If you are hoping that you can become an owner-operator, you are obviously first going to need a new rig. If you're unsure of whether or not you will get approved for financing for a truck, you probably want to make sure that you have everything that you need. These are some of the things that the finance company might ask you for when you're applying for semi-truck financing as a new owner-operator:
1. Commercial Driver's License
Before you buy a truck, you will probably be required to have your commercial drivers license. Some companies may even require you to have had your commercial driver's license for a certain length of time. If you are still going to school to get your commercial driver's license, you may want to wait until you are fully licensed before you apply for semi-truck financing. Of course, this does not mean that you can't start looking at trucks; then, you'll have a better idea of what to look for and what to expect when you are finally licensed and able to buy a truck of your own.
2. Decent Credit Score
Of course, there are some lenders that will still work with new owner-operators who do not have the best credit. With these loans, like many others for people with bad credit, you may have to pay a higher amount in interest. If at all possible, it's a good idea for you to take steps to improve your credit score before you apply for a loan to buy a truck. Then, you can help ensure that you qualify for the truck that you actually want, and you can help keep your interest rates down as well. When you're making a big investment like a semi-truck, your interest rates really do make a big difference in how much you have to pay in total for the truck.
3. Down Payment
You are probably going to be required to have a down payment when you buy a semi-truck. In many cases, owner-operators who are just starting out might need a higher down payment to get approved than someone who is more established. Therefore, it's a good idea to save up what you can so that you can buy your rig. As an added bonus, the more that you put down, the less you will have to pay in monthly payments. This can help you keep your costs down when you're first establishing your business, which can increase your chances of success.
If you are ready to purchase a semi-truck for your new trucking business, it's a good idea to make sure that you have these things first. Then, you should be ready to fill out an application so that you can buy the truck that you need. Contact a company like Arrow Truck Sales for more information and assistance.