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Key takeaways
- Semi-truck financing can help you buy a truck without impacting your business’s cash flow
- Direct lenders often have more industry knowledge than banks or online lenders
- Getting a semi-truck loan from an online lender is usually the fastest way to get funded
Semi-truck financing can be a good alternative to paying cash for a semi, which would take a large amount of capital from your business to buy outright. When looking for the right lender, banks, online lenders and direct lenders have loan products that can cover the cost of buying a new or used truck and trailer. Each type of lender has advantages and disadvantages, so it’s wise to compare eligibility requirements and costs before you submit an application.
Let’s take a look at where you can get semi-truck loans and compare some of the top semi-truck financing companies available.
Where to get semi-truck financing
When looking for semi-truck loans, there are three types of lenders most business owners turn to.
Banks
Most banks offer equipment financing that you can use to purchase a semi-truck or any other piece of business equipment. Banks often have the lowest interest rates and waive prepayment penalties. But they may not be as familiar with your industry as direct lenders and usually have high minimum requirements for credit score and annual revenue to get approved.
Online lenders
Online lenders, sometimes called alternative lenders, operate virtually and may offer semi-truck financing for bad credit borrowers with credit scores around the 600 mark. They often fund much faster than a traditional bank, in as little as 24 hours. On the other hand, they are unlikely to have a physical branch where you can go in and meet face-to-face to manage your loan. Online lenders may also charge higher interest rates than brick-and-mortar banks.
Direct lenders
Direct lenders are operations that lend their own money. They don’t tend to have as lengthy of an underwriting process as a bank does, offering quick turnaround on approvals and funding. And direct lenders often have specialized knowledge in truck financing. On the other hand, some direct lenders charge higher rates and fees compared to traditional lenders.
Compare lenders that offer semi-truck financing
After determining which type of lender is best for your business needs, you’ll want to compare various lenders, the types of loans they offer and their terms and conditions. We’ve gathered some of the best semi-truck financing options below from banks, online lenders and direct lenders to help get you started.
Banks
Banks offer semi-truck financing in the form of equipment financing. These are designed to help businesses purchase major assets, including semi trucks and trailers. Most terms are capped at five years, but some are shorter if you want to limit the interest you pay.
| Lender | Loan type | What to know |
|---|---|---|
| Bank of America | Equipment loan | Available for commercial vehicles over 2.5 tons Fixed interest rates as low as 7.00% Loan terms up to 5 years |
| TAB Bank | Semi-truck loan | Online application Can finance a single truck or a fleet Specializes in truck financing |
| U.S. Bank | Equipment loan | 125% financing, including soft costs like installation Monthly, quarterly or annual payments No down payment for terms of 24 to 60 months |
Online lenders
When comparing online lenders, pay special attention to customer service channels. Since everything is done online or over the phone, you want to make sure you have access to help when you’re most likely to need it. It’s also a good idea to compare at least three lenders to ensure you get the most affordable loan.
| Lender | Loan type | What to know |
|---|---|---|
| Credibly | Equipment loan | Accepts applicants with credit scores as low as 550 Only requires 12 months in business Approvals as fast as the same day. |
| National Funding | Equipment loan | Funding available for smaller loans up to $150,000 Equipment leasing available Only requires six months in business |
| Triton Capital | Equipment loan | Variety of terms available between 12 and 60 months Interest rates start at 5.99% Loans can be approved as quickly as 2 to 4 hours |
| Accion Opportunity Fund | Truck financing | Friendly to first-time owner-operators Funds equipment between $5,000 to $250,000 Accepts personal credit scores of 600 No prepayment penalty |
Direct lenders
When comparing direct lenders, consider the level of experience that lender has in providing semi-truck loans. Some have been offering loans to hundreds or thousands of truck owners, while others are new to the industry and may require research to vet its customer service and product offerings.
| Lender | Loan type | What to know |
|---|---|---|
| CAG Truck Capital | Semi-truck loan | Has a pre-qualification process for easy loan comparisons Accepts applicants with bad credit Works with start-ups |
| Balboa Capital | Semi-truck loan | Only requires one year in business Offers same-day funding Provides funding up to $500,000 with collateral |
| Truck Lenders USA | Semi-truck loan | Offers same-day approvals Only bank statements required for loans under $125,000, no other financial documentation Minimum financing amount is $15,000 |
| Commercial Fleet Financing | Commercial equipment loan | No tax returns required for loans under $150,000 Loan approvals as fast as two hours Zero money down loan options No personal guarantee for established businesses |
Bottom line
The best semi-truck loans can turn expensive equipment into an affordable solution for your business needs. Banks have a streamlined process with competitive rates, but you may also find a good offer from an online or direct lender if you don’t need a lot of in-person attention. Compare the pros and cons of each lender before you sign the loan agreement.
Frequently asked questions
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Most lenders require a credit score of at least 600. If your score is lower than that, you’ll want to seek out bad-credit semi-truck financing from a direct lender. Some lenders want to see a score in the high 600s to extend the best rates.
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Interest rates on an equipment financing loan start at about 7 percent to 8 percent from banks, but those rates are reserved for borrowers with excellent credit. Depending on your credit score and time in business, you may find rates as high as 35 percent, especially if you go with an online lender.
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Yes, some lenders offer loans to startups with six months, or even less time, in business. These lenders may also have lower revenue requirements.
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