Loans for a commercial truck and trailer are different than a typical auto loan for a personal vehicle; your local bank won’t offer them. Even banks that advertise their services to small businesses typically refuse to finance trucking companies — trucking has a notoriously high failure rate for new businesses, and banks don’t like risky investments.
Financing for commercial trucks: easy if you know where to look
However, this doesn’t mean that commercial truck financing is hard to get — you just have to talk to the right companies. Typically, we’re talking about small companies who specialize in lending for commercial vehicles of all types, such as trucks and trailers (trucking), vans and box trucks and sprinters (local delivery), tractors and combines (agriculture), dump trucks and excavators (construction and mining).
Everybody starts somewhere, and loans for eighteen-wheelers for first time owner operators and startup trucking companies are offered for those that find the right lender.
Because these companies are often working with their own money, they can get much more creative in who they lend to, even providing loans to those with recent bankruptcies. Credit histories with past due child support, tax liens, and vehicle repossessions are harder to get financed, but even with those negative marks there are companies who will welcome your business.
Getting real: what to expect from a loan and a lender
Lenders advertise rates such as “no money down” or “as low as 0% deposit.” These are for people with solid credit and no negative marks in their history. Everyone else is going to be in the 10% – 30% deposit range, with tougher credit histories paying higher deposits.
If you want to to get a loan for a $50,000 truck and you qualify for a 20% deposit, you’re going to have to pay $10,000 and the lender will put up the other $40,000.
Look for a lender that will provide you with the right terms for you, length of the loan, a right size payment and a no hassle way to payoff the truck when you are ready to upgrade.