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15 Truck Financing Options for New Businesses With Bad Credit

Do you need a loan to buy a truck? If YES, here are 15 best trucking financing options for new businesses with bad credit and no down payment. Starting and running a new business that involves the use of commercial vehicles comes with a certain set of challenges.

Commercial trucks always require special upkeep that makes them expensive assets for any small business. Also, most of these industries (especially freight trucking) are seen to be very risky owing to the high failure rate in the industries.

Due to this risk, some lenders are hesitant or unwilling to offer financing for commercial trucks. However, large banks, truck financing companies and alternative lenders offer commercial and semi truck financing, while smaller regional banks may shy away from funding these loans.

Even though smaller chains and regional companies can’t usually afford to take on the risk of providing truck financing, there are many large national banks that finance commercial trucks and trailers. Note that their resources enable them to offer the lowest rates and longest terms of any lender.

But only the most qualified borrowers get approved for these. It simply means that if you don’t have a good credit score, high revenue or established business history, your chances of approval for commercial truck or trailer financing could be slim.

There are also some lenders who specialize in providing funding for equipment. This includes few strictly dedicated to offer commercial truck and semi truck financing. Note that the primary benefit these truck finance companies offer is their knowledge.

The experience of these firms can help you find good value in your purchase and better facilitate the deal with the seller.

This leads to a smoother process overall. Nonetheless, specialized lenders, such as commercial truck financing companies, sometimes carry requirements you won’t be able to meet if you have a start-up or you are a business owner working to repair your credit.

There are also online lenders that offer fast, secure access to commercial truck loans and commercial truck fleet financing that meets your needs. These lenders more or less extend funding opportunities to business owners unable to meet the requirements of banks and select equipment lenders.

For this convenience, your commercial loan will possess shorter repayment terms and higher interest rates than you’d find with a traditional lender.

However, if you are looking for commercial or semi truck financing with bad credit, alternative lenders provide some of the best bad credit commercial truck loans for you. Commercial truck financing loans tend to be secured by the truck itself, making the vehicle almost as crucial to vet as your creditworthiness as a borrower.

Having all of this information on hand allows lenders to make a judgment as to whether it’s a smart investment for you and, by extension, them. Regardless of credit score, you have plenty of options to finance your trucking business, even with bad credit or as a new business. Your options include;

  1. Equipment financing

This sort of financing covers the cost of any type of equipment need for your business, including vehicles, electronics and new technologies.

Since this funding is mostly secured by the equipment, this loan type has less of a risk to lenders and may be easier to qualify for. Acquiring equipment this way spreads payments out over time to preserve more of your cash flow for other business uses.

  1. Start up Business Loan

Financing a trucking business can be very challenging when you are a new business starting from the ground – up. A start up business loan is one unique way to solve your need for truck finance. Startup business loans are very helpful in the event that you have already gone about sketching out your business plan, but don’t have the money to get the gears turning.

Also, to qualify for this type of loan your trucking company does not need to be in business long, which is music to the ears of anyone who’s aiming to become a trucking business owner.

  1. Short – term business loans

This type of loan is a typical choice for companies in need of quick cash to serve as working capital. Although it depends on the lender, you can get access to your funds in a few hours or a couple of days.

Note that the use of the loan typically is not restricted to any one type of expense, so short – term financing can be a good choice to get you through a slow season or help your business recover from an emergency. Since shorter terms equal higher overall loan costs, ensure to get clear information on the payback terms and rates.

  1. Invoice factoring

This sort of financing covers the often – stressful period between issuing invoices and getting paid. Waiting a month or more for your money is not ideal especially when you have expenses to cover right away, and putting off your own payments can drive down an already low credit score.

However, with invoice factoring, you get a big chunk of what you are owed up front by selling outstanding invoices to a lender. The remainder comes your way, minus fees, after customers pay. Some lenders offer a version of this loan type called freight factoring, which is specifically designed for trucking businesses.

  1. Trucking Hybridge SBA Loans

Note that these are some of the most useful and effective funding solutions for trucking businesses, as they both short term and long – term funding solutions to help cover virtually any business need.

For a very long time, trucking companies have been contacting NBC on a regular basis to take advantage of this new SBA product that offers easier approval, and a funding process that secures access to SBA terms and funds as soon as 45 days – that’s up to 4X faster than banks.

Quite different from a normal SBA loan, Hybridge SBA Loans come with a capital injection as soon as 24 hours after applying, which bridges the ~45 day gap in funding. You can use this initial capital injection for hiring staff, purchasing tools and inventory, covering insurance expenses, or virtually any other need.

