I’m having trouble buying my 26 foot reefer truck and starting my small business

by Moneyguy323. Posted on Sep 11, 2020    2    7


Everything is mail in now so I have to wait two months for my fictitious business name. How do I get a loan for about 50 K to buy my truck.


Comments

Funds4Equipment 1

Business credit has tightened up since COVID, especially for startups. There are a number of lenders out there that will consider your situation, even without a DBA.

Once you recieve your fictitious name, you can easily request an addendum from the lender to make the change on the contracts.

Things to note:

  • You will need to provide a personal guarantee
  • While there are options for 100% financing with strong credit, many lenders are requiring 20% down.
  • The less you ask for, the better. Many equipment lenders limit loan amounts to startups to $35-$40k. Some of these lenders aren't picky about age/mileage of the truck so getting an older truck to start off with may not be a bad idea.
  • Make sure to research the broker and/or lender to ensure they are reputable. LinkedIn, industry associations, BBB, etc.
  • Never pay a broker up front to secure financing for you. Make sure you have a funding proposal in hand before agreeing to make any payment (making the first and last payment when accepting the term sheet is typical).

    Happy to be of assistance.
SafetyMan35 1

Have you looked for used trucks from Ryder or Penske? They are typically well maintained. I found several in my area for $30-$35k.

As for securing a loan...personal guarantee.

  Moneyguy323 1

The first ones I tried was Penske and rider but I think I need the business name for them to take me seriously.

Dmurphy2016 1

The personal guarantee helps, I managed to get approved for a loan, 30k in business name only with no personal guarantee. Not exactly sure how it all works though. Right now financing is tough

Dreamiekid 1

Ritchie bros auctioneers

Or proxibid.com

nimble_fox 1

A lot of that equipment is up for auction and the auction companies typically provide financing. I would suggest asking them about it.

  Moneyguy323 1

I never thought about an auction I’ll give it a try though I looked throughout the whole country online and it’s pretty hard to find a decent truck.