What Are the Requirements for Taking Truck Finance
The first large transport companies began to operate in the U.S. and the European freight market at the end of the 19th century. The rapid development of heavy machinery, electrification of large U.S. cities, the emergence of knowledge-intensive industries, and the development of the mining and oil industry stimulated the development of transport logistics and the construction of comfortable, safe and fast highways.
Today’s ever-growing U.S. economy is directly dependent on the availability of raw materials and the speed of delivery of raw materials. In this situation rational logistics and fast delivery become one of the main business priorities for industrial concerns and corporations and become a necessary condition for successful business.
Trucking is a business for energetic and courageous people. We will tell you about the basic conditions of the loan, which are prescribed in the standard bank contracts and will be useful to anyone who wants to become independent and start your own business.
Basic bank terms and conditions for securing a loan:
– For a new business, you will often need a 20% collateral; with homeownership being the preferred loan security
– Financial aspects of the business (it’s often a good idea to have proof of finances for at least 2 years)
– All assets and liabilities of the business owner
– For those without financial information in order:
– Mortgage and trade account statements for at least 6 months, and 3 months’ worth of personal account statements.
– Proof of title to the property (without it, a 30% deposit may be required)
– Business references and credit rating
List of documents required to confirm positive credit rating.
If you want to apply for the Truck Finance program, providing the appropriate documents will help you get approved for financing instantly. Typically, lenders are looking for proof that you have a good credit rating and can repay the money.
This information, along with your credit report and rating, are all factors that will help you with the interest rate offered. Here’s a list of documents most lenders want to see:
– Proof of identity.
– Proof of income
– Proof of residency
– Current vehicle registration
– Credit and bank account history
It is very important for a start-up trucking entrepreneur to build a positive credit rating. To do this, we recommend getting written recommendations from reputable people who know you well. Do not forget about the business plan.
A sound business plan is half the battle for your future success. Talk to professional organizations that provide financial consulting for trucks. They will be able to assess the possible economic risks and offer the best methods of minimizing them. There is no need to be afraid of mistakes.
The main thing to remember is that all your efforts in the process of finding sources of financing is invaluable experience that will help create a successful trucking company or a successful trucking business.