Can Everybody Qualify For A Commercial Truck And Equipments
Friday, November 7th, 2008Can Everbody qualify for a commercial truck and construction equipment lease? Whether you have bad credit, little money or no down, a startup business or a business with little time in business, we are going to discuss how to get financing no matter what the situation is.
In today’s economy, lenders have changed their lending requirements as times have become worse. Many Americans are struggling to stay afloat with their normal bills and salaries and wages that aren’t rising. Additionally, many people have been laid off or fired because of employers either cutting back or going out of business. The blue chip companies of yesterday, Ford, GM, General Electric have seen their stock prices fall to new lows. High flying companies such as Starbucks are closing old non producing stores and reevaluating their future expansion plans. Federal back government agencies such as Freddie Mac and Fanny Mae have financial problems due to eroding lending portfolios and are now being assisted by the Federal Reserve…What does this all mean to getting financed in the commercial vehicle and construction industry….
Because banks recognize first hand that the U.S economy is in trouble, they have tightened their lending requirements in all industries. Many lending programs that were available yesterday are gone or changed dramatically that many potential customers will not qualify. Rates of interest charged by these lending institutions have jumped and more down payment money is required to start any lending program….The seasoned and startup business now must look at other alternatives in obtaining financing. Today, very few people have A+ Credit and must adjust their thinking based upon the times.
One of the unique facts that has occurred during this economic recession is the large number of repossessions and foreclosures. Banks are taking back homes, commercial trucks and heavy construction equipment back by the droves. These lending institutions must recondition these foreclosed and repossessed items and get them back into revenue income producing stream ASAP. Every day that these items that are sitting on the financial institutions books they are losing money..
Obviously as financial institutions have tightened up their lending requirements for normal business, many people will not qualify for a new loan/or lease. As lenders have absorbed huge volume of repossessions, they have come up with alternative financing to get them back into their revenue stream.
The types of items to be get financed in the above paragraphs are the following:
Dump trucks, mack trucks, garbage and water trucks, day cabs, over the road and semi trucks, boom trucks, box vans, bucket trucks, articulated trucks, concrete and cement trucks, fuel trucks, excavators, backhoes, bulldozers, forestry equipment, concrete pumps and concrete equipment, tow trucks, septic trucks, end and bottom dump trailers, flatbed and dry van trailers, etc.
Many lenders have application only programs that don’t require financial statements, tax returns or bank statements. These financing programs could lend as much as $250,000 for seasoned businesses. Available credit on other repo programs could run as high as $100,000 for a startup business. Some lenders may require full documentation packages which shouldn’t be a hardship for a person that can now get into the financing arena.
There are many alternatives in the market place, once you understand that normal lending probably isn’t your answer. In the repo market, credit is always important but not always the answer to everything. You have the ability to shop price and financing. Startup as well as seasoned businesses have any opportunity to acquire commercial trucks, heavy equipment and commercial trailers. The down payments, financing length, regardless of age, and terms may be more flexible than you think. Startup businesses have a good opportunity to enter this market and not have to put 20-30% down, regardless of credit.
This is possibility a win-win situation both for the lender and the potential customer, whether startup or seasoned.
