Getting financing with new authority is challenging but possible.
The Reality:
- ●Under 6 months authority: Very limited options
- ●6-12 months: More options open up
- ●12-24 months: Standard financing available
- ●24+ months: Best rates and terms
Options for New Authority:
First 6 Months:
- ●Personal credit-based loans (if 700+ score)
- ●Lease-purchase programs (be very careful)
- ●Used truck financing with large down payment (30-50%)
- ●Family/personal loans
6-12 Months:
- ●Equipment financing from specialty lenders
- ●20-30% down payment typical
- ●Higher interest rates (15-25%)
- ●Shorter terms (3-4 years)
12+ Months:
- ●More competitive financing
- ●Lower down payments (10-20%)
- ●Better interest rates
- ●Longer terms available
Improving Your Odds:
Build Your Profile:
- ●Maintain clean CSA scores
- ●No insurance lapses
- ●Steady revenue growth
- ●Clean driving record
Strong Application:
- ●Large down payment
- ●Co-signer with good credit
- ●Proof of contracts/steady work
- ●Solid business plan
Lease-Purchase Warning: Be VERY careful with lease-purchase:
- ●Often predatory terms
- ●High total cost
- ●Walk-away penalties
- ●May never actually own truck
- ●Read EVERYTHING before signing