Here’s the scenario. You need to purchase a new or used semi truck to start or grow your trucking business. You have had problems in the past that have hurt your credit. You have applied for financing a numerous dealers and they have all turned you down. Your local bank stopped financing semi trucks long ago. And as for rich uncles, well, you don’t have one. So what do you do? The best thing to do is to look at the problem from the lenders point of view. What would make you feel better about loaning someone money with a low credit score? Here are some ideas:

Option number one would be a cosigner. A cosigner with good credit accomplishes two things. First, a cosigner with good credit increases the odds the loan will be paid back on time since they have a history of doing so. Second, with two people signing on the same loan there’s more to loose if both people refuse to pay, therefore increasing the odds the loan will be paid back. Many dealers offer programs where a cosigner can help when there is a weaker credit involved.

Option number two is finding a local dealer that carries their own paper. Many dealers will sell their trucks and take monthly payments in lieu of cash or regular financing. The dealer has two reasons for doing this. First, by offering in house financing they can sell more trucks. Second, because they are charging interest, they are making money not only on the sale of the truck but also on the financing. You want to look for dealers that are close to you. They want to be able to find you if you don’t pay. Also, some dealers that offer this type of financing may not advertise it. So ask the dealers in your area if they do this. It can be very helpful.

Option number three is to offer additional collateral. If you have other assets that are free and clear you pledge them for collateral to get around the bad credit. This can be free and clear trucks, trailers, heavy equipment, or equity in real estate.

There are lenders (we are one of them) that work with additional collateral to get around someone’s bad credit. Bad credit can set you back but if you approach it from the right perspective you can often find a way to work around it. Talk to lots of dealers and look for independent financing companies. Each has a different appetite for approving a customer.

Capital Solutions is a commercial truck financing company specializing in customers with bad credit. We finance semi trucks, dump trucks, and other work trucks for people in all 50 states. We can be contacted at http://www.capitalsolutionsonline.net