Jun 25, 2019
This is a question that we get asked on a regular basis at Nationwide Equipment Finance. Clients want to know what their interest rate, down-payment and terms will be, before they buy equipment. The short answer is, it’s different for every lender, and varies based on a variety of factors explained below.
One of the very first things to understand is that commercial or business financing is not like personal financing. Clients often expect to receive “Car buying” interest rates and terms when purchasing a semi-truck or trailer. The reason these rates are typically higher is due to default rates and the risk associated with the trucking and transportation industry.
Each lender has a specific group of things they look for to approve or decline a deal, and based on the following factors and underwriting criteria, the equipment financing terms will be decided. Simply speaking, the determined “Risk Rating” the lender gives a client or a specific piece of equipment the higher the interest rate, down-payment, and chance of a decline there will be.
Unless you are given the underwriting criteria for all of the lenders and banks in the trucking and transportation industry, you simply would not be able to know where to go for the best deal. The major advantage of working with Nationwide Equipment Finance is we work with over 40 industry banks on a regular basis and we know what they are looking for and how to work with them to get the best deal possible in the industry.
Are you looking to purchase your next truck or trailer, or possibly revamp your fleet? Nationwide Equipment Finance specializes in semi-truck and trailer financing. Whether you are an owner operator or a large fleet looking to finance large quantities of equipment, Nationwide Equipment finance will provide the most competitive rates and quick friendly service, while structuring the loan your company needs to be successful and grow your business profitably. Call 954-678-4124 to get started today!