Trucking companies are the backbone of logistics, but high operating costs can slow you down. Whether you’re an owner-operator needing $40,000 for truck repairs or a fleet manager seeking $100,000 to expand, small business loans can keep your business moving.
With $650 billion in small business lending in 2024 and the trucking industry growing toward $18.09 billion in 2025, financing options are more accessible than ever, even for businesses with 620–650 credit scores and $160,000 in revenue. This guide covers everything you need to know about small business loans for trucking companies, including types, eligibility, and tips for success. For real-world lender feedback, check out Loans for Small Business.
Why Trucking Companies Turn to Small Business Loans
Trucking businesses face unique challenges: fuel costs, truck maintenance, driver wages, and fleet expansion. A small business loan can cover these, offering better terms than personal loans or high-interest credit cards. Whether you need funds in 3 weeks for urgent repairs or long-term financing for growth, understanding your options is key. Here’s a comprehensive look at small business loans for trucking companies in 2025.
Types of Small Business Loans for Trucking Companies
1. Equipment Financing
What It Is: Loans to buy or repair trucks, trailers, or equipment, secured by the asset itself.
Best For: Trucking companies needing $40,000 for repairs or upgrades, with a 620 credit score and $160,000 revenue.
Key Features:
- Rates: 6–15% APR.
- Terms: 1–7 years.
- Funding Speed: 1–5 days, ideal for 3-week timelines.
Pros: - Easier approval due to collateral.
- Payments (~$300/month for $40,000 at 8% over 7 years) fit tight budgets.
- Accessible for 600+ credit scores.
Cons: - Limited to equipment purchases or repairs.
- Risk of repossession if payments are missed.
Example Lender: Truck Lenders USA, specializing in trucking equipment loans.
Why It Fits: Perfect for urgent repairs or upgrades with fast funding.
2. SBA 7(a) Loan
What It Is: Government-backed loans for equipment, working capital, or fleet expansion, with low rates and long terms.
Best For: Established companies with 680+ credit seeking $100,000 for growth.
Key Features:
- Rates: 8–10% in 2025.
- Terms: Up to 25 years for real estate, 7–10 for equipment.
- Funding Speed: 30–90 days.
Pros: - Low rates and flexible use.
- Long terms reduce monthly payments.
- Supports large investments like fleet purchases.
Cons: - Slow process, not suited for 3-week needs.
- Requires strong credit and extensive paperwork.
Example Lender: Local SBA-partnered banks or Clarify Capital for application support.
Why It Fits: Ideal for long-term growth but not urgent needs.
3. Online Term Loan
What It Is: Fixed-payment loans from fintech lenders, with quick approvals and shorter terms.
Best For: Companies needing $40,000–$100,000 fast, with 620 credit and $160,000 revenue.
Key Features:
- Rates: 10–30% APR.
- Terms: 6 months to 5 years.
- Funding Speed: 1–3 days.
Pros: - Meets 3-week timelines.
- Simple online applications.
- Accessible for 600+ credit scores.
Cons: - Higher rates than SBA loans.
- Shorter terms increase payments.
Example Lender: Biz2credit, offering up to $500,000 in 24 hours.
Why It Fits: Great for quick repairs or small-scale expansion.
4. Freight Factoring
What It Is: Selling unpaid invoices at a discount (1–5%) for immediate cash, not a loan.
Best For: Trucking companies with delayed client payments needing $40,000 for fuel or maintenance.
Key Features:
- Fees: 1–5% per invoice.
- Funding Speed: 1–2 days.
- Advances: 80–90% of invoice value.
Pros: - Fast cash for 3-week needs.
- Credit score less critical (550+).
- No debt incurred.
Cons: - High fees reduce profits.
- Depends on client payment reliability.
Example Lender: altLINE by The Southern Bank.
Why It Fits: Boosts cash flow without adding debt, ideal for urgent needs.
5. Merchant Cash Advance
What It Is: A lump-sum advance repaid via a percentage of daily revenue or card sales.
Best For: Companies with high transaction volumes needing $40,000–$100,000 quickly.
Key Features:
- Factor Rates: 1.2–1.5.
- Funding Speed: 1–3 days.
- Repayments: 5–15% of daily sales.
Pros: - Fast funding for 3-week timelines.
- No collateral required.
- Flexible repayments.
Cons: - High costs can strain cash flow.
- Not ideal for low-revenue periods.
Example Lender: Square Capital.
Why It Fits: Suits businesses with steady revenue but requires careful budgeting.
Eligibility and Application Tips
Eligibility Requirements:
- Credit Score: 620–650 qualifies for equipment financing, online term loans, freight factoring, or merchant cash advances; SBA loans need 680+.
- Revenue: $160,000 annual revenue supports most loans, with 3–4 months of bank statements often required.
- Time in Business: 3 years in business meets most lender criteria.
Application Tips:
- Prepare Documents: Gather tax returns, bank statements, proof of $160,000 revenue, CDL licenses, and a business plan.
- Choose the Right Loan: For $40,000 repairs in 3 weeks, prioritize equipment financing or freight factoring. For $100,000 expansion, consider online term loans or SBA.
- Use Marketplaces: Platforms like Clarify Capital or National Business Capital connect you to 75+ lenders, but check fees on Loans for Small Business.
- Calculate Affordability: A $40,000 loan at 8–10% over 7 years yields ~$300/month payments. Use a loan calculator.
- Boost Approval Odds: Highlight consistent revenue and offer collateral (e.g., trucks) for better terms.
Success Story: A Trucking Company’s Turnaround
Maria, a fleet manager with a 650 credit score and $170,000 revenue, needed $40,000 to repair two trucks. She opted for freight factoring with altLINE, receiving 85% of her invoices ($34,000) in 2 days.
The quick cash kept her trucks on the road, increasing deliveries by 12% in 3 months. Maria’s story shows how the right financing can solve urgent needs. Read more on Loans for Small Business.
FAQ on Trucking Company Loans
Can I get a $40,000 loan with a 620 credit score?
Yes, equipment financing or freight factoring accept 550–620 scores, ideal for repairs or cash flow.
How fast can I get funds in 3 weeks?
Equipment financing, online term loans, or freight factoring fund in 1–5 days, meeting tight timelines.
Are marketplaces like Clarify Capital trustworthy?
They offer access to 75+ lenders, but fees vary. Check Loans for Small Business for reviews.
Can I afford $300/month for a $40,000 loan?
Yes, a 7-year loan at 8–12% APR aligns with this budget. Confirm with a loan calculator.
What documents are required?
Business plan, financial statements, tax returns
