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Olivia Chen comes to NerdWallet with 5+ years of experience in the CDFI (Community Development Financial Institution) industry, particularly working with MWBE (Minority/Women-Owned Business Enterprise) and LMI (Low Moderate Income) small businesses. She is certified through the American Banker’s Association in Business and Commercial Lending. Her work has appeared in The Associated Press, NASDAQ and The Washington Post among other publications.
Christine Aebischer is an assistant assigning editor on the small-business team who joined NerdWallet in 2020, originally as a copy editor. Previously, she held editing roles at Fundera, Northwestern Mutual and LearnVest, where she covered a variety of personal and business finance topics. Christine earned bachelor's degrees in English and journalism from The College of New Jersey. Email: <a href="mailto:caebischer@nerdwallet.com">caebischer@nerdwallet.com</a>.
Trucking business loans may be used to cover short-term gaps in cash flow or to fund larger expenses, like the purchase of a truck.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
A trucking business loan most commonly refers to a small-business loan used to purchase a commercial truck, although it can also include funding for working capital and other operational expenses. Trucking business loans can cover everything from semi trucks and plow trucks to service trucks, pickups and more. Trucking businesses can be owner-operator businesses that have one truck, or larger companies that operate a fleet of trucks.
The best trucking business loan options depend on your financing needs. Startup expenses may include the purchase of a vehicle, registration and certifications and, therefore, require a larger lump sum that may be better suited for long-term financing. On the other hand, if you are already operating and looking to cover gaps in cash flow that can be caused by the trucking payment cycle, short-term loans or a line of credit may work well for you.
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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.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
Must have started your business at least a year ago.
Average monthly revenue of at least $3,000.
All businesses are unique and are subject to approval and review.
The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.
Pros
Streamlined application process with minimal paperwork.
Financing from $2,000 to $250,000 available.
Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
Monthly repayment schedule (as opposed to daily or weekly).
No prepayment penalties, account maintenance fees or draw fees.
Cons
Must have online checking or PayPal account to verify cash flow.
Personal guarantee required.
Complex monthly fee structure makes it difficult to compare costs to other lenders.
Qualifications
Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
Must have started your business at least a year ago.
Average monthly revenue of at least $3,000.
All businesses are unique and are subject to approval and review.
Our pick for
High-revenue, early-stage trucking businesses
Fundbox offers lines of credit for businesses that have been operating for at least six months with at least $100,000 in annual revenue.
Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
Pros
Financing available within one business day after approval.
Simple application with minimal documentation required.
Startup-friendly — accepts borrowers with a minimum of six months in business.
Low minimum credit score requirement.
No prepayment penalties, account maintenance fees or inactivity fees.
Cons
Rates are high compared with traditional banks.
May require personal guarantee.
Weekly repayments required over a short term (maximum of 24 weeks).
Qualifications
Minimum credit score: 600.
Minimum time in business: Six months.
Minimum annual revenue: $100,000.
Our pick for
Trucking business bank loans
Bank of America Business Advantage offers both credit lines and term loans for businesses that have operated for at least two years and had a minimum of $100,000 in revenue for the prior year.
Bank of America
Max Loan Amount
$5,000,000
Min. credit score
700
Pros
Several types of business loans available.
Competitive interest rates.
Preferred Rewards program can offer interest rate discounts and other perks.
Offers specialized commercial real estate, equipment, and health care practice financing.
Fee discounts available for veteran-owned businesses.
Cons
Multiple years in business required to qualify.
May need to visit a Bank of America branch or schedule a phone appointment to apply.
National Funding offers unsecured loans to startups and borrowers facing credit challenges. It can provide funding in as little as 24 hours, making it an option for last-minute cash flow gaps.
OnDeck offers short-term loans and lines of credit that range between $5,000 and $250,000. The online application can be completed in as little as 10 minutes, and if approved, you may be able to get same-day funding.
Alternative lenders like community development financial institutions (CDFIs) and credit unions can also be good places to find trucking business loans. For example, TruFund Financial Services, a New York-based CDFI, offers equipment loans between $25,000 and $250,000 for minority- and women-owned businesses, or businesses that are located in a low-to-moderate income area. Greater Texas Credit Union also offers lines of credit and equipment loans for Texas-based businesses.
Alternatives to trucking business loans
Freight factoring
Freight factoring is an alternative type of financing similar to invoice factoring, where you sell your invoices to a third-party company. Doing so allows you to access upfront cash instead of waiting for invoices to be paid by your client. Freight factoring companies will take a percentage, usually between 1% and 5% of your invoice, as a payment for their service.
Trucking business grants
Small-business grants are another alternative to trucking business loans. The National Association for the Self Employed (NASE), for example, offers grants up to $4,000 for business needs like marketing or hiring. There may also be local or state grants available. Texas, for example, offers several grants to update or replace diesel-heavy vehicles to make them cleaner or more fuel efficient.
How much money do you need for a trucking business loan?
Ultimately, the amount you need will depend on your business and what stage you’re in, but if you’re thinking about starting a trucking business, there are a few costs to consider:
Semi truck and semi trailer: Semi trucks and trailers are usually purchased separately. A truck can cost from $35,000 to $200,000, depending on if it’s new or used, and what type of truck it is. On top of that, the trailer may cost between $15,000 and $77,000.
Commercial driver’s license: Getting a commercial driver’s license (CDL) is similar to getting a regular driver’s license, where you have to get a learner’s permit, go to driving school, take written exams and a road test, among other things. Altogether, it can end up costing between $3,000 and $10,000.
Insurance: Depending on your business and the type of cargo you’re transporting, trucking business insurance can range between $650 and $1,000 per month.
Fuel: Fuel is an upfront cost of doing business for trucking businesses, making it important to factor into your total costs. The average national price of diesel retailed at about $4.38 per gallon in August 2023. Assuming the average semi truck gets about 6.5 miles per gallon, and the average owner-operator trucking business drives between 8,000-10,000 miles per month, your monthly fuel costs could total between $5,391 and $6,738.
Last updated on March 15, 2024
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
