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Commercial Truck Financing Terms for Various Financing Options

If you own a trucking company and are considering financing a truck, follow our guide to unlock the best financing terms and options regardless of your credit.

Liara Cohen
Liara Cohen
September 30, 2020

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The industry of commercial trucks is increasing with each day. Commercial truck financing is very beneficial when it comes to starting a business without a huge bank balance. Commercial truck financing can be used for various purposes. It can be very beneficial in the situation where

There are various commercial truck financing terms associated with different financing options. But let us first take a look at what exactly are financing terms. 

What are the financing terms? 

To categorize financing terms, they are generally of two kinds. The two kinds are short-term financing and long-term financing. 

The short-term financing includes short loans which are required to be paid within a year or so. This is also generally termed as working capital. The long-term financing provides larger loans that are supposed to be paid in more than one year.  Generally, commercial truck financing terms stretch from 24 months to 72 (in rare occasions, 84) months.

The various commercial truck financing options have different terms. Let us now look into different commercial truck financing terms. 

Different Commercial Truck Financing Terms

With the increasing demand for commercial truck financing, the options have also increased. It now covers options ranging from 0 down payments to having a good credit score. Let’s look at the various options and their commercial truck financing terms one by one.  

Zero down payment 

Commercial truck financing gives you the option to buy or lease a truck even with a little money. You can always look for options with no money down. After you have matched the qualifications, you can avail of this option for both lease and truck buying. This requires you to pay more interest to the end. 

So, what are the commercial truck financing terms if you choose this option? The terms will majorly depend on the lender in such a case. If you are approaching a traditional bank, you can expect a longer-term. If you are considering alternative options like online lenders, they will have a shorter term. 

In general, you can expect a term anywhere between 1- 7 years. 

Bad Credit 

Are you worried that bad credit will be a hindrance if you want a loan for your truck? If so, you should explore options that will give you a loan regardless of your credit score. You are eligible even with bad credit, but it will cost you more. 

This option isn't available in traditional banks, but some online lenders and companies offer this. The financing terms, in this case, will also depend on the lender. The loans of this category are classified as subprime loans.

Subprime loan lenders usually have a shorter financial term. They require frequent payments. This is done to ensure that you can meet your financial obligations. 

Fair Credit 

There is no option which you can’t explore with fair credit. Fair credit gives you an edge in financing. With a fair credit score, you can approach traditional banks where they will give you good rates. 

Semi-truck financing becomes the best option to explore with fair credits. It gives you a better rate and better terms. Fair credit also makes you match the required qualification without many issues. 

The commercial truck financing terms on this one varies, but there is a possibility of negotiation. Repayment plans can last up to seven years in such a case. An important point to note is that the longer-term will require you to pay higher interests. If there is a possibility to negotiate and pay it sooner, go for a shorter term. 

Commercial Truck Financing for Start-ups

If you are starting with the commercial truck industry, look for companies specializing in equipment financing. Start-ups need a tailored guide which is designed according to the needs of entrepreneurs. 

Start-ups usually face a little difficulty in getting their loan approved. They are considered to be a risky investment. You have higher chances if you have been in business for a longer period. But this doesn't mean that financing for start-ups is impossible. Cardiff, Financial Pacific Leasing, Bryn Mawr Trust is known to provide commercial truck financing terms to start-up trucking companies.

In this case, the repayment and the commercial truck financing terms will depend on your qualifications. It is better to use credit for loan payment rather than paying it off for several years. The growth of start-up varies with each month, and thus this gives you flexibility on the terms.

Financing Fleet

If you have financed trucks successfully in the past, it will be beneficial in financing. There will be little or no objection from the lender's side if you already have a fleet. This gives lenders a sense of security. The lenders will consider your past experiences and evaluate them.

The commercial truck financing terms for a fleet can range anywhere from six months to six years. The longer terms will be convenient but will ultimately lead you to pay more. A shorter-term will cost you less but will burden your monthly payments. Choose your payment term accordingly. Look for one which will not burden you. 

Financing of Semi-Trucks

In such financing, the lender will pay for your new truck, and you will promise to pay it back. Semi-truck financing is a separate category as they need more maintenance and careful handling. The lender, in such cases, will review your credit history. This is done to make sure that you are capable of paying it back.

The financing term for semi-trucks depends on the lender you are approaching. It could range anywhere between 4-10 years. If possible, consider going for a shorter term to ultimately save more. 


The commercial truck financing terms depend on the type of financing you are opting for. It also depends on the lender and your qualifications. In most of the cases, longer-term causes you to ultimately pay more interest than the shorter term. 

A shorter-term is a little burden on the monthly expenses, but it is the best option if you can afford it. Talk to your lender and try to negotiate wherever possible.

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