Truck financing for a new company.

Since you have good, verifiable income and a fair credit score you may want to try an unsecured line of credit from a local credit union or local bank, not a big name chain bank. I would advise against telling them it is for business, just you need some cash. I never recommend borrowing against the equity in your home for business, that is a bad idea. There are also some sub-prime truck lenders that will finance even a startup, but the cost is usually high and they are not interested in $15,000 trucks.

 

Did you present your business plan
Show them the profit or loss statements from running the previous year.
Then also show that you have work to expand your business
Good luck

 

A letter is not a signed contract, Just tell your bank you want to do improvements on your home or something else you own and get a short term loan

 

I'm betting your debt to income ration is the reason why, if you have a 100k income already and one truck, that should be enough unless you are in debt to your butt - then it doesn't matter.

 

I went the unsecured line of credit route and used 1/2 of it for the down payment. So far working for me should pay off primary note about a year early in Sept 17. Not the best option but can get you in the door. Be sure that as least 10 and preferably 15% of the gross is set aside for future maintenance issues. My target is $7500 base per truck and let it ride until can pay cash for the next used truck. I believe that it will take about 6 for me not to have to be on the road every day personally, time will tell

 

That is why I recommend starting a corporation. Because you're new, lenders still are skeptical about your concept. I would recommend getting an accountant and having him or her help you with balance sheets, income statement, and corporation credit. Don't be in a hurry either. When I bought my truck, I made a great income. Then I bought another truck and put a driver on it. All was going well. Until, I saw my balance sheet. My liability was way over my assets. The thing was my personal life was really expensive and a lot of my income went into stupid stuff. Now, I am back into one truck and taking my time. Sit down and talk to people and see why they're not approving you. If your credit is fine, then all should be well.

 

You need business credit. The banks, credit union, loan department, etc will finance anyone that's a real business with real business credit. You walked in trying to get a loan for business using your personal credit score = Declined 100% of the time.

1. Establish a business (LLC, corp, etc)
2. Get a business address and business bank account
3. Get Ein and D&B Number
4. Establish 5 vendor account to get an 80 paydex score
5. Establish 5 store business credit cards
6. Once you have 10 account reported to your business d&b and experian business profile then apply for a business credit card. The bank will give you large limits of $30,000+ per credit card.

Process takes about 3-6months.

After you use the credit card and it report to your business credit profile as a positive trade line you can get approved for large loans from the bank because you are a established business and not just someone who paided off a house, car, student loan, etc....


PS: I'm only 23yrs old lol but I have made over $100,000 cash in the trucking industry from age 21 till now