Want to know how to get a loan for a dump truck? We’ve highlighted a few tips and tricks here. Whether you’re looking to purchase your first dump truck or expand your fleet, these tips can help you be prepared to meet with a lender.
As a first time dump truck buyer, your head might be spinning with rates, lenders and credit scores but slow down and take a breather. We’ve outlined 10 tips that’ll make you savvy at financing a dump truck.
- Have your numbers handy when you apply for a loan: your personal credit score, your business’ revenue and the time you’ve been in business.
- Aside from good credit, lenders like to see good equity. The more money you put down, the better. Most lenders will look for 10% down payment.
- Find a co-signer with good credit and a CDL if you have trouble meeting your lender’s minimums.
- Buying from a dealer who carries their own papers will make it easier to make monthly payments to the dealer in a sort of lease-to-own agreement.
- Work with a dealer who’s licensed. They’re accountable.
- Most people opt to finance through trucking financing company or online lender, rather than a bank. Bank loans work for personal car loans, but they aren’t optimal for leasing dump trucks or equipment. If you’re looking for a trustworthy institution, we’re offering an option where you can open a short-term working capital loan through Ritchie Bros!
- Prepare according to your credit score. If you have good credit (600+), you can expect to qualify for 100% of your financing needs and have an interest rate as low as 5%. If you have spotty credit, you will need to put more money down and pay 7-30% in interest.
- Get a good insurance provider. You’ll need to show proof to the lender of your insurance policy before you can get the lender’s money into your account.
- Have 1-2 month’s worth of cash reserves for financing your dump truck. You never know when you might need the extra money.
- Always try to improve your credit. You can seek into refinancing your truck later, but you can’t do that without trying to improve your credit first.
TRUX Gets You One Step Closer to Financial Stability
Whether you are looking to increase the number of jobs you can take on with dump trucks you already own or are looking to expand, TRUX has the work you need to start or maximize your business. If you are ready to take on more work but need more trucks to do so, use these tips to be prepared when you get to the negotiation table.