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6 questions to ask before financing a commercial truck

Opting to finance a commercial truck is different than financing a truck for residential use. But, most lenders offer commercial financing options for vehicles, so take the time to find the best solution for your financial needs.

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6 questions to ask before financing a commercial truck

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  1. 6 Questions to Ask Before Financing a Commercial Truck

  2. Listed below are some of the most important questions that you should ask yourself before deciding if obtaining financing for a commercial truck is the right decision for you.

  3. 1. Why do I Need a Loan? • The first question you need to ask yourself is why you need the loan. • Evidently, you also need to figure out how much you need to purchase the commercial truck as well as the means you’ll use to pay back the loan in full.

  4. 2. Do I Have the Necessary Collateral? • You need to determine if you have the sufficient collateral required to procure the loan. • You may also want to consider putting up your business as a form of collateral, which many small enterprises are reluctant to do.

  5. 3. Should I Sign a Personal Guarantee? • n some cases, a new enterprise may prefer to sign a personal guarantee without the use of collateral, or credit for that matter. • There are risks with a personal guarantee agreement, so weigh the pros and cons properly before deciding on which option to choose.

  6. 4. What Kind of Loan Should I Go With? • With a plethora of different loan options available to most business ventures, deciding on which type of loan to go with can be a daunting task. • Consult with a financial advisor that you trust in order to assess your personalized business needs as well as your concerns.

  7. 5. Should I Buy or Lease My Truck? • A commercial truck can either be purchased or leased, depending on the unique financial needs and restrictions of a company. So choose what works for you. • some lenders may offer clients specialty truck financing whereby they can choose to purchase or lease the truck if they modify or upgrade the vehicle.

  8. 6. Is an SBA Loan Right For My Business? • If you are unable to procure a conventional bank loan to finance your commercial truck then you may want to consider qualifying for an SBA loan. • There is also an SBA Express program that will guarantee loans up to $25,000 without the need for any collateral.

  9. A Gentle Reminder • If you are confused with which direction to take in obtaining financing for a commercial truck, take the time to become familiarized with the different types of loans and the risks and benefits of each before you visit your prospective truck financing lender.

  10. Thank You!

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