Our free commercial truck finance calculator will help save you time and frustration because you’ll have all the estimated numbers in advance of purchasing your new or used commercial truck or commercial trailer. The numbers calculated here apply to commercial trucks, trailers, box trucks, tractor-trailers, day cabs, vocational trucks, dump trucks, flatbed trailers and more!
FedEx Contractors also find this calculator handy, as do fleet dealers, commercial truck dealers, and individuals seeking a loan or lease on any commercial vehicle.
Note that all of the commercial truck financing calculator fields are optional, so the more information you enter, the more accurate the estimate will be.
Commercial Truck Financing Basics
Running a commercial truck business can sometimes be challenging due to expensive assets. Because commercial truck financing rates can be high, this industry is often considered risky. Some trucking financing companies are even hesitant or unwilling to offer semi truck loans and other types of 18 wheeler financing.
Usually, large banks, truck financing companies, and alternative lenders offer commercial and semi truck loans. Smaller regional banks may be more hesitant when it comes to semi truck financing. Here are a few options to consider when it comes to commercial truck financing:
Large National Banks
Large national banks are often more willing to provide semi truck financing than smaller chains and regional companies. Thanks to their resources, large national banks offer the lowest commercial truck financing rates and longest terms of any lender. However, remember that only the most qualified applicants can get the loan. If your semi truck business has a bad financing credit or low revenues, your chances of getting a loan are slim.
Commercial and Semi Truck Financing Companies
Some trucking financing companies specialize in providing funding for equipment, while some of them are dedicated strictly to commercial truck financing. One of the best things about these lenders is their knowledge. Thanks to their broad experience, trucking businesses can find the best deals on the market. On the other hand, the commercial truck financing companies also have requirements that some startups or business owners with bad credit aren’t able to meet.
Alternative Trucking Financing Companies
Online lenders are famous for providing fast and safe access to commercial truck loans. These financing companies extend funding opportunities to business owners who are not able to meet the requirements of banks. In this case, your commercial financing rate will be higher and your commercial loan will probably have shorter repayment terms. If you are looking for commercial or semi truck financing with bad credit, this is one of the best available options you can find for your trucking business.
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Commercial Truck Financing FAQs
How Can I Find the Best Commercial Truck Financing?
To make the most of your big truck financing, you should consult insurance professionals and find the right coverage for your specific needs.
What Documents Do I Need for Commercial Truck Financing?
While every trucking financing company has its own requirements, having these documents ready will expedite the financing process:
- Documents showing your business is registered
- Business tax returns (up to three years)
- Current and past bank statements (up to twelve months)
- Current business balance sheet
- Motor carrier number
- United States Department of Transportations (USDOT) number
How Many Years Can You Finance a Semi Truck?
Many factors determine how long you can finance a semi truck, including the kind of term you prefer and the type of monthly payment you can afford. Usually, semi truck financing programs range from 12-72 months.
How to Calculate Financing a Semi Truck With Bad Credit?
When it comes to calculating financing semi trucks with bad credit applying for financing, getting approved depends on the credit score and a few additional factors that determine their eligibility.
What Affects My Credit Score?
There are a few factors that have an impact on getting financing for your 18 wheeler. These factors include:
- Payment history
- Credit utilization rate
- Amount of credit accounts
- Total Debt Owed
- Bankruptcies and public records
Understanding Your Truck Credit Score
It is important to understand the role of your credit score before applying for any loan. Your credit score will qualify you for funding and set your credit terms and conditions. A higher credit score means a safer risk, and it typically leads to lower interest rates and more favorable lending terms. On the other hand, lower credit scores indicate a higher risk for candidates, which may result in the refusal to lend or even higher interest rates.
And just like you can use a truck loan calculator to estimate your commercial truck financing, you can calculate credit scores using data such as:
- Personal Information: legal name, birth date, employment history, social security number
- Credit Information: Bank accounts, outstanding loans, payment histories, credit card balances
- Public Information: Bankruptcies, tax liens
- Credit Inquiries: A log of those who have requested and obtained copies of your credit report.
Choosing the Right Truck for You
Now that you know the basics of how a commercial truck loan calculator works, it would also be useful to learn more about the best ways to choose the best truck for your needs.
Not so long ago, all pick-ups were the same, aside from some subtle cosmetic variations. Today, there are so many different options, it can get a bit overwhelming. To help you, here are four basic categories to consider:
Due to their lighter weight and smaller engines, compact models are the most fuel efficient. These pick-ups are a smart choice for everyday or recreational use. However, when it comes to heavier tasks, they might not be the best option. An average compact model has a towing capacity of 2000 to 5000 pounds, while the average payload is between 1000 and 1500 pounds.
Mid-size pick-ups usually offer more space for passengers, including a smaller bed. This type of pick-up has become very popular over the years, mostly as secondary, family vehicles. Because of that, manufacturers have made them extremely stylish and functional, which makes the line between a truck and SUV almost invisible. Like compact models, mid-size pick-ups are not suitable for heavy duty tasks.
Also known as half-tons, full-size trucks are designed to handle heavy tasks. These trucks can carry loads up to 2000 pounds, while their towing capacity goes up to 10,000 pounds. Full-size trucks are usually fuel efficient and can be used as work trucks and as recreational vehicles.
Heavy Duty Pick-Ups
Heavy duty pick-ups can tow more than 15,000 pounds and carry payloads in excess of 5,000 pounds. These high performance vehicles are designed to work under all kinds of conditions and handle the heaviest work tasks. That said, their fuel efficiency is sacrificed for additional power and performance, although most models also offer a diesel option to help compensate.
If you found this article helpful, make sure you read more about the best ways to insure your commercial vehicles!