How to Get the Best Truck Repair Loans
Owning and driving a tractor-trailer can be an expensive business. Beyond the money needed to buy the truck itself, there are also repairs, which can be very expensive. If you run a trucking business, repair costs can add up quickly. Fortunately, there are several financing options for tractor-trailer owners who need help paying for truck repairs.
Read on to find out how to get the best tractor-trailer repair loans for your needs.
Common Reasons Owner-Operators and Professional Truckers Need Truck Repair Financing
Commercial trucks tend to see heavy use during the week, driving thousands of miles for a variety of purposes. But high mileage is a good indicator of common breakdowns and repair needs in all automobiles. Regular and ongoing maintenance is essential to ensure your trailer or commercial fleet is safe on the road and running smoothly. But even with regular tune-ups, commercial trucks can start to show costly signs of wear.
Some of the most common reasons commercial truckers and owner-operators need financing are these costly repairs:
- Brakes — brake overheating and wear are one of the leading causes of accidents with semi-trailers. Maintaining brakes and repairing them is an important step in keeping trucks safe, but the costs can add up.
- Motor overheating — again, high mileage and long haul means your commercial truck’s engine has plenty of opportunity to overheat, which can lead to costly repairs.
- Hall — Starters can cause major problems for drivers and should be tested often, especially during colder months.
- Universal joints – because they transfer transmission power to the differential, universal joints carry a heavy load and must be properly lubricated. Drivers should be aware of rattles or vibrations while driving, as these can be signs of a failing U-joint.
- wheel bearings — these important components keep the truck’s wheels moving, and if the driver notices noise coming from the wheel arches or jerky movements while driving, it’s a sure sign that they need to have the wheel bearings checked.
Benefits of Getting a Truck Repair Loan
Getting small business loans or financing for your truck repair can provide you with a number of benefits beyond the ability to pay for your repairs quickly. You can also open up cash flow for other business expenses or increase your working capital to help grow your trucking business. Repaying a small business loan can also help you build credit for your business, which can help you in the future if you want to get more financing or grow your business further through equipment leasing or to other options. It can also help you get better rates and repayment terms if you decide to refinance.
Types of Truck Repair Financing
There are several types of truck repair financing. Finding the right option for your business is important. Some common types of truck repair loans include:
Truck Repair Equipment Financing
Many trucking companies will use equipment financing to help pay for repairs to their fleets. Equipment financing tends to be a short-term loan to cover the cost of repairs. There are many lenders online that offer equipment loans, which can simplify the application process. Many truck rental companies also offer equipment financing to truckers, but use the truck as collateral.
Business line of credit for truck repairs
Unlike a traditional loan, a business line of credit lets you borrow only what you need and pay interest on it. Plus, each time you pay it back, you tend to use the credit again. It is a good option for those in the trucking industry who have a fleet of trucks to manage and often have expensive repairs.
Professional credit card for auto repair
Business credit cards can be a good option for truckers and trucking companies who need to pay for repairs and want to earn points or rewards by doing so. It’s important to find a credit card with an annual percentage rate (APR) that fits your budget, but often the approval process for a credit card is less stringent than other financing options.
Title loans for truck repair
If you don’t have good credit and need auto repair financing now, a title loan is an option you can consider. In this type of financing, your truck would be used as collateral, so the risk is that if you cannot repay your loan, the lender will take your truck. These loans also tend to have high interest rates.
Personal loans for truck repair
If you are an owner-operator, you may consider a personal loan to cover your semi-trailer financing needs. Personal borrowers can get attractive interest rates and repayment terms, especially with good credit, but you may not be able to get as much money from a personal loan as commercial truck loans could. give some.
Capital loan for the repair of semi-trailers
A capital loan is like other business loans, but can only be used to improve a property. If you are a truck driver or a truck fleet owner, this means you could use the capital loan to repair your truck or trucks, but not for operating expenses.
How to select the best loans for your needs
Getting the best truck repair loan depends on several factors. It’s worth researching your loan options to find the right lender for your commercial vehicle repairs.
Here are some things to consider when researching your loan options:
- Your credit score — your professional and personal credit ratings will affect the types of financing you qualify for, from which lenders and for how much. Although bad credit doesn’t mean you can’t get a loan or other financing, it can affect your interest rates and repayment terms. Knowing how to establish business credit can help you secure better terms for any loan you may need for your business.
- Your credit history — how long you have been in business or how long you have accumulated credit can affect your ability to qualify for loans or credit.
- Amount of the loan – how much do you need? How much can you claim? And how much can you afford to pay per month?
- Advance payment — some lenders require money upfront to reduce their risk in lending to you. It’s a good idea to know how much you can afford and what you’re willing to pay.
- Interest rate — your credit score will affect your interest rate, but it can vary depending on the type of small business loan you get as well as the lender you choose, so keep that in mind.
- Repayment Terms – like interest rates, this will depend on your qualifications, but shorter repayment terms may mean higher monthly payments, while longer repayment terms may mean higher interest rates. Also, some lenders may penalize you for paying off a loan early, which you should consider before signing.
Many truckers and trucking company owners don’t think they can qualify for financing due to bad credit or other issues. While it’s true that your credit score can seriously affect your ability to qualify for a loan or other financing, it’s not a definitive barrier to entry. But this can make the terms of the loan less desirable for you, so it is important to check all the requirements before accepting financing.
Get matched with the best truck repair loans for your needs
Knowing which loans you qualify for can help save time on the application process upfront and reduce hassle in the long run. Nav provides small business owners with personalized financing recommendations based on your professional and personal credit scores, credit history, annual income, and a number of other factors. In fact, business owners who use Nav are 3.5 times more likely to be approved for the financing they apply for. Sign up today to see your options.
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