Boss has offered to sell me the rig ive been in for the past 2yrs. If i can get financing for it i will be getting 88% of the loads. 2019 Pete 579,APU and 2020 Thermoking s700 reefer trailer, currently grossing 50-60k a month consistently. So far been turned down by all lenders ive applied to even though my credit is 755 and im able to put down 10-20%. What lenders should i try? Even possible to get 200k for my 1st time??
Wanting 200k for Truck and Trailer
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If all these banks are turning you down it means one of two things.
1. You don't have the credit.
2. The assets aren't worth what you are paying for them.
Sounds like you have the credit, so.....
Ask one of the banks why you were turned down. That way you know what to change to make it happen.
Accord Financial Group, Inc.
You can give these guys a shot but zvar raised good points.
Also it will help to have your current 3 month track record and also be able to hand what a projection of what the past 3 months WOULD have been if you owned the truck.
Also prepare by having a quote on your insurance ahead of time and as much information as possible on the other expenses built into your projections.
Other factors they may look at
A. Time in trucking
B. Your age
C. Do you rent or own your house? If you rent, its sometimes harder because you dont have a track record of buying and keeping up a larger purchase.
D. Married and kids? You may be surprised, but having a spouse longer than 5 years and kids to take care of is actually a good proxy for the kind of stability a lender wants to see, divorces or "girlfriend" tends to set off alarm bells.
Do you even have a bussiness setup or bussiness bank account???
Of course no one is just gonna gamble 200k on a truck if not.
When I first started my bussiness 4 years ago. My bank gave me a credit line of 150k and that’s with a 855 credit score. Plus I was 41 years old at the time. However I paid cash for the truck.
And here’s a 2019 Utility with a Thermoking s700 also for sale by PNC Equipment Finance in Elk Grove, IL.
$146,900 for the pair. Add $9,000-$15,000 out of pocket (depending on the state) to get your business started and run under his authority making 88% of the loads.
The real question is why is your boss trying to rip you off and have you pay off the debt he owes? He probably financed or leases the truck, trailer, and reefer unit, and he’d be upside down on his loans if he sold you the equipment for what it’s actually worth.
I would have a lawyer present any time I spoke about business with that guy. Fishy fishy.
Ask the boss to finance you.
Lenders also tightened up post virus. If it's your first purchase of a large ticket item, that is a lot to bite off.
Everyone likes to see you have had a business checking account for at least two years as well.
If that truck and trailer is grossing 50-60k a month, and he's willing to sell it, asking dang near new price, that sets off some red flags.
Does your boss own a yacht by chance? Maybe a house in the Virgin Islands? A collection of sports cars?
If a truck is really grossing that amount I sure don’t understand why the boss would sell it. Consistently making $50,000 a month is $600,000 a year. People don’t just sell off trucks that are making that amount.
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