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Where Can You Get Commercial Truck Trailer Financing?

Looking for the best truck and trailer financing? Follow our guide to the top-rated commercial equipment leasing companies and uncover the best rates and no fees.

Talia Stern
Talia Stern
September 12, 2020

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The demand for commercial trucks and trailers is on the rise. Not only do they come in handy in transporting goods across the country, but they also form a major part of the logistics business. Now, unless you have a pocket that runs deep, you'll require help in commercial truck trailer financing. 

You might wonder if you require a separate financing company for trucking equipment like trailers. For most of the cases, you will be able to get commercial truck trailer financing along with the usual truck financing. 

In this article, you’ll get to know about different sources where you can get commercial truck trailer financing. You will also get to know about the pros and cons of these sources and how they work. 

How does commercial truck trailer financing work?

If you’ve decided to go for a truck and trailer financing, you should know how they work. As you might know, the trucking business is nothing without its equipment like trailers. Given how costly commercial trucks can be trailers can equally burn a hole in your wallet. However, with commercial truck trailer financing, the truck, or the equipment you purchase becomes the collateral for the loan.

It is an ideal option for when you are short of funds and don’t want to look for other assets to double-up as collateral. It usually works by submitting an online application where the lenders look at your documents. After reviewing them and gauging your ability to repay the loan amount, you’ll be granted a loan. 

Though, one thing to be mindful of here is the penalty for default. If you default for an unfortunate reason, the lenders have the right to seize the collateral, i.e., your trailer or truck, to compensate for what you owe them. 

Just like any other loan, you’ll be required to pay monthly payments that can be covered over some months. In most cases, you will be able to decide the loan duration. 

Who can offer you commercial truck trailer financing?

There is an array of sources from where you’ll be able to get a commercial truck and trailer financing. They come with their own set of requirements and conditions that must be fulfilled by you for loans. Keep in mind that truck trailer financing rates may vary from lender to lender. Given below are some lenders that deal with commercial truck trailer financing and their pros and cons:

National Banks 

Perhaps the primary source for getting commercial truck trailer financing are the large national banks. Small companies tend to shy away from taking a risk by providing loans on commercial trucks and trailers. However, such is not the case with known national banks. You will be able to find ample national banks that provide finance for commercial trucks and trailers.

They can provide financing options at some of the lowest rates to you as they have enough financial resources. What's more? You'll also be able to enjoy a longer loan term than any other lender in the market.

One of the known banks that provide commercial truck trailer financing is the Bank of America. They give out equipment loans for truck trailers as well as leases. You can get a loan up to $25,000 with a rock-bottom rate of 3%.

If just like anything in life, getting commercial truck trailer loans from banks does have downsides. Large national banks are known to be extremely selective while giving out loans. They don’t provide you with loans if you don’t have a good credit score. They also tend to favor those individuals who have expansive revenues or an established business. 

If you satisfy all their requirements, there’s no better source for commercial truck trailer financing than them. On the flip side, if you can’t fulfill all these requirements, there’s no need for worrying! You still have access to more sources.

Commercial as well as Semi Truck Financing companies

Who says only known banks can help you with your commercial truck trailer financing needs? You can also get loans from lenders who are well-aware of the nuances of trucking and realize the importance of trucking equipment. Such lenders are usually commercial and semi-truck financing companies. 

The biggest benefit of opting for such lenders is that they specialize in providing financing for trucking equipment. They are well-versed with commercial truck owners' needs and have a plethora of knowledge about this field. They provide an overall smooth process and give a decent interest rate.

Some of the known lenders for commercial truck trailer finance are.

A popular name in the transportation financing industry, they offer financing options for commercial vehicles. They also give out finance for used and new trucking equipment like commercial truck trailers. You’ll be able to get a loan term anywhere from 12 to 84 months. Not to forget, they can provide you with competitive fixed and floating interest rates.

They are another famous lender that gives out finance options for your commercial truck trailers. You can get financing options like loans, leases, etc., for several types of commercial trucks and equipment like trailers.

Even though, these specialized lenders may sound as good as they can, but they come with their cons as well. Such lenders may sometimes keep advanced requirement criteria that can get hard to meet. 

If you have a start-up business or haven’t maintained your credit up to a mark, the loan process might be tedious. Not to mention, they are more likely to provide loans at floating interests.

Alternative Lender Options

Don't give up just yet; you still have an option! If the above two sources don't work out for you, you can always turn to online lenders. There's a multitude of online lenders that offer secure and fast truck trailer loans.

These lenders are an excellent last resort if you've been struggling to meet with the other lenders' demanding requirements. They easily lend financing facilities, even if you suffer from a bad credit score. With some paperwork and typical loan protocols, you’ll be able to get a loan for your trucking essentials. 

Summing Up

Trucking equipment like trailers helps in boosting businesses. As such, trailers' rates can tend to be very high, you can get loans for them. You'll be able to apply for a commercial truck trailer loan from a variety of sources. You can get a loan from a source that gives you a good deal and is easy on your pocket!

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