# Trucking business loans

Source: https://businessloanbroker.ai/industries/trucking/
Site: BusinessLoanBroker.ai (powered by Levr)

> Trucking companies fund trucks through vehicle loans, cash flow through freight factoring and repairs through working capital loans. What lenders check.

Trucking gets funded through three products more than any other: [commercial vehicle loans](https://businessloanbroker.ai/business-loans/commercial-vehicle-loans/) for trucks and trailers, [freight factoring](https://businessloanbroker.ai/business-loans/invoice-factoring/) for the 30 to 60 days shippers take to pay, and [working capital loans](https://businessloanbroker.ai/business-loans/working-capital-loans/) for repairs, fuel and insurance. Lenders here care about how long you have held your MC authority, how old the equipment is, and who your shippers and brokers are.

## Key facts
- **Typical amounts:** $25,000 to $250,000 per truck, factoring sized to monthly billings
- **Products that fit:** Vehicle loans, equipment financing, freight factoring, working capital loans
- **Usually decline:** Banks and SBA for authorities under two years, unsecured lines for one truck fleets
- **Documents asked for:** MC and DOT numbers, CDL, insurance, equipment specs, rate confirmations, bank statements
- **Typical minimums:** 6 to 12 months of authority, 600 credit, 10% to 25% down

## Which loans work best for trucking?

Commercial vehicle loans and [equipment financing](https://businessloanbroker.ai/business-loans/equipment-financing/) work best for buying trucks and trailers, because the truck is the collateral. Freight factoring works best for cash flow, because it turns a rate confirmation into cash in a day or two instead of waiting 30 to 60 days on a broker. Working capital loans fill the gaps: a transmission, tires, or an insurance renewal.

- Truck loans: 3 to 6 years, 5% to 25% down, typically 8% to 25% APR depending on credit and truck age.
- Freight factoring: advances of 90% to 97% of the invoice at 1% to 4% per invoice.
- Working capital: $10,000 to $150,000 over 6 to 24 months.

## What do lenders like and dislike about trucking?

Lenders like trucking because the asset is movable, resellable and tracked. They like an authority more than two years old, a clean safety score, repeat shippers, and a fleet of three or more trucks. Factoring companies underwrite the shipper's credit, not yours, so loads for strong brokers and shippers are easy to fund.

They dislike new authorities under six months, trucks older than about ten years or past 600,000 to 700,000 miles, insurance lapses, and a prior repossession. Fuel costs and rate swings make one truck operations fragile, so a one truck fleet with a thin bank balance pays the highest rates in the industry.

## How much can a trucking business borrow?

Truck lenders fund the purchase price, typically $25,000 to $200,000 for a tractor and $15,000 to $80,000 for a trailer, less a down payment of 10% to 25% for newer authorities. Factoring lines are sized to what you bill in a month, so a two truck operation billing $40,000 a month can usually access most of that as it is invoiced. Working capital lenders look at deposits and typically advance 50% to 100% of one month. Fleets under ten trucks usually borrow $50,000 to $500,000 in total, and established fleets can reach seven figures through [asset based lending](https://businessloanbroker.ai/business-loans/asset-based-lending/).

## What documents will you be asked for?

Expect to be asked for your MC and DOT numbers, proof of insurance and the primary driver's CDL before anything else. Then, by product:

- Truck loans: the purchase agreement or dealer quote with year, make, model, mileage and VIN, plus 3 to 6 months of bank statements
- Factoring: an aging of open invoices, sample rate confirmations and bills of lading, and your list of brokers and shippers
- Working capital: bank statements and a voided check
- Banks and SBA: two years of tax returns, financial statements and a fleet list with values
Keep your ELD and safety records clean, because lenders check your public safety profile. See the [document checklist](https://businessloanbroker.ai/guides/document-checklist/).

## What are the common uses of funds?

Trucking money usually goes to one of these.

