What are the types of truck finance?
Here are some common types of truck finance:
- Commercial Truck Business Loans. Typically structured as term loans with fixed or variable interest rates. Loan terms vary but can range from 1 to 7 years or more, depending on the lender and the age of the truck.
- Equipment Financing. Can be structured as a lease or loan, depending on whether you prefer ownership or flexibility.
- Commercial Truck Leasing. Lease terms vary but typically range from 1 to 5 years. Monthly lease payments are usually lower than loan payments since you're essentially renting the truck.
- Dealer Financing. Often includes promotional offers, such as low introductory interest rates or deferred payments.
- Government Financing Programs.Various federal and provincial government programs may offer financial assistance or incentives for businesses purchasing trucks, especially those focusing on environmental sustainability or specific industries.
Can I apply for truck loans with bad credit?
Yes, although it may be more challenging compared to applying with a good credit history. Consider, that some lenders specialize in providing loans to individuals with poor credit histories. They may consider factors beyond just your credit score, such as income stability and employment history.
Offering collateral, such as a valuable asset (e.g., another vehicle, real estate), can improve your chances of getting approved for a truck loan. Secured loans typically have lower interest rates compared to unsecured loans because they present less risk to the lender.
Having a co-signer with a strong credit history (e.g., a family member or close friend) can significantly improve your chances of securing a truck loan. Making a larger down payment reduces the amount you need to finance, which can make you a more attractive candidate to lenders despite bad credit.
Business loan calculations for 3 years (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 500,000 | 9.50% | 73,229 |
| 500,000 | 17.50% | 134,896 |
| 500,000 | 28.50% | 219,688 |
| 1,000,000 | 10.00% | 154,167 |
| 1,000,000 | 18.00% | 277,500 |
| 1,000,000 | 29.00% | 447,083 |
| 2,500,000 | 10.50% | 404,688 |
| 2,500,000 | 18.50% | 713,021 |
| 2,500,000 | 29.50% | 1,136,979 |
| 5,000,000 | 11.00% | 847,917 |
| 5,000,000 | 19.00% | 1,464,583 |
| 5,000,000 | 30.00% | 2,312,500 |
Can I get used truck financing?
Yes, you can definitely get financing for a used truck in Canada. Financing options for used trucks are similar to those for new trucks, but they may come with a higher interest rate and advance payment.
You can also see the similar FAQ about Canadian banks:
Details of companies offering the financial services:
Swoop
Head office’s address: 180 John St, Toronto, ON M5T 1X5, Canada
Phone: 647 946 3001
Web-site: https://swoopfunding.com/ca/
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
TD Bank
Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto
Contact center: 866-222-3456
Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp
Swift code: TDOMCATTTOR
Stock code: TD
BSB: 004
Yourcarloan
Web-site: https://yourcarloan.ca/