Interest Rates

Commercial lending is tough to come by these days. Especially for anything related to trucking. There is a high failure rate in our industry, especially among small operators.

 

Financed through my bank and have enough saved in retirement vehicles with about as high a credit score one can attain. Also have my mortgage through same bank and now they don't hesitate to lend me money. It has something to do with debt to equity ratio ...

 

I would love to hear some recent interest rate stories on being a first time truck owner. I know its kind of an old thread but was just curious about how rates have possibly changed within the last year.

 

We paid off our home and cars in a few years here in Arkansas. Given about a year or two, they started burying us in solicitations. Debt was not something to be avoided but rather to be treated as a form of income. We still avoided it.

However, when there were issues in life there was no problem at that time to come up with however many dollars needed to solve it within a few hours of arranging for it. I think at one time we carried a 20K balance against a house in Fairbanks that needed to be sold, just about all of it generated by the oil bill each month ranging from 700 to 1400 depending on how cold it was. The house sold, and that bank was paid off in full. They protested of course. 7% interest at that time. But paid is paid. heh. The profits from that sale went into our bank. But not for long. There was no death tax that year.

Even today I resented that oil. We needed to heat the home to make the sale in good condition, way too many sellers up there did not spend the money to oil and winter and nature pretty much destroyed the property in short time.

 

I thought business solicitation was prohibited on TTR?

 

I guess I was right POOF! Gone.

 

Well I see you are trying to go another route. first thing is for us that have done this much longer then you got to have your business for over three years and have tax records and show a profit just to talk with a bank. With out the years no bank will talk to you. It not about personal credit score none of the business loans or debt show on my personal credit report. Best advice is to work for three years then everyone will give you credit. The last two trucks (after running 5 years) brand new no money down GE 8% they are now BMO you might try them they deal on repo equipment

 

#### I though I had it bad . Did you ever refinance?

 

Just for comparison, the new Kenworth I just ordered was financed by my bank at 5.6%. 20 years in business, 12 year old DOT number, unblemished credit, and five years of profitable P&l's.

######## still put a call clause in the note...

 

Well 3 years ago I had some commercial experience less then one year in civilian and 5-6 in the Army. All my crane experience was in the Army.
Anyways a few loans for the drywall boom truck one for 5k/3y almost 15%, 2.5k/3y 2.5%, 18.5k/2.5y 6%.
Now just bought a new one to replace the old one 30k/4y 5.88%
All from my local banks and small bis center and the community college.
Other companies want 17% originally then went down to 12%.