FreightWaves Ratings cuts through the noise of freight technology product reviews to make you a smarter buyer

Best asset based lenders list for trucking

Accessing capital is vital for trucking companies looking to expand their fleets and operations. Asset based loans allow truckers to leverage their existing vehicles and equipment to get truck financing or obtain working capital for growth.

In this article, we will highlight the top lenders and truck financing companies providing asset-based lending to the freight industry. Explore which ones made it on our best asset based lenders list for commercial trucking.

And when you’re finished, check out the other articles in our ‘Asset based lending for truckers’ series:

Quicklook: Best trucking asset based lenders list

  • Best for small business loans: TAFS
  • Best for comprehensive banking services: eCapital
  • Best for custom financing: TAB Bank
  • Best for customer satisfaction: Aladdin Capital
  • Best for large trucking companies: Granite Funding
  • Best for lending in Canada: JX Financial, Inc.

Best asset based lenders list for trucking businesses

Here’s our list of asset based lenders that are best-suited to meet the unique needs of trucking companies.

TAFS

TAFS

TAFS is uniquely positioned to understand and meet the specific business lending requirements of truckers needing accessible financing. In addition to traditional collateral like property and equipment, they can use truck titles, contracts, and receivables as collateral. Their combination of industry expertise, loan products, flexibility, and customer service makes them a good financing source for many truckers and transportation operators.

Best for: Small business loans

Special features

  • Online portal to manage loan and submit borrowing base certificates
  • Option for interest-only payments to preserve cash flow
  • Financing from $2,500 to over $250,000
  • Caters specifically to transport logistics industry

Benefits

  • Flexible structure provides borrowing as needed rather than set amount
  • Interest-only payments preserve cash flow for other business needs
  • Access to capital based on assets rather than just credit and financials
  • Focus on customer service

Disadvantages

  • Loan availability fluctuates with borrowing base value
  • Higher rates and fees than conventional loans

Pricing: Rates from 7% to 13%+ APR, 1-2% origination fee and annual maintenance fees

eCapital

ecapital logo

eCapital provides competitive asset based financing for trucks, and is also generally one of the best banks for trucking companies. They offer checking and savings accounts, fuel cards, and merchant services tailored to the transportation industry. Drivers can handle all their banking and finance needs in one place with eCapital, establishing a complete financial relationship rather than just taking out a loan from a single-service lender.

Best for: Comprehensive commercial truck finance services

Special features

  • Loans from $25,000 to $250,000
  • Terms up to seven years
  • Fixed and variable rate options
  • Finance up to 100% of purchase price
  • Online application and account management
  • Banking services available

Benefits

  • Competitive interest rates
  • Flexible terms and payment structures
  • Delayed first payment option
  • Fast approvals and funding
  • Dedicated support team

Disadvantages

  • Requires good credit score of 650+
  • Limited terms under two years require 10-20% down payment

Pricing: Interest rates from 7.99% to 29.99% APR; origination fee of 2-4% of loan amount

TAB Bank

TAB bank

TAB Bank is an online bank designed for the trucking industry, though it does have attractive accounts for a variety of customers. When seeking financing, you have many options with TAB Bank, including asset-based lending, accounts receivable financing, equipment financing, business term loans and invoice factoring.

Best for: Custom financing

Special features

  • Customized loan amounts 
  • Industry expertise 
  • Flexible terms 
  • Relationship-based approach
  • No Prepayment Penalties – Loans can be paid off early with no penalties.
  • TAB can handle titling and documentation for trucks and trailers used as collateral

Benefits

  • Specializes in the trucking industry
  • Same-day credit decisions
  • Competitive trucking equipment financing rates
  • Easy-to-use mobile app

Disadvantages

  • One physical location (most transactions are completed online)
  • Some users report long hold times to speak to representatives

Pricing: Interest rates from from 7% to 15% APR; origination fee of 2% to 4% of loan value

Aladdin Capital

aladdin

Aladdin Capital is consistently ranked as one of the top asset based lenders for the freight logistics industry. With its trucking expertise, fast funding capabilities, focus on relationship-building, and loan management capabilities, the company makes financing easier for truckers. Offering flexible loan amounts and terms tailored to each client’s business goals and assets, Aladdin will finance up to 100% of equipment costs. They’re also known for offering highly regarded long-haul trucking insurance products.

Best for: Customer satisfaction

Special features

  • Industry expertise in trucking
  • Flexible loan amounts and terms
  • Fast funding: 24 hours for under $150k
  • Dedicated account managers
  • Online account management tools

Benefits

  • Ability to tap into financing quickly
  • Purchase more trucks/assets to grow
  • Tailored loan structures fit business needs
  • Responsive customer service team
  • Easy online loan management
  • No early repayment penalties

Disadvantages

  • Need strong credit history
  • Ongoing reporting requirements

Pricing: Interest rates from 6% to 15% APR; origination fee of 2% to 3% of loan value

Granite Funding

With over 20 years specializing in the transportation industry, Granite Funding understands the unique dynamics of trucking operations. This enables them to comfortably provide asset-based loans ranging from $75,000 up to $5 million or more, making Granite an ideal financing source for large trucking fleets looking to expand. Once approved, Granite prides itself on providing some of the fastest funding in the industry.

