Do you need funds to expand your trucking business, or are you facing unexpected costs that you have to cover fast? We understand that selling your truck is not realistic. After all, you need it to run your business. If you have a less-than-perfect credit score, it might be hard to apply for a business loan from a traditional bank. But have you considered semi-truck title loans?
Did you know there are several different types of title loans? They’re not only for household cars. Commercial vehicle big rigs truck title loans offer a quick source of financing that can release a large sum of cash.
What are commercial truck title loans and, how do they work? Read on to find out how they can help you get the money you need for your trucking business fast.
What Are Title Loans?
Title loans are a form of secured short-term loan that uses a vehicle’s title as a source of collateral. They offer a fast and straightforward approval process for commercial truck owners.
The key benefit of a title loan is that the lender holds the title but does not take possession of the truck. So you can still drive the rig and continue to run your trucking business during the repayment period.
Between high fuel costs, fluctuating freight rates, driver salaries, and repair costs, trucking fleets run on tight margins, and access to large sums of cash is critical.
When you apply for a traditional credit-based loan, it can take several weeks or more to find out if the application has been approved, let alone receive the funds. But you can get a commercial vehicle title loan in as little as 15 minutes if you apply online. That can make all the difference to your business if you need a fast source of cash flow, especially in an emergency.
How Do Title Loans For Commercial Vehicles Work?
A title loan for a commercial vehicle big rigs truck works in much the same way as a title loan for passenger cars. Practically any commercial big rig that has a title is eligible for a loan.
If you own the truck free and clear, you can apply. You are effectively unlocking the equity you hold. The amount you can borrow depends on the truck’s value. You can usually borrow between 20-50%.
As title loans are asset-based, there’s no need to pass a credit check. If your business has been denied financing from a bank or other lender in the past, semi-truck title loans are a great option. You can get the cash you need regardless of your credit score.
Applying for a title loan is a hassle-free process. Complete an application form and provide legal identification along with the truck registration document.
Documents Needed For A Commercial Truck Title Loan
You need to provide the following documents with your title loan application for it to be accepted.
- A valid form of ID
- Truck registration
- Proof of income
- Proof of insurance
- Business address
At Champion Financial Services, we can approve your loan on the same day. Unlike traditional financial institutions, we understand the unique financing needs of the trucking industry.
We conduct a quick inspection to determine the value and the size of the loan we can provide. Rather than relying on your credit score alone, we are a common-sense lender that assesses your ability to repay based on the circumstances of your business.
Once we’ve checked and approved your paperwork, you can get back on the road within minutes with your cash. If you’re self-employed, we understand it can be hard to provide proof of your income. So we are flexible about the income documentation we require from you.
Are you tight on time? You can fit the inspection in with your trucking schedule, so there’s no need to miss a shipment to be able to arrange the loan.
What Are the Repayment Terms For A Title Loan?
Another advantage of semi-truck title loans is flexible repayment terms. You can choose to repay the loan in a lump sum after a defined period, or you can make regular repayments over several weeks. Title loan periods can be as short as 15-30 days, or you can negotiate over months.
Whichever option you pick, you will have a clear, easy-to-follow repayment schedule with no hidden fees. The interest rate you pay will depend on the value of the rig and how much you borrow.
You will receive your pink slip back once you finish paying back the loan. If you already have a commercial vehicle loan, you can still apply — you can potentially refinance the existing loan at a lower interest rate.
Apply For Commercial Vehicle Big Rigs Truck Title Loans For Fast Cash
If you have a cash flow issue in your trucking business or need to cover the unexpected costs that come with owning a big rig, title loans can provide the answer.
Champion Financial Services has been providing loans since 2010. Offering commercial vehicle big rigs truck title loans tailored to the needs of owner-operators like you.
We aim to meet the highest standards of customer service and access to competitive lending. We provide the financing in-house, so we have complete control over every loan decision. Complete out your application online or call us today for a consultation.