- Adding a truck: a $90,000 used tractor financed over five years with 15% down.
- Covering slow pay: factoring $60,000 of open invoices so drivers are paid on Friday.
- A major repair: a $25,000 working capital loan for an engine rebuild so the truck earns again.
- Insurance for a new authority: a small loan or business credit card for the policy down payment.
- Growing from owner operator to a small fleet: a vehicle loan plus a factoring line, arranged together.
If cash is the problem rather than equipment, start with [cash flow gaps](https://businessloanbroker.ai/situations/cash-flow-gap/).

## What usually gets a trucking application declined?

The most common decline is a new authority: many truck lenders will not fund the first six to twelve months, and the ones that do want 25% down and a credit score above about 650. After that it is the equipment. Trucks that are too old or too high in mileage fail the lender's collateral rules no matter how good the borrower is. Other frequent reasons are an insurance lapse, a conditional or unsatisfactory safety rating, a prior repossession, and statements that cannot cover a payment. Factoring declines happen when your shippers have weak credit or another lender already holds a UCC lien on your receivables.

## How to apply

Apply once here with your authority details, bank statements and the truck or invoices you want to finance, and it reaches truck lenders, factoring companies and working capital lenders together. You can also ask your AI assistant to apply for you through our MCP server, described in the [agents hub](https://businessloanbroker.ai/agents/): it can read your statements and rate confirmations, fill the forms and submit. It is free to the business and offers come back to the same place.

| Product | Amounts | Typical cost | Speed | Best for |
|---|---|---|---|---|
| Commercial vehicle loan | $25,000 to $250,000 per unit | 8% to 25% APR | 2 to 7 days | Buying tractors and trailers |
| Freight factoring | Sized to monthly billings | 1% to 4% per invoice | 1 to 2 days per invoice | Slow paying brokers and shippers |
| Working capital loan | $10,000 to $150,000 | 15% to 50% APR | 1 to 5 days | Repairs, tires, insurance |
| Asset based lending | $250,000 and up | 8% to 18% APR | 2 to 6 weeks | Fleets of ten or more trucks |

## Questions and answers
**Can an owner operator with a new authority get a truck loan?**

Sometimes. A handful of lenders fund authorities under six months old, but they want a credit score above about 650, 20% to 25% down, a newer truck, and often company driver experience. Most lenders prefer six to twelve months of authority, so running under a carrier's authority first makes financing much easier.

**Is freight factoring worth the cost?**

It depends on your margin and cash position. Paying 2% to 3% to get paid in a day rather than 45 days is usually cheaper than missing loads or taking a short term loan at 30% to 50% APR. It stops making sense when your shippers already pay quickly or the factor's minimum volume penalties bite.

**Does the age of the truck really matter?**

Yes. Most lenders cap the truck's age at the end of the loan term, commonly ten to twelve years, and many stop at about 600,000 to 700,000 miles. An older truck may still be financeable, but with a shorter term, a larger down payment and a higher rate, which can make a newer unit cheaper per month.

**Can I refinance a truck loan with a high rate?**

Yes, once the authority is older and the payment history is clean, usually after twelve months. Lenders refinance against the current value of the truck, so a unit that has dropped in value may not support the balance. See refinancing business debt for how lenders look at the whole picture.

## Related
- [Commercial vehicle loans](https://businessloanbroker.ai/business-loans/commercial-vehicle-loans/)
- [Invoice factoring](https://businessloanbroker.ai/business-loans/invoice-factoring/)
- [Equipment financing](https://businessloanbroker.ai/business-loans/equipment-financing/)
- [Working capital loans](https://businessloanbroker.ai/business-loans/working-capital-loans/)
- [Covering a cash flow gap](https://businessloanbroker.ai/situations/cash-flow-gap/)
- [Business loan document checklist](https://businessloanbroker.ai/guides/document-checklist/)

## Apply
Apply for the business: https://apply.businessloanbroker.ai/signup?utm_source=direct&utm_medium=organic&utm_content=md-trucking
MCP server for AI agents: https://mcp.businessloanbroker.ai/mcp (docs: https://businessloanbroker.ai/agents/mcp/)