How to Get Approved for a Commercial Truck Loan

First Make Sure the Transaction Fits the Program

Before worrying about your score, make sure the truck itself fits the basic program.

The purchase must be from a licensed dealer.

The purchase price must be $21,000 to $145,000.

There can be no bankruptcy or repossession within the last 5 years.

If you are a startup, you need 2 years of industry experience.

Those items are worth checking before you spend time negotiating a truck that cannot fit the program.

Know Your Real Down Payment Number

An established business is typically 30% of the purchase price down.

A startup is typically 40%.

Calculate the percentage from the truck purchase price, not from the amount you hope to finance.

For example, 30% of an $80,000 purchase price is $24,000.

Knowing your actual cash position is more useful than saying you can "probably" come up with the down payment later.

Also remember that taxes, title, dealer fees and other costs may be separate from the purchase price. The total cash needed to complete a purchase can therefore be higher than the down payment calculation alone.

Use the down payment guide to calculate examples.

Choose the Truck Before You Make a Commitment

You can begin discussing financing while you are shopping, but a specific approval is tied to a specific transaction.

Once you identify a truck, make sure you know:

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

Those details allow the financing conversation to be about a real truck rather than a hypothetical purchase.

Do not assume that a different truck at a different price will automatically fit simply because another transaction was discussed earlier.

Have the Typical Bank Statements Ready

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

Having them available before you apply can make it easier to answer questions about the business without searching for documents later.

Do not assume that 4 months of statements is the only information that can ever be requested. A specific transaction can require additional information.

See what to have ready before you apply.

Be Accurate About the Credit History

There is no minimum credit score.

That means you do not need to reach a specific numeric score before you contact HMTL.

It does not mean the credit profile is irrelevant.

If you know there are collections, charge-offs, late payments or other credit issues, there is no benefit in pretending they are not there. The transaction will be reviewed on its actual facts.

The hard historical condition is clear: there can be no bankruptcy or repossession within the last 5 years.

If either event falls inside that period, the transaction does not fit the current program.

Do Not Confuse Better Preparation With Guaranteed Approval

A complete, accurate file is easier to review than a partial one.

That does not mean preparation forces an approval.

The purpose of preparing well is to eliminate avoidable confusion and make sure the actual transaction is what gets evaluated.

A buyer can do everything neatly and still receive a no.

A buyer can also have weak credit and still be worth reviewing because there is no minimum credit score.

The goal is not to manufacture a perfect file. The goal is to present the real file clearly.

Do Not Wait for Perfect Credit Just to Ask the Question

Improving credit can expand financing options over time, but you do not necessarily need perfect credit before exploring truck financing.

If you already have the down payment, the required industry experience where applicable, and a truck selected from a licensed dealer, it may make sense to find out what options are available now.

The right decision depends on your timing and the rest of the transaction.

Keep the Dealer Informed

If you have selected a truck, let the dealer know financing is being arranged.

Ask the dealer for the written purchase price and the truck details.

If the dealer has a deposit or hold policy, get that policy in writing before sending money.

HMTL does not control whether a dealer will hold a truck or refund a deposit.