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Friday, June 19, 2015

Commercial Truck Loan For Truckers

3 reasons Why a Commercial Loan for a Truck is Important for You as a Truck Driver

 Heavy truck financing 

After surfing the internet and looking around for a good heavy duty truck for you, you finally decide on a truck. Unfortunately you do not have enough money to purchase your truck cash.  Fortunately you are offered a loan but it is not a regular loan BUT a commercial loan.  You wonder why and your truck dealer explains to you that after this purchase you are going to be in the transportation industry as a truck OWNER not just a driver, which automatically makes you a business owner.  Therefore, you are in the need of commercial credit.

1.  With a Commercial Loan, you are officially your own boss.  Although the process is tedious, the process (if helped by an expert dealer) will guide you to a new venture. This loan is actually a business loan and therefore you will be starting a business or enhancing your business if you already have one.   You will need to register your truck using a DBA or LLC.  This will automatically take you from worker to business owner and from there on, you are limitless.  If you complete your loan with satisfaction to your lender, you will have commercial credit and from there on buy as many trucks as you need.  YES, you can have your own trucking company.

2.  A Commercial Loan “separates” YOU from your business.  Your credit as an individual will not be used.  You will use a separate credit now that will be under your new entity.  This will be nice for your personal credit.  You will now have commercial credit `and personal as well. This means that your personal will continue to be used solely for personal purchases.  Your new commercial credit can be used (if established properly), for all commercial uses.  You might need parts for your truck, a new dry van, or you might go as far as purchasing a place for commercial use such as commercial property, warehouse, office building etc.   This will be separate from your personal which in this case maybe items such as a washer dryer set, a car, or even a house. Your personal credit will also be apart so if you are married, your wife or husband will continue to be able to purchase as long as the credit ratio is met.  This means they will still have the same spending power.

3.  You will then be able to apply for a business line of credit.  With a business line you will have the power to purchase large capital expenses and operations that as a business you will probably not be able to afford cash.  If you keep a good credit history of your business credit, your business line of credit can be a way of doing things short term while funds are available and/or while you get paid.  This means you can have peace of mind to meet payroll (if you have drivers aside from yourself eventually) or buy equipment needed on the spot rather than having to wait for funds to reach your bank account.  This is good simply because you cannot buy equipment or pay payroll with a regular personal VISA card.

A commercial loan is difficult to obtain.  You will have to prove income, prove you have work lined up, and meet many of the bank requirements.  This can be as equivalent as the process of buying a house. However, if you are given this opportunity make sure to take it. Be careful and keep a clear mind during the process and always ask questions. But at the end, it is important to know that you will be on your way to becoming a successful business owner with the potential of making as much money as you want. Don’t let a commercial loan intimidate you and on the contrary, be pro-active to this process and do so with an ambitious outlook of the deal.