Semi Truck Financing : The truck loan can be used to buy or lease a new or second-hand truck. Semi-truck loans are also available to finance equipment and repair costs.
Truck loans are more expensive than consumer or business auto loans and require a higher down payment. Semi-truck loan payment will depend on your credit score, work experience, homeowner status, vehicle type, and lender.
Truck financing is available to those with bad credit. Lenders will finance more risky borrowers at a higher rate. Semi-truck financing is available for those with poor credit. They are eligible for a higher APR, a lower down payment, and a shorter term.
These are the Top Companies for Semi-Truck Financing within the USA
There are many ways to finance your semi-truck. A Semi truck can be purchase with a commercial or truck dealer loan, a semi-truck loan in-house, a business auto loan, a loan for small businesses, or an in-house loan for semi-trucks. These are the top semi-truck financing companies in the US.
Commercial Lending USA
Commercial Lending USA idedicated to helping truckers, fleet managers, and drivers get the best out of their businesses. We won’t let you wait for weeks to find out if your application has be approved. Start today with our simple online loan application.
Bank of America
Bank of America offers low APR loans to small business owners with excellent credit scores. You may be eligible for a semi-truck loan from Bank of America if you have a high FICO score of at least 750. The interest rate can vary between 48 and 72 months. To get a BoA-secured credit line, you will need to have at least two years of industry experience and a minimum annual income of $250,000
Wells Fargo offers flexible terms for truck owners, including new loans and refinancing options. provides fixed and floating-rate loans for vehicles of Class 6, 7, 8, and 8. Rates are higher than the industry average. Many options are available, including an operating lease, modified TRAC lease, lease purchase agreement, and dealer retail finance programs.
The US Bank Equipment Finance program is an excellent option if you need semi-truck financing with zero down payment of up to $1,000,000. Additional costs such as taxes, delivery, and installation can be covered by 25% additional financing. US Bank is not a lender that blankets your assets. It only hypothecates the support it has funded. Your business asset will not encumbered in the event of default.
Commercial Fleet Financing Inc
Texas-based Commercial Fleet Financing Inc has the goal of financing “One Truck at a Time.” With minimal documentation, they can provide truck loans of up to $500,000. Rates as low as 5.5% for experienced truckers without a credit history. If you meet the loan requirements, your semi-truck loan will approved in 24 hours.
The pros and cons of financing
These are some of the benefits of financing a commercial truck.
- Ownership, Each payment to your semi-truck loan increases the equity in your asset. You will eventually become the sole owner of the vehicle.
- Fast funding: If you have all the paperwork, you can be funded in less than a week.
- Tax Benefits Semi-truck Financing: You can get tax deductions based on asset depreciation.
- Improve Credit Score: If your credit is not good, you can get new credit and make prompt payments to improve it.
- Pre-Approval No fees or down charges are required to obtain a pre-approval. It is valid for up to weeks. Once you have pre-approved semi-truck loans, you can deal confidently with truck dealers.
Pros and cons of financing
These are the cons of financing semi-trucks.
- High costs: Commercial vehicles high-risk assets, and lenders charge higher rates (between 6-30%) than personal loans, auto loans, business loans, or credit cards.
- Complex Terms Above $500,000: The terms and documentation for commercial vehicle loans can be complicated if you need a loan with high-value collateral. Your lender may require you to provide your assets and financial statements.
- Less Term: Truck Loans have a lower term (usually 48 months) than traditional credit lines.
- High down payment: Semi-truck loans typically require a 10% to 15% down payment from borrowers with excellent credit scores (650+) and as high as 35% for borrowers with bad credit (500-600).
- Repossession risk: If you fail to make your loan payments, your lender could repossess the vehicle.
- Dealership Scams – Some truck dealers can scam borrowers by selling bad loans for higher commissions, charging documentation fees before loan approvals, or selling unnecessary warranty/insurance packages. They also don’t disclose the terms of the loan.
Financing vs. Purchasing vs. Leasing
Semi-trucks can be purchased or financed. Lease models allow you to lease partial ownership.
Truck purchased with savings, personal loans, or credit cards. You can make a consistent monthly income by investing in trucking. It is a cash-flow business that generates a lot of cash. The average semi-truck cost is $165,000, so purchasing a commercial vehicle could drain your business’ working capital and stretch your budget for a few months. You should ensure that your truck a covered by insurance and a warranty.
With little to no down payment, a truck loan can help you get your truck and expand your trucking company. Low rates are available to those with good credit and mortgageable assets. title loan can be obtained by mortgaging an old vehicle to secure financing for semi-trucks. In default, truck and other assets could be taken away. To ensure continuity in your loan payments, have an emergency fund.
Leasing of semi-trucks
Your lender will finance your semi-truck, but you become the final owner under the lend-and-lease model. Although flexible, leasing is often more costly than financing or purchasing a truck. Leasing-to-Own allows borrowers to repurchase the asset from the lender. Lenders have the option to place restrictions on truck usage under a lease. Semi-truck leasing rules are flexible, and you can negotiate terms with your lessor.
If you are an established business owner or a trucker with a CDL for at least two consecutive years, you can get great rates and terms from banks like Chase and BoA. Although banks have stricter credit requirements, you can still borrow from co-borrowers and use your personal property as collateral. To compare loan offers, truck owners with no credit history or poor credit may submit their details to semi-truck financing firms in-house.
Contact Commercial Lending USA today if you are interested in semi-truck financing.