Needing money unexpectedly for your business can be scary. Not knowing where you’ll get the money from or worrying that your business may close is a fear you shouldn’t have to face. The good news is that if you own a commercial truck, such as a semi-truck or big rig, you may be able to borrow against the vehicle’s equity.
Don’t worry—you don’t have to give up your vehicle to get the money. You can have the funds and keep your truck, taking care of your financial concerns while continuing to operate your business. Swift Title Loans offers a fast application process and can get you the money fast once you are approved.
What are Commercial Truck Title Loans?
Commercial truck title loans are loans against the truck’s equity. The equity is the truck’s value minus any outstanding loans you took on it, such as when you bought the truck. Most lenders require you to own your truck without any loans to borrow a truck title loan.
The application process for semi-truck title loans is quick, and you can often get same-day funding or your funds by the next business day.
How Do Truck Title Loans Work?
When you borrow a semi-truck title loan, title lenders hold onto your truck’s title. You can access some of the truck’s equity in exchange for the title, aka cash. You’ll pay interest on the money borrowed and must make monthly payments as stated in the loan agreement.
You can keep and drive the truck for business like usual. The only thing you cannot do is sell the truck until you pay the commercial truck title loan in full.
How to Qualify
The good news is that you don’t need good or even average credit to qualify for a semi-truck title loan. While credit checks are a part of the process, your credit score doesn’t make or break our decision. Instead, we look for the following qualifications:
- Valid ID, such as a driver’s license
- Proof of truck registration
- Proof of valid insurance
- Proof of steady income
- Ownership of a business checking account
- Business address
- Ownership of a commercial truck without any loans
- Proof of a lien-free title in your name
When qualifying for a semi-truck title loan, the two largest factors are the truck’s value and your ability to repay the loan. If you can prove the truck has adequate value and you have enough income to make the monthly payments, you’ll have a good chance of securing a title loan.
We’ll ask questions about the vehicle to determine your truck’s value and request pictures of its interior and exterior. If we determine a physical inspection is necessary, we’ll set up arrangements to do so quickly so you know if you qualify for the title loan quickly.
Types of Commercial Trucks That Qualify
Most commercial vehicles qualify for truck title loans, including:
- Semi-trucks
- Flat-bed trucks
- Tow trucks
- Big rigs
- Box truck
- Platform truck
- Dump truck
The Benefits of Truck Title Loans
When you’re experiencing a financial emergency or need money to put back into your business quickly, truck title loans can help. Here are the benefits of using your commercial truck as collateral:
- Bad credit doesn’t matter: You can apply for a truck title loan with bad credit and still get approved if you have the income to repay the loan
- Fast funding: Experiencing a financial emergency is scary, but truck title loans fund fast, sometimes on the same day, so you don’t have to wait
- Keep your truck: You don’t have to worry about giving up your truck until you can repay the loan; you keep it and drive it as normal while making payments
The Downsides of Truck Title Loans
It’s important to understand the downsides of truck title loans to ensure they are the right fit:
- Risk losing the truck: If you miss too many payments, the title lender can repossess the vehicle and sell it to recoup the funds you didn’t pay
- Cannot sell the truck: You cannot sell the truck while you have an outstanding balance on the title loan; you must repay the loan first
- High interest rates: Title loans have high interest rates that can make your monthly payments high and even unaffordable sometimes
FAQ
Can a Semi-Truck be Used as Collateral for a Loan?
Yes, you can use a semi-truck as collateral for a title loan. As long as it passes an inspection (sometimes virtual), has a high enough value, and you have proof of adequate income to repay the loan, you can use the truck to access its equity.
How Does Collateral Work on a Commercial Loan?
Collateral on a commercial loan is just like collateral on any other type of loan. You pledge the collateral to the lender in exchange for the funds. If you don’t follow the loan agreement, you can lose the collateral because the lender can sell it to recoup the lost funds.
What Credit Score Do You Need for a Truck Title Loan?
Truck title loans don’t require a specific credit score. Instead, lenders look at the big picture, ensuring you can afford the payments and that the truck has enough value to lend you the money.
Is it Hard to Get Approved for Commercial Vehicle Title Loans?
Like personal title loans, it’s somewhat easy to qualify for commercial vehicle title loans because they don’t rely on your credit score. As long as your vehicle has enough value to support the loan and leave some equity untouched, and you have proof of adequate income to repay the loan, you stand a good chance of approval.
Final Thoughts
A commercial truck loan, such as a big rig title loan, can help you in a financial emergency. However, they have high interest rates and a short repayment period, so be sure you can afford the monthly payments to eliminate the risk of losing your truck.
If you think you qualify for a truck title loan, apply today!
