Financing advice/help

Spot on, read this post twice and thank this man.

 

In the process of securing financing for my third truck, my first financed truck as the other two were bought with cash. What I see is 10-25% down and the lender has say so of Age and Mileage requirements for the asset they are financing. The older the truck and higher the miles the more they are going to charge to finance as they view the asset risky. There are alot of commercial equipment lenders that will happily rape you for interest for a ex-fleet emissions truck trade in with 20% down 40% interest rate and prepayment penalty. Do your homework and read the fine print. It helps if you have over 1 year in business and bank statements to show liquidity and revenue. Good luck.

 

I paid cash. $14k truck and $10k trailer. Then it's all downhill from there.

You'll find commercial credit works on less trust than you're used to with personal loans. Higher down, higher interest, and shorter terms.

I've gotten zero and low down payment terms on new equipment. Just not before existing as a corp for 10 years and having established, long running trade accounts.

 

OEM have some decent internal financing. Generally 20% down on first truck. However if your not already swimming in money, it’s going to be a rough ride. Guys that don’t have enough working capital tend to factor or not buy the best equipment money can buy. It’s hard to serve if you can’t perform. Start with at least 50k after all insurance and equipment is being taken care of. If your truck breaks down how are you going to deliver produce in time? Guess you’ll buy that load. What if your Reefer dies on ice cream? If you are not the best out there, you are just going thru the motions. Work like you are fighting a battle and be the winner.