Hot Shot Truck Loan: Easy Steps and Tips
With a hot shot truck loan a driver can get a big rig tractor and trailer on the road. Loans also include trailers such as gooseneck trailers, car haulers and semi -trucks. Low credit scores may qualify and some start up options are available.
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How to get a hot shot truck loan
1. Make a list of the truck and trailers needed.
Include description, manufacturer, year and model numbers.
Tip: Programs lend up to 95% maximum on qualifying trucks and trailers.
The vehicles and trailers must be free and clear. Have the information on the seller ready and whether the seller is a vendor or private party.
2. Contact lenders that provide hot shot truck loans on trucks and trailers that you are looking for or already have.
Ask about their approval requirements and program options including credit scores, down payment needed, documentation required, time in business and time to close. Decide which programs are the best match for your business based on the requirements and your own profile. Give the funder basic information on the trucks and trailers. Ask what your chances of approval are and if they can pre-qualify you.
3. Provide any income verification you have to strengthen your request.
List the stronger credit owner first because you will increase your chances for approval and also get higher offers. If your credit score is low but you can make a higher downpayment, tell the lender. Approvals are another result of higher down payments.
4. Complete application for funding.
If you are approved, review terms and conditions including down payment requirements, fees and time to close. If you are not approved contact the lender to discuss available options.
5. When you are ready to close, request documents and finish the paperwork.
Complete all closing items required and receive funding
FAQ Frequently asked questions on how to get a hot shot truck loan
How can I get a hot shot truck Loan?
To get a hot shot truck loan, provide information on the vehicle and trailer. The year, manufacturer, model number, cost and amount you have down are needed to start. An invoice or bill of sale may be required.
Do I need a down payment?
You will need at least a 5% to 10% down payment. A lower credit score requires a larger downpayment. Newer business less than a year old and up to 5 years may need 10% down.
Credit scores over 650 and 2 years in business can make a lower down payment or two payments at closing.
Can I buy my semi truck from a private party and not a dealer?
Lenders prefer or require the purchase to be from a licensed dealer. Private party purchases are scrutinized more. Proof of the current value, purchase history, lien history and current condition will be closely looked at on private purchases.
Need other options?
Check here for other small business loans without vehicles.