Financing a Truck and Trailer | Episode 6
The last episode was a fun one. This episode might not be so fun but will hopefully help you reduce/avoid some headaches that come along with trying to finance a truck or trailer. It is rare to make it through the loan process without at least a few bumps along the way, so buckle up!
What to Expect From Episode 6
In this episode we talk about the different types of lenders and some of the things they look for. We also give you some tips to help give you the greatest chance of success. It all really boils down to finding the right lender who best matches up with your particular situation. You may be a square peg, and some lenders might be a round hole. You won’t get anywhere trying to get your square peg into their round hole. Look for that lender that loves square pegs, and you will have found your match.
Once you have found your lender, be prepared for the following:
- You will have to fill out an application with each lender you get serious with.
- You will probably have to put down a 10-20% down payment.
- You are going to have to provide the lender a bunch of info. (See the list below.)
- After you think you have given them everything but the kitchen sink, they are going to come back and ask for the kitchen sink. Then, they might even come back again and ask for the bathroom sink.
Good luck!! If you have any questions about the process or if you have found a trick we didn’t talk about, let us know in the comments below.
The Most Common Things Lenders Ask for When You Apply
Here is a list of the most common things lenders will make you provide them when you apply for a loan:
- A loan application. They will ask for your Social Security Number, and I’ve never been able to get away without providing it.
- A couple years of tax returns. If you have owned a business in the past, they will probably ask for business tax returns, but they will definitely ask for your personal tax returns.
- Bank statements.
- A Personal Financial Statement (PFS). Most PFSs have you list your income and where it comes from, how many assets you have, and what debt you have.
- A copy of your CDL and/or proof showing you have driven a commercial vehicle.
FYI, with a working APU, you’re allowed 34500 on your drives, but can not exceed 80,000lbs over all gross, which may have solved your fuel issue.
Thanks Doyle, I had heard that, but when I called the port they said no. I wonder if the person I talked to just did not know what they are talking about or if it is a state by state thing whether they will allow that exemption. Thanks for the comment, next time maybe I’ll push the issue a little bit. -Chris
Hey Guys ,Love the podcast!! Missing the road and wanting to get back on it . Thanks for all the info and experience your sharing .Sounds like a really good blue print to success .
Thanks Jeff, glad you like it and hope it helps you out in some way. -Chris
Just started running loads at the same time this podcast was released. Great information and guidance as we start this trucking journey. Will there be an episode on pros and cons of leasing trucks?
Glad you find the info good and good luck with your business. I hope you make lots of money and enjoy the journey.
I would Like more info on the Truck Leasing Aspects as well. It is a huge thing now you see everywhere in the industry.
It’s going to be a bit, but that is going to be a future episode.
[…] Haulin Assets has a few episodes that can help. Episode five is all about purchasing a truck and episode six covers how to finance […]
Iv been Trucking since 2007 have a perfect record and over a million miles under my belt pulling almost every configuration there is. It was my career goal when I started to own my own someday. Iv searches and read everything I could find about ins and outs…. your information by far is the best and most informative! I’m getting closer to pulling the ownership trigger. I have 800 credit score, low debt, but still have no idea where I will find the money to buy a truck and have the upfront money to cover the first month. Thanks for… Read more »
Cory, you are a prepared man with a plan. That is how you do it. I have now doubt you will do well once you are ready.
Hello. Finding your podcasts very informative. Do you think making a business plan would be helpful in getting finances or a waste of time?
Marcell, glad you are finding the podcast helpful. This is a great question and putting together a good business plan takes a lot of work, and to be quite honest, is not the most exciting task in the world. With that being said. I think it is very helpful in running your business and is often a difference making in getting a loan or not. Many people go to bankers asking for money without a plan. Having a good business plan that is well thought out will set you apart. Bankers give loans to people they are confident will pay… Read more »
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