Compare truck financing options for your business

Truck financing can provide the funds you need to buy heavy vehicles that keep your business running smoothly. But how do truck loans work, how can you qualify for the best truck finance rates in Canada and can you get a loan to buy a truck if you have bad credit?

In this guide, we’ll compare six truck financing options to help you find funding that’s right for your business.

Journey Capital

8.6 Great

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$10,500 – $500,000

Loan Amount

8% – 29%

APR

6 – 24 months

Term

• Info
• Details

How they help

Formerly known as OnDeck Capital, Journey Capital offers business term loans and lines of credit of up to $500,000. You can get funded in as little as 24 hours, and repayment periods on a term loan range from 6 – 24 months. You can also apply for commercial truck financing online with Journey Capital without affecting your credit score.

Other details

• Serviced provinces: All provinces and territories
• Used truck financing available: Unspecified
• Accepts bad credit: No

APR	8% – 29%
Loan Amount	$10,500 – $500,000
Loan Term	6 – 24 months
Loans Offered	Unsecured Term Secured Term Line of credit Merchant cash advance
Min. Credit Score	550
Turnaround Time	in as little as 24 hours
Serviced Provinces/Territories	All provinces and territories
Requirements	- 6 months in business - Minimum $120,000 annual gross revenue - 550+ credit score

Merchant Growth

7.9 Great

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$5,000 – $800,000

Loan Amount

12.99% – 39.99%

APR

6 – 24 months

Term

• Info
• Details

How they help

Merchant Growth is a lender with business term loans of up to $800,000 that can be used for commercial truck financing in Canada. You can apply online in a matter of minutes and get funds within as little as 6 hours. Repayments are made on a daily or weekly basis over a term ranging from 6 – 24 months. Merchant Growth also offers Lines of credit of up to $125,000 if your business needs flexible access to funds.

Other details

• Serviced provinces: All of Canada
• Used truck financing available: Unspecified
• Accepts bad credit: No

APR	12.99% – 39.99%
Loan Amount	$5,000 – $800,000
Loan Term	6 – 24 months
Loans Offered	Unsecured Term Line of credit Merchant cash advance
Min. Credit Score	550
Turnaround Time	as little as 6 hours
Serviced Provinces/Territories	All of Canada
Requirements	- Operating for at least 6 months - Canadian based business - 550+ credit score - $10,000 in monthly sales

Loans Canada

8.1 Great

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$500 – $50,000

Loan Amount

9.99% – 35%

APR

4 - 60 months

Term

• Info
• Details

How they help

Loans Canada is an online loan search platform that provides access to Canada's largest network of lenders. After filling out a single online application, you can compare multiple loan offers. Truck loans of up to $50,000 are available, including options for good and bad credit, and you can get funded as soon as the next day.

Other details

• Serviced provinces: All provinces
• Used truck financing available: Yes
• Accepts bad credit: Yes

APR	9.99% - 35.00%
Loan Amount	$500 - $50,000
Loan Term	4 - 60 months
Loans Offered	Unsecured Term
Min. Credit Score	410
Turnaround Time	48 Hours
Serviced Provinces/Territories	All provinces
Requirements	- Operating for at least 9 months - Operating Canadian Business Bank Account - Over $10,000 in monthly sales ($120,000/year)

Bank of Montreal

6.8 Standard

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$100,000 – $250,000

Loan Amount

N/A

APR

Undisclosed

Term

• Info
• Details

How they help

BMO is one of Canada's Big Five banks and the country's oldest bank. It's also one of the largest commercial truck financing companies in North America and has been serving the trucking industry for over 40 years. BMO offers loans and leasing solutions to commercial trucking businesses in Canada and the USA.

Other details

• Serviced provinces: All of Canada
• Used truck financing available: Yes
• Accepts bad credit: No

APR	Undisclosed
Loan Amount	$100,000 - $250,000
Loan Term	Undisclosed
Serviced Provinces/Territories	All of Canada

Global Truck Loans

N/A

Loan Amount

N/A

APR

Undisclosed

Term

• Info
• Details

How they help

If you're searching for commercial truck financing in Ontario, Global Truck Loans offers truck and trailer loans for small to medium businesses across Canada and the USA. You'll need to phone Global Truck Loans to start the application process, and this provider can then help you find a loan from its network of over 15 financing companies.

Other details

• Serviced provinces: Across Canada
• Used truck financing available: Yes
• Accepts bad credit: Yes

APR	Undisclosed
Loan Amount	Undisclosed
Loan Term	Undisclosed
Serviced Provinces/Territories	Across Canada

Torontotruckloan.ca

N/A

Loan Amount

N/A

APR

Undisclosed

Term

• Info
• Details

How they help

Toronto Truck Loan offers commercial truck financing in Ontario. It works with borrowers who have all types of credit and finances all makes and models of trucks. You can start the application process by phoning Toronto Truck Loan or filling out an online contact form.

Other details

• Serviced provinces: Ontario
• Used truck financing available: Yes
• Accepts bad credit: Yes

APR	Undisclosed
Loan Amount	Undisclosed
Loan Term	Undisclosed
Serviced Provinces/Territories	Ontario

What is truck financing?

Truck financing can help provide the funds your business needs to purchase a heavy vehicle. Rather than paying the full purchase price of a truck upfront, truck financing allows you to enjoy all the benefits of owning a truck but with the freedom and flexibility to pay it back over a period of time.

However, just like any other type of commercial vehicle financing, the way truck loans work can vary substantially based on the finance option you choose.

What trucks can I finance?

