The interwebs, in all their glory, tell you approximately nothing about this key question that you’ll need answered to start making some plans.
To be fair, if you were to click around page 1 of your favorite search engine, you’ll see some generous souls offering up sample payments.
1. Can You Finance a Box or Straight Truck With Good Credit?
With good credit, you’re in like Flynn, but there is a little bit of confusion about what “good credit” means.
- Credit score 650+
- At least a few years credit history
- “Comp borrowing” – having made payments on a loan in the past few years on something with wheels
Assuming 2 or more years in business (we’ll go over startups in a second) here are some approximate numbers for when you finance a truck .
Note: We’re going over payments assuming a $50,000 truck paid back over 5 years, and with no balloon payment at the end. Payments could be made cheaper with a lease – but you’d owe money at the end of the payments if you wanted to keep the truck.
With good credit (or a strong cosigner) new businesses can usually get the equipment they need, but payments offered will make it seem like you were a bad credit risk or something.
Payments are high for startups, but as you can see if you’ve got good credit there’s usually no problem in being approved.
As credit gets uglier, you have to be more creative to score financing. but there are several more ways to get the financing you need for your business, such as.
2. Cash flow based equipment financing
Plenty of very viable businesses exist that are not candidates for low-rate financing, but have enough revenues that they can still qualify.
What this means is if you are buying a $50,000 truck, and your business does $50,000 or more in monthly revenues (as shown on your bank statements) in most cases you will qualify. Continue reading “Box Truck Leasing & Financing : 5 Ways to Qualify [and Rates]”