Bad credit? No problem! Securing a semi truck loan with bad credit is still possible. While the process might be more complex, plenty of great options will still be available to you. These financing companies work with owner operators and trucking fleets to offer semi truck financing with bad credit that works for each individual situation.
And when you’re finished reading, check out the rest of our ‘Alternative financing for semi trucks’ article series:
- Guide to alternative semi truck financing options
- How to get zero down semi truck financing
- Best zero down lease purchase trucking companies
- Best semi truck financing with bad credit
Quicklook: Best semi truck financing for bad credit
- Best for lease-to-own financing: Truck Lenders USA
- Best for emergency financing: Mission Financial Services
- Best for owner operators with bad credit: Tucker Capital, LLC
- Best for flexible semi truck financing: Clear Path Financial
- Best for high maximum loan amounts: First Capital Business Finance
- Best for fast funding decisions: Perry Funding, LLC
6 best semi truck financing options with bad credit
With so many commercial truck financing options available, finding one that fits your financial situation can be challenging. That said, the following six options can offer bad credit semi truck financing to help you grow your business, regardless of your current financial situation.
Truck Lenders USA
Truck Lenders USA is the country’s leading commercial truck financing company. It offers customized financing solutions for trucking companies in various financial situations. This lender has worked with truckers for over 30 years, all the while offering industry-leading, technology-based tools and competitive, application-only limits to help thousands of clients across the U.S. Whether you have excellent, average or bad credit, Truck Lenders USA will work with you to find the right financing to help your trucking business succeed.
Best for: Lease-to-own financing
Credit requirements: Minimum credit score of 675 for truck financing
Minimum percentage down payment: Low down payment options available
Financing program options
- Operating and capital leases
- Truck and equipment financing
Funding speed: Application-only approval within hours
Loan maximum: $250,000 for the application-only program
Loan terms: 24 to 60 months
Special features
- Progressive, technology-driven financing
- 100% lease financing at fixed rates
- Residuals between 10% and 15%
- $1 buyout on lease-to-own contracts
Benefits
- Options for strong, average and challenging credit scores
- Quick application-only approvals
- Trusted and experienced lender
Disadvantages
- Requires a higher credit score for equipment financing
- Must be in business for at least two years
- Special requirements for sleeper trucks
Mission Financial Services
First-time owner operators looking for commercial vehicle title loans should consider Mission Financial Services. As a common sense lender, this financing company will assess your entire financial situation and respond with a decision within four hours. Also, Mission Financial Services’ simple interest contracts have limited terms that allow you to build loan equity quickly, and truckers can even pay their loans while on the road.
Best for: Emergency financing
Credit requirements: No minimum credit requirements
Minimum percentage down payment: Between 20% and 30%
Financing program options
- Commercial truck loan
- Commercial vehicle title loans
- Semi truck repair loans
Funding speed: Four hours
Loan maximum: Not available
Loan terms: Depends on variables such as the condition, value, and age of the vehicle
Special features
- Lease-purchase buyouts
- Loan refinancing
- Fast approval
Benefits
- Stress-free application process
- Multiple repayment options
- No credit check semi truck financing
- Capital loan operation
Disadvantages
- Costly down payments
- Must disclose many personal details as part of the application
- Cannot access specific details about the terms of a loan until you apply
Tucker Capital, Inc.
Trucker Capital, Inc., is another excellent choice for truckers seeking semi truck financing with bad credit. Whether you need a commercial truck loan or just some extra cash to grow your trucking business, Trucker Capital can help. As a direct lender, there is no intermediary, and flexible payment schedules ensure that you can obtain financing that works for your business.
Best for: Owner operators with bad credit
Credit requirements: No minimum credit requirements
Minimum percentage down payment: No minimum down payment
Financing program options
- Commercial truck title loans
- Truck repair loans
- Commercial truck leasing
Funding speed: Fast approvals
Loan maximum: Not available
Loan terms: Not available
Special features
- Flexible payment schedules
- No middle man
- Free quotes
Benefits
- Easy application process
- Access to insurance options
- Streamlined approval process
Disadvantages
- Potentially costly initial down payments
- Limited financing options
- No timetable for when funds become available upon approval
Clear Path Financing
Clear Path is a clear choice for heavy equipment and commercial truck loans. With creative solutions for growing trucking companies, Clear Path lends money based on the equity of equipment you already own and provides refinancing options to help lower your monthly payment. Also, this lender is dedicated solely to the specific needs of commercial trucking business owners and construction companies and has been for over ten years.
Best for: Flexible semi truck financing
Credit requirements: No minimum credit requirements
Minimum percentage down payment: 50%
Financing program options
- Custom semi truck financing programs
- Financing for owner operators with low credit scores or no prior funding
Funding speed: Typically less than 24 hours
Loan maximum: $55,000
Loan terms: 20-40 months
Special features
- Fast approval
- Cash flow program for established businesses
- Additional collateral programs available
- Potential for older truck models to be accepted for financing
Benefits
- No credit score check
- Easy application and approval process
- Truck repair financing available
- Financing options for fleets of any size
Disadvantages
- High down payment
- No telling when funds will become available after approval
- Possibility that max funding may not be sufficient for all owner operators
First Capital Business Finance
Specializing in commercial vehicle financing, First Capital Business Finance helps trucking company start-ups and established businesses alike get the funding they need to grow. Truckers with bad credit, recent bankruptcy, or a history of late payments may still qualify. Plus, no financial proof or tax returns are required to apply. First Capital also finances nearly every type of commercial vehicle, including tractor-trailers, utility trucks, tow trucks and sprinter vans.
