Best Semitruck Financing Options in 2023
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Semitrucking, also known as tractor-trailering or trucking, is the transportation of goods using a large vehicle that consists of a tractor unit and a semitrailer. Semitrucks are generally used for long-haul transportation of goods and play a critical role in the logistics and supply chain industry.
As you can imagine, purchasing a semitruck isn’t cheap. Read on to learn more about semitruck financing and the best commercial truck loan options.
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Best semitruck financing options
| Lender | Best for | Loan amounts | Term length | |||
|---|---|---|---|---|---|---|
| Commercial truck loans from banks | ||||||
 | Low starting rates | $25,000 to $750,000 | Up to 60 months | |||
 | No down payment | Up to $1,000,000 | 24 to 60+ months | |||
 | Multiple funding options | Up to $250,000 | Up to 84 months | |||
| Commercial truck loans from direct lenders | ||||||
 | Fast funding | $10,000 to $1,000,000 | 36 to 108 months | |||
 | Bad credit | Not disclosed | Varies | |||
 | Fair credit | $15,000 to $1,000,000 | 24 to 60 months | |||
| Commercial truck loans from alternative lenders | ||||||
 | Startups | $500 to $2,000,000 | 12 to 84 months | |||
 | Multiple types of equipment | $10,000 to $150,000 | 12 to 72 months | |||
Learn more about how we chose our picks.
Bank of America: Best bank semitrucking financing for low starting rates
| Term length | Up to 60 months |
| Max. loan amount | $750,000 |
| Starting interest | 6.75% APR |
| Min. credit score | Not disclosed |
| Min. time in business | 2 years |
30-day rate lock guarantee while you find the semitruck you want to purchase
Preferred Rewards for Business members may be eligible for interest rate discounts
May require payments to be auto-debited from a Bank of America business checking account
Fee of 0.50% of the amount financed applies
With low starting interest rates and the opportunity to lower your interest rate further by signing up for Bank of America’s free Preferred Rewards for Business program, borrowers can save a significant amount over the life of their loan.
U.S. Bank: Best bank semitrucking financing for no down payment
| Term length | 24 to 60+ months |
| Max. loan amount | $1,000,000 |
| Starting interest | 7.49% APR |
| Min. credit score | Not publicly disclosed |
| Min. time in business | 2 years |
Can finance multiple pieces of equipment on one finance agreement
Up to 125% financing available to cover additional costs, including tax, freight and installation
Loan amounts $250,000 or greater cannot be financed through the online application
Only available in 26 states
As one of the largest banks in the United States, U.S. Bank can offer financing for a wide range of equipment, including semitrucks. They also offer flexible payment options, including monthly, quarterly and annual payment plans.
Truist: Best bank semitrucking financing for multiple funding options
| Term length | Up to 84 months |
| Max. loan amount | $250,000 |
| Starting interest | Not publicly disclosed |
| Min. credit score | Not publicly disclosed |
| Min. time in business | None |
Get a 0.25% interest rate discount by allowing payments to be auto-drafted from your bank account
Up to 110% financing available to cover other costs, such as delivery fees, taxes and licensing.
Rate quotes are only valid for 10 calendar days, meaning you have a small window to find the right vehicle
Relatively small loan amounts available compared to some other lenders
Truist offers small business auto loans, commercial vehicle loans and equipment loans, and you can apply online, in a branch or over the phone by calling 844-764-1046.
Commercial Fleet Financing: Best direct lender semitrucking financing for fast funding
| Term length | 36 to 108 months |
| Max. loan amount | $1,000,000 |
| Starting interest | Not publicly disclosed |
| Min. credit score | 640 or higher |
| Min. time in business | Not publicly disclosed |
Most contracts are approved with a simple, one-page credit application.
May consider applicants with credit scores lower than 640 if the business has steady revenue.
Borrowers with poor credit will need a 20% down payment
Not upfront with their rates and other requirements
With a simple, one-page credit application and credit approval within as little as 2 hours, Commercial Fleet Financing is one of the fastest funding options for semitruck financing.
