Just an FYI
The lender will look at the responsible party of a corporation that is not an established business.
The responsible party is on the hook for the corp if there is fraud involved.
There is no magic to getting financing or wall that can't protect a persons especially in a corp with limited assets.
All of this has to have a track record behind it, and the people in the corp are the ones who represent the actual risk, not the corp itself.
Remember that the lender is not looking for high risk investment.
Truck financing for a new company.
Discussion in 'Trucker Taxes and Truck Financing' started by Gunrtruck, Jan 2, 2017.
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Last edited: Jan 7, 2017
Reason for edit: Changed to reflect thoughts. -
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Good info and thanks. Although what you stated certainly is not entirely accurate. I was able to be financed at 50% down and was told if my credit score (personal) was over 740 I could get the financing at 15% down and 10% interest. This just popped up since the post, so it can be done on personal credit. Just wanted to share. Adn 23 with success in trucking, good for you brother, keep up the good work.jfrazie7 Thanks this. -
I was just rejected for a loan by OnDeck is why I'd love more info - please and thank you -
Take the banker out for punch and pie!
MrReactor Thanks this. -
You start off with net 30 accounts to build an 80 paydex score.
Quill
Uline
Office depot
Staples
Msc Direct
Just make sure that the net 30 vendor accounts report to d&b or experianMrReactor Thanks this. -
I used to build credit authorization rules for commercial accounts at one of the big 2 home improvement stores.
You need:
- min 3 yrs in business
- paydex greater than 80
- personal guarantee
And a whole bunch'a stuff I don't remember (I can check tho in my old program codes that I keep as a hoarder)
This is for commercial credit lines...and usu all not high lines.MrReactor Thanks this. -
Most lenders want a 2-3 year history for a company. They may want to see tax returns. They will want to see a balance sheet along with a profit and loss statement. It would help if you set up a corporation or LLC to keep your personal separated from business. Most lenders don't make loans for class 8 trucks. However, they may make loans for equipment. I know it is a technicality, but that is the way some look at this type of business. I have had two loans with lenders who tell me that they don't make class 8 truck loans. I have also had lines of credit where I could use the funds to purchase a truck or trailer for my business. In my case, I had a track record with several years in business. Some banks or credit unions will bend the rules to make a valued customer a loan, even for a truck. There are lenders who specialize in making loans for trucks, but most will charge a premium. I prefer paying cash. One other option may be to rent a truck from Penske or Ryder. It will be expensive, but might work for a while if the business will support the costs.
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