Truck Financing After a Bank Decline

Start by Finding Out What Happened

If the bank or dealer can explain the reason for the decline, ask.

The useful question is not simply:

"Why did they reject me?"

It is:

"What part of the transaction did not fit that program?"

The answer may involve the credit profile, business history, documentation, the truck, the seller, the purchase price or another part of that lender's policy.

Do not assume every bank uses the same rules.

A Bank Decline Is Not a Universal Decline

One lender's decision applies to that lender's program.

It does not automatically tell you what another commercial financing source will decide.

HMTL reviews transactions under its own confirmed program requirements.

That does not mean a previous decline guarantees an HMTL approval.

It means the transaction can be evaluated separately.

Check the HMTL Basics

Before submitting the transaction to HMTL, confirm the basic program fit:

• the truck is being purchased from a licensed dealer
• the purchase price is $21,000 to $145,000
• there has been no bankruptcy within the last 5 years
• there has been no repossession within the last 5 years
• the typical down payment is realistic for your cash position
• a startup has the required 2 years of industry experience

There is no minimum credit score.

Down Payment After a Bank Decline

An established business is typically 30% down.

A startup is typically 40%.

The percentage is calculated from the truck purchase price.

More money down changes the amount financed, but this site does not promise that a larger down payment will cure every reason another lender declined the transaction.

Have the Actual Truck Ready

A specific financing review needs a specific transaction.

Useful truck information includes:

• year
• make
• model
• VIN
• mileage
• written purchase price
• licensed dealer

If you change the truck, seller or purchase price, the transaction has changed.

Business Bank Statements

Approximately 4 months of business bank statements is a typical HMTL program characteristic.

This site does not publish a universal cash-flow ratio, deposit threshold or minimum monthly revenue.

The actual business information can be reviewed with the rest of the file.

Do Not Assume You Need to Apply Everywhere

A decline can make a buyer feel pressure to submit the same application to many different places.

It is usually more useful to understand the transaction first.

If the problem is a private seller, you need a different seller structure for HMTL.

If the purchase price is outside the HMTL range, you need a different transaction.

If the transaction fits HMTL's basics, it can be submitted for review.