The United States is home to a truly vast manufacturing sector that produces everything from cars and appliances to books and children’s toys. But this sector does not act alone; these goods are moved across the nation with the help of carrier companies, whose trains, planes, and trucks can deliver freight nearly anywhere. And as with most business sectors in the United States, the freight sector is largely made up of many small companies, along with a few larger ones. These companies need to have a good business credit score so that they can secure loans, such as from invoice factoring companies. In other cases, semi truck financing companies may help out, and truck loans may prove very helpful to a small company in need. In fact, even a company with poor credit may secure small business loans like these. A truck carrier owner may look up these lenders online, such as “commercial vehicle financing bad credit near me” if necessary. Searching “commercial vehicle financing bad credit” may show some local lenders who will work with even companies that have poor or minimal business credit.
Small Companies and Finances
Many statistics are compiled to see how well (or badly) small business owners handle their finances, and the numbers generally show that small business owners are making mistakes. In fact, some 30% of all companies fail simply because the owner ran out of money, and many of them are small business owners. Today, there are some 28.8 million small business across the U.S., and they are defined as those with under 500 employees. They are the vast majority of companies, making up 99.7% of companies in the United States today.
These small company owners are not always savvy with their finances, however. In fact, some 50% of small business owners, over half, believe that they aren’t sufficiently knowledgeable about finances or accounting. Similarly, around 45% of business owners are not even aware that their business has a credit score of its own (which is distinct from a personal credit score). These company owners may turn to lending services to help smooth out their cash flow, and loans from banks require a good credit score, along with other paperwork. Invoice factoring is the job of factoring firms, and commercial vehicle financing is another arena entirely. This is when a business owner might search “commercial vehicle financing bad credit” online to find a local lender to help them.
Making a Deal for Vehicle Financing
A small business owner with a poor credit score or other financial issues may have trouble securing a loan from a bank. Banks are somewhat choosy about who they lend money to, and issues such as bad credit, a history of defaulting on loans, or previous bankruptcies may be very unappealing to a bank. But the owner of a small truck company will still need loans, and they may have limited options if they have bad credit or a history of money issues. Thus, the owner of a small trucking company may turn to specialized vehicle financing firms who can help. A company owner may search “commercial vehicle financing bad credit” or “truck financing on an old truck” and find some local results.
It may be noted that an approved loan from a vehicle financing company is a secure loan; that is, the truck itself is used as collateral in case the borrower cannot pay the loan back. This makes such lenders more willing to work with clients who have poor or no credit, though these lenders will still take some precautions all the same.
The truck itself is a major factor. When a company owner is buying or leasing a truck and trying to get a loan based on its value, the truck will be assessed. The lender will consider the truck’s age, condition, model and make, and intended use. A truck in good condition is more appealing for a loan, as the vehicle is less likely to break down or suffer similar issues. The lender may also want photographs of the truck, just for reference. The lender may also consider the borrower’s personal (rather than business) credit score, with higher being better. The lender may check whether the borrower has had a history of defaulting on loans or similar issues.