Understanding Freight Truck Financing
November 19, 2015
Trucking loans have an undeserved stigma attached to them. The truth is, these loans aren’t really bad. There are quite a few circumstance in which a business trucking loan can be exactly what you need. You will do well to become informed about the process of obtaining loans of this type. Continue reading to learn more on freight trucking loans.
In order to avoid excessive fees, shop around before taking out a trucking loan. There may be several businesses in your area that offer business trucking loans, and some of those companies may offer better interest rates than others. By checking around, you may be able to save money when it is time to repay the loan.
Commercial truck loans are a good solution for people who are in desperate need of money. People just need to know as much as they can about their loan before they accept the loan and get the money. There can be large fees and high interest rates which can make the loan harder to pay back.
A great thing to remember when applying for loans is that you always need to be aware of the interest rates. Never sign anything until you fully understand the terms. Be suspicious of any company that appears to be concealing important information about their trucking loans.
If you are considering getting a freight trucking loan, make sure that you have a plan to get it paid off right away. The loan company will offer to “help you” and extend your loan, if you can’t pay it off right away. This extension costs you a fee, plus additional interest, so it does nothing positive for you. However, it earns the loan company a nice profit.
Do not be surprised if a commercial truck lender requests information on your bank account. A lot of people end up not getting this loan because they are uncomfortable with disclosing this information. This will make the company you borrow from confident that you can pay it back.
Call the commercial truck loan company if, you have a problem with the repayment plan. Whatever you do, don’t disappear. These companies have fairly aggressive collections departments, and can be hard to deal with. Before they consider you delinquent in repayment, just call them, and tell them what is going on.
If you need a business trucking loan, but have a poor credit history, you may want to consider a no-fax loan. This kind of loan is just like any other freight trucking loan, except that you will not be required to fax in any documents for approval. A loan where no documents are involved means no credit check, and better odds that you will be approved.
Understand the law. Imagine you take out a business trucking loan to be paid back with by your next pay period. If you do not pay the loan back on time, the lender can use that the check you used as collateral whether you have the money in your account or not. Beyond your bounced check fees, there are states where the lender can claim three times the amount of your original check.
Using the knowledge you gained today, you can now make informed and strategic decisions for your future. Make sure that you apply the knowledge that you gained today, so that you can have a relaxed future. Steer clear of the stress freight trucking funding partners can cause. This article should help you out in these areas.