Lenders typically favor borrowers who have a credit score of at least 640. However, some lenders provide semi-truck financing to borrowers with bad credit — rates may be higher, though, and the loan might come with a hefty down payment.
A commercial truck loan, also referred to as semi-truck financing, is a loan borrowers use to purchase a commercial truck.
A commercial truck loan is similar to equipment financing, allowing you to break up the cost of the truck over regular installments to be paid back over time. Since it is asset-based financing, the truck purchased will act as collateral for the loan.
Banks, direct lenders, and online lenders can offer commercial truck loans, with some willing to work with start-ups and borrowers with fair to bad credit.
Lenders typically favor borrowers who have a credit score of at least 640. However, some lenders provide semi-truck financing to borrowers with bad credit — rates may be higher, though, and the loan might come with a hefty down payment.
Purchasing a commercial truck can be expensive and difficult if you don’t have a lot of extra money on hand. Semi-truck financing can be helpful so you aren’t paying for the entire purchase all at once. Leasing a semi-truck may be a good option if you don’t have a lot of money to put down and don’t want to wait too long for a loan to be approved. In contrast, financing may require a down payment, but you will be the owner of the truck rather than leasing it. You’ll also likely make monthly payments with a loan rather than weekly installments during your lease.
Bank of America offers an interest rate of 7.09%, the lowest on our list, making it a good option when looking for semi-truck financing. Keep in mind that borrowers with higher credit scores are usually able to get the best rates.
The repayment term will depend on the lender and your financial history. Typically, semi-truck financing can have a repayment term of up to 60 months, with some lenders extending it even longer.