Buying a commercial vehicle is one of the biggest investments for an individual next to their home. These commercial vehicles are source of bread and butter to most of the owner but they often forget that this valuable possession can also be used while dealing with some financial emergencies.

Generally, when stuck in financial crisis which demands instant flow of cash, people often borrow from unauthorized sources with high interest rate as they do not have enough idea about the available loan options. Title loan can be a great savior for people who are in urgent need of cash and especially for those who do not possess a good credit score. Majority of lending companies determine credit score of borrower as qualifying criteria and with bad credit score, people often face rejection.

What are commercial vehicle title loans?

It is no different from auto title loan and can be defined as a financial product that uses title of the vehicle as collateral for loan. The collateral used in loan process makes loan secured and covers the amount of loan while reducing the associated risk rate. In order to qualify for title loan, borrower must completely own the vehicle and should possess a clear and lien free vehicle title. Such loan process ensures instant flow of cash along with affordable repayment structure allowing one to easily deal with their needs and necessities.

What type of commercial trucks qualifies for title loans?

Most of the commercial trucks qualify for title loans. But the terms and amount of loans vary as per the model of truck one is using as collateral. Some common commercial trucks that are financed include:

• Semi trucks
• Semi trailers
• Box trucks
• Dump trumps
• Food trucks
• Local delivery step vans

Depending on the condition of the vehicle and its market value, the amount of loan and respective repayment structure is determined.

How do you qualify for title loan?

Qualifying for title loan is much easier than most of the available loan products in market. None of the title loan lender determines credit score or financial condition of borrower. The primary requirement for an individual to qualify for title loan includes a clear and lien free vehicle title. Most of the people who apply for title loan with clear and lien free vehicle title easily qualifies for it.

To start title loan process, borrower is required to fill loan application form with all the information and it can be applied online or by visiting the office of the lending company. Title loan offers plethora of benefits to borrower and doesn’t physically possess the vehicle during loan time period. Hence, borrower can easily use their commercial vehicle to earn money while using its title as collateral to get instant funds from lending company.  

In a nutshell, the ownership of commercial vehicle can be a great savior for vehicle owner specially to get through some financial crisis smoothly. However, it is recommended to plan on repayment during the early stage of loan to reduce the chances of loan default.