Best Semi-Truck Financing

The best semi-truck financing can fund your trucking business with high loan borrowing amounts and low-interest rates.

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By Carissa Chesanek | Edited by Abigail Bassett and Janet Schaaf | September 30, 2024

Best semi-truck financing lenders at a glance

Bank of America: Best semi-truck financing for low starting rates

Starting at $25,000

7.25%

Up to 60 months

Not disclosed

2 years

Pros
  • Larger minimum loan amount than other lenders
  • Low starting rates
  • Interest rate discounts for Preferred Rewards for Business members
Cons
  • Not transparent about credit score or maximum loan amount
  • Origination fee of 0.50%
  • Must be in business for at least 2 years and make a minimum of $250,000 in annual revenue

Why we picked it

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Starting interest is already low with Bank of America’s semi-truck financing option, but with the additional discount of 0.25% to 0.75% offered with the free Preferred Rewards for Business program, rates can be even lower as long as you’re enrolled when you apply for the loan. Bank of America does, however, have an origination fee of 0.50% that can come with its equipment loans, and ultimately make borrowing more costly. Bank of America also does not provide information on credit score requirements or maximum loan amounts, making the company’s website much less transparent than others on our list.

Read our Bank of America review.

US Bank: Best semi-truck financing for no down payment

Up to $1,000,000

Not disclosed

24 to 60+ months

Not disclosed

Not disclosed

Pros
  • 125% financing available for additional costs of tax, installation and freight
  • Flexible payment options
  • No down payment required
Cons
  • Application-only process can only be used for transactions up to $200,000
  • Eligibility requirements are not clearly stated on the website

Why we picked it

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While other lenders may require a hefty down payment to secure a loan, US Bank doesn’t, helping borrowers save with less upfront costs. Plus, with loan amounts reaching up to $1,000,000, you can get significant financial assistance for all your trucking business needs. You can use US Bank’s application-only process, which is an online application that requires little financial information from the borrower, as long as you borrow no more than $200,000. Anything larger requires a more extensive application that is not available online so you’ll need to contact the lender directly to apply.

Truist: Best semi-truck financing for multiple funding options

Up to $250,000

Not disclosed

Up to 84 months

Not disclosed

Not disclosed

Pros
  • 0.25% interest rate discount is offered when signing up for auto-draft payments
  • 100% financing is available along with 10% for soft costs which can include delivery fees, taxes, and tag and license costs
Cons
  • Can come with origination fee
  • Rate quotes are only effective for 10 days

Why we picked it

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By offering small business auto loans, commercial vehicle loans and equipment loans, Truist provides multiple funding options to borrowers. A 0.25% interest rate discount for auto-draft payments can help you save on financing costs, but a loan with Truist can come with an origination fee. And since the rate quotes are only good for 10 days, you will need to shop around quickly to find a truck, much faster than some other lenders. Term lengths can go as long as 84 months, which is helpful if you need more time to pay back the loan, but longer repayment terms can also lead to more debt down the line.

Commercial Fleet Financing: Best semi-truck financing for fast funding

$10,000 to $1,000,000

Not disclosed

108 months

640+

At least two years in business

Pros
  • Fast funding within 24 hours
  • Fast approval within 2 hours after completing a 1-page application
  • Don’t need excellent credit for approval
Cons
  • Interest rates and requirements are not disclosed online
  • May need a down payment

Why we picked it

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Borrowers can get approved for semi-truck financing within two hours after submitting a one-page application to Commercial Fleet Financing and can then receive funding within 24 hours of approval. Borrowers need a 640 credit score to be eligible for a loan, but keep in mind that the lender, similar to others on our list, will perform a hard pull on your credit for final loan approval, which can cause your score to drop slightly. (Soft pulls, typically used for preapprovals, don’t impact your credit.) Your business must be in operation for at least two years to get a loan with Commercial Fleet Financial and any funding awarded can come with a required down payment.

Read our Commercial Fleet Financing review.

