How the banks see you today

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2 If you have just recently received your CDL, than driving for a company may be a good way to acquire valuable experience as you begin your journey in the trucking industry. There comes a time in every driver s life when the time is right to own your own truck. The reasons to buy your first truck may vary from driver-todriver. For some it may be the flexibility of being your own boss, for others, it may be the significant increase in revenues, but no matter the reason, everyone arrives to the same point and asks the same question: How do I buy myself a truck? How the banks see you today Many financial institutions today will take a quick glance at your FICO score and put you into one of the four different credit categories: A, B, C, or D. The process ends there, if you score fits in the top tier, they will talk to you, if not Good Luck! At 10-4 Financing, we have a more personal approach to each applicant. You are not perceived as just a mere FICO score, but as a viable business partner. We would like to walk you through the whole process and let you know what you can expect on your way to an approval!

3 What We Need to Evaluate Your Application In order for us to make a decision on your purchase, we would need to look and evaluate the following items: Credit Application having a filled out credit application allows us to pull your personal credit and review your credit history Invoice or Bill of Sale we will need to see the equipment you are looking to finance. There are some age requirements on the equipment for 1 st time buyers Specifications Sheet the dealer will usually be able to provide this; the main thing we look at is make, model, and mileage The Credit Application can be easily accessed and filled out on our website. The invoice and specifications sheet will need to be provided by the dealership you are working with. Once we have the core of your credit package put together, one of our credit analysts will contact you and discuss the possibilities we have for you.

4 Underwriting Criteria Summary Credit Report Although we do our best to look at the entire financial picture, we would not have a sound business model unless we included a thorough inspection of your credit history. We work with all kinds of credit scores; ranging from 500 and up. The only credit issues that result in an automatic turn down are Repossessions and unresolved Child Support issues. Bankruptcies, Tax Liens, Judgments and Collections are all OK by us, BUT we will need additional information explaining these types of situations. A simple letter of explanation can work in most cases, but documents that can verify you have been making efforts to rectify your situation would be best. Receipts or documentation proving you are paying down collections will go a long way. Positive things we look for are: Commercial Lines of Credit Mortgages Auto Loans Large Trade lines

5 Down Payment/Collateral Cash is king! Anyone who has worked in any business for any amount of time will attest to this statement. If you are having a hard time getting approved for financing nothing will help you more than a solid down payment. At 10-4 Financing, our down payments range from 0-50% depending on three factors: The Value of Equipment Employment Time/History FICO Analysis One of the easiest ways to get your down payment lower is to simply find a great deal on a truck. The opposite is true as well, if our underwriting department values the truck you are buying as overpriced, they will need additional cash and/or collateral. We are flexible when it comes to additional collateral, but do have preferences: Commercial Equipment Real Estate Paid off Autos The additional collateral does have to owned free and clear. If another company has a lien on your asset or you are still making payments it will not work for us.

6 Hauling Reference Finding a good hauler to work with can be a deciding factor in acquiring an approval. It is essential for your success to be hauling for a company that offers competitive rates and provides you with enough work to make your loan payment, insurance, fuel, and other costs. We will ask for a Letter of Intent from the hauling company. The hauling company should be able to provide you with one. It will state their intention to work with you and expected pay. We can provide you with a sample template that you can fax or to your prospective hauling partner. Have them fill it out, sign it and send it over to us. Financials Keeping a good track of your finances can help you secure a nice approval at better rates. You can begin by depositing your paycheck to a checking account and keep a healthy monthly balance. Having a good record of deposits will allow the underwriters to get comfortable with you financial habits. Some of the things we may ask for include: 3 Months Bank Statements (Just Cover Pages with beginning, deposits, withdrawals, ending Balances) Most Current Federal Tax Returns (1st 7 Pages and Schedule C) Personal Financial Statement (see Appendix)

7 The first thing we are looking for in your bank statements is the availability of the down payment. Secondly, we look at the last 3 Months of bank statements to show enough cash flow to cover your truck payment and all other fixed operational expenses. Additional Information Some additional information we may ask for could include: Business Plan (see Appendix) Copy of CDL Our Commitment We hope that this guide has been helpful in answering some basic questions about what it takes to acquire financing for 1 st time buyers. Thank you and we look forward to working with you!