How can I get a bank to finance me for a $50,000 Semi Truck?

[Anonymous]

Hello! I'm still new when it comes to building business credit. I'm an owner operator trying to get enough business credit to be able to get my own truck. Right now I lease a truck @ $714/week for a toal price of $252,000. I have been doing this for 6 months now. No it doesn't report to any credit buero because it's a walk-away lease. I can turn it in anytime. However, my goal is to get my own truck but i just keep getting denied by dealerships even though i can clearly afford to pay for a $50,000 truck.

My business credit looks like this: - No paydex score

Quil - $1000

SNS - $1000

Staples - $800

office depot - $700

Newegg 55 - $4,000

RTS fuel - $2500

Nastc - $1500 (pending)

cap1 sparks - $2150

Universal plat corporate - $1500

Fuelman - $2500

20+ inquires on my person credit and i have limit credit history. Scores is around 630 on all 3. The only accounts above that is pg is the cap1.

Even though i have these account only thing i have used was newegg i bought a hdd for $50. staples, office depost, quil I bought things for less than $20. Sns i paid $60. The rest haven't been used. Can someone guide me in the right directions?? I used credittera to check my business credit. I have 4 tradelines. 3 are net30 and the other one is my sparks card.

[redpat]

To be honest your scores are too low for conventional financing.  IMO, a bank will not touch you until your scores are at least over 690 or 700 at best.

Remember business credit is only as strong as the personal guarantor.

[Anonymous]

so should i stop building business credit and start building personal? 

[redpat]

Creditors will always pull your personal credit for business loans.  

Therefore, it's critical to have good personal credit scores when applying for business credit.

[silkysean]

Well first off why are you paying $714 weekly to Lease a work truck and what kind is it.A standard work truck no bucket lift etc typically won't cost new more than $35,000 at best.2nd if you can afford a $50,000 truck why not just pay cash for a truck put a little money into it and save until scores come up thus saving you money.Scores of 630 personal if approved will get you high interest rates.I would really sit down and think about this one 

[MyDataMyChoice]

Try GM (Ally) and Ford NO PG Accounts or BMW FS (more leinant) 

[sccredit]

This is a semi truck folks, can't go to a normal car dealership.

OP - Does the truck lease include maintenance?  Reason i ask is because I recently purchased 4 new trucks for our fleet (total of 95 trucks) through Volvo Financial but during the time we were debating the purchase we received some full service elase information from a few companies.

For comparison - Volvo Financial financed our new trucks at 6.29% which puts the payment for each one at $2,539 each per month

Ryder has a Full Service Lease for $2,558 including license and FHUT.  Mileage charge is $.065 per mile (which is pretty good).

If you buy a $50k truck how long can you realistically run it for before EPA comes bearing down with new regs.  It's already happened in CA - we had to move 11 truck out of CA last year because of AQMD rules.  

Something to think about.

[Anonymous]

I'm leasing a $253,000 semi truck for $714 a week for almost 7 months now. It's extremely easy to lease a semi truck. No credit check, no down payment. Why? Because the truck cost $90,000 and they lease it to me for $253,000. I can't get out of this situation till i figure out how to trick a bank into just giving me a loan for $50,000. It's so hard for the suit and tie guys sitting behind the desk to understand my business makes $5,000 a week for over 6 months now and that I'm easily affording a $253,000 truck and simply want to get a $50,000 truck. 

[redpat]

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@Anonymous wrote:

I'm leasing a $253,000 semi truck for $714 a week for almost 7 months now. It's extremely easy to lease a semi truck. No credit check, no down payment. Why? Because the truck cost $90,000 and they lease it to me for $253,000. I can't get out of this situation till i figure out how to trick a bank into just giving me a loan for $50,000. It's so hard for the suit and tie guys sitting behind the desk to understand my business makes $5,000 a week for over 6 months now and that I'm easily affording a $253,000 truck and simply want to get a $50,000 truck. 

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Unfortunately there are no tricks.  Also, the suit and ties guys are also the underwriters and they look at your credit score of 630 and it will not cut it.  Sometimes things are black and white, so until you get the score up you can talk to them until your blue in the face but it won't change anything.

[Anonymous]

Get those inqs off in a hurry and follow the order of operation that most follow on here.Apparently you applied for credit that was out of your league. You also wasted several months worth of time trying to scheme your way to a business loan when its almost impossible to get an official loan without 2 years in business with docs. Loc and cc's are another story and are easier to get. There is a company called Accion that gives loans to startups but I'm not sure if they deal with trucking.

Why wouldnt you want to build your personal credit?. They wont approve you without a pg and if you can get financing the rates are disgusting and im talking about equipment finance companies. I hope you didn't think B of A or Chase would even give you a truck loan!  Right now having good personal with a new business is almost mandatory. You could get a personal loan at under 10% interest (compared to 15% or more) to add to savings and buy a truck cash with title in hand after purchase! For most there are not many shortcuts to navigate in the finance arena. The formula is here. Keep studying snd striving for more and you will get that.