Best Semi Truck Financing Options

Buying a commercial truck or trailer can be a major expense. A new semi truck can cost up to $250,000, meaning you’ll likely have to take out a loan. Fortunately, there are many loan options available, whether you buy new or used. As with any small-business loan, the best semi truck financing is the most affordable option you can qualify for that still meets your needs.

What is semi truck financing?

Semi truck financing refers to a small-business loan that’s used to buy a commercial truck. 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 and trailers.

🤓 Wondering how much financing costs? Check out NerdWallet’s semi truck loan calculator.

How does commercial truck financing work?

When you finance a commercial truck, a lender gives you money to buy the vehicle, and you repay it over time with interest. Like other types of equipment financing, semi truck loans use the truck you buy as the collateral. This means that if you don’t repay your loan, the lender can take possession of your truck and sell it to recover its losses.

• Loan amount: Up to 100% of the value of the truck.

• Terms: 12 to 60 months, but may be longer, depending on the type of commercial truck.

• Down payment: 10% to 20% of the loan amount.

• Interest rates: 5% to 36% APR.

🚚 Just getting started? Check out NerdWallet’s definitive guide to starting a trucking company.

Semi truck financing vs. leasing

If you’re in the market for a commercial truck, equipment financing is often a better option than equipment leasing. Big rigs may cover a million miles before they require major repairs. That means they’ll likely remain productive long past a three- or five-year loan repayment term, making financing a potentially more cost-effective solution in the long run.

Still, commercial truck leasing can make sense in the following instances:

• You’re just starting out. Qualifying for a commercial truck loan can be difficult if your business lacks a track record. Consider leasing a truck while you’re proving your concept before investing a lot of money into a truck of your own.

• You need to free up cash. Leases typically come with lower upfront costs. Depending on where you live, you may even be able to spread the sales tax over the lease’s term, which can result in smaller monthly payments and free up cash flow for your business. 

• 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 used in direct interactions with customers, you may want consistently new models to make a good impression. Leasing can help in all these cases.

Ready to lease? Compare the best equipment leasing companies

Where to get semi truck financing

There are a number of places where you can get a commercial truck loan to buy your next big rig:

🚛 Direct semi truck lenders

Direct lenders offer deep expertise in the trucking business. They may also be more flexible compared with other lenders because they lend their own money. Some lenders also offer freight factoring, which provides upfront cash for unpaid invoices. This can be a useful tool for managing cash flow.

🏦 Banks

Traditional banks offer competitive interest rates and long terms. Approvals can take time, however, and often require strong credit and financial history.

💼 SBA lenders

SBA commercial vehicle loans are a great alternative to bank loans due to their low interest rates and long repayment terms. They often require good credit and a couple years in business.

💻 Online lenders

Alternative semi truck lenders generally provide faster funding than banks and have more flexible qualification requirements. These companies may be willing to work with new businesses and borrowers with bad credit, but you should expect higher interest rates.

Best semi truck loan options

Here are some of our top recommendations to kickstart your search for a semi truck loan:

Looking for a dump truck? Check out our list of best dump truck financing.

How to finance a semi truck

1. Determine your down payment

Knowing how much you can afford as a down payment is a good place to start when buying any vehicle. It’s especially important since commercial trucks can 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 soft costs such as 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. Consider monthly loan payment

The monthly loan payment amount is another important consideration. Determining the amount that fits in your budget can be helpful in deciding what loan will work best for you. When estimating the amount of an affordable loan payment, don’t forget to include other costs that will come with the truck, like fuel, maintenance, tires and commercial truck insurance.

3. Review semi truck financing requirements

In addition to thinking about a potential down payment and monthly costs, 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 that demonstrates your ability to repay a loan.

4. 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.

» Check out more financing options: Best trucking business loans

5. 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. Plus, the vehicle itself offers built-in collateral for lenders, so it may be easier to qualify for semi truck financing than other options.

6. Gather paperwork and apply

Commercial truck lenders have different application processes and requirements. You should be prepared with the following details:

• Your company: Annual revenue, business type, time in operation.

• The vehicle: Truck type, age, mileage and seller information.

• Your personal information: Credit score and, if applicable, your commercial driver’s license and how long you’ve held it. 

It’s important to shop around and compare multiple lenders, even if you need funding quickly.

Frequently asked questions