According to FinanceSource.com, commercial vehicle loans “usually involve fleet funding services or commercial lenders who give more faith and power to a business simply because it is a business.”
However, there’s a caveat: they also possess higher interest rates. The redeeming factor is that there are “fleet-funding deals or specials that are offered” for buying several vehicles. Dealerships would provide special offers for commercial deals because a bulk purchase or lease always brings a profitable bottom line.
Currently, there are a number of lending companies who provide commercial vehicleloans. However, fulfilling the pre-requisites to obtain one can take a bit of work.
Here are some of the pre-requisites for borrowers, as elaborated by StreetDirectory.com:
For first-time buyers, interest rates may vary depending on credit history, type of vehicle (whether new or used) and loan period.
Commercial vehicle loans are usually offered for a period of 1-4 years. Simple interestloans have interest rates that are determined by the principal amount.
There are two ways to avail of commercial vehicle loans: through direct or indirect financing. Direct financing if provided by banks or lending institutions while indirect financing can be obtained from dealers.
Here are some key tips from FinanceSource.com for those seeking commercial vehicleloans:
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