Then, once you gain access to the prime rates, long terms, and large amounts of your expedited SBA loan, you can use your SBA funds to pay off any unused capital from your initial capital injection, and pay for any bigger expenses including upgrading or purchasing new vehicles, expanding your building, or any other long – term funding need.

  1. Performance Advance

This sort of funding is a special type of cash advance offered only by National Business Capital & Services. Like an MCA, the terms are flexible and based on your trucking company’s sales. The Performance Advance requires no minimum FICO score and no personal guarantee. You may also be able to qualify for double the funding available through other financing programs.

  1. Transportation Business Lines of Credit

This is renowned as one of the fastest, most flexible funding solutions for small trucking businesses. You can easily get a line of credit, which you can draw from instantly whenever you need it, and replenish however much you want, whenever you want to.

These business credit lines are like a multifaceted tool that can be used for any business purchase or expense – no matter the cost or urgency – exactly when you need it.

Also note that these are most commonly used for trucking businesses that are in a constant need of capital for spontaneous projects and expenses without warning, as well as for those that need to use cash to cover a wide variety of expenses at once.

  1. Microloans

Microloans are an often overlooked source of funding, but they can be the perfect option for buying a used or small truck, which can cost anywhere from $20,000 to $50,000. Note there are two microloan programs in particular that you can leverage: the Small Business Administration (SBA) microloan program and the Kiva microloan program.

The SBA microloan program works the same as a normal SBA loan. You can borrow up to $50,000 through a third – party lender and the SBA will guarantee a portion of the loan. These loans can be used to start or expand a business, and generally come with interest rates between 8% and 13%.

Note that most of the lenders that make these microloans are community organizations that have a specific focus on providing capital and management expertise in the areas that they serve – they are looking to lend to borrowers who are going to make an impact in their community.

  1. Crowdfunding

For truckers willing to hustle, like food truckers or quick haulage, crowdfunding can provide an excellent way to not just raise money to purchase your truck but also generate publicity ahead of your launch. Crowdfunding sites, like Kickstarter, Indiegogo and GoFundMe, offer you the platform to raise money in exchange for giving donors and backer’s rewards or gifts.

To crowdfund your truck, you’ll have to set up a campaign on one of the crowdfunding platforms with a specific funding goal. Your goal should be enough to cover all the costs associated with starting your truck from purchasing the truck, buying inventory, hiring employees to getting permits and licenses.

  1. Small Transportation Business Loans

Note that these loans are only called small, because they’re exclusively available for trucking businesses that aren’t large corporations. Howbeit, transportation business loans from NBC come with some of the largest amounts offered, as well as some of the most flexible financing options available in the global marketplace.

Whether your business model would benefit best from a loan with set terms and set payments, or a loan with terms that offers more flexible payment cycles, NBC has the perfect transportation business loan for you.

Companies that Offer the Best Truck Financing Options for New Business With Bad Credit and No Down Payment

The trucking industry holds infinite potential, both for business and pleasure. But if your credit score limits you to hauling only hopes and dreams, the following compilation of the best loans for bad credit truck financing can help.

  1. TimePayment

If you are looking to acquire or lease a commercial vehicle or other equipment, TimePayment is worth consideration. Even if you are a startup, you can qualify for funding.


  • .0219 – .0626 (depending on your credit profile and length of your lease term)
  1. LendSpark

LendSpark is a renowned as a unique financing option, whether you want to purchase new or used equipment or vehicles. The company also offers equipment leasing.


  • As low as 5%, depending on your credit, and can go up to 35%.
  1. Crest Capital

A national creditor with a focus on funding equipment, vehicle, and software purchases for small businesses.


  • Around 5%
  1. Balboa Capital

This online lender provides equipment loans, business loans, and lines of credit to growing companies.


  • Average 13%
  1. LRM Leasing

LRM Leasing is known as a one – stop – shop for semi – truck financing if you have bad credit. That’s because the firm does not conduct credit checks or background inquiries when approving customers. Instead, you’ll essentially lease – to – own your truck. LRM retains ownership of the vehicle — and can repossess it if you default on your loan — but turns the title over to you after you make your last payment.


  • Average 11%
  1. First Capital Business Financing

First Capital Business Financing not only finances semi – trucks, but you can also get a loan for sprinter vans, medium – duty commercial trucks, heavy – duty tractors, dump trucks, and several other commercial vehicles. Also note that the firm offers several financing options, with loans available for good and bad credit, start – up companies, and established businesses.