CAG Truck Capital: Best direct lender semitrucking financing for bad credit
| Term length | Flexible |
| Max. loan amount | Not publicly disclosed |
| Starting interest | Not publicly disclosed |
| Min. credit score | None |
| Min. time in business | None |
Financing available for used trucks with high mileage and engine overhauls
Reports to consumer and commercial credit agencies to help you establish or rebuild credit
Minimum down payment of 20% (startups and applicants with bankruptcy, tax liens or credit scores under 600 may need even higher down payments)
Application is pretty extensive and requires 3 months of bank statements and references from suppliers and relatives
CAG Truck Capital focuses solely on financing trucks and truck overhauls, so they have a lot of expertise in financing semitrucks. They’re also willing to work with borrowers that many other lenders won’t, including startups, applicants with past bankruptcies and those with poor credit.
Truck Lenders USA: Best direct lender semitrucking financing for fair credit
| Term length | 24 to 60 months |
| Max. loan amount | $1,000,000 |
| Starting interest | Not publicly disclosed |
| Min. credit score | 675 |
| Min. time in business | 2 years |
Can finance semitrucks, construction equipment, commercial trailers and more.
All you need to apply is a short application and 3 months of bank statements
Trucks and trailers must be 7 years or newer to qualify for financing
Shorter maximum loan terms than other direct lenders on our list
Truck Lenders USA is willing to work with borrowers with less-than-stellar credit, although you may need to come up with a down payment if you’ve had past credit problems.
Taycor Financial: Best alternative lender semitrucking financing for startups
| Term length | 12 to 84 months |
| Max. loan amount | $2,000,000 |
| Starting interest | 4.99% |
| Min. credit score | 550 |
| Min. time in business | None |
Can fund in as little as 4 hours
No tax returns required with applications up to $400,000
Requires the first and last payment in advance on leases
Some loans require origination fees and/or documentation fees
While many of Taycor’s loan and lease programs require applicants to be in business for a minimum of two years, they also have a new business program for startups.
First Capital Business Finance: Best alternative lender semitrucking financing for multiple types of equipment
| Term length | 12 to 72 months |
| Max. loan amount | $150,000 |
| Starting interest | Not publicly disclosed |
| Min. credit score | None |
| Min. time in business | None |
Financing may be available for applicants with bad credit and startup businesses.
Doesn’t require financial statements or tax returns.
One to two months’ payments due at closing for most semitruck financing programs.
No online applications. You can apply by faxing a downloadable PDF application, calling First Capital Business Finance at 888-565-6692 or filling out the online contact form.
First Capital Business Finance says they can finance any equipment essential for your business, including commercial vehicles. They also offer several types of leases if you’d prefer to lease over buying.
What is semitruck financing?
Semitruck financing is an equipment loan specifically designed for purchasing a semitruck. Since buying a commercial truck is a major investment, trucking companies usually need financing to make their purchases. With semitruck financing, the lender typically loans the amount needed to purchase the truck, but some lenders require a down payment ranging from 5% to 20% of the truck’s purchase price. The borrower will repay the loan over a specified period — usually several years.
Semitruck financing — also known as commercial truck loans — allows trucking companies to acquire the vehicles they need to run their business and spreads out the cost of the vehicle over time, which can help maintain cash flow and avoid financial strain. Additionally, semitruck financing can provide tax benefits, as the interest on the loan may be tax deductible.
Commercial truck loans: Banks vs. direct lenders vs. online lenders
There are several financing options available for purchasing a semitruck, including traditional bank loans and online lenders.
- Banks: Banks often offer lower interest rates than online lenders but may have more stringent eligibility requirements, such as higher minimum credit scores, being in business for at least two years or having a minimum annual revenue.
- Direct lenders: Direct lenders are financing companies with direct industry experience in trucking. Because they have such a narrow specialty, they often have lower eligibility criteria than traditional banks and may work with startups and applicants with poor credit.
