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Compare business loans for trucking companies

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Make simple sense of financing your trucking company.

Time, unyielding effort and an incredible amount of coordination are necessary to keep a trucking company moving forward. Licensing, insurance, vehicle maintenance, drivers, tolls and new trucks all cost money, and the quality of each impacts the bottom line. Comparing all of your financing options and making the choice that’s best for your needs can make or break your profits.

This guide will take you through financing for trucking companies, how to compare lenders, and some great tips to get you through the process.

Lendio Business Loan Marketplace

Our top pick: Lendio

Submit one simple application to potentially get offers from a network of over 75 legit business lenders.

  • Minimum loan amount: $500
  • Maximum loan amount: $5,000,000
  • Free business loan connection service
  • Quick online application
  • Requirements: Personal credit score of 560+ and business bank account.

    What business loan options should I consider for my trucking company?

    Trucking companies tend to do big freight deliveries and charge customers large amounts at a time. With this type of revenue model, you might have a good portion of your business income tied up in invoices. That’s why we’ve listed two types of accounts receivable financing options as the first to look into.

    • Invoice factoring. By selling your open invoices at a slight discount, you can receive cash from certain lenders who’ll then receive the full amount from your customer when the invoices are fulfilled.
    • Freight factoring. This is a type of invoice factoring designed specifically for trucking companies. You sell your invoice to the lender in exchange for receiving a percentage of the invoiced amount more quickly.
    • Equipment loans. As the name indicates, these loans are specifically for equipment. You could use an equipment loan to finance trucks, trailers, repair equipment and more.
    • General purpose business loans. Use these loans for a wide variety of purposes so long as they’re related to business operations. General purpose loans typically come with fixed terms of up to five years.

    How do I decide which loan type is best for my business?

    Now that you know your options, it’s time to figure out how to sort through them. Certain loans will offer a larger amount of funding. An equipment loan may offer a larger amount of financing than invoice factoring, for example. But invoice factoring could be used for a wider array of purchases versus equipment loans that are limited to purchase equipment.

    Another factor to consider is loan term. Terms can vary among financing options. Invoice factoring has a finite term, and is paid off as soon as the invoices are paid — usually within a few weeks to months. Equipment and general purpose loans may be paid off over longer periods of time such as five or more years.

    Lastly, be sure to consider fees and costs. The interest rate won’t be your only cost and might not be the best factor to show the cost difference between loan types with varying repayment terms. Look out for origination, prepayment, late payment and application fees. While you’d be hard-pressed to find a business loan that doesn’t charge additional fees, you may have an easier time finding ones with more reasonable penalties than others.

    Compare business loans from top providers

    Rates last updated November 17th, 2018
    Unfortunately, none of the business loan providers currently offer loans for these criteria.
    Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
    Lendio Business Loan Marketplace
    Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
    $500
    $5,000,000
    Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
    LoanBuilder, A PayPal Service Business Loans
    Customizable loans with no origination fee for business owners in a hurry.
    $5,000
    $500,000
    Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
    National Funding Small Business Loans
    Working capital loans and equipment financing, some high-risk industries may be eligible.
    $5,000
    $500,000
    Be in business at least one year and make at least $100,000 in annual sales. Other loan types have additional requirements.
    Credibly Business Loans
    Funding to cover business expenses with daily or weekly repayments.
    $5,000
    $250,000
    500+ personal credit score, 6+ months in business, $15,000+ average monthly deposits
    LendingClub Business Loans
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    $5,000
    $300,000
    12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
    OnDeck Small Business Loans
    A leading online business lender offering flexible financing at competitive fixed rates.
    $5,000
    $500,000
    500+ personal credit score, 1+ years in business, $100,000+ annual revenue
    Fora Financial Business Loans
    No minimum credit score requirement and early repayment discounts for qualifying borrowers.
    $5,000
    $500,000
    Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
    LendingTree Business Loans
    Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
    Varies by lender and type of financing
    Varies by lender and type of financing
    Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.

    Compare up to 4 providers

    What do I need to apply?

    Each lender will have its own requirements, and some have more than others. Below you can find a package of the most common documents you’ll need to apply for financing:

    • Current truck title and registration information. You may be required to show proof of your business assets, and titles and registrations for trucks that you already own can be an easily verifiable option.
    • Proof of business income. Certain lenders will require a minimum monthly revenue, but almost all reputable lenders require proof of income for approval.
    • Business plan. Detailed and clear business plans can help boost your chances of securing financing for your trucking company. By showing a clear vision, you can sell your potential to pay off the amount you’re looking to borrow.
    • Personal documents. Personal identification documents such as your state-issued ID, Social Security number, and information about your personal finances are likely necessary to complete your application.

    How do I increase my chances of approval for a business loan?

    While there’s no way to guarantee approval, try these four tips to improve your chances of getting your application across the line.

    1. Have adequate revenue history. While a history of success is not a guarantee of future success, it’s a valuable indicator to most lenders.
    2. Highlight your business’s features, but be truthful about shortcomings. No business is perfect, and it’s much better to establish trust with your lender by being honest about your trouble areas.
    3. Your down payment will change with your experience. Your business history may determine how much you’re required to put down as a down payment for your loan.
    4. Find a lender that works with the industry. Experts understand the field better, and can better identify a good business history or plan from a lousy one.

    Make a haul with these 6 tips to run a successful fleet

    1. Check load boards. Whether you’re just starting to find clients or you’re looking to fill out a schedule, load boards can help. Load boards are marketplaces where companies can find customers looking to transport freight.
    2. Invest in great equipment and maintain it. Once you get the best truck you can afford, make sure you keep on top of maintenance. Regular maintenance can help cut the cost of potentially expensive repairs by preventing them from ever occurring.
    3. Buckle down on your plan. Don’t just use the business plan as a way to get financing. Build your company a roadmap to success and stick to it.
    4. Fuel cards are your friend. It may be worth investing in fuel cards for your drivers or negotiating them into a deal with a factoring finance company. Potential savings of $0.20 per gallon at the pump can add up quick, and getting the fuel cards before the haul can keep your cash flow in the positive.
    5. Bid smart. Make sure to read and reread the proposal before you make your bid. Itemizing all of the potential expenditures and variables can help you avoid undercutting yourself.
    6. Strive for the highest customer satisfaction. Internal and external customers should be left as happy as possible as often as possible. Whether it’s a dispatcher contacting a truck or a client contacting your sales rep, make sure your employees are trained on how to deliver the best experience.

    Bottom line

    Your next cash flow solution or truck could be just around the corner. Take your time and review your finances, your business plan, and your needs before settling with any one lender. Shop around, compare your options and make the decision that’s best for your business.

    Frequently asked questions

    Rhys Subitch

    Rhys Subitch is a content creator and editor for finder.com. They specialize in updating information on various pages to keep everything accurate for the readers, and enjoy the time they get to spend researching various topics because of it. Rhys lives with their cat and partner in Seattle. When not working they enjoy working on sewing and other craft projects.

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