You’ve found the perfect used trailer to take your business to the next level. That’s great news, but it’s only the first step. The next step, financing, is just as crucial. A well-prepared financing application not only speeds up the approval process, it can also give you access to better terms and more favorable interest rates.
Think of your application not as a mere administrative formality, but as a portrait of your business. Here’s how to ensure that this portrait inspires confidence and professionalism in a lender.
Understand what financial institutions are looking for.
Before you even gather your paperwork, it’s essential to understand the lender’s perspective. Their main goal is to assess the level of risk. To do this, they look for clear answers to two fundamental questions:
- Do you have the ability to repay the loan? They will want to see proof of stable income and good financial management.
- Are you a reliable borrower? Your credit history and business experience will be examined to assess your reliability.
Your application must therefore tell a clear story: that of a well-managed business that is ready for growth and capable of meeting its financial commitments.
The 5 key documents for a solid application.
Each institution has its own requirements, but most will ask for a variation of the following five documents. Having them ready in advance will give you a head start.
If you are missing documents or are allergic to paperwork, don’t panic! Contact the financing advisors at Centre du Camion Gamache—they are there to help!
They will guide you step by step to find alternatives that are acceptable to lenders.
- A description of your business and the reason for your purchase
No need to write a fifty-page document. A short description is enough to explain who you are, what your business does, who your main customers are, and, most importantly, how this new trailer will generate additional revenue. - Your financial statements for the last two years or your bank statements
This is tangible proof of your business’s financial health. If you are just starting out, realistic financial forecasts will be required. - File your tax returns (personal and business)
Lenders rely on these official documents to validate the income you report. Have your tax assessment notices for the last two years for your business and for yourself on hand, as small business loans often involve a personal guarantee. - Take care of your credit report
Lenders will check your credit rating (personal and commercial). It is therefore best to know it in advance. This allows you to identify and correct any potential errors and prepare an explanation for any past difficulties. - Information about the trailer you want to buy
The lender is financing a specific asset. Provide a copy of the dealer’s quote or sales contract. This document must include the year, make, model, vehicle identification number (VIN), and price of the trailer. If you plan to make your purchase at Centre du Camion Gamache, our representatives will take care of this for you.
Three tips to put the odds in your favor.
- Get your finances in order before applying.
If possible, pay off small debts and make sure all your accounts are up to date. Avoid making multiple credit applications in a short period of time, as this can negatively affect your credit rating. - Prepare a down payment.
A down payment demonstrates your commitment and reduces the risk for the lender. A down payment of 10% to 20% is standard in the industry and can help you get a better interest rate. - Work with the dealership’s experts.
A dealership like Centre du Camion Gamache doesn’t just sell trailers. Our team of financing specialists has established relationships with many financial institutions. We can guide you, help you put together your application, and shop around for the best possible terms for you.
Conclusion: Good preparation is the key to success.
Putting together a financing application can seem intimidating, but good preparation transforms the process. By anticipating the lender’s requests and presenting a clear, complete, and professional application, you position yourself as a reliable and trustworthy business partner.
Don’t let paperwork stand in the way of your success. The team at Centre du Camion Gamache is here to help you prepare a winning financing application. Contact our specialists today.
