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Semi-truck financing is the next best option for small business owners who can't afford to purchase a semi truck with their own funds. Even if you buy one used, you'll likely spend a minimum of $50,000, which is still quite a bit for a new business to pay out of pocket.
Between a down payment, interest and fees, semi-truck loans can be expensive. But it allows you to pay for the truck in installments, making it a quick way to grow and expand your business.
Check out our top picks below for semi-truck financing and some tips to help choose the best lender for you.
Knowing your credit score is important because it helps you know the potential rates you are likely to qualify for with a semi-truck loan. If you have a healthy credit score and solid payment history, the lender will likely offer you low interest rates.
2
Determine the type of semi-truck financing you need.
Review your semi-truck loan options to determine which aligns best with your business needs. You can choose from business term loans, equipment loans, business lines of credit and more.
3
Choose a lender.
Semi-truck financing can be done through banks, credit unions, direct lenders and alternative lenders. Keep in mind each will offer varying loan amounts, terms, interest rates and fees.
4
Get prequalified.
Some lenders prequalify you by performing a soft credit check. Getting prequalified with your chosen lender isn’t a guarantee of approval. But confirming the potential loan amount, term and rate gives you a better idea of how much the loan will cost. You always have the option to get prequalified with more than one lender and compare offers.
5
Find your semi truck.
Most lenders require information about the truck you’ll finance, such as the purchase cost and year. Some will only allow new trucks or used trucks seven years old or younger.
6
Get insurance.
Typically, lenders require borrowers to purchase insurance before the loan funds are released. Similar to car insurance, you'll have different coverage options to choose from, including liability coverage, physical damage insurance and bobtail insurance.
7
Complete application.
Submit the application and required documentation to your lender.
As you search for the best semi-truck financing lenders, use the following factors to help you with your decision.
1
Loan requirements.
Semi-truck loan requirements vary from lender to lender, but many consider annual revenue, credit score and debt-to-income ratio. You have a higher chance of approval if you have work contracts, a steady flow of revenue and fair or strong credit such as 600 or higher.
2
Loan amounts.
Some lenders only finance up to $150,000. Others go up to $250,000 or higher. Have an idea of the cost of the truck you’d like to finance and the lender’s maximum loan amount.
3
Repayment terms.
Repayment terms can range from two to seven years. If you want a smaller monthly payment, a longer repayment term would offer that. But if you want to pay as little interest as possible, you’ll want to pay off your semi-truck loan as soon as possible, especially if you have poor credit and only qualify for bad credit business loans.
4
Interest rates.
No matter what your credit score is, you’ll have to shop around and compare lenders to ensure you’re finding the lowest possible business loan interest rates for you.
5
Loan features.
Lenders may have perks and restrictions attached to their loans, so you have to review loan requirements carefully. For example, most loans require you to sign a personal guarantee that makes you personally liable for the loan if your business defaults. Also, look for loans that don’t charge a prepayment penalty for paying off your loan early.
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The listings that appear on this page are from companies from which this
website receives compensation, which may impact how, where and in what
order products appear. This table does not include all companies or all
available products. Bankrate does not endorse or recommend any companies.
Bankrate Score = 4.6/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$25k- $400K
Term: 3 - 15 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Enjoy some of the most competitive pricing in the alternative lending space
Factor rates* as low as 1.11
Daily, weekly, and monthly** payment and remittance options
Approvals as fast as 4 hours
Disclosures:
*Factor rates are included in your daily estimate to simplify remittances and account monitoring. Best factor rates available to merchants with excellent credit and financial strength.
**Some products are made available through Credibly’s network of external funding partners
Pros
Fast funding
Relaxed eligiblity requirements
Cons
Potential fees
Potentially high factor rates
To apply for equipment financing, you can prequalify online. Credibly isn’t a direct lender for equipment financing, so you’ll be shown offers from lending partners. Depending on your location, certain lending products may not be available. Fees and rates will depend on the lending partner.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
550
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Bankrate Score = 4.4/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$5k- $500K
Term: 4 - 24 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Hire new employees to support your business growth
Flexible payment options are available
Stock more best-selling items during your busy selling seasons
Maintain daily operations even through gaps in cash flow
Continue running your business seamlessly during seasonal lulls
Disclosures:
This is not a guaranteed offer of credit. Rates and terms for business credit products are subject to underwriting guidelines, may be provided by third parties, and are subject to lender approval. Approved funding amount is based on eligibility. Actual eligibility may vary. Restrictions may apply. Application is subject to approval by the lender and is based on factors such as business type, time in business, annual sales, average business bank account balances, personal credit and other variables deemed relevant by the lender. Products offered by National Funding, LLC and affiliates are business products only. In California, products are made or arranged pursuant to a California Financing Law License. License number: 603A169.