CAG Truck Capital: Best semi-truck financing for bad credit

Not disclosed

9.50% APR

Not disclosed

Not disclosed

Not disclosed

Pros
  • Financing available for start-ups
  • Truck loan can include built-in engine overhaul financing
Cons
  • Downpayments can start at 20% and reach up to 35%
  • Higher interest rate than others on the list

Why we picked it

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With over 40 years of experience in semi-truck financing, CAG Truck Capital works with a variety of borrowers, including start-ups, those with bad credit and even applicants who have gone through bankruptcy. Unlike the other lenders on our list, CAG Truck Capital only does a soft pull for pre-approval, so your credit score isn’t affected. Interest rates start at 9.50%, which is higher than other lenders, and the loans can come with down payments reaching up to 35%. That can be costly for newer businesses without significant income flow. However, this down payment can come in handy should you need to finance the overhaul of your engine if it ever fails. CAG Truck Capital will use your down payment to finance the overhaul with the service company and you’ll be able to keep your monthly payments relatively the same.

Truck Lenders USA: Best semi-truck financing for fair credit

$15,000 to $1,000,000

8.25%

24 to 60 months

650

At least two years

Pros
  • Short application with same-day approval
  • Only first page of the last three months of bank statements are needed
Cons
  • Down payments and 10% to 15% residuals may be required
  • May need to provide additional financing information for loans larger than $250,000

Why we picked it

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Applicants with fair credit can be approved for semi-truck financing with Truck Lenders USA. Startups may need to seek financing elsewhere, as Truck Lenders USA requires at least two years of operation before they’ll lend to you. The application process can be short and only requires the first page of the last three months of your bank statements. However, any borrowers looking to get more than $125,000 may need to provide additional information about their financial history to be considered for a loan. Truck Lenders USA’s website is unclear about the loan requirements for loans above the $125,000 threshold, however.

First Capital Business Finance: Best semi-truck financing for start-ups

$5,000 and $2,000,000

6.90%

12 to 72 months

None (with a large down payment)

Six months to one year

Pros
  • Financials or tax returns are not required for approval
  • Borrowers with low credit score can be approved
  • No-money-down financing options
Cons
  • Most financing options require one to two months of payments due at closing
  • Must complete application over the phone

Why we picked it

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First Capital Business Finance has a vast selection of commercial and semi-truck financing programs with options specifically suited for businesses that haven’t been operating long or built up enough credit yet. Financial information and tax returns may not be required for loan approval, but First Capital Business does not offer online applications. If you want to apply for a loan, you will need to complete your application over the phone and if approved, may need to provide one to two months’ worth of payments at the time of closing. With the cost of purchasing a semi-truck starting at $15,000 for used to $240,000 and up for newer models, the maximum loan amount of $2,000,000 can provide significant financing options for your trucking needs.

What is a commercial truck loan?

A commercial truck loan, also referred to as semi-truck financing, is a loan borrowers use to purchase a commercial truck.

A commercial truck loan is similar to equipment financing, allowing you to break up the cost of the truck over regular installments to be paid back over time. Since it is asset-based financing, the truck purchased will act as collateral for the loan.

Banks, direct lenders, and online lenders can offer commercial truck loans, with some willing to work with start-ups and borrowers with fair to bad credit.

How does semi-truck financing work?

Semi-truck financing is similar to a small business term loan. Borrowers receive a lump sum of money upfront to help pay for a commercial truck. A repayment term, typically ranging from 24 to 60 months (sometimes longer), will be determined with fixed payments that include interest and principal. Payments are typically made monthly, but some lenders are more flexible.

Similar to a personal auto loan or a business equipment loan, semi-truck financing uses the vehicle as collateral to secure the loan. If you fail to repay the loan, the lender could repossess your commercial truck.

Some lenders can charge origination fees and require a down payment for a commercial truck loan.

Semi-truck financing requirements

Requirements for semi-truck financing will vary by lender. However, there are certain criteria you’ll want to aim for when applying.