- Online lenders: As the name suggests, online lenders are online only and don’t have brick-and-mortar branches. They may offer speed, online applications and underwriting and more lenient eligibility requirements.
How to finance a semitruck
If you’re looking to purchase a semitruck but don’t have the funds upfront, here’s a step-by-step guide to getting financing.
1. Find a truck
Finding the semitruck you want to buy is the first step in getting financing because the cost of the vehicle you want to purchase determines what you can afford and which lenders you might be able to work with.
2. Decide how much down payment you can make
A down payment of at least 20% can significantly impact your loan approval odds and monthly payments. While some lenders don’t require a down payment, it can improve your chances of being approved for a loan and may even result in a lower interest rate.
3. Compare lenders
Comparing lenders is the best way to find the right deal for your business. Here are some factors to consider when comparing lenders:
- Interest rates. Interest rates can vary widely among lenders, so shop around to find the best deal. A lower interest rate can save you thousands of dollars over the life of your loan.
- Experience in the trucking industry. Lenders specializing in commercial truck loans have a better understanding of the unique challenges and opportunities in the industry, which can be an advantage for your business. They may also be better equipped to offer customized financing solutions that meet your needs.
- Lender’s reputation. Look for a lender with a history of providing reliable and trustworthy financing solutions. Check their reviews and ratings from other trucking companies to gauge their reputation in the industry.
- Loan terms. Look at the loan’s length, repayment schedule and associated fees. These factors can significantly impact your monthly payments and the overall cost of borrowing.
4. Apply
To apply for semitruck financing, you’ll need to gather a variety of paperwork to present to potential lenders. While the documentation you need varies from lender to lender, the following list is a good starting point.
- Proof of income and employment. This can include recent pay stubs, financial statements, tax returns or other documentation that shows your income and ability to repay the loan. Additionally, some lenders may require proof of your employment history to ensure that you have a stable job and income.
- Information on the semitruck you plan to purchase. This can include the make and model of the truck, its age and condition and any other relevant details. You may also need to provide the vehicle identification number (VIN).
- Provide proof of insurance. This can include a certificate of insurance showing adequate coverage for the vehicle you plan to purchase.
- Personal identification. Lenders may want a copy of your driver’s license or passport. Most lenders also require your Social Security number to check your credit score.
- Additional documentation. Some lenders may ask for proof of any assets or liabilities you have, a business plan or other financial statements.
Gathering these documents before you apply for equipment financing helps ensure you’re prepared to present a complete and comprehensive application to potential lenders, giving you the best chance of approval and securing the financing you need.
Commercial truck loan requirements
Eligibility requirements vary by lender, but these are some criteria to get the best rates.
- Down payment: Some lenders require a down payment of at least 20% — more for borrowers with poor credit.
- Credit score: Some lenders have minimum credit score requirements that range from 550 to 670, while some have loan programs for borrowers with lower scores. Applicants with very good or excellent credit (a score of 740 or above) usually have an easier time getting approved and pay the lowest interest rates.
- Personal guarantee: A personal guarantee is essentially an agreement that the business owner will personally pay back the loan if their business cannot do so. Lenders might look at your application more favorably if you’re willing to sign a personal guarantee.
- Time in business: Some lenders require applicants to have been in business for at least two years to qualify for a loan. However, some are willing to work with startups.
- Annual revenue: Many lenders also require a certain level of minimum annual revenue for semitruck financing. This requirement varies depending on the lender and the type of loan but is usually around $250,000 in annual revenue. Lenders want to ensure borrowers have the financial stability and resources to make their loan payments on time and in full.
Of course, these are just guidelines — specific lenders may have different standards.
When should you get a commercial truck loan?
A commercial truck loan can be an effective way to finance the purchase of a new semitruck for your business, whether you’re looking to upgrade your fleet or expand into more territories. Here are some situations in which getting a commercial truck loan might make sense.