Pros
Possible prepayment discount
No collateral on leases
Lowest guaranteed payment on leases
Cons
Maximum interest rate not disclosed
No online prequalification tool
Only offers equipment financing up to $150,000
After completing an online application, a Funding Specialist will reach out to review your options. If you decide to move forward, you’ll fill out a formal application. Equipment leasing comes with a lowest payment guarantee. If you find a lower lease payment elsewhere with comparable financing, the lender will pay you $1,000.
National Funding has origination fees between 1 and 3 percent. If the loan is paid off early, there is a 6 percent discount on the remaining balance.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
660
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Bankrate Score = 4.2/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$10k- $500K
Term: 4 - 24 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Finance daily business operation and have flexibility for expansion
Access to short-term cash for immediate expenses like paying rent
Supplement late-paying clients
Get the funds to make improvements with renovations without impacting day-to-day cash flow
Cash flow for inventory, materials, and marketing
Disclosures:
This is not a guaranteed offer of credit. Rates and terms for business credit products are subject to underwriting guidelines, may be provided by third parties, and are subject to lender approval. Approved funding amount is based on eligibility. Actual eligibility may vary. Restrictions may apply. Application is subject to approval by the lender and is based on factors such as business type, time in business, annual sales, average business bank account balances, personal credit and other variables deemed relevant by the lender. Products offered by QuickBridge and affiliates are business products only. In California, products are made or arranged pursuant to a California Financing Law License. License number: 603J292.
Pros
Easy application process
Fast funding
Early payoff discount
Cons
Not accessible to all borrowers
$250,000 minimum annual revenue requirement
QuickBridge offers short-term business loans with fast funding timelines — often within 24 hours upon approval. To apply, you can fill out an application online. A Funding Specialist will then reach out to discuss your application and financing options. Repayment terms are up to 18 months, and you'll have a daily or weekly repayment schedule. QuickBridge offers an early payoff discount, and no collateral is required.
Loans are available in all 50 states.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
660
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Bankrate Score = 4.3/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$10k- $200K
Term: 12 - 60 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
If you're a current Bank of America customer, you can apply online through your account. If you aren’t an account holder, you’ll need to schedule an appointment with a Bank of America small business specialist.
Bank of America charges a 0.50 percent fee on top of the amount financed for equipment loans.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
700
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Bankrate Score = 4.3/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$10k- $500K
Term: 12 - 60 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
24/7 availability, Instant estimates , Rates starting at 5.99% with 12-60 month terms
Apply in 60 seconds, Get approved within 2 minutes, Get funded today
We stand behind our commitment to continuously provide small businesses with low cost financing. If you find a lower payment than ours, we'll beat it or pay you $250
We provide transparent, cost-effective equipment loans up to $250K. We’ve helped 1200+ businesses in over 175 industries acquire equipment to increase efficiency and expand operations
Pros
Same-day funding
Near-instant loan estimates
Works with startups
Cons
$150 to $750 documentation fee
High annual revenue requirement
Small max equipment loan amount
Triton has an easy online application. You can also a representative by phone at 877-822-1333 or through email at info@tritoncptl.com. Triton only performs a soft credit pull when applying. Payments can be made monthly, quarterly, semi-annually, annually or seasonally.
Triton charges a documentation fee of $150 to $750. All business owners with at least a 10 percent stake in the business must be on the application.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
600
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
600
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Compare the best semi-truck financing in December 2024
Compare the best lenders for semi-truck loans in the table below to find out what each lender is best for, their credit score requirements, loan amounts they offer and time in business requirements.
A closer look at our top semi-truck financing options
After reviewing the table above, take a closer look at lenders who may meet your needs. You can learn more about why they’re a top lender, who they’re best for and any features that make them stand out.
