Truck Trailer Business Financing Guide

If you are in the trucking business or looking to start one then you need a good financing company that fuels your venture until you start making profit from it. By applying for a truck loan, you will get additional working capital that will help in sustaining your business.

Buying a new or second hand truck is the most significant financial decision you will ever make.Financing a truck is a complicated process and involves a lot of paperwork. Some borrowers are so overwhelmed by this process that they are afraid to get started. 

In this guide, we will show you how to finance your truck, guidelines of financing, documentation required for loan and will also address some of the red flags that a lender should look at while you are in process of applying for a truck trailer loan.

Let’s Jump in!

truck & trailer

What are the truck trailer financing options available in the market?

Commercial truck loans can be used for three purposes – buying a new or used truck, leasing a truck and repairing or upgrading your trucking business. Truck loans come into the category of equipment financing which means that the truck itself acts as a collateral in these types of loans. 

The terms and conditions of this type of loan are directly related to the equipment lifespan and market value. 

There are three types of financing options available in the market – Banks, online lenders and truck financing companies. 

The probability of approval at these financial institutes depends on your strength as a borrower (we will discuss it in the next section). 

Let’s look at them one by one!

Banks –

Large banks offer truck financing options provided you should have a pretty impressive credit score and are willing to pay minimum down payment as specified by the bank. The commercial truck loans from banks are generally of low interest and are long term loans. 

Banks do not want to risk their money so if you have poor credit or your balance sheet is depicting losses, you will probably not qualify for the truck loan. Small banks do not give truck loans as they think it’s riskier so don’t waste your time visiting local banks in false hope. 


Online Lenders –

Online lenders are also the best options to get truck tailor loans. They offer interest rates as low as 5% to as high as 30% depending upon your credit history. The process of getting a loan from online lenders is not as difficult as that of banks. 

You will have to face less qualifications, paper work and get faster funding in case of online lenders. Although the credit score required for this type of loan is above 650 and the duration of truck loans via online lenders is less than 7 years. 


Truck Financing Companies –

Some private lending companies and credit unions are specialized in truck trailer or other heavy commercial equipment financing. They will provide you with a truck loan at lower interest than market with some down payment in advance. They even provide loans if you have a bad credit or zero credit score. 

Pro First Mortgages provide truck trailer loans in Abbotsford BC. So if you are looking to finance your truck then visit us to

How to Qualify for Truck Trailer Loans?

The process of qualification for commercial truck trailer or other heavy equipment loans is lengthy and complicated. However we have simplified the loan process into five steps so that you get the idea of what will be going to happen. 


Determine The Eligibility 

The eligibility criteria for qualifying for truck trailer loans varies from lender to lender. So, before applying for a truck trailer loan make sure to ask lenders about the qualification process. However we have listed some general qualification criterias that are necessary for truck trailer loan approval 

  • Minimum credit score will be 600 to get a loan at a good interest rate but if your credit score is lower you can still qualify for loan but at a higher interest rate. You can still get bad credit truck trailer loans if you have a poor credit score. 
  • You should pay at least 10 percent down payment at the time of loan. This will further ensure the lender that you are serious about your monthly payments. Many companies offer zero percent down truck trailer loans also for well qualified borrowers. 
  • You should have a commercial driver license or CDL and owners who do not have CDL are considered to be a high risk borrower. 
  • The age of the truck should be less than 10 years and truck mileage should be lower than 700,000 miles. 

Collect Documents 

As the qualification criteria varies from lender to lender same is the case with documents required but here is the list of documents that you should keep handy while applying for truck trailer loan 

  • Documents which show that your trucking business is registered. 
  • Bank statement of last 12 months 
  • Tax returns of last year. 
  • Profit and loss statement of current and past year 
  • Current year balance sheet 
  • Your Commercial Driving Licence 
  • Vehicle number 

Finding The Right Truck 

Finding the right truck is critical for both parties. Lender is lending you money to buy a good truck and if you choose an older model or vehicle that has more miles, it will increase the lender’s risk. Here are some of the things that you should keep in mind while selecting truck for financing –

  • The total miles are less than 700,000. 
  • Less than 10 year old 
  • Ideally sold by a dealer. 

In addition to this you should pay at least 5-10% down payment during financing. So before applying for a loan , especially for used trucks, make sure you know the estimated amount of the model so that you get the sufficient funds to buy that truck. The lender will demand the following information while financing truck – 

  • Model, make and year 
  • Mileage of truck 
  • Condition of vehicle 
  • Photos of the truck 
  • Serial number of vehicle 
  • Vehicle Past history 

The Bottom Line 

Truck Trailer Business Financing can be a boon for any company that needs to expand its business. It’s the perfect way to get the capital you need without having to go through all of the hassle of applying for a loan or getting approval from a bank.