Best for: High maximum loan amounts
Credit requirements: 540
Minimum percentage down payment: The lowest down payment option is two months due at closing, while the most significant down payment option requires between 40% and 50% down.
Financing program options
- No money down financing
- Low, moderate and large down payment options
Funding speed: Not available
Loan maximum: $400,000
Loan terms: Five years
Special features
- Financing options for any financial situation
- 24-hour application decision
- Must put up your truck as collateral for the loan
- Wide selection of vehicles eligible for financing
Benefits
- Simple approval process
- No age or mileage restrictions in most cases
- No minimum CDL requirements
- Tax credit
Disadvantages
- Lengthy approval process
- No assistance for repairs
- Lower down payment options with more restrictions
Perry Funding LLC
Perry Funding LLC offers financial solutions for owner operators who are trying to secure semi truck financing with bad credit. Depending on your time in business, credit history and various other factors, you may qualify for a no-money-down loan. However, financing is still available to new enterprises with affordable down payments. Almost any Class 1 to Class 8 truck or trailer is eligible for funding.
Best for: Fast approvals
Credit requirements: No minimum credit score
Minimum percentage down payment: 0% to 50%
Financing program options
- Truck financing
- Equipment financing
Funding speed: About 4 days after approval
Loan maximum: $42,000
Loan terms: Between 12 and 48 months
Special features
- No age restrictions on vehicles
- Phone interviews with credit officers regarding your application
- Wide variety of vehicles are eligible for financing
- Same-day pre-approval
Benefits
- Accepts collateral in lieu of cash if down payment is not viable
- GPS devices installed in all vehicles free of charge
- Fast turnaround for funding
- Prompt phone and email responses
Disadvantages
- Automatic disqualification if you owe child support
- Cannot help customers in WI, CA, HI or AK
- No tilting of trucks allowed
Is semi truck financing possible with bad credit?
With semi truck financing, you can be on your way to building a commercial vehicle fleet. Although it can be more difficult to secure this type of funding if you have bad credit, there are still plenty of options for semi truck financing with bad credit.
Financing vs leasing a semi truck
Both semi truck financing and leasing can help owner operators and fleets of any size get the trucks they need to operate their trucks or their businesses. However, there are a few main differences between the two.
When a company leases a semi truck, they essentially rent the vehicle for an agreed-upon period of time. At the end of the lease, the driver either parts ways with the truck or purchases the truck under a lease-to-own agreement.
On the other hand, semi truck financing is a loan that a trucking company or an owner operator takes to pay for a truck they intend to keep. Instead of purchasing the commercial vehicle outright, they pay back the loan.
This option allows truckers more flexibility and lower upfront costs than a dealership could offer.
What is the average cost to finance a semi truck?
Many variables affect the cost of semi truck financing, including interest rates, loan terms and down payments. Most commercial vehicle loans require a down payment of at least 5%, and interest rates vary based on your financial situation as well as the vehicle itself. That said, the average cost for a new semi truck is around $150,000.
Things to consider with semi truck financing with bad credit
If you have bad credit, you can still secure semi truck financing. However, you should keep these factors in mind.
Higher down payment
In most cases, having bad credit or no credit at all means paying a higher down payment. Since lenders cannot rely on your creditworthiness, they need this down payment to prove you can afford your monthly payments.
Co-signer
Along with your credit score, your income and banking history can significantly impact your ability to secure truck financing. Sometimes, lenders will require applicants to get a cosigner to guarantee the loan as a way of mitigating their risk of lending to you.
Funding speed
Typically, the worse off your financial situation is, the more documentation you will need to provide to secure semi truck financing. With additional requirements, such as bank statements and tax returns, the speed at which you receive funding can be affected. Also, if you need a cosigner, this step can hold up the approval process.
Loan maximum
The maximum loan amount that you will qualify for is going to be directly related to your perceived ability to repay the loan. Therefore, applicants with lower credit scores will find that they cannot receive as much funding as those with excellent credit.
Collateral
Lenders might allow you to provide collateral to secure a loan if you’re struggling to find semi truck financing with bad credit. Collateral is something that you own, which the lender deems valuable, such as real estate or business equipment.
Collateral can be used to guarantee repayment as well. In the event of non-repayment, this property is forfeited to the lender.
Insurance
Many semi truck financing companies also offer insurance for new semi trucks as an add-on. Oftentimes, this type of insurance will be available at better rates than if it is purchased separately. Plus, new owner operators may benefit from an insurance plan offered by their loan provider.
Finding semi truck loans with bad credit
Securing the semi truck financing you need is still possible, even if you are in a difficult financial situation. These bad credit truck financing companies can help you grow your trucking company by making it possible to purchase a semi truck. Contact one today to get yourself on the road to a positive future in commercial trucking.
FAQ
Credit score requirements vary by lender and loan type, but a score of 600 or above is generally considered acceptable for financing a semi truck. Higher scores may offer better interest rates and terms.
A mid-market used semi truck costs around $100,000. However, there are plenty of options above and below this price point that you can explore.
Most first-time buyers will need a 20% to 30% down payment to purchase a semi truck.
