The Best Lenders for Semi Truck Financing for 2024

Sean Hawley
Table Of Contents
  1. Introduction
  2. Banks That Provide Semi Truck Financing
  3. Banks That Provide Semi Truck Financing
  4. Financing a Semi Truck with Bad Credit
  5. Financing Your Semi Truck: Steps to Follow
  6. BLF is here to assist you

Introduction

Numerous lenders are available for semi truck financing, including some that focus solely on big rig financing. The ideal semi truck loan is the most affordable one that aligns with your needs, similar to any other small-business loan.

For the lowest possible rates: Bank loans typically offer competitive interest rates, though they necessitate good credit and may have extended funding timelines.

For specialized expertise: Direct semi truck loans are provided by lenders focusing on semi truck financing.

For swift financing: Alternative semi truck loans usually provide quicker funding compared to bank loans and may have more relaxed qualification criteria.

Below are the best banks and direct lenders offering semi truck financing, along with insights on qualification criteria and scenarios where leasing might be a more suitable option.

Banks That Provide Semi Truck Financing

Bank small-business loans are usually cost-effective, but getting approval can be a lengthy and challenging process. These banks are worth considering if your credit is strong (typically high 600s) and your business has a history of several years.

Wells Fargo Commercial Truck Loan

Ideal for: A variety of financing options.

Wells Fargo’s commercial vehicle program includes diverse semi truck financing options such as term loans, equipment lines of credit, and both standard and open-ended leases. This variety ensures you find the best match for your business needs.

Wells Fargo’s business loans cater to trucks, trailers, and specialized vehicles like tow trucks or cranes. The repayment period varies based on the vehicle, with truck loans ranging from 12 to 84 months, while terms for specialty vehicles span 36 to 84 months.

U.S. Bank Truck Loan

Ideal for: Quicker bank approvals.

U.S. Bank’s commercial truck loans, part of its equipment financing program, offer loans up to $1 million. A streamlined funding process is available for amounts up to $200,000, making U.S. Bank an attractive choice for those seeking a bank’s reliability but with reduced paperwork.

Pre-approval is available for up to $1,000,000, allowing you to shop with pre-arranged financing. Loan terms vary from 24 to over 60 months.

Bank of America Commercial Truck Loans

Ideal for: Cost-effective truck loans.

Bank of America’s business loans include semi truck financing within its equipment loan program, with rates starting at an annual percentage rate of 7.50% as of this writing. Eligibility requires a minimum of two years in business and $250,000 in annual revenue.

Loans for commercial trucks start at $25,000 and have terms up to 60 months. Generally, eligible vehicles must weigh above 2.5 tons. For lighter trucks, Bank of America provides a business auto loan.

Banks That Provide Semi Truck Financing

For expertise in the trucking industry, consider these direct lenders, offering years of experience. Their flexibility may surpass other financial institutions as they lend their own funds. However, ensure you compare rates to secure the best deal.

TopMark Funding

Ideal for: Applicants with less-than-perfect credit.

TopMark Funding specializes in financing or leasing a range of commercial vehicles, including new and used semi trucks, dump trucks, tow trucks, and more. For semi trucks, terms vary from 12 to 72 months, and interest rates begin at a competitive 4.9% for strong credit profiles.

TopMark Funding doesn’t enforce a credit score minimum and promises no hard inquiries during the application process. You can apply online, and a specialist will assist you in selecting the most suitable loan product for your circumstances.

CAG Truck Capital

Ideal for: Financing high-mileage trucks.

With over four decades of experience, CAG Truck Capital provides loans for various commercial trucks, including sleepers and private sales. CAG doesn’t restrict financing based on the age or mileage of long hood trucks and even offers engine overhaul financing.

CAG focuses on serving borrowers with poor credit, including those with past bankruptcies or current tax liens. Good credit applicants can expect down payments starting at 20%, while others may require additional upfront payments.

Commercial Fleet Financing

Ideal for: No personal guarantees required.

With more than 25 years in the industry, Commercial Fleet Financing offers financing for semi trucks, trailers, and both light- and heavy-duty vehicles. CFF can make credit decisions within two hours and fund within a day, providing a rapid solution if you require quick funding. 

Depending on your business’s tenure, CFF may not require a personal guarantee, safeguarding your personal assets if your trucking company can’t repay the debt.

Truck Lenders USA

Ideal for: Fair credit borrowers.

Truck Lenders USA, established in 1977, provides financing for various trucks up to seven years old, with loans beginning at $15,000. The company boasts a quick approval process but maintains stricter criteria than some other direct lenders. For instance, a minimum credit score of 650 and a business history of at least two years are prerequisites for eligibility.

Depending on your business’s tenure, CFF may not require a personal guarantee, safeguarding your personal assets if your trucking company can’t repay the debt.

Financing a Semi Truck with Bad Credit

Even with bad credit, you might still secure financing for a semi truck through an alternative or direct lender. Given that the truck serves as collateral, these lenders might be more inclined to approve applicants with poor credit histories, past due payments, or bankruptcies.

This is an issue that is close to heart for us at BLF because we come across so many truckers who had bad credit at the time they needed to buy a truck (often their first truck).  Because their credit prohibited them from getting a good or even decent loan, these truckers are stuck taking a loan from literally whoever was willing to extend credit.  

More often than not, these loans are very costly in terms of both interest and payment. On top of that they are often require truckers put down a significant down payment.  All this means these truckers are more likely to struggle with payments. And with the bad state of the freight industry as of late, some of them have defaulted, losing all that down payment (not to mention their livelihood).

If you have to go this route, remember that the lender will hold your truck’s title and could repossess it if you fail to make payments. Ensure that you can manage the new loan payments, along with other associated costs like fuel, maintenance, tires, and insurance. And of course, speak to BLF first, before you engage any of these lenders so we can advise you if you are getting into something you shouldn’t.

Financing Your Semi Truck: Steps to Follow

1. Establish Your Initial Investment

Assessing your financial capability is the first step when making any significant purchase, particularly with a semi truck, which may cost a substantial amount, even when bought second-hand. For instance, if a lender mandates a 20% initial payment for a $100,000 semi truck, you’d need $20,000 upfront, along with additional funds for taxes, registration, and miscellaneous expenses. While some lenders might provide financing without an initial payment, having robust credit is essential, and bear in mind, financing the entire cost will ultimately be more expensive.

2. Identify the Truck and the Appropriate Lenders

The specific truck you require significantly influences your financing options. Some financiers might set restrictions based on the vehicle’s age or mileage, or might not offer financing for sleeper cab trucks or private sales. Needing several trucks? The maximum loan amount a lender offers could restrict your choices.

3. Evaluate Loan Options

A variety of business loans can finance your semi truck, not just those explicitly for big rigs. For instance, a business line of credit might quickly provide enough funds. However, choosing a specialized semi truck loan keeps your operational capital free for other expenses, like salaries for drivers. The truck itself also serves as collateral, potentially simplifying the qualification process for semi truck financing compared to other loan types.

4. Prepare Documentation and Submit Your Application

Commercial truck lenders each have unique application procedures and criteria. Be ready with information about your business (like annual income and business type), the truck you wish to finance (its type, mileage, age, and seller), and your personal details (such as credit score and the duration you’ve held a commercial driver’s license). Don’t hesitate to explore your options, even under time constraints. Both online and direct lenders often provide rapid approvals, allowing you the time to compare different annual percentage rates.

BLF is here to assist you

Our goal is to provide you with expert help and guidance for you needs. Whether you need funding or business services for your trucking company, you are in reliable hands.

Get Started
Scroll to Top