Hi,

 

My friend is planning to buy a truck for his company. As I am a truck driver in a firm here, he asked for my suggestions regarding the companies specializing in the truck loans. But, I don't have much idea about them as I haven't consulted any of such companies before.

 

Does anyone know the companies offering a help to secure truck loans? In my recent search, I came to know about some of the commercial trailer financing companies in Canada. But, I haven't heard of them before. If you know the details about their services, please be kind to share it with me.

 

And do you know about the documents to be produced for the application of a truck loan? Hope you would help me here. Thank you.

I would start talking to banks.  The last time I took out an auto loan I went to the local bank to see what they had to offer.

Best thing is talk with a truck dealer. They know the better companies by actually using them on a regular basis for their customers.

Credit Unions are usually the best all around with a very low fee to join up. I heard that some of the interest rates are less than the inflation rate at around 3.5 %

Financing a commercial truck is a lot like taking out a business loan it can get a little complex but doable. As in like everything else good credit is a must or your just going to have to pay a bigger down payment and higher interest rates. I'm sure most large truck finance company are going to be the same as to what they require like proof of a legit business like a LLC or a corporation, if you already have this it shouldn't be a problem, if not you will probably have to have a well written business plan and even a back up plan on top that.  Also proof of insurance will be required at the time of loan.  Most finance company's like to run on short term loans like 3-5 years, and depending on how much truck you need that could put your monthly payment into the 1-2 thousand dollar range. Age of truck is also a big factor, anything over 10-12 years and 750,000 miles your probably better off looking at other options to pay for it. Depreciation value plays a big factor, and with the miles you can rack up in a semi they depreciate fast.