Best for: Large trucking companies

Special features

  • Loans from $75K up to $5M+
  • Specialized in large trucking firms
  • Flexible underwriting beyond credit scores
  • Rapid funding for loans under $150,000
  • Direct access to decision makers

Benefits

  • Purchase equipment and expand fleet quickly
  • Tap into substantial capital for growth
  • Loan terms tailored to business needs
  • Take advantage of time-sensitive opportunities
  • Ongoing support from knowledgeable team

Disadvantages

  • Require liens on titles of trucks/equipment
  • Variable interest rates tied to benchmarks
  • Higher chance of repossession if payments missed
  • Limitations on how loan funds can be utilized

Pricing: Interest rates from 7% to 15%; origination fees of 2% to 4% of loan value

JX Financial, Inc.

JX Financial has built a solid reputation as an asset-based lending leader serving the unique needs of Canadian trucking companies. The company looks beyond just credit scores and considers the full picture of the trucking business to provide financing options to a wide range of carriers. With a strong focus on customer service, JX offers a dedicated support team before, during, and after financing to ensure a smooth process for its trucking clients. 

Best for: Lending in Canada

Special features

  • Loans from $75K to $5M
  • Specialized in trucking industry
  • Low 10% down payment options
  • One-day approval and two-day funding
  • Dedicated customer support team

Benefits

  • Access to financing for a wide range of carriers
  • Flexible lending criteria beyond just credit scores
  • Quick access to capital for time-sensitive deals

Disadvantages

  • Missed payments can lead to asset repossession
  • Limit on how loan funds can be used

Pricing: Interest rates from 7% to 13%; 2% origination fee on approved loans

What is asset based lending for truckers?

Asset based lending (or ABL lending) is a common financing option used by trucking companies to obtain loans secured by their assets, especially truck and trailer fleets. The size of the loan will typically be a percentage, usually  75-80%, of the appraised value of the trucks, trailers, and other assets used as collateral.

Truckers usually use asset lending to purchase additional trucks and trailers to grow their fleets and increase their service capacity. The funds can also be utilized for general working capital needs of the business.

Since the trucks and their condition are the primary lending assets, interest rates on asset-based truck loans are often variable and tied to a benchmark like the prime rate, but generally range from 6-10% APR based on the borrower’s situation.

ABL lenders will place liens on the certificates of title for the trucks and trailers used as collateral through UCC filings to secure their claim in case of default. Loan terms coincide with the useful life of the assets, so truck loan repayment schedules are usually set up over 5-7 years with monthly principal and interest payments. The lender will also likely require personal guarantees from the trucking business owners and collateralization of personal assets as additional protection.

What to expect during the loan application process 

Here are some key things truckers can expect during the application process for asset based lending:

  • Extensive documentation: Truckers will need to provide detailed documentation about their business, assets, finances, etc. This usually includes tax returns, bank statements, profit/loss statements, a business plan, evidence of ownership of trucks/trailers, and a personal financial statement. Asset based lending banks want to thoroughly assess risk.
  • Truck title submission: Lenders for asset based trucking loans will require applicants to submit titles to any trucks, trailers, or other equipment that will be used as collateral. The truck finance lender will put a lien on collateral.
  • Truck inspections: Lenders will likely require physical truck inspections to assess the condition and value of trucks used as collateral. This determines the loan-to-value ratio in asset loans.
  • Customer data: Expect to provide a list of major customers, contracts, shipping volumes, and revenue history associated with accounts receivable that may be used as asset based finance collateral.
  • Personal credit check: The commercial truck financing lender will do a personal credit check and review personal finances/assets to determine the borrower’s ability to repay if the business cannot. A minimum personal credit score is often required in a loan for truck drivers.
  • Business operating info: Asset financing applicants should be prepared to provide operating authorities, insurance certificates, maintenance records, shipping volumes, fuel taxes, licensing, etc.
  • UCC filing: Borrowers will need to sign a Uniform Commercial Code (UCC) filing that gives the lender a security interest in the collateral. 

So in summary, extensive documentation, truck inspections, and detailed business/personal financial reporting is expected for asset backed loans.

Partner with asset based truck lenders to grow your business

Asset based big rig lending provides trucking companies like yours with an effective way to finance new equipment and expand fleets. By reviewing lenders and selecting one with competitive rates, strong industry knowledge, and robust customer service, you’ll be able to find the ideal ABL financing partner. The companies on this list of top asset based lenders can provide the capital needed to invest in growth and take your transportation company to new heights.

FAQ

What is the best semi truck financing for bad credit?

For semi truck financing with bad credit, asset based lending may be the best option, as lenders will base approval primarily on the value of the truck rather than just a credit score.

Do banks give loans to trucking companies?

Yes, many national and local banks do provide commercial lending services to trucking businesses. Financing usually is extended as term loans, lines of credit, or asset based loans using trucks and equipment as collateral.

What does ABL stand for in finance?

ABL stands for asset based lending, which is a type of financing where the loan amount is determined by the value of company assets pledged as collateral. Examples of collateral include inventory, equipment, or accounts receivable.

Sign up for a FreightWaves e-newsletter to stay informed of all news and trends impacting supply chain careers and operations.

Unlock New Financing Options

Need a small business loan? Start factoring with TAFS to see what other financing options you can unlock for your business. Must be a factoring client of TAFS to take advantage of business loans.