6 best transportation business loans

Starting or growing a transportation business can be expensive, and many companies turn to loans for necessary capital. However, not all loans are created equal, and finding the best one for your business can be challenging. 

From traditional bank loans to alternative financing options, many types of loans are available to meet your business’s unique needs. This guide will explore the top transportation business loans and provide key insights into choosing the best one. 

Quicklook: Best transportation business loans

• Best for fleet expansion: Truck Lenders USA
• Best for small trucking companies: iCapital Funding
• Best for trucking startups: Lendio
• Best for vehicle financing: Commercial Fleet Financing
• Best for flexible funding: SBG Funding
• Best for business financial health: Nav

6 best transportation business loans

Need a loan for your transportation company? Check out these six options. 

Truck Lenders USA 

Truck Lenders USA is the leading commercial truck financing company in the country. This trucking loan company is a direct lender specializing in financing commercial trucks, trailers and construction equipment, and has over 30 years of experience in the industry. They offer two application processes: an application-only option for up to $75,000 in funding, or commercial financing for up to $250,000

Best for: Fleet expansion

Benefits: 

• Quick five-minute application process
• Rates start at 6.9%  
• Approval decisions within 24 hours
• Variety of payment options
• 24 to 60-month terms available

Disadvantages: 

• Requires a minimum credit score of 680 
• Prepayment penalties may apply 
• Commercial trucks and trailers need to be seven years or newer  

iCapital Funding

Small trucking businesses looking for easy access to working capital to grow their business should consider iCapital Funding. This lender specializes in helping small businesses by understanding their specific funding needs and providing them with the best options. iCapital has a wide variety of loan options for transportation businesses, including short-term loans, SBA loans, business lines of credit, long-term bank loans, equipment financing, and merchant cash advances.  

Best for: Small trucking companies

Benefits: 

• Many loan options are available
• No credit score required  
• Fast funding as quickly as four hours
• Open terms with no hidden charges
• Easy application process

Disadvantages: 

• Doesn’t specialize in transportation lending 
• Multiple points of contact for customers can be confusing  

Lendio

Getting the necessary capital to start a trucking business can be challenging. That’s why Lendio is an excellent funding option for transportation entrepreneurs struggling to get the funding they need. Lendio is a loan aggregator, meaning they will work with multiple lenders on your behalf to find the best funding offers for new businesses. This unique process makes it easy to compare your options and find the best terms for you. 

Best for: Trucking startups

Benefits: 

• No minimum credit score 
• Quick and straightforward application  
• Multiple types of financing options from over 75 lenders
• No obligation or startup fee
• Dedicated personal funding managers 

Disadvantages: 

• Rates can be high 
• Funding can take two to four weeks 
• No direct lending option 

Commercial Fleet Financing

Commercial Fleet Financing is an excellent option for trucking companies seeking a commercial truck loan. This lender is the number one independently owned transportation equipment finance company in the U.S. and offers various financing options for light, medium, and heavy-duty vehicles and trailers, as well as commercial equipment. Commercial Fleet Financing is committed to helping customers grow their businesses and has funded over a billion dollars to over 10,000 clients.

Best for: Vehicle financing

Benefits: 

• Credit approval in as little as two hours 
• Financing options ranging from $10,000 to $1 million
• No requirement to purchase from a dealership 
• Fresh Start program for clients with poor credit
• No personal guarantee
• A+ BBB rating

Disadvantages: 

• Only available for commercial vehicles and equipment 
• You need at least a 640 credit score to qualify for the best loan rates 
• Down payments are required for borrowers with poor credit 

SBG Funding

SBG Funding is a niche business financing firm specializing in helping businesses access financing options not limited by the same time-consuming and stringent regulations as traditional banks. Instead, this company offers flexible financing solutions with in-depth support that helps businesses thrive in the long term. They also have same-day funding options, high approval rates and trucking industry experience.

Best for: Flexible funding

Benefits: 

• High approval rate 
• Loans available for as much as $5 million  
• Ten-minute online application  
• Decisions and funding within 48 hours

Disadvantages: 

• Requires a minimum credit score of 500 for some products
• Not a trucking-specific lender 
• Must be in business for at least six months 

Nav

Nav is different from a traditional lender but is an excellent platform for securing transportation business loans for your company. This financial health platform helps transportation companies and owner-operators not only access trucking financing but provides personalized business insights to foster informed financial choices. Their individualized recommendations include over 160 financing options, cash flow analysis and credit reports. 

Best for: Business financial health

Benefits: 

• More than 160 financing options
• Business credit cards, insurance and other services  
• Provides a complete financial picture of your business 
• Curated trucking loans and offers
• Cash flow insights
• Business credit solutions

Disadvantages: 

• Not great for large companies 
• Some reports of excessive communications 
• Confusing website 

What can you use a transportation loan towards? 

A transportation loan is a type of financing specifically designed to cover related expenses for trucking companies. You can use this type of trucking financing for many purposes, such as:

• Adding trucks to your fleet by purchasing or leasing vehicles
• Covering routine maintenance, repairs or upgrades to vehicles or equipment
• Fuel, insurance, permits and other operating expenses 
• Hiring and paying employees such as drivers, mechanics and administrative staff
• Funding business expansion into new markets

How can you better your chances for loan approval? 

There are several steps transportation companies can take to increase your chance of being approved for a trucking loan:

Maintain a good credit score

Most lenders will check your credit score to assess your creditworthiness since a good credit score shows that you are responsible enough to be trusted to repay the loan. You can improve your credit score by paying bills on time, reducing credit card balances and disputing any errors on your credit report. 

Demonstrate steady business income

Lenders want to see that you have a steady income and the cash flow necessary to repay the loan. Therefore, your application should include financial statements, tax returns and other documents showing your business’s income and profitability should be included in your application. 

Have a solid business plan 

A well-crafted business plan with information about your target market, competition, marketing strategies and financial projections can demonstrate to lenders that you have a clear understanding of your business and a plan for growth. 

Show industry experience

Lenders may be more willing to provide transportation business loans to companies with a proven track record of success in the industry. If you have experience running a successful transportation business or have worked in the industry for a number of years, be sure to highlight it on your loan application. 

Offer collateral

Some lenders may require collateral to secure the loan, such as vehicles, equipment or property. Offering collateral can reduce the lender’s risk and improve your chances of approval.

Shop around for lenders

Different lenders have different requirements and criteria for loan approval. By shopping around for lenders and comparing loan rates, terms and requirements, you can find the best loan option for your business. 

Grow your business with a transportation business loan

Whether you’re looking to expand your fleet, cover operating expenses or expand your operation, securing the right transportation business loan is essential. But by doing your research, comparing loan rates and terms, and working with a reputable lender, you can find the best trucking loan to help you achieve your business goals and thrive in the competitive transportation industry. 

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