  • Varies
  1. Anderson Trucking Service

Anderson Trucking Service (ATS) offers a wonderful option for you to purchase your new flatbed. With the 12 – month Flatbed Lease Purchase Program, you won’t need to undergo a credit or background check or make a down payment.

Instead, you can work off your payments or pocket the money to make a down payment for one of the company’s Freightliner, Peterbilt, or Volvo trucks. ATS are known to onboard new drivers with a $3,500 signing bonus and fast-track new drivers to owner – operator status through its manageable program.


  • 7% –  32%

The network connects lenders with buyers who seek varying types of new and used vehicles. These can include pickup trucks and some small commercial vehicles. Restrictions may apply for conversion vans, salvage title vehicles, or repossessed/auctioned vehicles.


  • Varies

This website specializes in finding auto loans for applicants who have bad credit histories, including recent bankruptcies or defaults. Depending on when you apply, you could receive same – day approval from one of the dozens of partner lenders on the network.


  • Varies
  1. Auto Credit Express

This company partners with both lenders and dealers who compete for your business, which gives you an edge in getting the best loan possible. The network requires that applicants be 18 years or older and provide a verifiable income of at least $1,500 per month. Loan options include light – duty or large pickup trucks, but not larger commercial hauling vehicles.


  • 99% –  29.99%
  1. Kabbage

This company is recommended for borrowers with lower credit scores. Instead of solely relying on credit scores, Kabbage evaluates a business’s financials and online accounts to determine if the loan application is approved or not.

More specifically, Kabbage will look at your business’s bank, online seller, payment processing, bookkeeping and even social media accounts to determine your eligibility. The lender does not require collateral or a personal guarantee, which can be great news for some business owners.


  • 20% to 80%
  1. Credibly

Credibly is an ideal choice for borrowers with lower credit scores who are looking for competitive rates and terms. Credibly does not focus on credit scores during the application process, but rather a company’s financial health and stability.

Credibly have two loan products: a short – term working capital loan and a long – term business expansion loan. To qualify at Credibly, you’ll need to be in business at least six months with $10,000 in monthly revenue and bank account deposits.

If applying for the business expansion loan, you’ll also need to have an average daily bank account balance over $1,000. You can borrow between $5,000 and $250,000.


  • 99% to 36%.
  1. BlueVine

For individuals looking to take a slightly different approach to financing their semi, particularly a used one or one at the lower end of the cost spectrum, consider working with one of BlueVine’s lines of credit. The most crucial fact to remember here is that you’ll need to pay off your balance pretty quickly to make it a viable option for your business.

That said, there are advantages to using a line of credit to purchase your vehicle; rather than lock yourself into a specific model and vendor, you can comparison shop and purchase from anyone you want. BlueVine’s lines of credit offer up to $250,000 in credit, with term lengths of 6 or 12 months. You’ll be repaying weekly in the former case, and monthly in the latter.


  • 15% – 78%, and there’s a 1.6 – 2.5% fee per draw
  1. eLease

eLease deals exclusively in leases, but keep in mind that leasing does not necessarily mean “renting.” You can buy a truck with a capital lease like the ones offered by eLease. They offer up to $500,000 in financing, which is more than enough to cover the purchase of a semi or two.

Leasing terms range between 2 – 5 years and one of the bigger appeals of eLease is that they don’t have any hard and firm borrower guidelines. They claim to be willing to work with new businesses and even businesses that have recently had to file for bankruptcy.


  • 4 – 35%.
  1. SmartBiz

Although it may not be the most common way of purchasing a Truck, but it is possible to buy one using a 7(a) or 504 SBA loan.

For those unfamiliar, an SBA loan is partially guaranteed by the federal Small Business Administration. SBA loans are renowned for their generous terms lengths and good rates (at least compared to what newer businesses would normally qualify for).

SmartBiz aims to make the complex and intense process of getting an SBA loan a bit easier on businesses by streamlining the processes.


  • 75 – 7%.
  1. CAG Truck Capital

This lender specializes in the trucking business. Exclusively offers commercial vehicle and engine overhaul financing.


  • As low as 10%


Getting the funds you need to grow and improve your trucking business does not have to be an awful process. Even as a new business or with bad credit, there are financiers willing to work with borrowers with you.

However, always have it in mind that if a lender is de – emphasizing credit, they’re probably looking more closely at things like cash flow. While your credit score may not fully keep you from getting financing, expect to pay a bit more on the subprime market.