As with any type of vehicle, semi-trucks will need occasional repairs. When your truck breaks down between routine maintenance appointments, it can be extremely frustrating, as well as financially taxing. Your truck is your way of making money, and when it is undrivable you’ve lost that income. On top of that, semi-truck repairs can be expensive. How will you pay for it when you can’t deliver any loads?
Many commercial drivers turn to semi truck engine repair financing to make it more affordable. There are loans available from specific lenders who specialize in financing for commercial trucks. Here are some possible options.
Financing Options for Repair Costs
Sometimes the best and only option is to finance the repairs, which essentially means to take out a loan of some kind to pay for it. Here are some types of loans that can be used to pay for truck repairs:
- Working capital. A working capital loan is designed to cover the daily operational expenses for a business. This is not a long term loan like a real estate or truck loan. This is a short term loan designed to finance current expenses that are needed right now. A working capital loan can usually be secured and made available in a short amount of time, which is important when it comes to achieving your main goal of getting your truck repaired and back on the road.
- Small Business loan. Many financial institutions offer small business loans, which are designed to provide financing for small businesses like commercial truck drivers who work for themselves. The only problem with small business loans is that they take a bit longer to process. You may be waiting longer than you want to get the funds you need to pay for your truck repairs.
- Credit card. You can use a credit card to pay for truck repairs. If you already have a credit card but it doesn’t have a high enough limit, you can apply for an increase to your limit with your current credit card company. You could also apply for a zero rate credit card or one with a low promotional interest rate. The downside to a credit card, however, is that if you don’t pay it off by the time the promotional period ends, the interest rate will go up, making it much more difficult to pay off.
Non Loan Options to Pay for Repairs
If you prefer not to take out a loan or if you think you are not likely to qualify for a loan, there is another option:
- Truck factoring. In the trucking industry you often have a collection of invoices that are not yet paid. There may be a 30, 60, or 90 day period that a customer has to pay on an invoice. You can sell these invoices for a fraction of their worth to a financial institution that offers truck factoring services. You may only get 85% of the net worth, or as much as 97% in some cases. But it provides you with the funds you need now to pay for truck repairs.
10-4 Financing Offers a Variety of Financing Options for Truck Repairs
When your truck needs costly repairs, financing may be your best option. 10-4 Financing offers semi truck engine repair financing options to help you get back on the road.
Call 888-908-7701 or contact us today to apply.