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Commercial Truck Financing Poor Credit: A Guide

Do you own a trucking company but suffer from poor business or bad personal credit? Follow our guide to unlock the best rates and terms on a commercial truck loan.

Maya Friedman
Maya Friedman
September 15, 2020

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Like with any business, commercial trucks require their fair share of financing. A good investment from the beginning provides stability to the business. Commercial truck loans and leases are provided to individuals as well as to organizations and firms. 

There are many popular options for this. Worried about your poor credit score? Fret not because commercial truck financing poor credit is possible.

Why Commercial Truck Financing Poor Credit Is Possible?

A business having their truck (or trucks) gives it a lot of leverage. Among other things, they can negotiate prices, routes, and deals. It has the potential to bring in a huge income. Although policies regarding crediting scores have become more rigid, commercial truck financing poor credit is achievable. 

The demand for truck drivers is on the rise. To combat this, leasing firms and companies for commercial vehicle financing have introduced many new plans. These help small businesses and drivers to obtain their trucks, even with poor credit.

One of these options for getting commercial truck financing poor credit is to opt for lease-to-own. This option has a huge advantage in that it does not require any down payment or credit check. It only requires monthly payments of a certain value. You can lease a completely new truck and start work.

During this period, the truck is owned by the company. Once all the payments are made, the truck is signed over to you, and you become the owner. However, if you are unable to make regular payments, you can be penalized, and the company can take away the vehicle. You will also lose any interest that you might have made on the previous payments. 

In case you have a small truck such as a pickup truck or a van, you can also opt for loans from lending networks for commercial truck financing poor credit. There is no set credit score as such to obtain an auto loan. Nevertheless, poor credit often makes banks and money-lenders reluctant. 

How to Improve Prospects for Commercial Truck Financing Poor Credit

Everyone has a past. It might not be the best, but we should never let it define us. As we have already discussed, achieving commercial truck financing with poor credit is possible. Read on to find out how you can achieve this.

Make a Substantial Down Payment

Make a good impression from the very beginning by putting down a good amount of money. This convinces lenders by a long shot. More down payment also ensures lower monthly clearances and lesser interest. Also, more money means more equity for the truck. Lenders like to see this equity.

Set Up Additional Collateral

Often lenders also accept additional collateral. If you do not have substantial equity, you can opt for this. This also shows you that the lender is willing to work with you to solve your problems. The collateral usually depends on the business or the person who is to take the loan and the type of loan.

Get a Reliable Co-signer

A reliable co-signer always helps you get a loan. However, most lenders refuse to accept just about anyone as co-signers. Your co-signer must be someone with good, if not perfect, credit and should preferably have a Commercial Driver’s License. This guarantees you a loan from most lenders. 

Buy From a Reliable Dealer

This is important when opting for a lease-to-own agreement. Although this might mean fewer options, this does not require any credit history. If you are sure about your prospects and ability to make monthly payments, go for this option.

Size and Condition Of the Truck

The truck's cost mostly depends on its size, which in turn decides how much loan you would have to take. Going for a used truck reduces the initial cost. However, if it is too old or in poor condition, it will end up costing you more in the long run. Besides, lenders are often reluctant to loan for old trucks.

Down Payment for Commercial Truck Financing Poor Credit

The amount of down payment required to get a truck largely depends on its size and cost. It also depends on how much maintenance cost it might incur and the risk factors. Lastly, it also depends on the type of financing you have been able to achieve. 

Usually, a down payment of at least 5% of the total purchase is required for a semi-truck. (Source: For smaller or more light-weight trucks, it can easily be less.

Various lending networks and lenders have different standards of approval. Some lease-to-own programs do not even require down payments. On the other hand, some lenders readily agree with small down payments. 

This can be difficult to get with a poor credit score. It always increases your chances of getting good financing if you can show stability and make a good down payment. Larger down payments reassure lenders of fewer chances of backing out if you cannot pay the installments.

Points to Remember

Finding commercial truck financing poor credit is difficult and, as seen, requires strategizing. However, it is important to remember to be careful about certain points to avoid any legal disputes or similar problems.  


A truck is very good for business and can bring in great returns on investments. More often not, however, people back out due to poor credit. They are worried about the ownership of their vehicle and the availability of proper financing. 

With the above solutions, we can see that these worries are well-addressed.  Many options do not even require credit scores, so it is hoped you can get commercial truck financing with poor credit.

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