Trucking financing: options, costs and how to qualify
Trucking companies usually fund trucks with equipment financing and cover slow-paying freight bills with invoice factoring or a line of credit, keeping costlier cash advances for true emergencies.
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Trucking has a cash gap built in. Fuel, insurance, drivers and repairs are paid now, while shippers and brokers pay their invoices later. The right funding closes that gap without eating the margin on each load.
Two questions sort most options: is the money for an asset you will own, like a truck, or for the wait between delivering a load and getting paid?
A worked example for trucking
A major truck repair: $20,000 over 6 months
Merchant cash advance at a 1.35 factor rate$7,000 in cost
Bank loan at 10.98% APR, for owners who qualify$645 in cost
Example numbers, not an offer. The loan assumes equal monthly payments. Rates you are offered depend on your business. Price your own offers
What you need the money for, and what fits
- Waiting on freight invoicesGet paid now for loads delivered. The cost depends on your customers' credit.Best fit: Invoice factoring
- A truck or trailerThe truck secures the financing, with a term that matches its useful life.Best fit: Equipment financing
- Repairs and breakdownsDraw when a truck goes down, repay as loads pay.Best fit: Line of credit
- Insurance or permits up frontA one-time amount on a fixed schedule.Best fit: Term loan
- A yard or terminalSBA 504 loans offer long-term, fixed rate financing up to $5.5 million for major fixed assets.Best fit: SBA 504
- Growing the fleetSBA 7(a) loans go up to $5 million for a range of business uses.Best fit: SBA loan
Your card processing costs, too
If shippers or customers pay you by card, those fees come off every invoice. Find your effective rate, total fees divided by card volume, on your statement and compare it with what others offer. Our pricing model guide explains why the same card can cost very different amounts.
What to watch for
Factoring terms. Ask whether the factor can come back to you if a customer does not pay (recourse), what the fee is per 30 days, and whether you must factor every invoice or only the ones you choose.
Fixed daily debits. A cash advance taken against a slow-pay business can drain the account between payments. If you take one, know the reconciliation terms. See how an MCA works.
Four steps to funding
- 1
Answer a few questions
What you need, how much and how soon. Your industry is already filled in. No contact details to see options.
- 2
See your best-fit options
Two to four products that match, with typical cost ranges in dollars.
- 3
Get offers, if you want
Your request goes only to our own funding service, never to a call list.
- 4
Read the agreement, then decide
The funder is named in your agreement. Sign only if the numbers work.
Frequently asked questions
Sources
- SBA, 7(a) loans (maximum $5 million), accessed Oct 20, 2026
- SBA, 504 loans (maximum $5.5 million), accessed Oct 20, 2026
- SBA, Microloans (up to $50,000), accessed Oct 20, 2026
- 12 CFR 235.3, Regulation II debit interchange cap (eCFR), accessed Oct 20, 2026
- Visa, Surcharging credit cards: Q&A for merchants, accessed Oct 20, 2026