Many lenders offer best financing options for vehicles, including those that specialise primarily in big rig loans. The best commercial truck loan, like any other small-business loan, is the lowest one you qualify for, whether you need a single Sprinter or a fleet of flatbeds.
Banks and alternative lenders that offer semi truck financing are included here, along with information on how to qualify and when to consider leasing vehicles instead.
Best Financing Options for Vehicles
Because trucking is such a high-risk industry these days, obtaining a bank loan for a small business can take a long time and be difficult. Consider these banks if your credit is good (at least in the upper 600s) and your company has been around for a while.
U.S. Bank Loan
Truck loans are part of the bank’s popular best financing options for vehicles offering, which is well-liked by lenders. Loans in the amount of up to $500,000 are available. Businesses who want to conduct business with a bank but don’t want to deal with the associated paperwork will find US Bank to be an excellent alternative for funding up to $150,000.
Even if you haven’t found the precise model you want, you may get preapproved for up to $500,000 in truck financing. The loan length ranges from 24 to more than 60 months.
Bank of America Commercial Vehicle Loans
Semi truck financing is available through Bank of America’s equipment loan programme, with rates starting at 3% APR. To be eligible, you must have been with the firm for at least two years and make at least $250,000 in annual sales.
Loans range in size from $25,000 to $750,000 and can be repaid over a maximum of 60 months. Vehicles must be heavier than 2.5 metric tonnes. For smaller vehicles, Bank of America provides a commercial vehicle loan.
Direct Commercial Vehicle Loans
If you want best financing options for vehicles with a vehicle company with decades of experience, these direct lenders may be able to help. Because they lend their own money, they may be more adaptable than other financial institutions. However, you should browse about and compare prices to ensure you receive the best bargain.
CAG Truck Capital
CAG Truck Capital has been financing commercial vehicles, including sleepers and private sales, for around 30 years. Additionally, if your present large rig is in severe need of repairs, you may be able to use this financing to assist pay for engine replacements.
CAG claims to specialise in lending to low-credit customers, particularly individuals who have already declared bankruptcy or are now subject to tax liens. Annual percentage rates start at 10%.
Commercial Fleet Financing
For the past 25 years, Commercial Fleet Financing has provided financing for semi trucks, trailers, and other light- and heavy-duty vehicles.
CFF offers to give credit judgments within two hours and funding within 24 hours, allowing for a rapid turnaround for those in need of financing. CFF does not need a personal guarantee as business collateral, which protects your personal assets if your trucking company is unable to repay the debt.
Truck Finance Companies in the United States of America
Truck Lenders USA has been financing all sorts of vehicles less than seven years old since 1977. Loan amounts start at $15,000.
Truck Lenders USA claims to accept applications within hours, however their terms are more stringent than those of other direct lenders. To be qualified, you must have a minimum credit score of 675 and two years of job experience, for example.
Balboa Capital is a direct lender that offers same-day funding on semi truck loans of up to $250,000 in size. The best financing options for vehicles programme is open to box trucks, refrigerator trucks, and other light- and heavy-duty vehicles.
To qualify, you must have been in business for at least one year and make at least $100,000 in yearly sales. Balboa Capital requires a “great” FICO credit score but does not define how much it is. A score above 630 may be a reasonable goal, as that range is considered “fair,” while Balboa cautions that all results are examined.
Wells Fargo Commercial Loan
Wells Fargo’s commercial vehicle programme provides a variety of semi truck financing options, including term loans, equipment lines of credit, and standard and open-ended leases, allowing you to find the best fit for your company.
Tow trucks, cranes, and other specialised vehicles, such as semi-trailers, are all eligible for financing. Payment conditions vary based on the car. Truck loans, for example, often last between 12 and 84 months, whereas specialised vehicle loans typically last between 36 and 84 months.
First Capital Business Finance
First Capital provides a variety of commercial and best financing options for vehicles and leasing options, the majority of which have flexible qualifying requirements. If your business is just getting started or you don’t have a commercial driver’s licence, you may be eligible for financial aid.
Furthermore, First Capital offers loans to consumers with credit scores as low as 540, albeit these loans have stricter mileage and vehicle usage options than those given by the other lenders. You can obtain financing with no minimum credit score if you can make a down payment of at least 10%.
Make a decision on a down payment. Knowing how much money you have to spend on a car is a great place to start. This is especially true for a big truck, which may easily cost six figures – even if purchased used. Let us take an example, if a lender requires a 20% down payment on a $200,000 big rig, you’ll need around $38,000 to $40,000 in cash on hand, as well as funds for taxes, registration, and other fees. Certain lenders may provide no-money-down options, but you must have strong credit and will pay a higher total interest rate if you finance the entire transaction.
Comparisons of loans You may have best financing options for vehicles, including those that aren’t specifically designed for large trucks. Using a company line of credit, for example, may allow you to swiftly get cash for vehicle repairs. Taking out a commercial truck loan, on the other hand, frees up operational capital that may be used for other company purposes, like as paying drivers. Furthermore, because the vehicle serves as security for lenders, applying for semi truck financing may be simpler than qualifying for other types of financing.