There are truck financing options available to help you purchase an extensive range of heavy vehicles including:

• Prime movers
• Refrigerated trucks
• Tilt-tray trucks
• Tipper trucks
• Livestock trucks
• Cement trucks
• Crane trucks
• Car carriers
• Box trucks
• Water trucks
• Semi trucks
• Flatbed trucks

What types of truck and trailer financing are available?

There are several types of truck finance options available to help you purchase a heavy vehicle for your business:

Finance lease

Under this arrangement, the lender purchases a truck on your behalf and then leases it back to you. This gives you all the benefits of ownership, including full use of the vehicle for your business, even though you don’t actually own the truck. Monthly lease repayments are required, allowing you to budget in advance, and when the lease ends you have the option to pay out the remaining value to purchase the truck.

Commercial hire purchase

If you choose a commercial hire purchase, your business hires a truck from a lender for a predetermined period. Your business doesn’t own the vehicle during this period, but you will need to make fixed monthly repayments. Once the term ends and you’ve paid off the full price of the vehicle, you take ownership.

Chattel mortgage

With this commercial truck financing option, a lender provides the money you need to purchase a truck, and you are then required to make regular repayments to pay down the loan amount. You get to immediately enjoy all the benefits of vehicle ownership and also take advantage of the security of fixed repayments. However, the lender also takes out a mortgage over the vehicle as security for the loan, and this mortgage is only removed when the loan term ends and you’ve repaid the money you borrowed.

Personal loan

A personal loan is only really an option for purchasing a truck if you’ll use the vehicle for both personal and business reasons. However, the high interest rates that apply to personal loans mean that this option usually isn’t viable for most people.

How to compare truck financing options

Consider the following factors when comparing truck financing options:

Loan term

How long will you have to continue making regular repayments towards the truck? Remember that while shorter loan terms may mean larger monthly payments, longer loan terms will increase the total cost of the loan.

Interest rate

The interest rate determines how much you will need to repay each week, fortnight or month as well as the total cost to you over the loan term. Compare business loan interest rates across multiple finance providers.

Fees

Will you need to pay any upfront fees or ongoing monthly charges? Check the loan contract for details of all fees that apply, including penalties for late payments.

Repayment amount and schedule

Can the repayment schedule be tailored to suit your business’s cash flow? Also, take a look at how much your regular repayments will be and calculate if this is an amount you can realistically afford.

Tax treatment

Depending on your business and the truck finance option you choose, you may be able to claim your business loan or lease repayments as a tax deduction. Ask your accountant for advice on which finance solution could be the most tax-effective choice for your business.

Commercial truck financing risks

Before you choose a truck fleet financing option, make sure you’re aware of the following risks:

• High rates for bad credit. If your credit history is less than perfect, you’ll only be able to qualify for a higher rate. Learn more about bad credit business loans.
• Getting in over your head. Before you sign anything, make sure the regular repayment amount is at a level your business can comfortably afford.
• Buying the wrong truck. Research your new truck purchase thoroughly before you commit any funds. This will ensure that you get a truck that meets all your needs and that will be affordable to own and run.
• Not getting expert advice. Your accountant or a trusted finance broker can help you determine which new or used commercial truck financing product is right for your business.

How to select the right truck for your business

Consider the following factors when choosing which truck to buy:

• What you need to use the truck for. Are you transporting heavy goods or refrigerated items, or do you need a tipper truck to discharge a load? Also consider who will be using the vehicle and whether or not they’ll need to obtain a special licence.
• Performance. How efficiently can the truck you’re considering get the job done? Is it fast, durable and frugal with fuel?
• Safety considerations. How safe is the truck for drivers and passengers? Is it easy to get in and out of the truck when on the road? Is there a comfortable sleeping cabin for drivers working longer routes?
• Service intervals and maintenance needs. Servicing and maintenance costs for heavy vehicles can be very expensive, so find out what sort of regular maintenance your truck will need.
• Appearance. If your vehicle is going to be all over Canadian roads and highways representing your business, be sure to choose a vehicle that’ll leave people with a good impression.

Dive deeper: Compare business vehicle financing options

Bottom line

If you need a loan to buy a truck, there are multiple commercial truck financing options available. Compare a wide range of lenders and loans to find the best truck finance rates in Canada and repayment terms that suit your business.

Frequently asked questions

• How do I get a loan for a semi-truck?

  You can get a loan by comparing commercial truck financing providers and choosing one that offers a competitive interest rate and repayment terms that suit you. Once you've found the right loan, you can apply by providing your personal information and proof of ID, a business plan, your annual revenue and detailed financial statements. Depending on the lender, you may also be required to provide a minimum down payment.

• How long can you finance a commercial truck?

  Repayment terms of up to five years are commonly available, but some lenders will offer longer loan terms. Check with your lender of choice to find out how long you have to repay your loan and whether the repayment schedule can be tailored to suit your needs.

• Can you get commercial truck financing with $0 down?

  Yes, you may be able to qualify for a truck loan with no down payment. However, you'll generally need good to excellent credit to get funded, and $0 down loans are not available from all lenders. You may also be offered a higher interest rate than a borrower who can provide a large down payment.

• Can you get commercial truck financing for bad credit in Canada?

  Yes, you can get commercial truck financing for bad credit. While not all lenders will provide financing, there are plenty of lenders who are willing to work with borrowers who have less-than-perfect credit. However, the lender may require a larger down payment, while you'll also need to settle for a higher interest rate than if you had good to excellent credit.

• Can I get financing to buy a used truck?

  Yes, there are lenders who can help you find financing to buy a used vehicle for your business. You can also look into getting a general business loan, which can be used to cover a wide range of business expenses, including buying used vehicles and equipment.

• How can I find the best truck finance rates in Canada?

  The best rates are generally offered to operators who have been in business for several years and have a good credit history. You may also need to provide comprehensive financial statements and assets to offer as collateral.