Lenders typically favor borrowers with a credit score of at least 640. However, some lenders provide semitruck financing to borrowers with bad credit, though rates may be higher and the loan might come with a hefty down payment.
Starting at $25,000
6.50%
Up to 60 months
Bank of America already offers a low starting interest rate for semitruck financing, but with the additional discount of 0.25% to 0.75% offered through the free Preferred Rewards for Business program, you may be able to secure an even more favorable rate for your truck purchase.
To be a Preferred Rewards member, you’ll need to have a business checking account with Bank of America. The rate discount you get is based on your membership tier, and carrying a larger checking account balance can get you moved to a higher tier.
However, you’ll need to be an established business in operation for at least two years with a minimum annual revenue of $250,000 to qualify for the commercial truck financing program.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
Bank of America doesn’t disclose the minimum credit score you’ll need to qualify. Apply online or contact the lender directly to find out if your business qualifies for a loan.
$15,000 to $1,000,000
8.25%
24 to 72 months
If you’re looking for specialized support beyond what a traditional bank can offer, Truck Lenders USA may be one of your best options. With more than 40 years of experience in commercial truck financing, the lender has industry expertise that may benefit your business.
With Truck Lenders USA, dedicated service agents are available throughout your loan term, so you’ll always be able to reach someone who is familiar with your situation. This level of customer service can also be beneficial when you’re first navigating the loan process, with support available to guide buyers, dealers and private sellers through the process from beginning to end.
However, you’ll need to be in business for at least two years with a credit score of 650 or higher to qualify, so startups and bad credit borrowers will need to seek financing elsewhere.
In order to qualify, you’ll need to meet Truck Lenders USA’s criteria of:
Truck Lender USA does not disclose its minimum annual revenue requirements. For more information on how to qualify, contact the lender directly.
$20,000 to $250,000
8.90% APR
Up to 84 months
If you’re looking to purchase a used semitruck, CAG Truck Capital may be your best option.
With over 40 years of experience in semitruck financing, CAG Truck Capital works with a variety of borrowers, offering hands-on support and expertise.
Although these loans can come with down payments as high as 35%, this extra investment can come in handy should you need to finance the overhaul of your engine down the road. If your engine fails, CAG Truck Capital will use your down payment to finance the overhaul with the service company, allowing you to keep your monthly payments the same.
Plus, CAG has diesel technicians on staff who can look at your truck, its engine history and warranty before underwriting the loan. This may be particularly beneficial if you’re a new business owner, allowing you to feel more confident about your purchase.
CAG Truck Capital is a specialty direct lender that offers more flexible loan requirements than traditional lenders. Minimum credit score, time in business and annual revenue requirements do not apply, though borrowers will need to be prepared to pay a down payment to secure their funds.
Up to $5,000,000
10.50% to 14.00%
14% for loans $50,000 or less
13.5% for loans $50,001 to $250,000
12% for loans $250,001 to $350,000
10.5% for loans above $350,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
12.50% to 15.50%
15.5% for loans $25,000 or less
14.5% for loans $25,001 to $50,000
13.5% for loans $50,001 to $250,000
12.5% for loans above $250,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
Up to 300 months
If you’re looking to finance an expensive truck and you’d like to have as much time as possible to pay off your debt, working with an SBA preferred lender like Live Oak Bank might be one of your best options. Live Oak Bank offers multiple types of SBA loans that can be used to purchase commercial trucks, including SBA 7(a), SBA 504 and SBA Express loans.
As the most popular option, SBA 7(a) loans offer up to $5,000,000 in working capital, which can be used to purchase heavy equipment like semitrucks. With lengthy loan terms, you may be given as long as 300 months to repay the loan. However, this option is not ideal for owner-operators looking to move quickly, as even with a preferred lender, SBA loans typically take a couple weeks to fund.
Live Oak Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Contact the lender directly to find out if your business qualifies for an SBA loan.
Up to $2,500,000
Not disclosed
24 to 60+ months
While other lenders may require a hefty down payment to secure a semitruck loan, U.S. Bank does not, which can be helpful for borrowers looking to save on upfront costs. Plus, the lender offers additional financing — up to 25% of the truck cost — that can be used to cover tax and delivery fees.
With loan amounts reaching up to $2,500,000, U.S. Bank offers significant financial assistance for all your trucking business needs. You can apply online for loans up to $250,000. Anything larger will require a more extensive application that is not available online, so you’ll need to contact the lender directly to apply.
U.S. Bank doesn’t disclose minimum credit score, time in business or annual revenue requirements. Apply online or contact the lender directly to determine if your business qualifies for commercial truck financing.
$500 to $5,000,000
7.99%
12 to 84 months
If your business is new, you might want to consider a semitruck loan from Taycor Financial. The lender sets no specific minimums for annual revenue or time in business, making this an ideal option for startup companies looking to break into the trucking industry. Loan amounts range from $500 to $5,000,000 and there is typically no down payment required.
In addition to semitruck financing, Taycor Financial also offers semitruck leasing options. However, documentation fees may apply for both financing and leasing, which could increase the overall cost of borrowing.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
$10,000 to $1,000,000
Not disclosed
Up to 108 months
If you need fast funds, you might be able to get approved for semitruck financing within just a few hours of submitting an application to Commercial Fleet Financing, with some borrowers receiving their funds within 24 hours of loan approval.
This is an impressively quick turnaround time compared to traditional lenders, who may take more than a week to process and disperse funds. However, Commercial Fleet Financing does not disclose its interest rates or fees, so you’ll need to apply to compare loan costs with other lenders.
In order to qualify, you’ll need to meet Commercial Fleet Financing’s criteria of:
You’ll also need to meet the company’s annual revenue requirements, which are not publicly available. Apply online or contact Commercial Fleet Financing directly to find out if you qualify for financing.
A commercial truck loan, also referred to as semitruck 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’s a form of asset-based financing, the truck will act as collateral if you default on the loan.
Banks, direct lenders and online lenders can offer commercial truck loans, with some willing to work with startups and borrowers with fair to bad credit.
Lenders typically favor borrowers with a credit score of at least 640. However, some lenders provide semitruck financing to borrowers with bad credit, though rates may be higher and the loan might come with a hefty down payment.
Leasing a semitruck 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.
The repayment term will depend on the lender and your financial history. Typically, semitruck financing can have a repayment term of up to 84 months with some lenders extending it even longer.