Commercial truck financing and leasing are available from traditional banks, online lenders and even direct lending companies that specialize in big rigs. The best one for your situation depends on your credit score, finances and how fast you need funding.
If you have good credit, banks tend to have the lowest rates, but you might wait longer for approval. Direct trucking lenders know the industry inside and out and generally have faster approval and funding times — and rates on par with banks in some cases, especially if you have excellent credit.
Here’s a list of the top commercial truck lenders to help you find the best financing and leasing options for your needs.
Our lending experts analyze dozens of business loan providers to narrow down the best options for trucking loans. We weigh lenders against 12 key metrics:
Application process
Credit score minimums
Customer service reviews
Eligibility requirements
Extra features
Fees
Funding turnaround times
Lender reputation
Minimum and maximum loan amounts
Products offered
Rates
Willingness to work with risky industries
We also search for lenders that cater to a range of needs, including those that work with bad credit and newer business owners.
How to compare commercial trucking loans
Here are the top things to keep in mind when comparing commercial truck loans:
Repayment terms. The longer the repayment term, the lower your monthly payments, but the more interest paid over time, and vice versa. The loan type determines how long you have to pay it back. SBA loans generally have the longest terms.
APRs. APRs on truck loans vary widely across lenders and are determined largely by your credit score and down payment. We recommend comparing quotes from multiple lenders to find the most competitive rate.
Origination and other fees. Depending on the lender, the loan type and your credit profile, you may be charged an origination fee of up to 8% or more. The lender may also charge prepayment penalties, late fees and monthly administrative fees, so be sure to check.
Funding times. While you might get a loan from a truck lending specialist as soon as the same or next business day, SBA loans can take one to two months to fund.
Customer support options. Many lenders have loan officers who can answer your questions and support you throughout the application process. Lenders that focus exclusively on semi-truck loans tend to have the best service.
Customer reviews. Customer reviews on sites like Trustpilot and the Better Business Bureau (BBB) website are a great place to learn about past customers’ experiences with a particular lender.
What is a commercial trucking loan, and how does it work?
Commercial trucking loans are typically term loans that you pay back in fixed installments. However, depending on the lender, repayments might be weekly, monthly, quarterly or seasonally. Depending on the age and condition of the commercial vehicle, terms can be anywhere from 12 to 84 months or more. However, the longest terms are generally reserved for new equipment only.
Commercial trucking loans are considered a type of equipment financing, which means the semi-truck is used as collateral. This has both positives and negatives.
Because the loan is secured by collateral, there’s less risk for the lender, which can result in lower rates. However, the equipment must meet certain standards, and some used trucks may not qualify for the best rates and terms. And if you can’t keep up with your payments, the lender can repossess the truck.
Pros and cons of commercial trucking loans
Here are the main pros and cons of commercial trucking loans:
Pros
Fast approval and funding available
May be easier to secure than other types of business loans
Bad credit and startups may qualify
Tax benefits through claiming expenses
100% financing available in some cases
Hard credit pull may not be required
Cons
Generally high purchase costs for commercial vehicles
Rates can run high for poor credit
Loans may require large down payments
Startups likely need higher credit scores
Some used trucks may not qualify for financing
Types of commercial trucking loans
Type
Typical loan amounts
Typical term lengths
Term loans
$5,000 to $5 million
2 to 25 years
Equipment financing
$5,000 to $5,000,000
1 to 7 years
SBA loans
Up to $5,000,000
6 to 25 years
How to qualify for a commercial trucking loan
Commercial trucking loans have different requirements than your typical business loan. In addition to the lender’s credit score and financial criteria, you’ll also likely need to meet other requirements related to your driving experience and the vehicle being financed.
While every lender is different, be prepared to meet the following requirements for most lenders:
Minimum credit score of around 600
Must have a commercial driving license (CDL) if you’re the driver
A down payment may be required
In addition, the truck being financed may need to be under maximum mileage requirements. If a truck has over 500,000 miles, it may not be eligible for financing.
How to apply for a commercial trucking loan
Applying for a commercial trucking loan typically follows these five steps:
Determine how much you need. For example, semi-trucks and trailers are typically purchased separately. Trucks can cost anywhere from $30,000 to $200,000 and up, depending on the age and condition. Additionally, trailers typically range between $10,000 and $100,000, depending on the type.
