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Non-Conventional Options For Commercial Truck Financing with Bad Credit

Think you're out of luck because you or your trucking business has bad credit? Follow these steps to unlock low-rate financing on your truck or trailer.

Talia Stern
Talia Stern
September 29, 2020

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Financing a commercial truck can be a lengthy process. National banks and commercial truck lenders often require you to have a good credit history of financing your purchase.

If you have a bad credit history, you can opt for non-conventional or alternative financing options for your truck.  If you are worried, these alternatives may present good financing solutions. Read ahead to find out more about commercial truck financing with bad credit. 

Loans for a Low Credit Score

For commercial truck financing with bad credit, you will have to look for direct lenders who can help you. These direct lenders have special provisions made for individuals and businesses who exhibit low credit score histories.

They often offer commercial loans for a purchase contract for a truck. In most cases, these loans are for purposes of purchase. If you are planning on leasing your commercial truck, most lenders will not finance this.

These direct lenders often come from the understanding that people cannot always have perfect credit histories. Their financial health may falter, and they may have faced many struggles. If a commercial truck can help you make a living, these lenders believe that a loan should not come in the way.

For this reason, they offer loans to borrowers with bad credit or even with bad business histories. If they don’t look at the credit score, you may wonder what they look at for financing your truck.

What Credit Criteria Do Alternative Lenders Look at?

The fact that these lenders do not look at your credit score does not mean that they don’t look at your credit history at all. Instead, they provide commercial truck financing with bad credit by assessing the pattern of your overall credit. 

They look at other assets you may have, like collateral. This can increase your chances of getting a loan from them. They will also look at your other loans like your home and other vehicle payments. If you've paid these loans on time, you have a higher chance of being financed by them. 

Another factor that can increase your chances of getting commercial truck financing with bad credit is if you have enough commercial driving experience. They look at all these factors holistically before approving your truck loan. 

Exceptions Made for Bad Credit Loans

Many non-conventional lenders can provide you with commercial truck financing with bad credit if you have faced exceptionally difficult circumstances. It means that they approve truck loans once they fully understand you, your motivations, and your intentions.

For instance, some people may have a bad credit score because they have struggled with child support in the past. Others may be new to driving. By getting to know your specific circumstances, these lenders offer you loans with interest rates, often between 18 to 20 percent. 

Your Documents

Lenders who specialize in commercial truck financing with bad credit require certain documents to approve your loan. They will ask you to complete and submit a credit application that will include your name, address, current and previous employment, and any commercial loan history.

They are also meticulous when considering the vehicle that you are buying. Their financing options will be tailored to your commercial truck's make, the model that you are buying, and the actual mileage of your truck.

With this, they may also request for the vehicle identification number. You will also have to provide detailed information about the seller and submit the complete sales order to the lender.

After a comprehensive assessment, they approve the loan for commercial truck financing with bad credit. 

Bankruptcy Loans for Commercial Trucks

Several alternative semi-truck lenders offer loans even to those whose credit history displays bankruptcy. Others offer loans to those whose credit scores are as low as the 400s. They can generally offer these commercial truck financing with bad credit options because they make their own decisions on a case by case basis.

They do not have a stringent loan checklist as a bank does. However, all these options often entail high-interest rates on the loans taken. 

Loans Without Background Checks

While many lenders have comprehensive interviews with you to approve a bad credit loan for your commercial truck, some provide prompt loans with no checks. You may be wondering how this works.

When this option is provided, you should know that the lender is offering you a lease-to-own option under most circumstances. It simply means that you can choose the truck you want to buy. When the lender approves the model and the loan, the truck will be owned by the lender.

You can use the truck for your own business and repay the loan taken. Once you make your last pending payment with interest, the lender will transfer the ownership over to you. 

This is a great option if you have a history of bankruptcy. Do note that these loans are also a great option if you are a start-up and need immediate financing for your commercial truck. 

Loans by Trucking Companies

If you are looking for commercial truck financing with bad credit options, one of the best lenders are trucking companies. Many of these companies face a shortage of drivers and provide lease to own options to experience commercial drivers. 

Through this, the companies themselves connect you to lenders, and you will have to make certain monthly payments. If you falter on your repayments, the trucking company will take possession of the commercial truck. 


If you have a bad credit history, it will be difficult for you to get appropriate financing from national banks and other institutions. In this case, you can opt for lenders who specialize in commercial truck financing with bad credit.

Some lenders will give you complete ownership of your vehicle. This will mean meticulous background checks on the part of the lender. Others offer a convenient lease-to-own option for prompt loans.  

In this case, the company owns the commercial truck until you complete your last payment. In any case, if you have a bad credit history, you will have plenty of direct lenders offering you financing options for your commercial truck.

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