National Funding: Best for loan and lease options
Overview:National Funding offers equipment financing up to $150,000 with standard terms of 24 to 60 months. The lender starts interest rates at 4.99 percent simple interest, though this doesn’t account for additional fees. That said, you can lower your interest even further by taking advantage of its early payoff discount of 6 percent for equipment loans. Discounts on interest are rare for business lenders, though you can typically avoid interest by paying off the loan early.
National Funding is best for borrowers who want commercial truck financing options for both loans and leases. With National Funding, a down payment isn’t required. You’re also guaranteed to get the lowest payment on your lease, or National Funding will pay you $1,000 if you find a competitor with a lower offer.
Established in 1999
Inc. 5000 honoree
Online application
No down payment
Early payoff discount
Lowest payment guarantee for equipment leases
Credibly: Best for bad credit
Overview:Credibly is an online lender that has helped over 46,000 U.S. small businesses with funding. Unlike traditional lenders like banks and credit unions, Credibly's loans are available to business owners with bad credit. The online application expedites the financing process. You can prequalify in 10 minutes, loans can be approved in as little as four hours and funded the same day. Keep in mind that Credibly charges a factor rate, starting at 1.11, which can lead to higher total funding costs than other lenders.
Credibly is best for bad credit borrowers because the lender accepts personal credit scores as low as 500. Most online lenders set the standard at 600, and many traditional banks require 670 or higher. Its requirement makes Credibly far more accessible than many other lenders. Credibly also ranks as one of the top bad credit business lenders by Bankrate.
Founded in 2007
Online application
Same-day funding
Accepts bad credit
Triton Capital: Best for low rates
Overview: Triton Capital is an online lender that offers business equipment, working capital and SBA loans. Qualified business owners could get fast funding one to two days after the loan has been approved, which can take between two and four hours. The usual timeline for equipment loans takes several days to several weeks to hear the lending decision.
Unlike other lenders, Triton Capital allows borrowers to make payments monthly, quarterly, seasonally, annually and semi-annually. You can also stretch these payments across 12- to 60-month terms. These options allow maximum payment flexibility for the semi-truck owner.
Triton Capital is best for businesses with a solid financial profile who prefer to use an online lender but want low rates. Interest rates for equipment loans start at 5.99 percent and go to 24.99 percent. Many online equipment lenders offer rates in the double digits and can go up to 75 percent or higher.
Founded in 2008
Online application
82% returning customers
4 payment schedule options
Bank of America: Best for traditional bank
Overview: As the second-largest bank in the U.S., Bank of America provides a solid option for business loans. The ability to get in-person support in most states gives the bank an edge over other equipment lenders. Its equipment loans are offered for businesses looking to finance a vehicle over 2.5 tons, starting at $25,000 and up. Plus, you can get interest rates as low as 6.25 percent, one of the lowest rates on the market, and repayment terms up to five years.
Bank of America is the best option for business owners wanting a traditional bank because you can find local branch support nearly anywhere you go in the country. The lender offers flexible options for equipment financing, including an equipment loan, lease or line of credit.
Unlike most lenders, you can also qualify for interest rate discounts of 0.25 percent to 0.75 percent if you’re a Preferred Rewards member.
Founded in 1948
Second-largest bank in U.S.
In-person application
Thousands of branches
Interest rate discounts for preferred members
Accion Opportunity Fund: Best for owner-operators
Overview: Accion Opportunity Fund is a mission-based lender seeking to make business loans more accessible to new and credit-challenged business owners. This lender boasts that most people will spend an average of 21 percent less in repayment fees than they would by choosing another lender. Its rates start at 8.49 percent simple interest, not including fees.
Accion Opportunity Fund is best for owner operator truck owners because it offers funding from $5,000 to $250,000, perfect for owning a single truck. It also accepts new truck owners with a CDL license or six months of driving experience and a personal credit score as low as 600. In short, if you’re a brand-new truck owner, Accion welcomes you to apply.
Nonprofit lender
Works with minority- and credit-challenged businesses
Offers education and mentorship
CAG Truck Capital: Best for semi-truck industry expertise
Overview:CAG Truck Capital specializes in semi-truck lending to owner-operators and semi-truck dealers, even if you’re a startup or have bad credit or no credit. Not only can the lender finance your semi truck, but its loans also come with an engine overhaul option. If your truck is ever in need of an engine overhaul, you can use the overhaul loan to get repairs or a new engine at a certified facility. No other equipment lender offers these flexible loan options.
