How to get the best truck repair loans

Owning and driving a tractor-trailer can be an expensive endeavor. In addition to the money needed to buy the truck itself, there are also repairs that can be very expensive. If you run a trucking business, the cost of repairs can add up quickly. Fortunately, there are several financing options available to truck owners who need help paying for truck repairs.

Read on to find out how to get the best truck repair loans for your needs.

Common reasons why owners, operators and professional truck drivers need truck repair financing

Commercial trucks are heavily used during the weekday, driving thousands of miles for a variety of purposes. But high mileage is a good indicator of frequent breakdowns and the need for repairs on any car. Ongoing, regular maintenance is key to ensuring your tractor-trailer or commercial fleet is roadworthy and performing properly. But even with regular maintenance, commercial vehicles can show expensive signs of wear.

Some of the most common reasons commercial truck drivers and owners need financing are these costly repairs:

  • brakes — Brake overheating and wear is one of the main causes of accidents involving tractor units. Brake maintenance and repair is an important step in ensuring truck safety, but the costs can add up.
  • Engine overheating – Again, high mileage and long distances mean your truck engine has ample opportunity to overheat, which can lead to costly repairs.
  • Starter — Starters can cause major problems for drivers and need to be tested frequently, especially in the colder months.
  • U-joints — Since they transfer the transmission power to the differential, U-joints are heavily loaded and must be properly lubricated. Drivers should listen for clicks or vibrations while driving as these can be signs of a failed U-joint.
  • wheel bearing — These important components keep the truck’s wheels turning, and if the driver hears noises from the wheel arches or jerky movements while driving, this is a sure sign that the wheel bearings should be checked.

Benefits of a truck repair loan

Getting small business loans or financing your truck repair can give you a number of benefits beyond being able to pay for your repairs quickly. You can also free up cash flow for other business expenses or increase your working capital to grow your trucking business. Paying off a small business loan can also help you build credit for your business, which can help you in the future if you want to get more financing or grow your business further through equipment leasing or other options. It can also help you get better interest rates and repayment terms if you decide to refinance.

Types of truck repair financing

There are different types of truck repair financing. Finding the right option for your business is important. Some common types of truck repair loans are:

Equipment financing for truck repair

Many trucking companies use equipment financing to pay for repairs on their fleets. Equipment financing is usually a short-term loan to cover repair costs. There are many online lenders that offer equipment loans, which can make the application process very easy. Many truck leasing companies also offer truck drivers equipment financing, but use the truck as security.

Business line of credit for truck repairs

Unlike a traditional loan, a business loan allows you to borrow only what you need and pay interest on it. Plus, you can reuse the credit every time you pay it back. This is a good option for those in the trucking industry who need to manage a fleet of trucks and frequently make expensive repairs.

Business credit card for auto repair shop

Business credit cards can be a good option for truckers and trucking companies who need to pay for repairs and want to earn points or rewards in the process. It’s important to find a credit card with an annual percentage rate (APR) that fits your budget, but often a credit card’s approval process is less stringent than other financing options.

Title loan for truck repair

If you don’t have good credit and need financing for car repairs now, a title loan is an option to consider. With this type of financing, your truck would be used as collateral. So if you are unable to repay your loan, there is a risk that the lender will take your truck. These loans also usually have high interest rates.

Personal loan for truck repair

If you are an owner, you may consider a personal loan to meet your tractor unit financing needs. Personal borrowers can get attractive interest rates and repayment terms, especially with good credit, but you may not be able to get as much money on a personal loan as commercial truck loans can.

Capital loan for the repair of articulated lorries

A capital loan is like other business loans but can only be used to improve a property. If you are a truck driver or truck fleet owner, this means you could use the capital loan to repair your truck or trucks, but not for running costs.

How to choose the best loans for your needs

Getting the best truck repair loan depends on several factors. It pays to research your loan options to find the right lender for your commercial vehicle repair.

Some things to keep in mind when researching your loan options are:

  • your creditworthiness — Your business and personal creditworthiness affects what types of financing you qualify for, from which lenders, and for how much. While bad credit doesn’t mean you can’t get credit or other financing, it can affect your interest rates and repayment terms. Knowing how to set up a business loan can help you get better terms on any loans you may need for your business.
  • your credit history – How long you have been in business or how long you have built up credit may affect your ability to qualify for loans or credit.
  • loan amount – how much do you need? How much can you qualify for? And how much can you afford per month?
  • down payment — Some lenders require money upfront to reduce their risk in lending to you. It’s a good idea to know how much you can afford and what you are willing to pay.
  • Interest charges – Your credit rating will affect your interest rate, but it may vary depending on the type of small business loan you get and the lender you choose. So keep that in mind.
  • Refund Policy – Like interest rates, this depends on your qualifications, but shorter repayment terms can mean higher monthly payments, while longer repayment terms can mean higher interest rates. Also, some lenders may penalize you for repaying a loan early, which you must consider before signing it.

Many truckers and hauliers don’t believe they can qualify for financing because of bad credit or other issues. While it is true that your credit score can seriously affect your ability to qualify for credit or other financing, it is not a definitive barrier to entry. But it can make the loan terms less desirable for you, so it’s important to review all requirements before accepting any financing.

Get matched with the best truck repair loans for your needs

Knowing which loans you qualify for up front can save you time in the application process and reduce hassle in the long run. Nav provides small business owners with personalized financing recommendations based on your business and personal credit score, credit history, annual income, and a number of other factors. In fact, business owners using Nav are 3.5x more likely to receive approval for the funding they request. Sign up today to see your options.

This article was originally written on June 10, 2022.

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