What credit score do I need for truck financing?

Most equipment lenders for commercial trucks look for a personal credit score of 620 or higher, though rates improve significantly above 680. Lenders also weigh time in business (typically 2+ years) and annual revenue alongside your credit score.

How long does it take to get approved for truck financing?

Specialty equipment lenders typically fund commercial truck loans in 3 to 10 business days once the application and supporting documents are complete — considerably faster than SBA loans, which can take 60 to 90 days.

Can I finance a used refrigerated truck?

Yes. Most commercial equipment lenders finance used refrigerated trucks (reefers), though they may set age limits (commonly 10–15 years) and require a commercial appraisal. The truck itself serves as collateral, which is part of what makes equipment financing accessible for smaller fleets.

What do lenders look at for trucking equipment loans?

Lenders typically evaluate personal and business credit scores, time in business, annual revenue, the age and condition of the equipment being financed, and — if you have one — existing contract revenue that demonstrates repayment capacity.

What is the difference between equipment financing and leasing for trucks?

With equipment financing (a loan), you own the truck once it's paid off and build equity over the loan term. With a lease, you make payments to use the truck but don't own it at the end — some leases offer a buyout option. Financing typically makes more sense for owner-operators who want to hold assets long-term; leasing can preserve cash for fleets that rotate equipment frequently.

Equipment Financing for Trucking: How Caldwell Freight Grew Her Fleet in 8 Days

Renee Caldwell had spent seven years building Caldwell Freight Solutions into a reliable cold-chain carrier in Houston. By late 2024, her four-truck refrigerated fleet was running consistent routes between regional warehouses and grocery distribution centers — steady, margin-positive work.

Then a regional grocery chain came calling. They needed a dedicated carrier for refrigerated distribution across a corridor stretching from Houston to San Antonio and Dallas. The contract: $1.2 million per year. The requirement: a minimum of six refrigerated trucks, verified insurance, and onboarding within 30 days.

Renee had four trucks. She needed two more. And the clock was already running.

The Constraint

Two used refrigerated semi-trucks — capable of holding cold-chain temperatures across Texas summers — would run approximately $185,000. Renee's cash reserves were committed: fuel float, driver payroll, and a repair escrow she'd built after a costly breakdown two years earlier. She wasn't going to touch those.

A traditional SBA loan would have taken 60 to 90 days — well past the grocery chain's 30-day onboarding window. A business line of credit wouldn't close fast enough either. She needed a financing structure that matched the timeline the contract required.

The Approach

FundLocal matched Renee with an equipment financing lender — a structure where the trucks themselves serve as collateral. No real estate lien. No pledge of other business assets. The lender's exposure rides on the value of the equipment, which streamlines underwriting and compresses the timeline to funding.

Renee put 15% down ($27,750), keeping her fuel float and operating reserves intact. She financed the remaining balance over 60 months at approximately 9.5% APR — a rate that reflects solid, growing-business credit rather than prime. Monthly payment: $3,870.

The application went in on a Monday. The trucks were funded eight business days later.

The Result

Caldwell Freight Solutions expanded from four trucks to six, hit the grocery chain's 30-day onboarding deadline, and started running routes within the month.

Each of the two new trucks generates roughly $22,500 per month in contract revenue on the new account — $45,000 combined. The monthly loan payment is $3,870. The contract pays the financing cost nearly twelve times over, every month.

Seven years of building a reputation for reliability put Renee in position to win the contract. Eight days of equipment financing let her keep it.

How Equipment Financing Works for Trucking Companies

Equipment financing is a loan secured by the equipment being purchased — in this case, the trucks. Because the asset itself is collateral, lenders can move faster than they can on unsecured products and don't typically require real estate or other business assets as backing.

For trucking businesses, the practical implications are straightforward:

The truck is the collateral. The reefer, semi, or flatbed you're buying secures the loan. That's what lets specialty lenders skip the real-estate pledge and cut weeks from underwriting.
Preserve cash. A down payment of 10–20% is typical. The rest is financed, leaving fuel floats, payroll reserves, and repair escrows where they belong.
Fixed payments. Monthly payments are predictable — important when you're running to contract terms and need your cash flow picture to stay clean.
Ownership at payoff. Unlike a lease, you own the truck outright once the loan is paid and build equity in an asset you can sell or trade. If you're weighing the two options, our equipment financing vs. leasing guide lays out the comparison in detail.

Terms for commercial truck financing typically run 24 to 84 months. APRs vary by lender, credit profile, and truck age — expect a range of roughly 6% to 35% depending on your situation.

What Lenders Look at for Trucking Equipment Loans

Underwriting for truck financing generally covers:

Personal and business credit. Most lenders look for a score of 620+, with better rates above 680. If your score is lower, our guide on equipment financing with bad credit outlines what options exist and what you can do to improve your position.
Time in business. Two or more years in operation is a common baseline, though some specialty lenders work with newer businesses.
Annual revenue. Lenders want to see enough cash flow to cover the monthly payment comfortably.
Equipment age and condition. Used trucks are financeable, but lenders typically set age limits (commonly 10–15 model years) and may require a commercial appraisal.
Existing contracts. A signed distribution agreement — like Renee's — is a meaningful positive signal. It demonstrates repayment capacity in concrete terms.