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Where to Obtain 18 Wheeler Financing

   Tuesday, 26 December 2017 11:55 PBC Blog

Where to Obtain 18 Wheeler Financing

When we talk about 18 wheeler financing, there are a large number of businesses around the globe who are dependent on it. The primary reason is that the costs involved in acquiring a semi truck – is nearly tens of thousands of dollars. Thus, truckers are constantly looking for options that can fund them to make purchases. It is critical to acquire and maintain the best equipment if you want to stay ahead of the curve in this modern trucking industry.


The number of 18 wheelers being used around the world for various operations, such as making deliveries of equipment and so on, is increasing at a rampant pace. There are many loan and lending options available in the market to make this expensive vehicle accessible for their businesses. Depending on the provider, you can get 18 wheeler financing of any age, type, and size.


However, there are many things to consider when you are looking for an 18 wheeler financing option to grow and expand your business. From understanding what your lender will be covering, interest rates and other fees, and repayment terms – it is important to compare all options before making a decision. It all depends on your needs, long-term goals, and business type. Many of the banks have now started to finance the full amount of the semi truck you require for your business. But, this is mostly applicable to newer commercial vehicles. There have been several instances where lenders refused to provide 18 wheeler financing to businesses because they sought after a commercial vehicle that was more than five years older. This is due to depreciation that significantly reduces the value of the vehicle. Likewise, the terms are agreed on the basis of the type of risk the lender is willing to take to fulfill your needs.


For all types of vehicle-based businesses, it has become crucial to obtain 18 wheeler financing to grow your business and gain the competitive edge in the market.


What is 18 Wheeler Financing?


The businesses dealing in a fleet of vehicles are always looking for different financing options. This is important for the expansion of the business giving them access to vocational or transportation vehicles including cement trucks, semi trucks, dump trucks, etc. For a business seeking to fund, there are several business cases where commercial truck loans where funds are granted for a variety of errands like delivery, storage, etc.


Irrespective of the size of the company, businesses do not have enough disposable income to finance vehicles when demand surges. That is where 18 wheeler financing helps.


There are different finances available in the industry offering loans to individual truck owners. However, there are terms and conditions where business owners have to purchase three or more vehicles. The basic reason why lenders insist buyers to increase the number of vehicles they invest upon is that they can make a substantial amount of money to finance their loan in the future. This means if a business purchases 10 commercial trucks and one of them is malfunctioning, the business will not fall apart but continue operations with the remaining functional vehicles. This has a positive impact on both - income and repayment. Therefore, if you only want to purchase one vehicle then it is important for you to prove that you have a steady income stream. If you are not able to gather substantial evidence for your income, the lender may not grant you a loan.


There is a multiple risk factor that comes into play when you are planning to secure a loan for commercial vehicles. This includes being a new business, poor credit report, old truck, insufficient cash reserves along with others. If you are new in this business, it will be very difficult to secure a loan due to lack of credit and revenue history. Other than that, if you succeed in getting a loan, the interest rate will be high, or you will get only 10 to 50% of the financing

 

Read More: How merchant cash advance could be beneficial for you


18 Wheeler Financing for Bad Credit


In this ultra-competitive finance world, it is important to understand that for almost all types of vehicle acquisitions, an individual must have a perfect credit score. Anything less than perfect would make it impossible for them to purchase an 18 wheeler for their business. For truckers, this not only affects the business but their personal lives as well. One of the simplest and effective methods to acquire a semi truck while having a bad credit is to opt for alternative lending options such as Merchant Cash Advance, or MCA. The alternative lending options can easily help you to get your hands on 18 wheeler financing even if you have bad credit. It has become quite simple as you can apply for the funds by submitting an online application.

Merchant Cash Advance is a viable option for those truckers who do not have a high credit score. The reason why MCA lenders extend their services to people with bad credit is that they are not a risk to their business.


It is believed that individuals with credit scores over a certain specified amount do not qualify for 18 wheeler financing service, but alternative lending options solve this matter. The lenders are willing to offer funds to all those individuals that have bad credit so that they can start generating income for their households by driving trucks. Together, they seek to make a business partnership that is mutually beneficial for both parties.

 

Read More: How ACH Loans are better for Your Business


How to Obtain an 18 Wheeler


Truckers who are looking to grow and expand their businesses for a greater income are turning their attention towards 18 wheeler financing. Several alternative lenders are willing to directly fund your purchase after analyzing and understand the situation of your company. If we talk about MCAs, the lenders follow a simple process which initiates from getting to know your business details, finances, and long-term goals. This helps them devise a plan to get you the desired financing for your 18 wheeler truck so that you can efficiently meet your business needs.


When you choose Merchant Cash Advance to finance your next 18 wheeler truck purchase, the lenders will not restrict you to buy newer or used models of the truck. You will have the freedom to choose the truck that fits your business needs regardless of the make, age, and model. Make sure that you are only choosing this option so that it benefits you or your business – thus, make an informed decision by understanding all the requirements and payment terms clearly. Shop around to have multiple options on your table so that you can compare and choose the best one that offers the best deal.


It is important to understand that 18 wheeler financing is an important step to take your business to the next level. Therefore, look for a lender who has several years of experience in the commercial truck financing industry. Typically, MCA lenders cater to both prime and subprime truckers to obtain a cash advance to fund their purchase.


In such an economy, the processes to get conventional loans have become tough while alternative lenders are becoming borrower-friendly to assist everyone. If we talk about collateral, the truck itself is a valuable one – thus, it makes it an important investment.

There are many businesses who tend to go for a used 18 wheeler financing for a commercial truck instead of a new one. This is because of the pricing that many businesses owners cannot afford. Usually, a new 18 wheeler truck easily costs between $30,000 and $2,500,000 depending on the type, age, make, and model.


Considering the economy and fluctuations of fuel prices in recent years, the market has seen more interest in used commercial trucks. More businesses are buying used commercial trucks at a fair price that helps them grow business and generate higher income. The reason why people are not interested in buying new trucks is due to depreciation – it could be severe in a market where there is a glut of used commercial trucks.


If you play smartly, the money you save by purchasing a used 18 wheeler truck can be used for different purposes such as making an extra down payment or invest in adding extra features including better lights, a modern navigation system, showers, sleeper, and more to make yourself comfortable while you are on the road.

 

We provide two highly accessible financing programs that can get your business the working capital it needs in days instead of months.

For a small business, obtaining a traditional loan today is a complex and difficult process. That’s where Premier Business Capital comes in. 

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