Best Semi-Truck Financing Options Of 2022 – Forbes Advisor

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Reliable vehicles can make or break your profit margin in the commercial trucking industry. However, with new semi trucks ranging from around $100,000 to over $200,000, most trucking businesses need to borrow money to cover equipment costs. You may need to find reliable semi-truck financing resources if you want to keep a fleet of trucks or yourself on the road.

Best Semi-truck Financing Options

Wells Fargo Commercial Truck Loan

Good for: Multiple financing options

Why We Picked It

Wells Fargo offers commercial transportation financing options starting at $100,000. You can use a Wells Fargo commercial truck loan to buy or lease many different types of equipment (new or used), including semi trucks, trailers, tankers, tow trucks, etc.

Qualified borrowers may receive up to 100% financing. The bank also offers repayment terms from 12 to 84 months on term loans, leases, equipment lines of credit, lease-purchase agreements and other financing options.

Pros & Cons

US Bank Truck Loan

Good for: No down payment

US Bank issues truck loans of up to $1 million. Eligible borrowers can receive as much as 125% financing, with extra funding available to cover costs like taxes, installation fees and freight charges.

You may be able to get a commercial vehicle loan with no down payment through US Bank. Repayment terms range from 24 to 60 months or longer. The bank also allows applicants the chance to prequalify for truck loans of up to $500,000.

Pros & Cons

Bank of America Commercial Truck Loan

Good for: Low rates

Bank of America offers loans and leases for commercial equipment purchases starting at $25,000. You may receive repayment terms of up to five years when you secure your loan with business assets.

Fixed interest rates start around 6% for well-qualified customers. Business borrowers may also receive an extra discount (0.25% to 0.75%) through the bank’s Preferred Rewards program.

Pros & Cons

Balboa Capital Truck Loan

Good for: Same-day funding

Balboa Capital offers alternative truck loans for borrowers who need financing to purchase semi trucks, trailers and other commercial vehicles. You may be able to borrow up to $500,000, depending on the type of collateral you have to offer and other qualification factors.

The lender requires borrowers to have a minimum FICO score of 620, which is considered a fair credit score. If the lender approves your application, you may be able to access funds as soon as the same day you apply.

Pros & Cons

First Capital Business Finance

Good for: Startups

First Capital has several commercial truck financing options available to established trucking companies and startups alike. The lender does not place year or mileage restrictions on vehicle purchases, and you may qualify for financing with no money down.

The online lender also works with personal credit scores as low as 620. However, loan limits are more restrictive than you might encounter elsewhere—ranging from $10,000 to $100,000. Keep in mind that if you’ve been in business for less than two years, you can’t borrow more than $49,000.

Pros & Cons

CAG Truck Capital: Good for Bad Credit

CAG Truck Capital is a private lender that offers commercial truck financing to borrowers with good or bad credit. If you’re eligible for financing, you may be able to use a CAG Truck Capital loan to purchase a new or used semi truck of any make or model.

The lender is willing to work with multiple credit challenges—bankruptcy filings included. However, you can’t find much information on the lender’s website about available annual percentage rates (APRs), repayment terms or exact qualification requirements. So it’s important to compare any loan offer you receive from other lenders to make sure you’re getting a good deal.

Pros & Cons

Commercial Fleet Financing: Good for Fast Approval

Commercial Fleet Financing offers equipment financing for semi trucks, trailers, box trucks, construction vehicles and more. It doesn’t disclose the interest rates it offers online, but repayment terms range between 36 and 108 months (three to nine years).

You may not need to sign a personal guarantee—which means you become personally responsible to repay the debt if the business cannot—for a truck loan from Commercial Fleet Financing, depending on how long you’ve been in business. And if you’re borrowing less than $150,000, you won’t have to provide any tax returns with your loan application either.

Pros & Cons

Truck Lenders USA: Good for Multiple Types of Equipment

TruckLenders USA provides financing for almost any type of commercial equipment—as long as it has wheels, a valid title and is no more than seven years old. Loans range from $15,000 to $250,000, and the lender’s jumbo leases are available for up to $1 million.

Repayment terms with TruckLenders USA vary from 24 to 60 months for borrowers with credit scores of at least 675. You’ll also need to provide a low down payment, according to the lender; however, it doesn’t specify how much.

Pros & Cons

What Is Semi-Truck Financing?

Semi-truck financing is a loan or lease that helps you break down the cost of a commercial vehicle over time. As you repay the funds you borrow, you’ll also pay interest and potential fees to your lender.

How Does Semi-Truck Financing Work?

Commercial-truck financing is similar to a personal auto loan in several ways. For example, most semi-truck loans feature fixed interest rates and fixed payments, just like car loans. The vehicle you purchase will typically serve as collateral for the loan in both scenarios.

With semi-truck financing, however, you may need to provide a personal guarantee to qualify for a loan. Additionally, depending on the lender’s credit reporting policies, a semi truck loan has the potential to impact both your personal and business credit scores.

Banks vs. Direct Lenders Vs. Alternative Lenders

Multiple types of lenders offer commercial equipment financing. So if you need to secure a loan or lease for a semi truck, you’ll have a few options to consider.

  • Banks and credit unions may offer attractive interest rates and repayment terms. But good credit, more time in business and a higher annual income might be necessary to qualify for these funding options.
  • Direct lenders are companies with expertise in truck financing. These types of lenders might accept borrowers who would have a harder time qualifying for a bank loan. But it’s important to compare interest rates, fees and other terms to find the most affordable financing solution.
  • Alternative lenders are often based online without brick-and-mortar branches you can visit. Although they don’t have specific expertise in truck financing, prospective borrowers who value online-only banking may prefer this type of lender.

How to Get Semi-Truck Financing

Finding the best financing solution for your trucking business is a multi-step process.

  1. Check your credit. Most lenders will review your credit report and credit score when you apply for a semi-truck loan or lease. Knowing the condition of your credit beforehand can help you narrow down which financing options might work for you.
  2. Compare lenders. Take the time to compare several lenders and loan offers. Pay close attention to interest rates, fees, loan amounts and other details to find the best deal.
  3. Get preapproved. Next, see if there’s a preapproval option available. Getting preapproved can help you discover what interest rate and terms the lender may offer you and if you’re likely to qualify.
  4. Apply. When you fill out an official loan application, be prepared to provide information about yourself and your business, along with details about the vehicle you wish to finance. You may also need to submit documentation to verify that the information on your application is accurate—such as tax returns, bank statements (business and personal), etc.

Find the Best Small Business Loans of 2022

Frequently Asked Questions (FAQs)

Can you finance a semi truck with bad credit?

Some lenders may be willing to provide semi-truck financing to borrowers with bad credit. But you should expect to jump through more hoops and pay more for financing in these situations.

Is it better to lease or finance a semi truck?

Whether you lease a semi truck or take out a loan, you’ll have to factor monthly payments into your business budget. The best option for your business will depend on factors such as cash flow, future business plans, planned vehicle use and more.

What credit score do I need to finance a semi truck?

Lenders set their own requirements where credit score minimums are concerned. You might be able to finance a semi truck with a credit score below 600 with some lenders while others may require a credit score in the mid-to-high 600s.

Where can I get semi-truck financing with no down payment?

It’s not impossible to find lenders that offer semi-truck financing with no required down payment, including some of the financing options listed above. But you might need to satisfy other requirements to qualify for no-money-down financing, such as having a higher minimum credit score, more time in business, etc.


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