Check your eligibility. Every truck lending company is different. Before applying and doing a hard credit pull, check the lender’s minimum credit score requirements, interest rates and down payment requirements. Not all lenders require a down payment, but some do — especially if you have poor credit.
Gather your documentation. Required documents typically include bank statements, tax returns, financial statements and others. You may also need to provide a business plan and personal guarantee if you’re a newer business owner.
Complete the application. Fill out the full application and upload the required documents or link to your financial accounts. Be sure to review the application for accuracy before submitting to avoid processing delays.
Wait for approval and funding. Truck lending specialists tend to have fast approval and funding times, which means if you’re approved, you could have a decision in a few hours and funding as soon as the same day or on the next business day.
Yes, you can get a business loan for your trucking company with bad credit, although you may have to jump through a few more hoops.
These tips can help you get approved:
Choose a direct trucking lender. These lenders often have decades of experience and the most programs available to fit different needs, including leasing programs, used and repossessed equipment and engine rebuilding financing.
Make the highest down payment you can afford. The larger the down payment, the better your chances of qualifying and getting a competitive rate. It also keeps your payments lower.
Consider an SBA loan. SBA Community Advantage loans are often available to business owners with bad credit if they meet the program requirements.
Trade in old vehicles and equipment. You might get more favorable financing terms with a trade-in. Know the trade-in value by looking it up on sites like the Kelley Blue Book.
Check your credit score. Improve your credit score by checking your credit report for mistakes and signing up for services that report monthly bills to credit bureaus for a few extra points.
Apply for secured loans. If your company has enough real estate, trucks or other assets that are paid off, you could secure a loan, even with bad credit.
Read about our top picks for bad credit business loans to learn about more options that may be available to your company.
Need gas? Consider a fuel or fleet card
Fuel cards are credit cards offering cashback rewards when you purchase fuel. They can be particularly useful to trucking companies, since gas is such a big business expense.
Some gas stations like Speedway also offer fleet cards, which offer discounts on fuel purchases and can help you manage spending. These often have lower credit score requirements than fuel cards. But they only work at specific gas stations and might not offer as much in savings.
Whichever you choose, both offer more savings for the trucking industry than you might find with a business loan or line of credit.
Alternatives to a commercial trucking loan
If you don’t qualify for a commercial trucking loan or don’t want to put up collateral, consider these other options:
Freight factoring. Commonly used in the trucking industry, freight factoring or trucking factoring on the loads you run can provide fast working capital, and this type of financing doesn’t rely on your credit score.
Personal loan. You may be able to use a personal loan for business expenses. Personal loans aren’t dependent on your business finances or time on the road, which could work well for new business owners who don’t qualify for a trucking loan.
Line of credit (LOCs). Many online lenders and banks offer personal or business lines of credit, which typically have lower rates than credit cards. But rates can still run high, and LOCs typically charge fees too, so be careful if you go down this route.
Home equity loan. If you’re a homeowner with at least 20% equity, you could consider taking out a home equity loan or home equity line of credit (HELOC) to pay for business equipment. But you risk losing your home if you can’t keep up with the payments.
Where can I find a commercial trucking loan?
Commercial trucking loans are available from select banks that work with this industry, like Wells Fargo and TAB Bank, and direct trucking lending companies like CAG Truck Capital or Commercial Fleet Financing.
You can also look into getting an equipment loan or long-term SBA loan from an online marketplace like SmartBiz, Lendio or Lendzi. You may also try searching for state-specific lending options like trucking loans in Florida or trucking loans in Texas.
Traditional banks tend to have the lowest rates but the toughest eligibility requirements — making them best for established businesses. Startups and those with lower credit scores will tend to have better luck with direct truck lending companies that focus exclusively on the trucking industry, or possibly online lenders.
Frequently asked questions
Some lenders offer 100% financing, meaning you won't need to come up with a down payment at all. But others may require a 20% down payment, more or less, depending on your credit score and other factors.
In general, an SBA 7(a) loan is one of the most flexible SBA loans, and loan amounts are high, making it a good fit for trucking businesses of all sizes. But requirements to qualify can be strict, and the loan process isn't fast. You may also want to consider an SBA Express loan that offers faster funding but smaller loan amounts.
It all depends on the lender, but a score of 670 or higher will likely help you qualify for the most competitive rates. However, since commercial truck loans are typically secured by the vehicle, many lenders offer financing to borrowers with lower scores.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf.
See full bio
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