Commercial Truck Financing
Would you like to purchase a new truck for your business? Most people will need some form of financial assistance unless they have a lot of money saved up. You can finance a new truck for your business with commercial truck financing and use that truck as collateral.

Finance options for commercial trucks fall into two categories:
- Vocational trucks – A vocational truck is typically a four-wheeler that is used for a single purpose. For example, towing trucks and delivery trucks fall under this category.
- Semi-trailer trucks – A semi-trailer truck is a much larger truck with one or more trailers attached to transport cargo over long distances.
Truck Loans: What You Need To Apply
Truck lenders use the truck you’re buying as collateral for your loan, so they’re just as interested in the truck as they are in your potential as a borrower. Make sure to prepare the following before applying for any truck loan:
- The vehicle identification number (VIN). Click here to see where your VIN is located.
- How much mileage the vehicle has
- Repair history (if it’s a used vehicle)
- Seller/Dealership information
- Insurance documents


It is very common for lenders to require insurance on the truck before they will lend you the money, since truck repairs can be expensive. A lender wants to know that an accident won’t result in you defaulting on your loan.
In the event that you fail to make timely payments on your commercial truck loan, the lender can repossess the vehicle.
Semi Truck Financing
Semitruck financing differs from vocational commercial truck financing. Because semitrucks carry heavy loads over long distances, they have different risks.
With semi truck financing, the truck still serves as collateral, but you also have to put down 5% to 25%. You’ll also need:
- A credit score of 600 or higher
- Minimum 5 years with a CDL license
- Age of truck less than ten years old
- Mileage of fewer than 700,000 miles
What do I need to get approved for semi truck financing?
Your business will need to have been in operation for at least two years, with consistent revenue to get approved for semi-truck financing. Here are some of the documents the lender may ask you for:
- Business registration documents, as well as necessary licenses
- Commercial Driver’s License (CDL)
- Business bank statements (up to 12 months)
- Business tax returns (up to 3 years)
- US Department of Transportation (USDOT) number
- Motor carrier number (MC number)
- Business balance sheet
Where To Get Semi Truck Loans
Most commercial trucking industries are risky, which is why only certain types of lenders are willing to provide this type of financing, namely:
- Large banks – National banks can offer low-interest commercial truck loans to highly qualified businesses. But you’ll have to go through a tough application process to get approved by a bank – plus have a good credit score.
- Specialized commercial truck financing companies – Several lenders specialize in commercial truck financing, so they can get you the best deal and give you good advice. They typically offer financing as a form of ‘equipment loan,’ which means the vehicle is used as collateral.


Banks offer lower interest rates. If you have a good relationship with your bank and are very well qualified, you will be able to get truck financing through your bank at a cheaper rate.
However, specialized lenders may secure the vehicle as collateral if your credit isn’t excellent. If you default on the financing agreement, the lender will be able to repossess the vehicle to collect the debt.
Semi-Truck Rates And Terms
Depending on your circumstances, you’ll receive different semi-truck financing rates. In some cases, established truck operators with excellent credit and proven profitability may be able to secure rates as low as 3%. People with weaker credit may be offered rates as high as 20%. Borrowers in the middle range fall between 7% and 10%. Operators with very bad credit and no assets are unlikely to qualify for semi truck financing.
Your interest rate is also determined by the loan term, which is determined by the lifespan of the semi truck you’re buying. You should always make sure the loan payments are affordable compared to your expected income during the term of the loan.

Finance for Truck Leasing
Leasing a truck may be more beneficial for your company than purchasing one. The advantages of leasing over purchasing are that there is a lower upfront cost, a shorter commitment, and less maintenance. It is often very enticing to business owners to lease trucks or semi-trucks, and they still can get financing. The majority of lenders offer financing for leasing commercial vehicles.
Business Auto Loan
To function well, businesses need reliable transportation. A business auto loan can help you get your business vehicle on the road. Loans for business vehicles are easy to obtain, and some offer financing at 100%. The majority of financing companies will use your business vehicle as collateral, and they offer loan terms of up to seven years.
Truck Loan FAQs
Truck financing companies work with many bad credit customers. Having poor credit does not mean that you can’t get credit, though your options may be more expensive. However, semi-truck financing for bad credit may have some additional requirements, such as:
Higher interest rate – Rates for semi-truck financing range from 5% to 35%. If you are a subprime borrower, you can expect to pay a higher interest rate.
Larger down payment – To reduce the lender’s risk, you may be required to make a larger down payment (25% to 50%).
Shorter loan term – Lenders may urge you to take a shorter-term loan rather than a long-term loan if you have a poor record of repaying credit.
In the end, all commercial truck financing with bad credit will cost you more. In the long run, you might be able to save thousands of dollars by improving your credit (by paying off any existing debts, for example).
Making regular truck repayments will give you the chance to rebuild your credit and make future financing easier.
When your credit history is poor and you want guaranteed semi truck financing, lease a truck instead. There is no credit check and no money down with semi lease purchases, but they can cost more in the long run. During the lease period, you will not own the truck. In addition, the leasing company can stop your business from using the truck if you default on the contract.
Aside from leasing, other kinds of business funding without a credit check are hard to find. You should be especially wary of any no credit check commercial vehicle loans. Some reputable businesses may forgo a credit check if your business qualifies in other ways (such as high revenue or good previous history with the lender). However, most no credit check semi truck lenders will take advantage of desperate people with poor credit, and charge them dangerously high interest rates.
Yes. While you can get commercial truck financing with no money down, you will need to have an excellent credit score. Moreover, commercial truck financing with a 0% down payment is much more expensive as you are financing 100% of the truck’s value, not just a fraction.
Another option is semi truck leasing with 0 money down lease, also called an operating lease. Leasing allows you to use the truck without actually owning it. This is a good truck financing option for borrowers with bad credit who cannot afford to put money down. An operating lease can help you start working while slowly repairing your credit. Good credit will allow you to access more affordable financing options in the future.
Getting a startup business loan may be the best choice for you if you want to start a trucking company. Startup businesses lack the documentation to support a regular loan application. In your application, you must provide a detailed business plan as well as income projections. In order to begin your own trucking company, you may also be required to prove that you possess the necessary experience.
If you have a good credit score, you might consider applying for an SBA loan. These government backed loans have low interest good terms, so it’s worth the long application process. You can also try applying for a personal loan, which only requires you to have a good credit score, without any business documentation.
Yes. You can use truck financing for several reasons besides purchasing a new truck, such as:
-Truck repair financing
-Permits and licenses
-Tire replacements
-Operating capital
-Buying out of a lease purchase
Truck finance calculators can help you calculate monthly repayments payments. By knowing your monthly repayments, you can assess whether you can afford the loan. In some truck loan payment calculators, you can also compare current loan rates from different companies.

Who is mCashAdvance™?
MCashAdvance™ is a merchant cash advance direct funder based in New York. We provide fast cash injections to help American businesses flourish. If you process your sales through card transactions, you can get approved for financing with us instead of using truck financing.
- No collateral – You won’t need to use the truck or semi that you purchase as collateral for the finance.
- Less paperwork – We don’t require any information about the truck you want to buy. We only care about how your business is performing
- No downpayment – We will not ask you to lay down any money in advance.
Our MCA funding is not the cheapest, but it always comes with complete transparency and integrity. Apply now with mCashAdvance™ and get an instant pre-qualification decision! If approved, we can advance up to $500,000 within 24 hours!
Does Your Business Need Funding Today?
There’s no fee or obligation, and it won’t impact your credit.
$5,000 – $1,000,000
Talk to a rep at (855) 433-8641
Mon – Fri | 9:00am – 8:00pm