  • Down payment: The most common down payment requirement for financing is 20% but it can be higher, often reaching up to 30% or 40%.
  • Credit score: Lenders typically like to see a credit score at least in the high 600s, but some may approve a loan with poor credit as low as 500. Higher credit scores usually come with better rates and more-flexible terms.
  • Personal guarantee: Borrowers with a personal guarantee are personally responsible for their debt if the loan should default. If you’re willing to sign a personal guarantee, lenders might look at your application more favorably, especially if you don’t have a solid business credit history.
  • Time in business: Many lenders have minimum requirements for how long you’ve been in business. Most require at least two years, but others who work with start-ups may only require six months of business history.

Lenders that offer semi-truck financing may also have specific requirements about the truck being purchased, including its condition, age and mileage.

Types of commercial truck loans: Banks vs. direct lenders vs. online lenders

Borrowers can get commercial truck loans from several different types of lenders. Here are the most common sources for semi-truck financing:

  • Banks: As the most traditional financing option, bank loans tend to come with lower interest rates but higher eligibility standards that include an excellent credit score and high annual revenue. Banks also tend to lend to established businesses more often than start-ups.
  • Direct lenders: These are lenders with extensive expertise in trucking, such as CAG Truck Capital, and work specifically with semi-truck financing. They also tend to work with a variety of borrowers, including those with less-than-stellar credit.
  • Online lenders: In contrast to banks, online lenders tend to be more lenient with eligibility requirements and provide fast approval and funding. However, these types of lenders can also come with higher interest rates and shorter repayment periods.
  • SBA lenders: You may be able to use SBA loans for commercial trucks. These working capital loans can come with longer terms and capped interest rates, but you’ll likely need a high credit score to be approved and may need to put up existing equipment along with your new truck as collateral.

How to finance a semi truck

Borrowers looking for semi-truck financing can follow a few simple steps to get started.

1. Find a truck.

The first thing is to find a commercial truck to purchase. Once you know the cost of the vehicle, you can determine what you can afford by estimating your projected profits and then look for lenders who can help with financing.

2. Plan for a down payment.

Some lenders may require a down payment, while others may not. Regardless of whether it’s required, it’s important to consider a down payment since it could help you look more attractive to lenders if you don’t have great credit. A down payment can also lower your monthly payments and shorten the loan’s repayment term.

3. Compare lenders and apply.

When shopping for lenders, it’s important to compare rates, terms and loan amounts. You’ll also want to learn the specific requirements to see which products you’re eligible for. Once you find a lender, you’ll need to gather certain documents to apply, which can include bank statements, a bill of sale of the truck and your commercial driver’s license.

How we chose our picks

In order to appear on our list of best semitruck financing options, lenders had to meet the following criteria:

  • Offer loans for equipment financing or loans specific to financing commercial trucks
  • Loan amounts of at least $10,000
  • Terms of at least 12 months

Frequently asked questions

Lenders typically favor borrowers who have a credit score of at least 640. However, some lenders provide semi-truck financing to borrowers with bad credit — rates may be higher, though, and the loan might come with a hefty down payment.

Purchasing a commercial truck can be expensive and difficult if you don’t have a lot of extra money on hand. Semi-truck financing can be helpful so you aren’t paying for the entire purchase all at once. Leasing a semi-truck may be a good option if you don’t have a lot of money to put down and don’t want to wait too long for a loan to be approved. In contrast, financing may require a down payment, but you will be the owner of the truck rather than leasing it. You’ll also likely make monthly payments with a loan rather than weekly installments during your lease.

Bank of America offers an interest rate of 7.09%, the lowest on our list, making it a good option when looking for semi-truck financing. Keep in mind that borrowers with higher credit scores are usually able to get the best rates.

The repayment term will depend on the lender and your financial history. Typically, semi-truck financing can have a repayment term of up to 60 months, with some lenders extending it even longer.