Guide to Loans for Truck Drivers

Disclosure: Stilt is a lending company. Nonetheless, we are committed to recommending the best loan products to our readers when their needs are outside Stilt’s loan offerings.

Do you own a transport company? Are you a truck driver in dire need of some business financing? Can truck drivers get business loans? Do lenders offer help to people in the transport industry?

You can search for loans for truck drivers. It may give you the financial help you need to expand your business. Or perhaps you need to finance some expensive maintenance costs. This is how you can get the help you need.

Loan Eligibility for Truck Drivers

Loans aren’t for free. Someone has to repay it. And lenders want to make sure borrowers have the ability to repay a loan before they disburse it. But what do lenders consider when they assess a borrower’s application? Do they use the same discretion with loans for truck drivers?

Here are the five predominant categories which determine someone’s eligibility for credit. These categories also apply to truck drivers as well as loans for Uber drivers. They are as follows.

1. Income

Almost every lender wants to know whether you earn enough income to repay the loans you apply for. You won’t get a loan if your income doesn’t meet the minimum requirements determined by the lender. You must be able to settle the debt you apply for by proving your income is enough to meet the monthly installments. Some lenders may require you to have a debt-to-income ratio of 36% or better. Lenders are concerned about your wellbeing and would like you to have enough cash left to settle other bills and expenses too.

2. Employment

The employment requirements differ among lenders and types of credit you apply for. Some types of loans may require several years of employment whereas others just want proof of your current employment. But there is also a difference in the available loan offers when full-time employees are compared to part-time and/or self-employed employees.

Your lender of choice will confirm the type of proof they want regarding your employment. Comply with their requirements or find alternative ways to satisfy this category. They essentially want to know your income comes from a secure consistent source.

3. Credit History

Immigrants often struggle with their credit score. Credit history is a vital part of your loan eligibility. Lenders look at your credit score as a way to judge your financial habits. A bad credit score reveals you might not yet have the capacity to manage large amounts of credit. A good credit score convinces lenders about your ability to settle large sums of debt.

Keep track of your credit history, settle debts on time, and keep improving your credit score to receive better credit offers. This will cheapen your loan repayments and possibly help you to settle debt faster.

4. Secured vs. Unsecured Loans

The type of loan you apply for determines the eligibility criteria. Secured loans have more lenient criteria when compared to unsecured loans of the same value. Secured loans are backed by a form of security called collateral. Collateral serves as payment for the debt if you fail to repay it. Unsecured loans have no collateral.

It may be easier to qualify for secured credit as opposed to unsecured credit of the same amount. But unsecured credit doesn’t require any expensive collateral. You need to apply for the type of credit which fits your situation the best.

5. Net Asset Value and Expenses

Lenders want to see the overall picture of your business or personal wealth. The debt you apply for should not overshadow the value of your wealth. This could place your Net Asset Value in a difficult position. Once again the lenders will look at your debt-to-income ratio to determine the effect of the loan you apply for on your finances.

Lenders will only approve the loans for truck drivers that are beneficial to your business or personal finances. Make sure you apply for an amount that will be enough to cover the project but don’t be greedy and overextend yourself by applying for something beyond your means.

How to Get a Personal Loan as a Truck Driver

A personal loan is a very good option. You can use it in whichever way you see fit just like loans for Lyft drivers. Some lenders may require you to disclose how you are planning to spend the money, but a personal loan is not made for one specific type of expense.

Spend it on expensive maintenance costs, invest it in an expansion project, or use it to hire new drivers to increase your business capacity. You can do what you want with it. Just remember to repay it on time.

Even immigrants can be eligible for personal loans. Comply with the basic eligibility criteria and submit your best possible application. Stronger applications get better loan offers.

This is how it works.

Apply

Apply online for the loan you need. Include all the required documents and submit your application.

Accept

You’ll receive feedback about your application within 24 hours. Supply any additional documentation or information required (if any). Soon you’ll receive your offer and a promissory note. Sign and return that note if you want to accept the loan offer.

Repay

The loan should be disbursed into your U.S. bank account within 2-3 business days. Go set up your repayment method online. An autopay option will help you to pay on time every month.

It’s that simple. Now you can stress less about your money problems and go tackle your business venture.

Loans to Avoid as a Truck Driver

We understand you might be under severe pressure. And some of those credit options out there look irresistible. As easy as it may seem you need to reassess the situation. Here are some loans you need to avoid.

Payday Loans for Truck Drivers

Payday loans are very dangerous. These lenders often approve loans at the expense of their borrowers. These loans have expensive interest rates and can place you in serious financial trouble. Look for reputable lenders and only accept a loan you can repay.

Bad Credit Loans for Truck Drivers

Some business owners might have a bad credit history. This probably refuses them many credit opportunities and causes them to turn to bad credit loans like title loans. Title loans are very risky since it could place your whole business in jeopardy.

A title loan is a secured loan. The lender takes the title of an expensive asset like a truck. They pay out a percentage of the value of your truck as a loan and you need to repay them in monthly installments. It’s very risky since they repossess your truck if you default on the loan. This could take away much-needed capacity out of your business.

Loan Alternatives for Truck Drivers

What can you use if you don’t qualify for any loans for truck drivers? Or perhaps you don’t want to take out a loan. What options do you have? Here are some loan alternatives for you to consider.

Education Grants

Truck driver school is just like any other career’s academy or school. It requires tuition fees and you still need to pay for personal living expenses throughout your time as a student.

Truck driving school receives certification from education grants like any other. You could get student aid from FAFSA options like any other student. Comply with their eligibility criteria and apply for the grant you need.

Trucker-Specific Grants

The National Clean Diesel Funding Assistance program could offer you the help you need. They specifically help truck drivers with funding for business-related ventures.

Small Business Grants

The U.S. Small Business Administration could supply your best option. They specifically give small-business owners the help required to start a new business. Visit their website and find the answers to your small business-related questions.

Conclusion

Life as a truck driver can be challenging. You need to spend days away from home and also need to contend with expensive maintenance costs. How could you get financial aid to expand your business or settle business costs?

Loans for truck drivers could help to finance the projects you have in mind. Use the tips provided above and apply today.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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