored to your needs and budget.

Once you’ve completed the pre-qualification process, our experienced loan officers will review your application and match you with the business loan options that best suit your situation.

We offer semi-truck financing with competitive interest rates, flexible payment terms, and no prepayment penalties. Our small business loans and equipment financing include both new and used semi-truck financing, as well as commercial fleet financing.

Whether you’re looking for short-term or long-term semi-truck financing, our team can help you find the perfect financing solution for veteran business owners.

3. Approval

After pre-qualification, you’ll receive a small business loan that meets your business needs and budget. Once you select the option that works best for you, the next step is approval.

At this stage, Mission Financial Services will verify your business and personal information and the semi-truck or trailer you’re looking to finance. They’ll also check your personal credit score and business history to determine your eligibility for the loan amount.

If approved, you’ll be asked to provide any additional required documentation, such as your driver’s license, proof of insurance, and proof of income. Mission Financial’s loan specialists will guide you through the truck loan process and make it as easy as possible.

Once you’ve provided all the necessary documentation, you’ll sign the loan agreement. Congratulations, you’re one step closer to starting your own semi-truck business!

4. Funding

After completing the business loan approval process, you’ll be well on your way to starting your semi-truck business! Once everything is finalized, the loan amount will be paid into your bank account, allowing you to purchase the commercial trucks you need to start your own business.

From there, it’s up to you to put in the hard work and dedication required to make your own business a success. Remember to develop a business plan and to track business expenses and cash flow. You can also go for business training such as veterans business development or small business administration to ensure your business continues to succeed.

Final Thoughts

Congratulations! You can now start your own small business with the help of Mission Financial Services. Take the first step towards your entrepreneurial journey and apply for a truck loan today.

Contact us to learn more about our small business loans and how we can help make your small business dreams a reality.

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

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

Semi-Truck Financing Requirements

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

Down Payment

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

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

Time In Business

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

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

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

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

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

Commercial Driver’s License

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

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

Lease Or Purchase

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

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

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

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

Semi-Truck Information

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

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

Truck History

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

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

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

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

What Isn’t Required To Finance A Semi Truck?

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

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

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

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

Can You Finance A Semi Truck With Bad Credit?

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

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

How To Finance A Semi Truck With Bad Credit

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

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

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

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

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

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

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

Final Thoughts

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

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

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

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

How To Become A Semi Truck Driver

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

Step 1: Determine Your Eligibility

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

Age

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

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

Regular Driver’s License

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

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

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

Clean Driving Record

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

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

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

High School Education

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

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

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

Drug And Alcohol Tests

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

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

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

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

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

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

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

Step 2: Attend A Professional Truck Driving Program

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

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

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

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

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

Private Schools

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

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

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

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

Community College Training Programs

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

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

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

Paid CDL Training Program

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

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

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

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

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

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

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

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

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

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

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

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

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

How To Get A CDL

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

Submit Your CDL application

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

Pass Various Tests

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

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

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

Ace Your Road Test

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

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

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

Double Check CDL Requirements

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

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

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

Step 4: Get Hired

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

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

Step 5: Complete Employee Training And Orientation

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

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

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

How To Get Your Own Semi Truck

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

Small Business Administration (SBA) loans

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

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

To apply for an SBA loan:

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

Company lenders

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

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

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

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

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

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

Final Thoughts

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

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

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

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

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

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

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

Credit Score Needed To Buy A Semi Truck

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

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

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

Understanding FICO Scores

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

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

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

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

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

Semi Truck Financing With Bad Credit

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

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

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

1. Complete The Credit Application

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

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

2. Provide A Spec Sheet

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

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

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

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

3. Secure A Purchase Order

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

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

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

Other Factors Influencing Semi-Truck Loans

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

1. Driving Experience

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

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

2. Annual Revenue Stream

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

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

3. Different Types Of Credit

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

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

4. Co-signer

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

5. Down Payment

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

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

Final Thoughts

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

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

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