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<\/div>\n<\/p>\nQualifying for Trucking Business Loans<\/h2>\n
If you\u2019re looking to take out trucking business loans, these tips can help you navigate the market, find the right lender and increase your chances of qualifying.<\/p>\n
Get your financial documents in order. Before contacting a lender, collect your most recent financial statements, put together a short plan showing how you\u2019d use the trucking loan, and check your credit report to make sure that there aren\u2019t any mistakes. Having your documents in order will leave a good impression, even if your credit history is weaker than you\u2019d like.<\/p>\n
Find the right lender. Not all lenders are willing to work with business owners with bad credit, but some are. Traditional brick-and-mortar lenders tend to have tougher standards and credit requirements. Alternative lenders are more accepting. Before spending time filling out that loan application, make sure that the lender offers loans to businesses with bad credit.<\/p>\n
Schedule a meeting. Don\u2019t let a bad credit score stop you from applying for trucking business financing. Schedule a free consultation with a loan specialist and see what they offer. You might be pleasantly surprised.<\/p>\n
Ask about prepayment penalties. If your credit score is bad, your loan might carry a higher interest score. But that doesn\u2019t mean you\u2019ll be paying it off forever. If, say, a new truck boosts your revenue, you could potentially pay back the loan ahead of schedule, thus paying less interest. But some lenders charge prepayment penalties \u2014 extra fees charged when you pay back your loan ahead of schedule. Work with a lender that doesn\u2019t charge a prepayment penalty, and you might be able to get out of debt early.<\/p>\n
Keep up with your loan payments. If you take out trucking business financing, make your loan payments on time \u2014 especially if you\u2019re using your trucks as collateral. That way, you don\u2019t have to worry about losing the vehicle because you didn\u2019t make a payment. Making loan payments on time boosts your credit score, too.<\/p>\n
Refinance. Refinancing is when you replace an existing loan with a new one at different terms. If you take out a trucking loan now, when you have bad credit, and your credit score goes up later, you could try to refinance the loan at a lower interest rate.<\/p>\n
Improving a Low Credit Score<\/h2>\n
Trucking business loans can help you raise money now, while you have bad credit. But you should still focus on improving your credit score over the long term to open up even more funding options.<\/p>\n
Make your scheduled loan and credit payments. Every time you make a credit or loan payment on time, it adds points to your credit score. If you miss a payment, though, your score drops. If you\u2019re late on a payment, you have at least 30 days to make it before the lender reports a missed payment \u2014 and some lenders will give you up to 60 days, Equifax says. Use this window to catch up and avoid a hit to your credit score.<\/p>\n
Pay down your credit card debt. Lenders and credit agencies also look at your total credit card debt versus your total borrowing limit. Forbes recommends paying down your balances to 30% of your limit or less.<\/p>\n
Set up a business credit report. Setting up a separate credit score for your business can help offset your personal credit history. And if your business\u2019s credit score gets high enough, you could take out business loans that you wouldn\u2019t have to personally guarantee. If you haven\u2019t done so, contact the rating agency Dun & Bradstreet to open your report.<\/p>\n
Ask vendors to report your payments. Another way to improve your score is to ask vendors to report your monthly payments to your business credit report. This helps show lenders that you can be counted on to pay your bills \u2014 and pay them on time.<\/p>\n
Don\u2019t let a bad credit score get in the way of growing your trucking business. You can still qualify for many types of business loans for bad credit. By working with the right lender, you can get funding today and put your company in a much stronger position for tomorrow.<\/p>\n","protected":false},"excerpt":{"rendered":"
\u00d7 I am a professional freelance writer from the United States that specializes in making insurance, investing, and retirement planning<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n