5 Best Trucking Business Loan Providers in 2022
Tom has 15 years of experience helping small businesses evaluate financing and banking options. He shares this expertise in Fit Small Business’s financing and banking content.
This article is part of a larger series on Business Financing.
Trucking business loans have several different uses and types. From short-term loans and lines of credit, which provide working capital, to equipment financing and Small Business Administration (SBA) loans used for larger purchases and expansion.
Business owners should look at quick access to financing, repayment terms, interest rates, and the potential amount the lender is willing to finance when choosing a loan provider. We have reviewed many lenders based on their expertise with financing trucking companies, along with the services that they offer. Based on business needs and financing type, here are our choices for the five best commercial truck loan providers:
Best for | |
|---|---|
Short-term business trucking loans | |
Working capital lines of credit | |
Best for SBA financing | |
Equipment financing | |
Credit card for fuel purchases |
Bluevine: Best for Short-term Business Trucking Loans
 | |||
Maximum Amount | $250,000 | Payment Frequency | Weekly |
Minimum Credit Score | 625 | Repayment Term | Up to 12 months |
Annual Percentage Rate (APR) Range | 10% to 30% | Annual Revenue | $120,000 |
Down Payment | None | Time in Business | Six months |
Why We Recommend Bluevine: As opposed to placing a lien on your equipment, which is common in equipment financing, Bluevine places a blanket uniform commercial code (UCC) lien on businesses it lends to. This provides a financing option to those businesses who are using their equipment or their trucks as collateral for other financing. Bluevine will provide up to $250,000 in funding, with weekly repayments. Note that any financing will need to be repaid within a year.
Lendio: Best for Working Capital Lines of Credit
 | |||
Maximum Amount | $500,000 | Payment Frequency | Weekly |
Minimum Credit Score | 560 | Repayment Term | Up to 24 months |
APR Range | 8% to 24% | Annual Revenue | $50,000 |
Down Payment | None | Time in Business | 6 months |
Why We Recommend Lendio: Lendio is a business financing platform that matches applicants to over 75 funders. Lendio can offer multiple options to trucking business owners with poor credit, including a working capital line of credit with a maximum limit of up to $500,000. While funding speed may take several days, Lendio provides the best opportunity to shop around and find a competitive offer. Lendio’s qualifications are relatively easy to meet as well, requiring six months of business operation and that the owners have at least a 560 credit score.
South End Capital: Best for SBA Financing
 | |||
Maximum Amount | $5 million | Payment Frequency | Monthly |
Minimum Credit Score | 650 | Repayment Term | Up to 10 years for working capital and equipment |
APR Range | Up to Prime plus 4.75% | Annual Revenue | No set minimum but revenues need to support repayment |
Down Payment | 10% to 20% | Time in Business | Relevant industry experience required for a startup owner-operator |
Why We Recommend South End Capital: South End Capital has strong expertise in both equipment financing and SBA lending. Should a trucking company need a larger amount of financing for expansion, working capital, or purchasing another company, an SBA loan makes sense, given the competitive interest rates and longer repayment terms. South End Capital’s quicker approval timelines compared to other SBA lenders will help get funding faster for qualified borrowers.
Crestmont Capital: Best for Equipment Financing
 | |||
Maximum Amount | $2 million | Payment Frequency | Monthly |
Minimum Credit Score | 500 | Repayment Term | Up to 10 years |
APR Range | 6% to 20% | Annual Revenue | $100,000 |
Down Payment | 10% to 50% | Time in Business | None |
Why We Recommend Crestmont Capital: Crestmont Capital provides equipment loans and leases of up to $2 million to trucking businesses and will offer financing to those with credit scores as low as 500. While the majority of its equipment loans and leases have a term of up to five years, it’ll occasionally finance up to 10 years if the equipment has a long effective use life. The APR on equipment financing through Crestmont Capital may be as low as 6% for qualified borrowers.
U.S. Bank Business Triple Cash Rewards World Elite™ Mastercard: Best Credit Card for Fuel Purchases
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
BEST FOR:
0% APR for 15 billing cycles
Intro APR
0% for first 15 billing cycles
Regular APR
16.99% - 25.99% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good
- Limited Time Offer: Earn $500 in cash back. Just spend $4,500 on the Account Owner's card in the first 150 days of opening your account.
- Introducing the U.S. Bank Business Triple Cash Rewards World Elite™ Mastercard® the card that gives back on all your eligible business needs.
- Earn 3% cash back on eligible purchases at gas stations and electric vehicle charging stations, office supply stores, cellphone service providers, and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Travel Rewards Center.
- No limit on total cash back earned.
- Rewards never expire
- Earn an annual $100 statement credit for recurring software subscription expenses, such as FreshBooks or QuickBooks
- 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 16.99% to 25.99%.
