Transportation & Trucking Business Loans

Faster, easier small business financing with one simple application—no bank needed.

Applying is free and won’t impact your credit.

We’re here to keep you on the road.

Jeremy

MARCH 10, 2022


Drake Hale did an awesome job at…

Drake Hale did an awesome job at securing me a loan for my trucking company. My company is a little over a year old and he was able to find me a bank to do a starter loan in order to get me set up to obtain larger funding in the future to expand my fleet. Would highly recommend using Lendio and Mr. Hale for business funding.

Forbridge Solutions

MAY 9, 2022


As a small business owner in the…

As a small business owner in the freight transportation industry, we have been facing a lot of obstacles to include high gas prices, cheap freights and has struggled immensely with cash-flow. Nick was able to get us going with a credit line within a short period of time of us talking. We look forward to keeping a good working relationship with Lendio.

Satisfied Fleet Owner

OCTOBER 14, 2021


Lendio did a phenomenal job helping me…

Lendio did a phenomenal job helping me receive funding for my trucking company. Alex Spafford, my funding manager, was incredibly steadfast and adamant about knocking on the correct doors to fund my small business. I am forever grateful for the great service that Lendio has provided. As my company grows, I look forward to doing more business with them in the future.

Lendio knows the trucking business.

With Lendio, you can explore different financing structures to find
the one that fits your company’s next big move. Use funds to:

Bridge capital between account receivables gaps

Purchase supplies and materials

Cover truck repairs

Pay your crew

Transition to owner-operator

What is a trucking business loan?

A trucking business loan is any type of business financing used to meet the unique needs of businesses in the trucking industry. These loans can be used to cover various costs associated with running a trucking business, such as purchasing new trucks, maintaining existing ones, investing in new technology, or managing cash flow.

They come in several forms, including term Loans, SBA loans, business cash advances, and more, providing flexible options for businesses of all sizes. The purpose is to provide the necessary financial support to help trucking businesses grow, expand their operations, and remain competitive in the market. Lenders that offer trucking business loans understand the industry’s specific challenges and opportunities, making them an ideal source of funding for trucking entrepreneurs.

Types of small business loans for trucking companies.

Freight factoring

Freight factoring, also known as invoice factoring, is a financial solution specifically designed for the needs of trucking companies. Essentially, it allows them to sell their unpaid invoices to a factoring company at a discount, thereby obtaining immediate cash. This can alleviate the stress of waiting for clients to pay, which can sometimes take up to 90 days. The factoring company then takes on the responsibility of collecting the invoice payments, allowing trucking businesses to maintain a steady cash flow and focus on their core operations.

TERM LENGTH

1-12 months
MAX LOAN AMOUNT

$50 million

Business cash advance

A business cash advance is a financing option where a lender provides an upfront cash amount to a business in exchange for a portion of its future revenues. Unlike a traditional loan, repayment of a business cash advance is done through an automatic withdrawal from the business’s bank account. It’s a flexible way to secure funding without requiring collateral or a high credit score.

TERM LENGTH

3-36 months
MAX LOAN AMOUNT

$2 million

Term loan

A term loan is a type of business financing that involves borrowing a lump sum of money upfront, which is then repaid over a set period, or ‘term’, with interest. A term loan is typically used for significant investments or expenditures, such as buying new equipment, expanding operations, or refitting locations. Because the repayment schedule is fixed, businesses can plan their budgets accordingly. The term length and interest rates can vary based on factors such as the lender’s policies, the borrower’s credit score, and the overall economic climate.

TERM LENGTH

6 months-10 years
MAX LOAN AMOUNT

$2 million

SBA loan 

An SBA loan, or Small Business Administration Loan, is a type of financing that is guaranteed by the U.S. Small Business Administration. By vouching for businesses that may not meet traditional lending requirements, the SBA makes it easier for these businesses to secure funding. This type of loan can be used for various purposes, such as working capital, purchasing equipment, or expanding an existing business. SBA loans typically offer competitive terms, including lower interest rates and more extended repayment periods, making them an attractive option for small businesses.

TERM LENGTH

10-30 years
MAX LOAN AMOUNT

$5 million

Business line of credit

A business line of credit gives you access to capital when you need it, rather than delivering one lump sum from a loan. It’s similar to a credit card in that you have a maximum credit line you’re able to draw from. As you borrow funds and repay your balance, your credit line is replenished and you can borrow again as needed. One of the major benefits is that interest only accrues on your outstanding balance, not the credit line limit. Using a business line of credit for your trucking financing can help iron out cash flow issues throughout the year, ensuring you always have enough for payroll, truck repairs, fuel, and other expenses that may ebb and flow.

TERM LENGTH

6-24 months
MAX LOAN AMOUNT

Up to $250,000

Truck financing & leasing

Instead of a trucking business loan, trucking companies can apply for equipment financing or leasing to purchase vehicles and other hard assets. An equipment loan will typically require a down payment while you may be able to get 100% financing through equipment leasing. Some lenders have higher minimum approval requirements for trucking companies, so work with your funding manager to find the best equipment financing option for you. Visit this page for more information on semi-truck financing.

