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Truck and Trailer Financing for Trucking Companies
and their Owner-Operators
Insurlease has several financing options and services to offer to
small to medium sized trucking companies.
? We provide loans, leases, TRAC leases and Conditional
? Whether you are acquiring additional equipment or just
want to refinance the trucks & trailers you already have
financed, we can help.
? We can also turn any existing equipment that is already
paid for into a source of working capital by offering you a
? Do you have trucks or trailers that you want to sell to your owner-operators?
That's our specialty.
TRAC (Terminal Rental Adjustment Clause) Leases can help fleet owners better
manage their cash flow by providing lower lease payments and the possibility of a
cash rebate at the end of the lease. At the beginning of a TRAC Lease a residual
amount is chosen, say 20%. The lease payments are then only based on the 80% of
the equipment that is financed, thereby lowering the monthly payments. At the end
of the lease you will have three options:
1. Purchase the vehicle for the Residual Amount.
2. Extend the lease by financing the Residual Amount.
3. Turn in the vehicle and be eligible for a "Rental Adjustment" based on the
sales proceeds of the vehicle. If the vehicle sells for more than the residual
amount, you receive the total amount of the overage. However, if the vehicle
sells for less than the residual, you are responsible for the deficiency.
Whether you need two trucks or two hundred, Insurlease has the finance options to
assist you with acquiring the equipment you need to operate your business.
As the plan administrator for the Owner-Operator Independent
Drivers Association (OOIDA) Truck and Trailer Finance Program,
Insurlease not only understands the owner operator business, it has
become our specialty. As a result of this strategic partnership, we have
developed multiple funding relationships with niche lenders that
understand the owner-operator market. These valuable relationships
allow us to offer competitive rates to the most diverse array of credit and collateral
profiles in the industry.
"A" & "B" Credit Programs
"A" Credit: Trucking companies with good business credit history and owner-
operators with personal credit scores above 700, three or more years of experience,
and a solid payment history for their previously financed trucks and trailers, will
obviously enjoy the most favorable market rates.
"B" Credit: (Credit scores between 650 and 700) Offers many of the same benefits as
our "A" credit program but borrower(s) will in most cases pay a slightly higher
Start-up Trucking Companies and First-Time O/O Program
Principals of Start-up Trucking Companies and First-time Owner-Operators should
have a credit score of 650 or higher with no major derogatory (late or delinquent)
accounts. Other requirements include:
? At least three years of experience in the same class truck that they intend to
? Must be a home-owner.
? Ability to make a down payment of 20 to 25%.
Qualified applicants, based on the requirements mentioned above, will be offered
some of most competitive first-time buyer rates in the industry.
Second Chance Program ("C" Credit)
Insurlease offers financing to Trucking Companies and Owner-Operators that have
"less than perfect credit". Typically, bankruptcies, tax liens, and/or judgments will
terminate the financing process. However, we have lending partners that will
consider your specific situation, not just look at your credit score.
Our second chance program can help Fleet Owners and Owner-Operators that have
personal credit scores as low as the mid-500s, if they have resolved most of their
current credit problems (see below) and provided they have started re-establishing
credit as a result of making regular on-time payments to their current creditors.
Items that need resolved:
? Bankruptcies can be considered after three years from the discharge date.
? All tax liens must be paid in full with evidence of the release.
? Judgments, collections, and past due child support payments must be paid in
In general, what we will need to consider your application:
? A truck and trailer application.
? A truck and trailer specification form.
? A personal financial statement.
? A copy of your last three bank statements (first page only for each month).
? Payment history for trucks and/or trailers previously financed.
? Some lenders require financial statements and/or tax returns.
Call 800-481-0859 for a truck finance specialist to discuss a particular transaction
you are considering or to have any questions answered about the services we provide.
What is a first-time home buyer savings account?-- Allow an individual, beginning January 1, 2022, to open an account with a financial institution and designate the account as a first-time home buyer savings account to be used to pay or reimburse a beneficiary's eligible costs for the purchase of a single-family residence in the State.
Title: Truck and Trailer Financing for Owner-Operators
Author: Steven W. Kochensparger
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