Are you struggling for a commercial vehicle loan for your business? Well, you’re not alone in this situation. No matter! You are running a small, large or online business. There’s no wonder if you require a loan for a heavy commercial vehicle to upgrade or replace various commercial heavy equipment.
Some of us drop the idea of applying for a loan because taking commercial vehicle loan in Canada is quite puzzling. Why is it so? Because you have to produce many documents and proofs to be eligible for a commercial vehicle loan.
What will be the criteria you need to meet for a commercial truck loan? What documents do you need to produce? What if I have bad credit or no credit? Well, there are many questions bobbing your mind.
Don’t get baffled with such things! It’s not that scary!
Take it easy! All you have to know the criteria that lenders look for approving a loan for the heavy commercial vehicle. Let’s jump into the detail to know more how to take a loan for the heavy commercial vehicle.
What are the Criteria to Secure a Loan for the Heavy Commercial Vehicle?
- Choose Which Commercial Vehicle You Want to Purchase
Have you made a choice which commercial vehicle will serve your needs? Obviously! You must have done it. Well! Choosing a commercial vehicle matters a lot here.
Don’t take it so easy because it affects many other things such as down payment, interest rates and monthly repayments. So, pick and choose the commercial vehicle very cautiously because the rest depends on it.
2) Use Own Vehicle as Collateral for Commercial Vehicle Loan
Do you already have a commercial vehicle? If so, It can be used as collateral for a loan. This makes your application more attractive. The lender takes it as a security in case you fail to repay the loan.
Must say that It can be risky. If considering another side, It will help you to get a better interest rate for a loan for the heavy commercial vehicle.
3) Is Your Credit Score in Good Shape?
Let’s talk about what plays the most important role here. What’s that? Your credit score! Everything can be put aside if your credit score is in good shape.
Defaulted on some commercial loans? Late credit card payments? That’s a history of bad credits. These things can go against you. In some cases, it will wind up your plans of securing a commercial vehicle loan.
Know your credit card score. If it’s bad credit, you may still proceed to your application, but that may increase the down payment and interest rates and monthly repayments. You can also check it through EMI calculator. Your credit score affects four significant things:
- Time ( Long term or short term)
- Interest Rates
- Monthly Payments
4) Check Your Business Plans and Goals
What are your business plans and goals? Most of the lenders might be interested to see whether your business is going to generate enough revenue or not.
Your business plan ensures your future success. You can make an “ Executive Summary” to give a good synopsis of what your business is like and how it will be able to generate more revenue in the future. Believe it! It will help you a lot.
5) Documentation and Other Proofs You Need to Show
Do you think it’s a hassle to produce all the documents and proofs to gain a loan? Well, that’s something unavoidable. But it’s not bothersome if you take a right approach. Let’s discuss which documents and proofs you require for a commercial vehicle loan.
- Cash Flow Forecast
- Time in Business
- Assets and Liabilities
- Sales and Revenue
- Income Proof
- Proof of Insurance
6) Find a Reputable Financing Company
You need to choose a reputable financing company for the further process. It’s better to research as much as you can on “ Reputable Financing Company.”
There pops up many options when you GOOGLE it. Which one should you choose? Quite confusing? Don’t panic and take the stress! Research well!! Decide which company you should choose.
Taking the help of reputable financing company will certainly help you to achieve the success in securing the commercial vehicle loans. Choose it cautiously and get the backing for your commercial vehicle loan applications.
Now that you have acquainted with the necessary steps a commercial vehicle loan involves. If all goes well, your application will certainly be approved. Remember!! Just improve your credit score and cash saving if you want the application process to go smoothly.
Go with a reputed financing company to fund your business dreams! You will definitely be able to secure a loan for the heavy commercial vehicle. Be ready to expand your fleet with your goals and stand out your business with a commercial vehicle loan.