How to Get a Loan for a Trucking Business in 5 Steps

Starting or expanding a trucking business requires significant capital. Whether you’re purchasing your first truck, growing your fleet, or covering operating costs like fuel and maintenance, access to the right financing can help keep your business on the road and running efficiently.

Fortunately, there are a variety of business loan options designed specifically for the trucking industry. These funding solutions can support everything from equipment purchases to day-to-day expenses, giving you the flexibility to focus on logistics and delivery.

In this guide, we’ll break down the five key steps to getting a loan for your trucking business. You’ll learn how to assess your needs, compare loan types, meet eligibility requirements, and choose the best financing partner to help drive your business forward.

1. Determine Your Financing Needs

Before applying for a loan, it’s important to understand exactly how much funding your trucking business needs and what it will be used for. Whether you’re an owner-operator buying your first rig or a fleet owner managing multiple trucks, having a clear plan helps you choose the right loan type and increases your chances of approval.

Common Reasons for Trucking Business Loans

Trucking businesses have a range of financial needs depending on their size, service area, and operational costs. Here are some of the most common uses for funding:

• Truck and Trailer Purchases: Buying new or used trucks and trailers is one of the biggest expenses in the industry. Loans can help finance the purchase without tying up your working capital.
• Maintenance and Repairs: Unexpected breakdowns and regular servicing can add up quickly. Financing can help cover high repair bills and keep your vehicles in top shape.
• Fuel and Operating Expenses: With fluctuating fuel prices and long payment cycles, many trucking businesses use loans to manage cash flow for essentials like fuel, tolls, and driver pay.
• Insurance and Compliance Costs: Commercial trucking requires multiple forms of insurance, permits, and regulatory compliance. Loans can help cover these costs upfront so you stay legally compliant.
• Business Expansion: If you’re taking on new routes or contracts, you may need to invest in additional vehicles, staff, or back-office support. Financing allows you to scale without straining existing resources.

2. Types of Trucking Business Loans

Trucking companies have access to a variety of loan options, each designed to meet different needs. Whether you’re financing equipment, covering operating costs, or expanding your fleet, choosing the right loan type is key to supporting your business goals.

Equipment Financing

Equipment financing is specifically designed for purchasing trucks, trailers, and other heavy-duty equipment. The equipment itself typically serves as collateral.

• Loan Amounts: Up to 100% of the equipment’s value
• Uses: New or used trucks, trailers, GPS units, dash cams, and maintenance equipment
• Terms: Usually 3 to 7 years, with repayment terms based on the expected lifespan of the equipment

SBA 7(a) Loans

The SBA 7(a) program offers government-backed loans with competitive rates and flexible terms. It’s a strong option for established trucking businesses looking for long-term capital.

• Loan Amounts: Up to $5 million
• Uses: Working capital, fleet expansion, refinancing, or acquiring a facility
• Terms: Up to 10 years for working capital or equipment; up to 25 years for real estate

Term Loans

A term loan provides a lump sum of funding repaid over a fixed period. It’s a good option for major one-time expenses.

• Loan Amounts: Varies based on credit profile and lender
• Uses: Truck upgrades, business expansion, marketing, or refinancing high-interest debt
• Terms: Typically 1 to 10 years, with fixed or variable interest rates

Business Line of Credit

A business line of credit gives you flexible access to funds as needed, making it a useful tool for managing cash flow and short-term expenses.

• Credit Limits: Based on revenue, credit history, and time in business
• Uses: Fuel costs, insurance, payroll, and emergency repairs
• Terms: Revolving credit; only pay interest on the amount drawn

3. Assess Your Eligibility

Before applying for financing, it’s important to understand the factors lenders use to evaluate your trucking business. While exact requirements vary by lender and loan type, most will assess your financial history, business stability, and ability to repay the loan.

Credit Score

Your personal and business credit scores play a major role in determining loan approval and terms. Traditional lenders may require a score of 680 or higher, while alternative lenders may accept scores in the mid-600s or lower, especially if other aspects of your application are strong.

Time in Business

Lenders often prefer to work with trucking businesses that have been operating for at least 1 to 2 years. If you’re a newer business, you may still qualify for certain loans, but you’ll need to show strong financials or a well-structured business plan.

Annual Revenue

Most lenders have minimum revenue requirements, often ranging from $100,000 to $250,000 per year. They want to ensure your business generates enough income to handle ongoing loan payments.

Cash Flow and Profitability

Even with solid revenue, lenders will evaluate your expenses and profit margins. Trucking businesses with consistent cash flow and strong operating income are more likely to qualify and receive favorable terms.

Collateral (When Required)

Some loans—particularly equipment financing or certain term loans—may require collateral. This could include trucks, trailers, or other business assets. Collateral can strengthen your application and improve your chances of approval.

4. Choose the Right Lender

After identifying your financing needs and reviewing your eligibility, the next step is to find a lender that understands the trucking industry and offers terms that work for your business. Different lenders serve different needs, so it’s important to compare your options.

Traditional Banks

Banks often provide low-interest rates and longer repayment terms, making them a good fit for well-established trucking companies with strong credit. However, they typically require more documentation and have slower approval times.

Online and Alternative Lenders

Alternative lenders offer faster funding, flexible qualification criteria, and a range of loan products. These lenders are often a better fit for owner-operators, newer businesses, or companies with less-than-perfect credit.

Industry-Focused Lenders

Some lenders, such as SBG Funding, specialize in trucking and transportation businesses. These lenders understand the challenges of the industry and may offer tailored financing options, such as truck-specific loans or fuel advance programs.

5. Gather Your Documents and Apply

Once you’ve chosen a lender and the right type of loan, it’s time to prepare your application. Submitting complete and accurate documentation helps speed up the approval process and improves your chances of success.

Common Documents You’ll Need

While specific requirements vary, most trucking business loan applications require the following:

• Business Bank Statements: Typically the most recent 3 to 6 months of statements
• Tax Returns: Personal and business tax returns from the past 1 to 2 years
• Profit and Loss Statement: A current snapshot of your revenue, expenses, and net income
• Balance Sheet: Details on your business assets, liabilities, and equity
• Equipment Quotes or Invoices: If applying for equipment financing, you may need truck specs or pricing information
• Business License or DOT Number: Proof that your business is legally registered and authorized to operate
• Personal Identification: Usually a government-issued ID such as a driver’s license

Some lenders may also request proof of insurance, current truck titles, or customer contracts—especially if those contracts impact your revenue projections.

Once your application is submitted, approval timelines can vary from a few hours with online lenders to several weeks with traditional banks. Be sure to respond quickly to any additional documentation requests and thoroughly review all terms before accepting an offer.

Flexible Term Loans for Trucking Businesses from SBG Funding

Whether you’re purchasing your first truck or scaling an established fleet, SBG Funding offers customized loan solutions built for the unique demands of the trucking industry. Our fast and flexible financing helps you stay on the road and focused on delivery.

Why Choose SBG Funding?

• Quick Approvals: Get a decision in as little as 24 hours.
• Tailored Loan Options: Use funds for truck purchases, repairs, fuel costs, or working capital.
• Transparent Terms: No hidden fees and competitive rates.

How to Apply

1. Apply Online: Complete our short application in minutes.
2. Get a Fast Decision: We’ll review your request and respond within 24 hours.
3. Receive Funding: Approved funds can be in your account as soon as the same day.

Applying won’t affect your credit score. Get the capital your trucking business needs—without the roadblocks.