250+ small-business products reviewed and rated by our team of experts.
95+ years of combined experience covering small business and personal finance.
50+ categories of best business loan selections.
Objective and comprehensive business loans ratings rubric. (Learn more about our star ratings.)
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
What is semi truck financing?
Semi truck financing refers to a loan that’s used to buy a commercial truck for your business. Depending on your lender, you may be able to purchase new or used vehicles, such as dump trucks, box trucks, flatbed trucks, service trucks, vans or trailers, among other options.
Like other types of equipment financing, semi truck loans use the vehicle you purchase as collateral on the loan.
How does semi truck financing work?
Semi truck loans are typically structured as business term loans. You receive a lump sum of capital from a lender upfront to help pay for your truck purchase. Then, you repay the funds, with interest, over a specific period of time.
Repayment terms. Repayment terms can range from 12 to 60 months, but may be longer, depending on the type of commercial truck. Payments are usually made on a monthly basis, but some lenders offer flexible options, such as quarterly, semi-annually or seasonal payments.
Interest rates. Commercial truck financing rates can range anywhere from 5% to 36% APR. The rate you’ll receive, however, will depend on a number of factors, such as your business’s qualifications, the value of the truck you’re purchasing and your down payment. In general, established businesses with strong credit scores will be able to qualify for lower interest rates.
Semi truck financing vs. leasing
If you’re in the market for a semi truck, equipment financing is often a better option than equipment leasing. Big rigs may cover a million miles before they require serious work. That means they’re likely to remain productive long past a five- or seven-year loan repayment term.
Still, commercial truck leasing can make sense in the following instances:
You’re a startup. Qualifying for a commercial truck loan can be difficult if your business lacks a track record. You’ll want to develop a business plan that shows how your company will succeed and consider leasing a truck while you’re proving your concept before investing a lot of equity into a truck of your own.
You need to free up cash. Leases typically come with lower upfront costs — you may even be able to spread the sales tax over the lease’s term, depending on where you live — and smaller monthly payments. An option like freight factoring, in which you receive upfront cash in exchange for outstanding invoices, can help if you need ongoing capital as well.
You’re worried about longevity. Long-haulers have long shelf lives. But vehicles like delivery vans may face more wear and tear, and specialty trucks with complex parts may need more frequent repairs. If your trucks are consumer-facing, you may want consistently new models to make a good impression. Leasing can help in all these cases.
» MORE: Compare the best equipment leasing companies
Where to get semi truck financing
BanksBanks offer some of the most competitive interest rates, but approvals can be time-consuming and tough. You might consider a commercial truck loan from a bank if your credit is good (a score in at least the high 600s) and your company has been around for multiple years.
Online lendersAlternative semi truck lenders generally provide faster funding than banks and have more flexible qualification requirements. These companies may also be willing to work with startups or borrowers with bad credit. As a result, however, they typically charge higher interest rates.
Direct semi truck lendersIf you want to work with a company with deep expertise in the trucking business, these direct lenders offer decades of experience. They may be more flexible compared with other financial institutions because they lend their own money. But as with other lenders, you should compare rates to make sure you're getting the best deal.
How to finance a semi truck
1. Determine your down payment
Knowing how much you can afford is a good start when buying any vehicle. It’s especially important for a semi truck that could cost six figures — even if you buy used.
For example, if a lender requires a 20% down payment on a $100,000 big rig, you would need $20,000 on hand plus money for taxes, registration and other fees. Some lenders may offer no-money-down options, but you’ll need good credit to be eligible and will pay more overall by financing the entire purchase.
2. Review semi truck financing requirements
In addition to thinking about a potential down payment, you’ll also want to consider common business loan requirements, to determine what loans you may qualify for:
Credit score. Many lenders want to see a minimum credit score in the mid- to high 600s, but others are more flexible. Typically, a higher credit score will help you access lower interest rates.
Time in business. Because commercial truck purchases are often expensive, it’s helpful to have two or more years in business. Some lenders may be able to work with younger businesses, however, if they have good credit or can provide a larger down payment.
Annual revenue. Some semi truck financing companies don’t have a minimum annual revenue requirement or don’t disclose one upfront. In general, however, you’ll want to be able to show a lender a strong financial history.
🤓 Nerdy Tip
If you have bad credit — or your credentials aren’t quite where you want them — you may still be able to finance a semi truck with an online or direct lender. Because the truck itself serves as collateral, these lenders may be more open to approving borrowers with poor credit histories or less time in business. Keep in mind, however, that the lender will own the title on your truck and could repossess it if you don’t pay. And, like other startup or bad credit business loans, these semi truck financing options will likely be more expensive. You’ll want to make sure you can afford the payments on your new loan and all the other costs that will come with the truck, like fuel, maintenance, tires and insurance.
3. Find the truck you want — and lenders that will fund it
What kind of truck you need will have a direct impact on financing options. For example, some lenders may have vehicle age or mileage requirements. Others may not finance sleeper cab trucks or private-party purchases. Do you need multiple trucks? A lender’s maximum funding amount may limit your options.
4. Compare commercial truck loans
You can use multiple types of business loans to finance a semi truck, including those not specifically designed for big rigs. For example, a business line of credit could provide you with fast cash to fix up a truck.
But opting for a semi truck loan will keep that working capital available for other business costs, like paying drivers. Plus, the vehicle itself offers built-in collateral for lenders, so it may be easier to qualify for semi truck financing than other options.
5. Gather paperwork and apply.
Commercial truck lenders have different application processes and requirements. You should be prepared with details about your company (annual revenue, type of business), the vehicle you want to finance (type of truck, its mileage and age, the seller) and yourself (your credit score, whether you have a commercial driver’s license and how long you’ve had it for).
It’s important to shop around and compare multiple lenders, even if you need funding quickly.
Find the right business loan
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
