Why a truck loan is a right option for your business

Why a truck loan is a right option for your business

Are you the owner of a truck company and are looking to add to your fleet? Or are you looking to start a business and need a commercial truck to run day-to-day operations? It is vital that you find the right truck and the correct financing option to ensure the commercial success of your business. Granted, applying for a truck loan is not as simple and straightforward as applying for a car loan, as there are plenty of automobile loan lenders in the country. Keeping that in mind, the below-mentioned information is all you need to know about why getting a truck is the right option for your business.

Reasons to consider getting a truck loan for your business:

  • The fleet of trucks in your company need replacement or are out of date.
  • If you are looking to increase your fleet to keep up with your business demand.
  • You are starting a new business venture, and a truck would add to its commercial growth.
  • You need money to pay for upgrades and repairs.

Various types of truck loan options available in Canada

When it comes to choosing a truck loan, you must ensure that it is competitive and suits your business needs. There are many options to go through, from semi-trucks to box trucks and dump trucks to tow trucks and much more; it can be pretty stressful choosing the right truck and loan that aligns with your company requirements. A long-haul business owner will have different truck needs, whereas a cargo company will have different needs. Additionally, you must also be aware of the truck’s size, is it new or second-hand etc. The more expensive the truck is, the loan requirements will be much harder to obtain. In addition to financing, there are options to purchase it outright or lease the truck, but it is advised to get a loan and pay for it.

What are the benefits of a truck loan?

  • Lower interest rates
  • The approval rates are usually much higher
  • The option to obtain larger loans is available
  • Because the loan is secured, lenders do not worry much about the individual’s credit score.

Necessary documents required:

Every lender might require different documents when it comes to approving your loan. Below-mentioned is usually the type of documents required by lenders:

  • Business license
  • Personal identification of the owner
  • Financial records of the business and the owner
  • Credit history
  • Commercial driver’s license
  • Proof of insurance
  • Tax records
  • Information on the type of truck you wish to take a loan on and how it will benefit your business.

You must be wary that even though you provide the relevant documents, there is a chance your truck loan application will be denied. Most lenders require the business operators have a Commercial Drivers’ License (CDL) for a minimum of five years. To find out more information on truck loans, or if you are looking to apply for a truck loan in Brampton, contact the experts at CIK Capital today.