Commercial Truck Loan Interest Rates
*Updated weekly based on the Federal Reserve Prime rate.
**Actual rates vary depending on borrower credit score, down payment, loan term length, and lender profit spread. See credit and lender-based rates below.
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Current Commercial Truck Loan Interest Rates by Credit Score
FICO Score | Commercial Truck Loan Interest Rates |
|---|---|
20% or Higher | |
12% to 19% | |
9% to 12% | |
8% to 5% | |
4% or Lower |
Commercial Truck Loan Interest Rates by Brand
Rate Table by Lender
Lender | Commercial Truck Loan Interest Rates | Requirements |
|---|---|---|
Equipment Loan Rates Starting at 8% | Much Looser Application Requirements, At Least 550 Credit Score | |
Equipment Loan Rates Starting at 7% | Minimum 2 Years in Business, At Least $250,000 in Annual Revenue. | |
Commercial Truck Financing Rates Starting at 8.9% | 600+ Credit Score (May Work With Less), At Least 20% Down Payment | |
Commercial Truck Financing Rates From 8% to 18% | 2+ Years in Business, 650+ Credit Score, $5,000+ Monthly Bank Balance | |
Equipment Financing Factor Rates Starting at 1.1% (APR comparison varies by terms and loan amount) | Fair to Excellent Credit, 6 Months in Business, Equipment Quote From Vendor |
Commercial Truck Loan Interest Rates | Requirements |
|---|---|
Equipment Loan Rates Starting at 8% | Much Looser Application Requirements, At Least 550 Credit Score |
Commercial Truck Loan Interest Rates | Requirements |
|---|---|
Equipment Loan Rates Starting at 7% | Minimum 2 Years in Business, At Least $250,000 in Annual Revenue. |
Commercial Truck Loan Interest Rates | Requirements |
|---|---|
Commercial Truck Financing Rates Starting at 8.9% | 600+ Credit Score (May Work With Less), At Least 20% Down Payment |
Commercial Truck Loan Interest Rates | Requirements |
|---|---|
Commercial Truck Financing Rates From 8% to 18% | 2+ Years in Business, 650+ Credit Score, $5,000+ Monthly Bank Balance |
Commercial Truck Loan Interest Rates | Requirements |
|---|---|
Equipment Financing Factor Rates Starting at 1.1% (APR comparison varies by terms and loan amount) | Fair to Excellent Credit, 6 Months in Business, Equipment Quote From Vendor |
How We Calculate These Rates
Commercial truck loan interest rates are calculated based on the Federal Funds Rate. There are also ways that individual lenders will set rates for commercial truck financing. We take a closer look at which factors determine rates when shopping with lenders below.
What Affects Your Commercial Truck Loan Rate
Credit Score
The higher your personal or business credit score, the lower your rates for commercial truck financing. Your credit score(s) demonstrate creditworthiness to commercial truck loan lenders. Minimum credit score requirements will vary based on the lender.
Time in Business
Lending money to a new business is risky for banks and similar institutions. Business owners who have proven they have staying power will demonstrate less risk to lenders. Commercial truck loan providers may have a time in business requirements of one year or more.
Truck Age and Type
The commercial vehicle you’re looking to finance will impact rates. Newer trucks that are considered low-risk may fetch you a lower rate on commercial truck loans. Meanwhile, older trucks could require more frequent repairs, leading to higher rates.
Truck types will play a role in commercial truck loan rates, too. A specialized vehicle can pose a higher risk to commercial truck lenders. This results in higher rates in commercial truck financing.
For example, semi truck financing will naturally cost more, no matter the lender. Compared to a semi truck loan, a box truck might be cheaper. Vehicle type plays a crucial role in financing.
Down Payment and Loan Term
It’s important to be strategic with commercial truck financing. A larger down payment reduces commercial truck loan interest rates by presenting less risk to the lender.
A longer business loan term can lower the monthly payment on your commercial vehicle loan. However, it can also result in higher interest rates. Keep both of these things in mind. You can use an owner operator trucking expenses spreadsheet to plan accordingly.
Commercial Truck Loan Rates by Loan Type
The lender you choose impacts the type of rates you encounter.
What are your financing options for your vehicle?
What can you expect across lender types when searching for commercial truck financing?
How do rates compare at your bank or federal credit union compared to online lenders?
Here’s a breakdown of commercial truck loan rates by lender type and loan type.
Equipment loans are the most common type of commercial truck financing. Alternatives you might consider if you’re looking to purchase a commercial truck include term loans and business lines of credit.
Commercial Truck Loan Rates for Bad Credit
Commercial truck loan rates are higher for borrowers with bad credit. But how much higher are business auto loan rates? Current data places the average commercial truck loan rates for bad credit anywhere from 20% to 99% (or more).
Commercial truck financing without the credit is costly for your business. Ideally, you’ll want to work on building your personal/business credit before applying for loans. This will help you take advantage of competitive rates and reduce financial risk.
Frequently Asked Questions
The interest rate on a commercial truck is the cost of securing a commercial loan. You want to make sure that the interest rate on your business loan is as low as possible. Consider the factors listed above before you start shopping for a commercial truck loan.
The credit score you need for a commercial truck loan varies by lender. Some may accept credit scores as low as 550. Others may require a credit score of 650 or higher for commercial truck financing. The higher your credit score, the easier it is to get a vehicle loan with good terms.
Looking to see how much your commercial truck loan will cost you overall? Use our commercial truck loan calculator to visualize commercial truck financing costs and plan accordingly.
You can get a commercial truck loan through the SBA. Certain SBA loans, like the SBA 7(a) loan, can help you secure the working capital you need to purchase a commercial vehicle.
An SBA loan has much more stringent requirements than other lender options. It can be easier to get commercial truck financing through other lenders.
Getting lower commercial truck loan interest rates starts with better business credit. Get started with Credit Suite, and build your business credit with our Fundability System or access financing with Business Credit Card Stacking today.