You need the vehicle to start your business
Without a truck, you won’t get very far in your trucking business, so a commercial truck loan can help you get the equipment you need to launch your business.
You can’t afford the full cost upfront
A new semitruck costs anywhere from $70,000 to $150,000—more if you spring for all of the available upgrades. If you can’t afford to come up with that much cash out of pocket, a commercial truck loan can help you spread the cost over several months or years.
You want to take advantage of depreciation tax deductions
One major advantage of financing a semitruck for your business is the ability to take advantage of depreciation deductions. Depreciation is a tax deduction that allows businesses to deduct the cost of an asset over its useful life, reducing taxable income and, ultimately, the amount of tax they owe.
Semitrucks are considered a depreciable asset because they are used for business purposes and have a limited lifespan. By financing a semitruck, you can deduct the cost of the vehicle as it depreciates over time. You can also deduct the cost of maintenance and repairs and interest paid on the loan used to finance the truck. This can add up to significant savings over time.
You want to own the equipment outright for the long term
Another important benefit of securing a commercial truck loan is eventually owning the equipment. When you lease a semitruck, you pay a monthly fee to use the vehicle but never actually own it. This can result in long-term expenses that may stifle growth and limit financial flexibility.
In contrast, a commercial truck loan allows you to eventually own the equipment outright. This provides a sense of ownership and pride and eliminates the need for ongoing lease payments.
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
The length and financing terms for a semitruck can vary depending on several factors, such as the lender’s requirements, your credit score and the value of the truck being financed.
Generally, financing for a semitruck ranges from 1 year up to 7 years, although some lenders may offer terms of up to 10 years for newer, more expensive models.
Many lenders are willing to finance the purchase of a semitruck for borrowers with bad credit. Because these are secured loans, the lender has the equipment as collateral. If you default on the loan, the lender can repossess the equipment and sell it to help offset their losses.
When acquiring a semitruck, you have two options: leasing or financing. While both options have their advantages, there are several reasons why financing a semitruck is the better choice.
First and foremost, financing allows you to eventually own the truck outright. On the other hand, leasing is essentially renting the vehicle for a set period. This means that at the end of the lease, you must return the truck and may not have anything to show for the money spent on the lease payments.
Another advantage of financing a semitruck is the potential for tax benefits. With financing, you may be able to deduct depreciation and loan interest as business expenses, which can help offset the cost of the truck. Leasing, on the other hand, may not offer the same tax benefits.
One common misconception is that you must have a Commercial Driver’s License (CDL) to finance a semitruck. This is not necessarily the case. In fact, many lenders do not require borrowers to have a CDL to secure financing for a semitruck.
That being said, having a CDL can help the financing process. It demonstrates a level of experience and responsibility on the borrower’s part and allows them to legally operate the vehicle once it is purchased. This can be an important factor for lenders.
While there is no hard and fast rule for what credit score is necessary to secure financing for a semitruck, borrowers with higher credit scores are generally more likely to be approved and may qualify for more favorable lending terms.
Generally speaking, a credit score of 650 or higher is considered a good credit score and may help you secure financing for a semitruck. However, borrowers with credit scores below this threshold may still be able to secure financing, albeit with higher interest rates and potentially stricter lending terms.
The cost of financing a semitruck depends on a variety of factors, including the cost of the truck and the terms of the loan.
On average, the truck itself costs anywhere from $70,000 to $150,000. You may choose to finance the entire cost of the truck or put down a down payment to reduce the total amount financed.
In addition to the cost of the truck itself, you also need to consider the interest rate on the loan. Interest rates can vary widely depending on your credit score, the lender’s policies and current market conditions. Generally, borrowers with higher credit scores qualify for lower interest rates, while those with poor credit may face higher rates.
Other factors that can impact the cost of financing a semitruck include the length of the loan term and any additional fees or charges associated with the loan. Some lenders may charge an origination fee or other up-front costs, while others may include these fees in the total cost of the loan.