How to Finance a Semi-Truck?

Almost in every developed country, trucking is considered the most convenient medium for transporting a bulk amount of products. Among the types of trucks, semi-truck is quite popular for a long journey. However, the semi-truck investment may create a burden for small business owners or a truck driver, and when you have a bad credit score. But don’t worry. There’re many ways to finance a semi-truck legally without much hassle.

Features of a perfect Semi-truck

A semi-truck is a small freight carrier, which is a combination of tractor units and semi-trailers. In big and developed countries, sometimes product delivery requires to complete a long journey, sometimes a week. In that case, a semi-truck is very useful. Here’re some features you need to know before purchasing a semi-truck:

• Weight Capacity

Basically the weight capacity determines the price of a semi-truck. There’re different levels of weight capacity available for different semi-trucks, and you have to choose based on your need and requirements. The capacity ranges from 3.5-4.6 liter (min) to 5000-10500 lbs. (max).

• Length

The length also varies among different models of semi-trucks. The size can be as much as 25 meters long, and you can use it as a flatbed towing vehicle as well. 

• Engine power

Surprisingly, the engine power of semi-trucks is more long-lasting than other heavy-duty vehicles. Starting from 400-600hp, the engine’s power can be up to 1000hp and capable of covering one-million km!

• Versatile applications

Semi-trucks are mainly used for towing vehicles, but it’s widely used for carrying freight as well! The versatile usage requires a versatile option. As a result, you can include a refrigerator on the truck as well, especially when carrying food or vegetable items. 

How to finance a semi-truck?

Determine qualification

First, you need to consider if you’ve the qualifications to get semi-truck financing. Some essential eligibilities are:

• Credit score
• Down Payment
• Age of truck
• CDL license time
• Truck mileage 

The qualification requirements vary for different loan providers. Although if you’re able to show the right combination of down payment and truck value, you’ll have an excellent opportunity to convince the loan provider. 

Collect Information

The loan provider will ask for various information to make the contract, and if you collect them at first, the overall process will become much faster. Some of the vital information you need to manage are:

• Bank statements (up to 1 year)
• Tax return paper
• Valid documentation of your business/profession
• Business balance sheet
• CDL
• Motor carrier number
• Required certifications

Not only the loan process, but also these things will make the truck purchasing faster as well.

Choose the truck

Now it’s time to find your perfect semi-truck. This step is very crucial as the truck has to meet your business requirements and be a suitable freight carrier. Otherwise, all your investments will go in vain. You can either go for a new truck or second hand, but make sure the truck isn’t too old, or it’ll be risky to put your investment there. Here’s what you need to consider:

• Mileage
• Weight capacity
• Truck serial number 
• Age
• Condition report 
• Authentic documents 

Get insurance

Insurance coverage is a must to get the financing, as there’s no guarantee for accidents. And no loan provider would take the risk. You can go for general liability coverage, primary liability coverage, cargo coverage, physical liability coverage, etc. 

Submit documents

Now it’s time for submitting the documents, and then you’ll be both legally and officially ready for getting semi-truck financing. All you’ve to wait for is the final approval, and then you can start for the business. 

Conclusion 

Getting financing for the business isn’t easy, and you’ve to measure every decision and risk. That’s why make sure you’re on the right way for both the semi-truck purchasing an authentic loan provider.