TERM LENGTH

1-10 years
MAX LOAN AMOUNT

$5 million

Fuel credit card

A fuel credit card is a popular choice to use for fueling up on the road at a discounted price. Business credit cards are an accessible form of financing for trucking companies of all sizes, whether you’re an owner-operator or the CEO of an entire fleet of trucks and drivers.

FUEL REBATE

2-8 cents/gallon
MONTHLY FEES

$0-4

Ways to use a trucking business loan.

Upgrade your fleet.

In the fast-paced trucking industry, reliable and efficient trucks are essential. A business loan can help you buy new or used trucks, make repairs, or upgrade your fleet.

Cover day-to-day costs.

Fuel and maintenance costs add up quickly while you’re waiting for customers to pay on net 30, 60, or 90-day terms. A loan can provide the funds you need to continue to take on more business and grow your revenue.

Expand your fleet.

Growth is an ongoing goal for any successful business. A trucking business loan could provide the capital to purchase additional trucks so you can open new routes or even start a new branch of your business.

Become an owner-operator.

Ready to make the leap from company driver or lease operator to owner-operator? A business loan can help you cover the costs necessary to strike out on your own.

How to get a trucking business loan.

Remember, we’re here for you every step of the way. With our guidance and your determination, securing that trucking business loan will be a smooth ride.

  1. Understand your needs: Have a clear grasp of what you need the loan for. Whether it’s expanding operations, purchasing new trucks, or investing in technology, understanding your needs will help you determine the right kind of loan.
  1. Check your credit score: Your credit score plays a significant role in loan approval. A higher score may lead to better loan terms, so make sure you know where you stand and strive to improve if necessary.
  1. Put together a strong business plan: Lenders want to know how you’ll use the money and if you’re capable of repaying it. A detailed business plan that outlines your goals and strategies can make a compelling case.
  1. Gather financial documents: You’ll need to provide financial documents like bank statements, tax returns, and financial statements. Having these ready can speed up the process.
  1. Compare lenders: Different lenders offer various terms and conditions. Take the time to shop around, compare options, and choose the one that best suits your needs and circumstances.
  1. Submit your application: Once you’ve chosen a lender, complete and submit your application. Be sure to double-check everything for accuracy before submitting.

Pros and cons of trucking business loans.

ProsCons
Asset acquisition: These loans can be used to purchase new trucks or upgrade existing ones, expanding business operations.Debt burden: Repayment obligations can put a strain on the business cash flow, especially during slower business periods.
Cash flow management: Trucking business loans provide funds to cover operational costs, smoothing out income volatility inherent in the trucking industry.Collateral requirement: In many cases, the truck itself serves as the collateral, which can be forfeited if the business defaults.
Flexible terms: Many lenders offer tailored repayment schedules, considering the unique cash flow patterns of the industry.Interest costs: Like any other loan, trucking business loans come with interest costs, which can add up significantly over the term of the loan.
Growth opportunities: Access to funds can enable businesses to capitalize on growth opportunities, such as expanding routes or services.Strict usage: Loan funds are intended strictly for business-related expenses, limiting the flexibility of their use.

1. Tell us about your business.

Answer a few simple questions and complete the application in minutes.

2. Submit your application.

We’ll present your application to our marketplace 75+ lenders. Applying is free and won’t impact your credit score.

3. Compare offers.

Find the funding option with the terms that best fit your small business goals.

4. Get funded.

Once you accept, funding can hit your bank account in as little as 24 hours.

FAQs

Each lender has its eligibility requirements. Lendio’s platform gives applicants access to over 75 lenders. To apply, there are a few minimum qualifications a trucking company must meet:

  • 600 or higher credit score
  • $8,000 or more in monthly revenue
  • Six months or longer in business

Once you apply, you can compare multiple offers to choose the best one for your company’s needs.

 

Generally speaking, there are no limits on how the funds can be used for term loans, SBA loans, business lines of credit, or invoice factoring. Equipment financing, on the other hand, is tied directly to the specific piece of equipment being purchased since that asset is used as collateral. Common use cases for a trucking loan include semi-truck financing, insurance, and fuel and maintenance costs.

There are three primary types of SBA loans to consider for your trucking company. The most common is the SBA 7(a) loan, which can be used for almost anything and is repaid over five to 10 years. Another option is the SBA 504 loan, designed specifically for asset purchases, like land or buildings, trucks, trailers, and other machinery your business may need. Finally, an SBA microloan lets smaller companies borrow up to $50,000 and is ideal for less established truck companies. 

Lenders will evaluate your personal and business credit score when considering you for a loan. Minimum credit score requirements will vary by lender and loan type. If you have a lower credit score, equipment financing, a business cash advance or invoice factoring may be easier to qualify for.

Compare loan options from multiple funders.

Applying is free and won’t impact your credit.
Talk to a rep at (855) 853-6346
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