CAG Truck Capital is best for semi-truck industry expertise because the lender has over 40 years of experience serving this specialized industry. It claims it’s recognized in the industry by truck manufacturers like Cummins, CAT, Paccar, Detroit, Mack and Volvo. The lender keeps certified diesel technicians and truck experts on staff so that you work with a truck specialist when applying for financing.
40 years in the industry
Recommended by top semi-truck manufacturers
Certified diesel and truck technicians on staff
Engine overhaul loans
Accepts bad or no credit
Balboa Capital: Best for fair credit
Overview:Balboa Capital provides semi-truck loans for new and used semi trucks of up to $350,000 or $500,000, depending on the collateral provided. The lender offers a quick online application with same-day funding, a much faster timeline than the usual several days or weeks you’d wait with other lenders. While some business owners may hesitate to work with an online lender, Balboa Capital is owned by banking giant Ameris Bank and has funded over $8 billion in business loans.
Balboa Capital is best for fair credit borrowers since the lender approves personal credit scores of 620 or higher. You also need just one year in business and $100,000 in annual revenue. The minimum business requirements needed for Balboa Capital are fairly accessible compared to other lenders, giving newer businesses the potential to get the equipment they need.
Established in 1988
Division of Ameris Bank
Online application
Same-day funding
Truck Lenders USA: Best for truck financing options
Overview:Truck Lenders USA specializes in financing a variety of commercial vehicles, including box trucks, semi trucks and fleets of vehicles. You can get truck financing with 24- to 60-month terms for commercial trucks or trailers seven years old or newer. These are standard features in the world of truck financing. But its jumbo leases up to $1 million offer more flexibility in getting the right semi truck than you’ll find elsewhere.
Truck Lenders USA is best for business owners wanting multiple types of truck financing options since it offers more lending and leasing options than other commercial lenders. You get the choice between quick, application-only financing up to $75,000, application-only leasing up to $250,000 or jumbo leases up to $1 million.
Application-only financing allows you to send a simple application by fax and receive a lending decision within 24 hours. If you choose an equipment lease, you can also opt for a contract with a lease buyout or balloon payments to lower your monthly payment.
Established in 1977
Loans and leases up to $1 million
Lease buyouts and balloon payments
Funds private semi-truck purchases
Commercial Fleet Financing: Best for quick application
Overview:Commercial Fleet Financing has funded over $1 billion in transportation equipment loans, showcasing experience in the industry above other online lenders. Rates are not disclosed, but it can fund purchases up to $1 million. The website also states that its term lengths are flexible. Commercial Fleet Financing also has a sister company called Fresh Start Equipment Finance, which works with business owners who struggle to get approved based on credit requirements.
Commercial Fleet Financing is best for its quick application. Once you’ve applied, you can often receive the lending decision and funding within 24 hours. This application process shaves days or even weeks off the usual funding timelines provided by many business lenders.
Established in 1995
24-hour funding
Accepts fair credit
Equipment loans and leases
What is semi-truck financing?
Semi-truck financing is when you take out a loan or lease to help cover the costs of a commercial vehicle. Similar to other types of business loans, it involves taking out a lump sum of cash for a fee and then repaying it over time with interest.
Average semi-truck interest rates can range from 6 percent to 35 percent or higher. The lowest interest rates are reserved for business owners with the best credit who have been operating their business for more than two years and can show good and consistent annual revenue.
Depending on the lender, you may be able to apply for a term loan, which can usually cover any type of business expense. Or you may need to apply for equipment or commercial vehicle financing.
How does semi-truck financing work?
When it comes to commercial truck financing, the borrower applies for a loan or lease through a bank, credit union or online lender. Depending on the lender, you may need to provide a down payment. Usually, the semi-truck acts as collateral, so you won’t have to provide an additional asset to secure the loan.
You may have to provide a personal guarantee, which is a promise to repay the loan even if your business defaults on the loan. So even if you are registered as a limited liability company (LLC), a personal guarantee will still make you liable for repaying your business debts.