- No annual fee
- Pay over time by splitting eligible purchases of $100-plus into equal monthly payments with U.S. Bank ExtendPay™ Plan.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
Pros
- 0% APR applies to both purchases and balance transfers
- Unlimited cash back rewards
- No annual fee
Cons
- Balance transfer fee is charged even during the introductory period
- Intro APR doesn’t apply to cash advances
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
Intro APR
0% for first 15 billing cycles
Regular APR
16.99% - 25.99% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good
- Limited Time Offer: Earn $500 in cash back. Just spend $4,500 on the Account Owner's card in the first 150 days of opening your account.
- Introducing the U.S. Bank Business Triple Cash Rewards World Elite™ Mastercard® the card that gives back on all your eligible business needs.
- Earn 3% cash back on eligible purchases at gas stations and electric vehicle charging stations, office supply stores, cellphone service providers, and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Travel Rewards Center.
- No limit on total cash back earned.
- Rewards never expire
- Earn an annual $100 statement credit for recurring software subscription expenses, such as FreshBooks or QuickBooks
- 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 16.99% to 25.99%.
- No annual fee
- Pay over time by splitting eligible purchases of $100-plus into equal monthly payments with U.S. Bank ExtendPay™ Plan.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
Pros
- 0% APR applies to both purchases and balance transfers
- Unlimited cash back rewards
- No annual fee
Cons
- Balance transfer fee is charged even during the introductory period
- Intro APR doesn’t apply to cash advances
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
Why We Recommend U.S. Bank: Business credit cards are a good fit for any trucking company because they allow you to float expenses for up to 30 days. Business credit cards are also the easiest type of financing for trucking companies to qualify for. This U.S. Bank business credit card offers an unbeatable mix of gas rewards and cheap introductory financing, making it the best gas card for small businesses. You’ll earn 3% cash back on single fill-ups of up to $200. Beyond the gas rewards, you also can earn 3% at office supply stores, restaurants, and cellphone service providers.
Improving the Odds of Getting a Trucking Business Loan
Many lenders believe that the trucking industry carries a higher amount of risk due to potential inconsistency in steady income sources. Also, some lenders lack familiarity with the trucking business. These two factors can make getting a loan more difficult. However, you can take steps to improve the odds of getting financing. These steps address income, credit, and insurance as they apply to you and your business.
1. Separate Business and Personal Income
Traditional small business loans for truckers can be difficult to qualify for, especially for owner-operators who complete jobs for other trucking companies. This difficulty stems partly from the uncertainty of the industry and the inconsistency of revenue. Ensure your business and personal incomes are separated if you want to get funded. A dedicated business bank account and proper accounting software for trucking are essential.
2. Improve Your Personal Credit Score
Your personal credit score matters significantly in your ability to get approved for business loans. Improving your score could open opportunities to either get financed or to get approved for larger loan amounts.
You can typically boost your credit score before applying for a trucking business loan by doing these four things:
- Verify everything on your credit report is accurate.
- Pay your bills on time.
- Pay off any delinquent bills.
- Keep owed balances on credit cards well below your maximum approved credit limit.
3. Apply When Revenue Is Trending Up
The amount of business revenue generated annually is the second most important factor that’ll be considered in a trucking business loan application. To maximize your potential for getting approved, you should be strategic about when you apply. If possible, you should wait and apply for a loan when your revenues have had a positive trend over the past three to six months.
In the trucking industry, this can sometimes take one new payment for a contract you’ve recently signed. If you know that you signed up a new customer and expect to receive payment from them within the next 90 days, then it might benefit you to wait until you can show that revenue on the books.
4. Eliminate Unnecessary Expenses
The fewer expenses your business has on a monthly basis, the higher your debt service coverage ratio (DSCR) will become. Lenders use DSCR to determine your ability to repay the amount you’re borrowing. If your DSCR is below 1.25, many lenders won’t approve your loan application. DSCR is calculated by dividing your business’ annual net operating income by your current year’s debt obligations. It’s an accurate way of showing how large of a loan your business can support while managing current debt.
5. Maintain Adequate Insurance Coverage
If you’re already active in the freight business and own your own truck, your lender will want to know about the insurance coverage you maintain on equipment. If you have a sufficient level of insurance, your lender will feel more confident providing capital for additional equipment, knowing that the collateral will cover the outstanding balance were anything to happen. In case you need an insurance provider or are shopping around, we have a list of recommended insurance companies to consider.
Bottom Line
There are plenty of options when looking for trucking business loans. The best option will depend on what you plan to spend the funds on and what your credit profile looks like. If you need working capital fast, then your best bet is to get a short-term loan or small business line of credit from an online lender that can fund you quickly. If you can afford to wait and have decent or better credit, an SBA loan may be the best option. A credit card will work well for fuel purchases and smaller expenses.
