Looking to finance a truck, bad credit but I have collateral

that would be the way to go. Just don't bite off more than you can chew. Make sure you pay that loan off first. I don't know your financial background, but if you go in and sit down with a loan officer at the credit union, they can start the whole process right there.

 

Good luck. You have a few options.

 

Check local saw mills for loggers that they buy from. They will be the best source of information about pricing and harvesting. Or if the timber is even worth selling, despite what some think. Its not all worth cutting, at any price.

Second, don't just talk to the Credit Union about financing. Talk to them about budget management as well. It will make your decision much easier and less stressful.

 

I think you should improve your credit score as much as possible before you attempt for a bad credit financing. Optimize your credit in the first place, be prepared to accept a high interest rate, prepare a budget, save money for a down payment, look into auto financing for problem credit. My brother used this company http://www.truckloancenter.com/heavy-equipment-loans/ for financing with bad credit. I think you can consult them for more information regarding this.

 

Sell the land and buy the truck outright. There is no need to risk both by getting a loan or a LoC when you have no need for the land anyways. This will also save you some money (not much, but money none-the-less) on interest. You will also have one less bill to worry about each month.

Debt is risk. There is enough risk in this industry, so eliminate as much as possible from the get-go.

 

Before you do anything, do you have a lot of trees on the property? if so - sell the tree's!

 

You shouldn't have an issue financing a $15k truck even with ok-ish credit. depending on what your really dealing with look at Lexington Law, I had a buddy at work recomend them to me after being refused a mortgage and it 6mo they got him repaired to a point where he was approved. My credit score was somewhere around 540 when I signed up last year and now it's a little over 700. It doesn't matter whether the debt is legit or not, they get that crap off! Well worth the money to me. No obligation to keep them but sometime some things take longer to get off than others. Like you I've got some awesome offers if I only had my own truck but you've gotta consider how much it will cost you on the back end vs what you put up on it.

 

A lot of times your local credit union or bank will take a chance and lend to a long and valued customer. I have had a couple of pieces of equipment financed by lenders that did not make class 8 equipment loans. I don't know that I would borrow on property to purchase a truck. You should consider what could happen if the economy takes another dive. Tens if not hundreds of thousands of owner operators and carriers went out of business after the 2008 crash. Even those of us with little to no debt and many years of experience struggled to survive. If you do decide to borrow on your property, you may want to look at a line or home equity loan instead of a standard real estate loan. There are not so many fees attached and no prepayment penalties on the home equity or line of credit.

For the most part I favor paying cash. If your equipment is free and clear with no liens, it is much easier to weather difficult times. We are living in a volatile economy. A good businessman prepares for the worst while expecting the best. If you can save as little as $100/week, you could pay cash for that $15,000 truck in 3 years. A stronger commitment will lessen the time. If you could save $200/week, you could buy that truck in about 18 months.

I am one who thinks that if you want to borrow to purchase a truck or other vehicle, the property should be sufficient to collateralize the loan without additional collateral.