Applying for a commercial truck title loan is sometimes the only option to get the cash you need to keep your business alive. However, putting your commercial truck up as collateral can seem risky. Some lenders charge heavy interest rates, especially to borrowers with bad credit.
The key is to find the right commercial title loan company that will offer a sum that reflects the value of your vehicle and break down payments into manageable chunks. We’ve put together this guide to advise you on how commercial truck title loans work and to share the best finance companies for your needs.
Our Picks for Commercial Vehicle Title Loans
We consider the companies listed below to be the best providers of commercial truck title loans. We’ll give an overview of each business and what they may be able to offer you.
Max Cash Title Loans
CashMax perfectly demonstrates the advantage that independent lenders have over banks: speed.
A 15-minute phone call may be all you need to secure your cash with CashMax. The process can take weeks or even months if you use a bank.
Advantages of CashMax include:
- Small loans are possible: don’t ask for massive amounts of credit if you don’t need it!
- Same-day approval for most loans
- Approachable, give-us-a-call style via a phone call or visit the store
- Big loans are available depending on the value of trailers or automobiles
- Excellent customer service
Contact Max Cash Title Loans Today
This company, run by Wilshire Commercial Capital LLC, offers a massive range of commercial truck title loans. These can run up to $50,000, depending on the state.
As with CashMax, this business makes commercial truck title loans far more accessible than from a bank.
Other benefits of this lender include:
- You can complete the application online or by phone for easy access.
- Direct lending simplifies the process.
- Terms of loans can range up to 48 months for repayment plans that are easy to manage.
- No prepayment penalties!
- Approachable, professional customer care
Contact Loan Center Today
How Do I Get a Title Loan Using My Commercial Truck?
If you’re a business owner or a sole proprietor, you understand how important it is to access funds when needed. When you’re in a financial bind and traditional loans aren’t an option, a title loan using your commercial truck can be a viable solution. With this type of loan, you use your commercial truck as collateral to secure the loan. However, getting a title loan using your commercial truck isn’t as simple as entering a lender’s office and filling out an application. Below, we’ll take you through the steps you must follow to get a title loan using your commercial truck. From ensuring you hold the commercial truck title to putting up the truck as collateral, we’ll guide you through the process.
1) Make Sure You Hold the Commercial Truck Title
Title loans require that only the owner/operators of a vehicle can apply for a loan. You may have difficulties securing the loan if you don’t possess the vehicle title.
2) Choose a Lender
You can apply for a loan with a bank or an independent lender. A bank may seem a ‘safer’ service with better terms, but the process can be lengthy and inefficient in the short term.
3) Decide What Funding You Need
It’s best not to borrow more than you need if possible. Your vehicle may be worth a lot as capital, but paying back lower sums of cash is easier.
4) Negotiate Terms with the Lender
Lenders will typically offer better terms for smaller loans. This process can call for re-assessing how much money your business can invest in the future, as you’ll need to free up cash for repayments.
5) Put Up the Truck as Collateral
Once you’ve decided on satisfactory terms for the commercial truck lien, you can sign the contract.
You should have some money saved to help with the monthly payments. That way, when the first payment comes due for the truck title loan, you can easily cover it.
How Much Can I Get for a Semi-Truck Title Loan?
You may get an offer between $2,500 and $50,000 for semi-truck title loans. The amount you can borrow depends on several factors:
- Value of the vehicle. If your Semi Trucks value isn’t worth over $20,000, you won’t be able to borrow more than $20,000!
- Ability to repay. If you have a bad credit score, the company financing your loan may offer less money or call for steeper terms.
- Your financial needs. You may be refinancing to avoid repossession: in this case, you could borrow as much cash as you need. On the other hand, if you need financing for unforeseen expenses, your truck may be the only capital you have capable of securing the cash you need.
Can I Get a Loan Without a Title?
The short answer is no. A commercial truck title loan will require possessing the vehicle’s title.
Is It Hard to Get a Title Loan?
It shouldn’t be challenging to get a commercial truck title loan. Some commercial lending companies allow you to secure online title loans without visiting a store or with a phone call.
How Do Trailer Title Loans Work?
As a type of equity loan, the basic structure of semi-truck title loans is that the owner/operators offer the vehicle as collateral to the financing party. The truck is capital that acts as insurance if the borrower can’t find the cash to repay the finance company.
Can I Get a Loan on My Trailer?
Trailers are eligible for truck loans. Semi-truck title loans can provide a substantial cash injection for your trucking business, as trailers are generally very valuable. It’s your call, but using an equity loan is often easier to shore up credit quickly than ‘tightening your belt.’
Finance companies often offer big credit for commercial truck title loans against trailers. Just be sure you can make the repayments!
Can You Still Use Trailers for Business with a Semi-Truck Title Loan?
Trailers may be essential to your business functioning properly. We understand that if your business depends on trailers, you may be nervous about putting up your big rig as capital.
You can use any commercial vehicle for business if you’re up-to-date with repaying your commercial vehicle title loan. If you run out of credit, the business lending you money will call in debt and repossess the truck.
What Kind of Commercial Trucks Qualify for a Title Loan?
As long as you hold the title, you can put up any commercial vehicle as insurance for a title loan, including:
- Cement trucks
- Dump trucks
- Log trucks
- Asphalt trucks
- Box trucks
- Semis and 18-wheelers
Can I Get a Loan Against My Truck?
From commercial big rigs to dump trucks, all kinds of vehicles can be used as the capital by an owner when you need a title loan. If you are the vehicle owner and can offer it as capital against a loan, lending companies can offer you cash loans.
Can I Get a Title Loan on a Company Car?
Sure, as long as you’re the car’s owner, you can secure the loan. Any vehicle a business owns will work for title loans, provided you can provide the title.
Of course, company cars may have less capital as collateral than commercial trucks, so you should consider the following:
- Which vehicle is most essential to your business? Putting up less valuable vehicles minimizes risk if you can’t repay.
- Which vehicle will likely get you the needed sum? It’s no good offering up a company car as collateral if you’ll have to refinance it or put a truck up as collateral a few months later.
In what States Are Title Loans legal?
Title loans are legal in the following states:
- New Mexico
- South Dakota
Should Truck Title Pawn Loans Be Avoided?
Unscrupulous finance companies with extortionate terms have created an aura of fear around this field. Horror stories abound of impossible repayment terms and sketchy methods of recouping payment when a borrower defaults.
This situation is avoidable when you work with a trustworthy financing company.
What Happens When You Default on a Commercial Title Loan Where Your Title Is Held as Collateral?
You should avoid defaulting at all costs, as you can lose your truck. Defaulting can also give you a very bad credit score. It will make lending companies far less willing to offer you credit in the future.
Verdict: Find a Lender Who Understands Your Needs
Making the best decision for your business when you need cash most is difficult. We at Face The Red understand that. We also understand that nothing comes for free, which is why many businesses balk at putting up their prized assets as collateral while meeting repayment terms.
However, this kind of arrangement can be highly beneficial in the long term and is certainly better than running out of cash. Give us a call today to speak with one of our recommended finance companies and discuss the best commercial truck title loans for you.