The application process and approval times can vary, with online lenders usually providing faster approval and funding times within 24 to 48 hours. You’ll need to provide specific information like semi-truck age and mileage.
If you meet the lender's loan eligibility requirements and are approved, you’ll receive financing to purchase your semi truck and will begin repaying the loan based on the terms laid out in your loan agreement.
Types of semi-truck financing
Business owners have different types of semi-truck loans available to them when purchasing a semi truck, including commercial truck loans, equipment financing, equipment lines of credit and SBA loans.
This is a term loan that can only be used to purchase a commercial vehicle, including a semi truck. Borrowers make payments for the term of the loan, and once all payments have been made, they own the commercial vehicle.
A business loan for purchasing or repairing equipment that you can reuse once you repay any borrowed amounts. The lender will set a credit limit, and you can purchase a semi truck within the available limit given.
This is a term loan that can be used to purchase equipment for your business, such as machinery and vehicles. Borrowers repay the loan within a certain period by making fixed payments. Similar to a commercial truck loan, at the end of the loan term, the borrower owns the equipment.
SBA loans are backed by the U.S. Small Business Administration and offer borrowers caps on interest rates. A few different types of SBA loans can be used for commercial truck financing, but SBA 504 loans are designed specifically for buying fixed assets. Types of SBA loans to consider:
Fixed, monthly payments make the purchase of a semi truck more affordable.
Spreads out the cost of a large purchase
Accessible to startups and bad-credit borrowers
Fast funding, depending on lender
Tax deductions available, including Section 179 deductions
Cons:
High purchase cost
High interest and loan fees
Personal guarantee makes you liable if your business defaults
Down payment may be required
Requires time in business
Who should get semi-truck financing?
Many business owners turn to commercial-truck financing when they don't have the funds available to make such a large, expensive purchase. If you're looking to start or grow your business, a semi-truck loan could be the most viable option. Not only does it allow you to pay off the semi truck over time, but it also has the potential to build your business credit score, reduce out-of-pocket startup costs and free up your business's cash flow.
Bankrate Insight
As you search for a lender, be on the lookout for red flags and other indicators of predatory lending, such as:
Unclear terms. Make sure your total loan, repayment schedule, interest rates and other costs line up with what you were expecting.
High-pressure tactics. Don’t rush into a loan just because an aggressive lender is eager for you to sign a loan agreement. Try to work with lenders who give you time to look over a loan agreement and compare with other lenders.
Double sales tax: Make sure you don’t pay sales tax twice for a leased semi truck you decide to purchase.
Hidden fees: Watch out for unexpected fees like origination, prepayment and maintenance fees. Look over your contract carefully. If there are excessive fees and penalties, get a few more loan offers and compare.
Advance fee loan scam: Lenders shouldn’t ask for any upfront payments before an application is reviewed and approved. This type of fraud typically targets borrowers with low credit.
Where to get semi-truck financing
If you're interested in where to find semi-truck financing, loans are available through banks, credit unions, direct lenders and online lenders. Loan eligibility requirements will vary as well as loan amounts, terms, interest rate, fees and funding time.
How to manage a semi-truck business loan
Managing your semi-truck loan payments comes with effective money management for your business as a whole. You can start by using projected revenue from your current contracts with trucking companies, warehouses or other clients. Work in your loan payments as a line item alongside other business expenses. That way, you can track where the loan payments fit in and what expenses you need to cut when revenue dips.
Other strategies for managing business funds include automating your loan payments for timeliness and staying aware of all debt obligations. Many lenders like to see revenue of at least 1.25 times greater than your debts, called the debt-service coverage ratio.
Alternatives to semi-truck business loans
While getting a semi-truck loan makes the most sense for financing a truck, you can also use other business loans. The main feature to look for is a high enough loan amount to cover the entire semi-truck purchase. Some alternatives to consider:
Business term loan: A standard business loan with potentially high loan amounts and fixed repayment terms, such as two or five years.
Business line of credit: Similar to a credit card, a secured or unsecured line of credit is a revolving credit line that borrowers can withdraw from when they need to cover short-term business expenses.
Equipment lease: A type of rental agreement that lets you pay a monthly fee to use the leasing company’s semi truck, possibly with an option to buy at the end of the lease. Insurance costs can be higher when leasing.
