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Find the right loan for your trucking business.
It’s no secret: operating a trucking business comes with urgent expenses. You may need to purchase new equipment, repair some of your fleet, quickly hire new truck drivers, or fix up your facilities. And like any business, extra working capital can improve cash flow and help power growth. Whatever you need the funding for, it’s important that you find the type of financing that is best for your business needs. That’s where OnDeck comes in.
With OnDeck, we have a team of U.S.-based loan advisors who are here to help for every step of your journey. You can apply online in minutes. Soon after, a loan advisor will call you to discuss your needs and available funding options. If approved, you can receive funds to drive your business forward as soon as the same day!†
Fuel your trucking business with funding from OnDeck.
OnDeck Line of Credit
A revolving credit line you can draw from 24/7 to receive funds within seconds.*
- Credit limits from $6K - $100K
- Flexible repayment terms of 12, 18 or 24 months
- Great for smaller ongoing expenses
What types of business funding can be used as commercial truck loans?
There are a variety of financing options available for small businesses in the trucking industry. Some of the most common include the following:
Business line of credit
A business line of credit is a form of revolving credit, similar to a credit card. Approved trucking business owners are given a specific credit limit from which they can draw funds to their business checking account. From there, they can use the funds as cash. As the funds are repaid, the amount of credit available is replenished for the business to draw from again as needed. The flexibility of this type of business funding is especially good for keeping funds on hand to cover emergencies and take advantage of opportunities as they arise.
Equipment financing is a term that refers to two different types of business financing: equipment loans and equipment leasing. Equipment loans are similar to business term loans — a lump sum of money is disbursed up front and then repaid by the borrower over a specific period of time. The difference is that the equipment purchased acts as collateral, whereas term loans are generally unsecured. With equipment leasing, the leasing company owns the equipment that the business pays to use. However, the business may have the chance to purchase it at the end of the lease.
Merchant cash advance
A merchant cash advance is a type of business funding that is commonly best for companies that receive a lot of credit card payments. With a merchant cash advance, the cash advance provider will look at a business’s past debit card and credit card sales. From that information they’ll determine the amount they can offer and how the cash advance will be repaid. Repayment with a merchant cash advance is different than other types of business funding because it’s done as an automatic daily debit from your business bank account based on a percentage (known as the factor rate) of your credit and debit card sales.
Business term loan
Business term loans are the type of loan many business owners are most familiar with. A lender approves a business for a lump sum of money, which is issued at one time to the borrower’s business checking account. The business can then use the funds to cover whatever expenses are necessary. The loan is repaid incrementally over a specific “term” — commonly in monthly payments spanning several months or years. This type of loan can also be issued as a short-term loan, where a smaller loan amount is given and repaid with loan terms of just a few months or years.
Business credit cards
Business credit cards are one of the most common ways that truckers finance their operations. Business credit cards function the way that most personal credit cards do. Some business credit cards even come with rewards. While this kind of borrowing is good for covering small business expenses here and there, seasoned trucking company owner-operators will often use them in tandem with other business funding options. When a small business owner has built up a strong credit history and a good personal credit score, it opens the door for other business loan options.
Freight factoring is a type of business financing that is specific to the trucking industry — however it’s the same as invoice factoring. With freight factoring, a trucking company sells its unpaid invoices to a factoring company at a discount. This gives the trucking business access to capital before its invoices are paid, but it won’t be getting paid the full value of the invoices. How much a factoring company takes will depend on aspects such as who the invoice customers are, the number of invoices available, and whether the factoring company will charge the same percentage for every invoice, or a tiered factoring rate that charges less for invoices that pay quickly.
We’re fluent in small business — and ready to take your call.
You don’t need to be an expert on small business loans. Our team of
Monday – Friday
9:30 a.m. – 7:30 p.m. ET
Business funding that moves at your speed.
Complete the application.
Our streamlined process is designed to be completed in just minutes.
Get a decision.
We’ll let you know if you qualify for our term loan, line of credit or both. If approved, you can then choose your loan amount and repayment terms.
Receive your funds.
Sign your contract and get funds as soon as the same day.†
Are we a match? Check our minimum requirements.**
personal FICO® score
business annual revenue
Learn more about trucking company loans.
The U.S. Small Business Administration (SBA) offers a number of loan-guarantee programs that could be a potential fit for a trucking company. The 7(a) loan program is the most popular and probably the most flexible SBA loan. This loan is designed to fit a number of small business lending scenarios and could be a good fit if your business ends up qualifying. It offers:
- Long-term working capital (three years or more).
- Short-term working capital (less than three years).
- Loans for purchasing equipment.
- Loans for purchasing real estate, including property and buildings.
- Loans for new construction or renovation.
- Loans for establishing a new business or contributing to the purchase of an existing business.
SBA-guaranteed loans typically have some of the lowest interest rates, but the application process can take weeks — or even months to complete.
OnDeck is not an SBA lender, but does offer small business loans as an alternative to an SBA loan for businesses that an SBA loan isn’t a good fit.
The first step before applying for any type of business funding if you have bad credit is to try improving your credit score and credit report as much as possible. You can check out our blog post about building business credit for more information on that.
Once you’re ready to apply for funding, options like business credit cards, business lines of credit and short-term business loans would be good for helping you build positive credit history. Each of those types of business funding are able to be repaid quickly and regularly. This can help you cover your financial needs and improve your business credit score at the same time.