No Credit Check Dump Truck Loans - Start A Trucking Business With No Business Credit Financing

There are several ways to get no credit check dump truck financing for both new owner operators or those experienced in commercial trucking. If you have good credit and a good relationship with the local bank managers, the first lender you should approach will be these banks for a low interest commercial loan for trucks.

For established trucking companies, your Paydex business score should be high enough but if you are a new business with no credit, the owner can use his or her personal credit (at least 680 FICO score) to get a bank loan to buy dump trucks from Freightliner, Ford, AutoCar, Volvo FH etc. To start a trucking business with no business credit takes more effort, but it can stillbe done successfully.

More documents and papers are required to support your commercial truck loan application at the banks. For example, you will need the prior year tax returns, financial year statements, going business service contracts etc which means the approval process may take some time to be evaluated.

Since these are large truck loans that involve a lot of money, it is important that you try to provide as many documentations as required by the lenders in order to verify your risk level. There are probably more faxing and income disclosure involved, but you save on the reduced interest fees charged for your truck financing.

It is also true that for new truck companies, the chances of getting bank truck financing is quite low since you do not have any established business credit and must use a personal guarantee. Furthermore, it is well known that any business startups involve a lot of risk and the banks may not want to accept such clients.

You can choose between a dump truck loan and to use the various lease-to-buy options. The main difference is that for loans, you get the truck title upon completing the entire payment term, whereas for leasing a truck programs, you usually get an option to buy the rented Freightliner at the end of the lease period. Many new business startups resort to leasing dump trucks with no credit because the down payment requirement is easier to meet even though it can cost more eventually.

If you are not looking to buy a particular Freightliner dump truck model, then check out the dealership/lender inventory clearance programs. Many lenders hold a lot of repossessed or recently off lease commercial trucks that will be auctioned off cheaply once every few months. You may be able to buy a repossessed dump truck at a cheap price and it will make your no credit check financing easier especially for new trucking companies with no business credit. Such off lease tandem axle trucks are usually well maintained and can be relied upon to serve for many years more.

Commercial Truck Financing For New Business With No Credit

Before you start shopping for a new or used dump truck, you have to consider the amount of money down upfront, the ongoing monthly payments, take a loan or to lease, buy out clauses if applicable, collateral required if no business credit is available, type of lenders etc. Some commercial truck lenders will also want to review your business contracts to ensure you have a verified income source throughout the loan term and have no problems paying back on time. You need careful planning to start a dump truck company with no business credit.

Do not expect your no credit check commercial truck financing to be approved instantly. These are large loans up to $200,000 for buying tandem axle dump trucks from Kenworth, Chevrolet, Freightliner etc and the loan/lease terms usually range between 36 to 70 months. If possible, do not overestimate your ability to pay back the loan so choose a longer pay back term such that you do not miss any deadlines. Otherwise, your business credit will be affected and this can negatively affect your chances of financing in future.

Buy A Dump Truck With No Credit Check

If you seek out no document truck loans or those with no credit check no collateral etc, it is true that the review time is shorter but the lenders do charge a few percentage points higher for such exclusions to overlook your bad credit or unestablished business profile. Such no credit check truck financing should only be used if you have no other options and are turned down by the banks.

To use additional collateral for securing your new dump truck finance or not is quite subjective. While it can reduce the total cost of buying, you stand to lose more and disrupt your trucking business operations if you cannot meet the payment obligations due to unexpected circumstances. We do recommend using collateral on dump truck loans with no credit check so as to offset the higher APR required by lenders.