Frequently asked questions about semi-truck financing
Semi-truck loans are easier to qualify for than other business loans because the loan is secured by the truck as collateral. This makes it a less risky type of loan for the lender. However, loan eligibility requirements vary. Established small business owners with the best credit will typically have an easier time financing a semi truck. There are semi-truck loans for startup businesses and semi-truck drivers with poor credit, but it may take time to find an affordable option. The application process may also be lengthier as lenders may have stricter underwriting processes to help verify your ability to repay the loan.
You can typically finance a semi-truck for up to 60 months or longer with most lenders, but terms can vary depending on the lender.
Yes, you can get a semi-truck loan without a CDL license. If the owner and semi-truck driver are different people, only the driver is typically required to have a CDL license. Some lenders also require the borrower to have a CDL. Before applying for commercial truck financing, review the lender's loan eligibility requirements to confirm if a CDL license is required and the length of time you must have it.
You can find semi-truck loans with a personal credit score of at least 600, although your choice of lenders may be limited to online and alternative lenders. Some online lenders will accept scores even lower than 600. But traditional bank lenders may want to see a higher score, such as 670 or higher.
Refinancing a semi-truck loan comes with the standard costs of borrowing, including paying any origination or application fees for getting the loan. You’ll also need to account for the new interest rate that the lender charges you, which can range from a 6 percent to 35 percent APR. But you will need to show your semi truck’s current value, which may involve getting a professional appraisal.
Ultimately, the time it takes to receive financing for your semi truck depends on the lender. If you get a loan from an online lender or a direct lender specializing in semi-truck loans, you could get a loan within 24 to 48 hours. But traditional term or equipment loans from a bank could take several days or weeks to secure financing.
The best interest rates on semi-truck loans range from 6 percent to 35 percent. These rates are reserved for borrowers with strong credit and a healthy financial profile. If you have less-than-ideal finances, you may want to prequalify or apply with several lenders to find the lowest rate available to you.
How we choose the best semi-truck loan lenders
Bankrate's trusted small business loan industry expertise
To choose the best semi-truck financing, we researched banks, online lenders and direct lenders. We looked for lenders with relaxed eligibility requirements and programs that are specifically geared toward helping business owners secure financing to cover the cost of a semi truck. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, whether the loans are secured or unsecured, minimum annual revenue and fees. Additionally, these lenders were evaluated for notable qualities such as funding speed and nontraditional eligibility criteria.
When evaluating lenders, we use a 22-point scale to measure quality in five key areas:
Access to small business funding is a challenge for many business owners. Rate hikes and bank turmoil have led to lenders tightening credit standards and eligibility requirements. This can make it difficult for startups, bad-credit borrowers and business owners in underserved areas to get approved for small business loans.
Our experts consider several factors in this category and award higher scores to lenders that offer flexible loan amounts, fast approval and funding and inclusive time in business and annual revenue requirements.
The affordability of a business loan often depends on a business owner's financial profile. A business with high revenue and a flexible budget will likely be able to afford most loan options. Businesses considered high risk, such as startups or those with bad credit, may struggle to find loans with affordable interest rates and reasonable fees.
We consider a business loan affordable if the payments are manageable, you have the lowest possible rate based on your creditworthiness and there are minimal fees. Lenders that have lower rates, offer rate or fee discounts and have minimal fees receive higher scores.
A good customer experience requires a lender to be transparent, efficient and responsive. Reputable lenders that value their customers are easy to communicate with, responsive to your questions and concerns and willing to go the extra mile to make sure you have a positive experience for the life of the loan.
Lenders offering online accounts and applications and a range of customer support availability score higher in this category.
While the Truth in Lending Act (TILA) protects consumers against unfair or harmful lending practices, it doesn’t apply to business loans. This can make it harder to get straightforward and upfront information on loan costs when comparison shopping. We score lenders that make it easy to find rates and fees, as well as eligibility and credit score requirements, higher than those who do not disclose information.
Loan flexibility is finding a loan to meet your needs, even if you don’t have high annual revenue, several years in business or the best credit score. Loan flexibility can look like lenders that offer multiple lending products, variety in loan terms or unique options to give business owners the opportunity to fund their businesses in a way that works for them.
Lenders scoring high in this category offer varied products and services to cater to all types of borrowers and businesses.
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