2026 Complete Guide
5 ways to finance a trucking company: equipment financing, invoice factoring, SBA 7(a), credit lines and term loans. Amounts, rates and timing for each.
Trucking financing
Each serves different trucking business needs
Best for: Semi trucks, trailers, reefer units, flatbeds, dump trucks — new or used
Best for: Owner-operators and small fleets waiting 30–90 days on broker or shipper invoices
Best for: Fleet expansion $200K+, acquiring a trucking company, real estate purchase for terminal
Best for: Fuel costs, repairs, insurance gaps, seasonal cash flow between loads
Best for: Fleet upgrades, shop expansion, hiring drivers, any general trucking purpose
Side by side
| Loan type | Amount | Rate | Term | Approval |
|---|---|---|---|---|
| Equipment Financing (Trucks) | $25K–$2M | 6.5–20% APR | 2–7 years | 1–5 days |
| Invoice Factoring (Freight) | $10K–$2M | 1.5–5% per 30 days | Per invoice (30–90 days) | 24–72 hours |
| SBA 7(a) Loan | $50K–$5M | 8.5–11.5% APR | 10–25 years | 30–60 days |
| Business Line of Credit | $10K–$500K | 8.75–45% APR | Revolving | 3–14 days |
| Business Term Loan | $25K–$500K | 7.5–45% APR | 1–5 years | 3–14 days |
Typical ranges, updated September 2026. Your terms depend on your revenue, credit, time in business and the lender.
Worked example
Brokers and shippers often pay 30 days or more after delivery, while fuel and drivers are paid now. Example: a carrier with $100,000 of freight invoices a month. Assumptions for illustration only: factoring at a 90% advance and a 3% fee per 30 days (inside the 1.5–5% range above), versus a bank line of credit at 10% on the same $90,000 for 30 days.
| Factoring | Line of credit | |
|---|---|---|
| Cash in hand | $90,000 | $90,000 |
| Cost for 30 days | $3,000 | about $740 |
| Cost as a yearly rate | about 40% of the money advanced | 10% |
| Who collects from the broker | The factor | You |
| What qualifies you | Your customers’ credit | Your company’s credit and cash flow |
Factoring costs about four times as much here, but it is easier to get — it is underwritten on your brokers’ credit, not yours — and many factors handle collections and credit checks on new brokers. A common path is to factor while the company is new, then move to a line of credit once you have a year or two of financials. Read the contract for minimum volumes, recourse (whether you buy back unpaid invoices) and termination fees.
FAQ
Common questions about trucking company financing
Commercial truck financing is purpose-built for this — approval in 1–5 days, 600+ credit accepted, and the truck is collateral. Rates run 6.5–20% APR over 2–7 years. New trucks qualify for better rates than used. Most lenders finance 80–100% of truck value. Fleets can finance multiple units simultaneously.
Usually not. At a 3% fee per 30 days on a 90% advance, factoring $100,000 of invoices costs $3,000 a month — about 40% a year on the money advanced — while a 10% line of credit costs about $740 for the same $90,000 over 30 days. Factoring is easier to qualify for because it relies on your brokers’ credit.
Factoring lets owner-operators and small fleets sell their broker or shipper invoices for immediate cash — typically 85–95% of face value within 24–72 hours. The factor collects from your client and remits the balance minus a 1.5–5% fee. No debt added. Approval based on your shipper's credit.
Yes. Equipment financing is the most accessible — the truck serves as collateral. Invoice factoring requires no minimum time in business. SBA sets no minimum time in business, though most SBA lenders want about two years of operating history and 680+ credit. Some alternative lenders specifically target owner-operators with flexible requirements.
Equipment financing ranges from $25K per truck to $2M for fleets. SBA loans go up to $5M for established carriers. Invoice factoring advances $10K–$2M based on receivables. Lines of credit offer $10K–$500K for working capital. Most small carriers qualify for $25K–$500K.
Equipment financing accepts 600+, invoice factoring 500+, SBA loans 680+, and lines of credit 650+. Owner-operators with lower scores should start with invoice factoring or secured equipment financing to build business credit before applying for SBA or term loans.
A business line of credit is the most cost-effective option — draw for fuel, repay when loads pay out, and reuse. Invoice factoring also works if you have outstanding invoices.
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