Key takeaways

  • A semi-truck loan can be a great option for businesses that can't afford to pay the full cost upfront
  • Some semi-truck financing companies are willing to work with new businesses and those that have been in operation for at least six months
  • Semi-truck loans are secured by the truck itself, so financing can be easier to secure, even with bad credit

A semi truck can cost anywhere from $50,000 to $180,000. If you can’t afford to pay that much upfront, a business loan could help.

A semi-truck loan is an equipment loan that functions like a car loan. It helps businesses buy expensive equipment and pay it off over time. Before you dive in, though, you have one big question: Is a semi-truck loan right for your business?

When to consider semi-truck financing

While there are several types of business loans that can be used for any purpose, including semi trucks, there are times when getting semi-truck financing makes more sense.

Here are a few instances where you might consider semi-truck financing instead of a traditional business loan.

You’re a new business owner

You typically need to be in business for at least a couple of years before you can get a business loan. But you may be in luck with certain semi-truck financing companies, especially online lenders since they often have looser requirements. Some are willing to work with new businesses and those that have only been operating for six months.

A semi-truck loan isn’t your only option to free up cash at your startup. You can also explore other types of startup-friendly business loans.

You have bad credit

Bad credit makes it hard to get any type of financing because the lender sees you as a higher risk. Fortunately, a semi-truck loan isn’t an unsecured loan because the truck itself is collateral.

If you default on the loan, the lender can seize this collateral, which lowers the risk of lending to subprime borrowers. As a result, a bad credit business loan for a semi-truck can be easier to secure than other types of financing when you have a low credit score.

You don’t have assets

Many business loans get secured by business assets or a personal guarantee, which puts your assets on the line. But what if your business lacks the assets to secure the loan? And what if you don’t want to risk your personal assets for your business endeavors?

Explore equipment loans like a semi-truck loan. This way, the thing you’re buying with the financing (in this case, the semi) is the asset you need for collateral.

Compare semi-truck loans

Before applying for semi-truck financing, compare several lenders to find the most affordable option. Here’s a quick look at some top lenders offering equipment or semi-truck loans.

Lender Description
SMB Compass SMB Compass’s equipment loans start at 5.99 percent and are open to companies that have been in business for at least two years. If you’re trying to get $200,000 or less, the loan can usually be funded in 24 to 48 hours. If you’re running a full-fledged trucking operation, it also offers loans tailored to transportation companies.
Triton Capital Triton Capital’s equipment loans go up to $500,000, with rates starting at 5.99 percent. Funding usually only takes 1 to 2 business days. Startups are eligible to apply.
National Funding This lender’s commercial truck financing caps at $150,000. To qualify, you must have been in business for at least six months and have fair-to-excellent credit. Funding can happen as quickly as 24 hours.
Funding Circle Funding Circle offers a term loan that can be funded in two days for up to $500,000. Your company must have been in business for at least two years to qualify.

Pros and cons of semi-truck financing

Here’s a brief look at the pros and cons of semi-truck financing.


  • Fast funding 
  • Tax benefits
  • Helps maintain cash flow
  • Accessible to many types of borrowers, including those with bad credit and startups


  • High purchase cost
  • Higher fees and interest
  • Requires down payment
  • Lenders often require time in business

Alternatives to semi-truck financing

While a semi-truck loan might fit your company, you shouldn’t apply for one until you’ve evaluated all your options. Alternatives to semi-truck financing include:

  • Term loans (long and short-term loans)
  • Equipment loans
  • Equipment lines of credit
  • Small Business Administration (SBA) loans
  • Equipment leasing

Bottom line

You have several options if you’re trying to buy a semi-truck for your company. Just make sure you have a plan to manage the semi-truck loan efficiently. Before you lock in financing with one company, compare your options, weighing interest rates and fees to ensure you don’t overpay.

Frequently asked questions

  • Equipment financing is a type of business loan designed to enable companies to buy tangible assets. That means valuable business assets like restaurant equipment or semi-trucks are eligible for equipment financing.
  • That varies from lender to lender. Many semi-truck financing companies require personal guarantees, but you may be able to find ones — especially if you explore online lenders — that don’t.
  • The “limited liability” portion of your limited liability company (LLC) does mean you’re not personally responsible for your business’s debts. But if you make a personal guarantee on a loan, it supersedes your LLC status. Long story short, if you default on that loan, your personal assets are at risk.