What can I finance with a trucking equipment loan?

Any titled commercial vehicle or attached equipment used in the operation. Tractors, day cabs, sleepers, dry vans, reefers, flatbeds, dump trailers, lowboys, lift gates, APUs, and on-board reefer units all qualify. The lender takes a first-position lien on the financed asset, and the asset's market value supports a longer term and a lower APR than working capital.

What APR should I expect on a trucking equipment loan?

The observed panel range is 9% to 18% APR for equipment loans secured by the financed asset. APR depends on credit band, age and mileage of the equipment, term length, and down payment. New equipment with a higher down payment and a 600+ FICO quotes toward the low end; older equipment, no down payment, or sub-580 FICO quotes toward the high end.

How much down payment do I need on an equipment loan?

Most equipment loans on the Dispatched panel fund with 10% to 20% down. Programs exist for zero-down and first-payment-deferred structures depending on the asset, the operator's revenue history, and the lender. Higher down payments lower the APR and shorten the term needed to keep the monthly payment manageable.

Can I get equipment financing with bad credit?

Yes. Programs route from a 500 FICO. Equipment loans are easier to underwrite at lower credit bands than working capital because the lender holds collateral on the asset. Sub-580 borrowers should expect a higher APR, a larger down payment requirement, and a shorter maximum term, but approval rates are higher than on unsecured products.

How long are typical trucking equipment loan terms?

Terms run 24 to 72 months for tractors and 24 to 60 months for trailers. Newer equipment supports the longer end; equipment over five years old typically caps at 48 months. The lender sets the maximum term based on the asset's expected residual value at payoff — a 2018 tractor financed in 2026 will not stretch to 72 months.

Can I finance used equipment from a private seller?

Yes, with conditions. The lender requires a clean title, a current inspection (DOT or independent), and a bill of sale that matches the appraised value. Private-party sales close more slowly than dealer sales because the lender needs the title pulled and the lien recorded before funds release. Plan for an extra 3 to 5 banking days versus a dealer transaction.

Will applying for equipment financing hurt my credit?

Not at the start. The Dispatched application is a soft-pull match — soft inquiries are not visible to other lenders and do not affect your score. A hard pull only happens after you pick a specific lender and move forward on their term sheet.

Equipment financing

Equipment financing for trucks, trailers, and trucking gear.

Secured by the equipment, longer payback than working capital, lower monthly payment. We route to lenders that fund Class 8 tractors, trailers, reefers, lift gates, and ELDswithout the bank’s two-year DSCR test.

See my funding options →Two-question fit (no credit pull)

No hard credit pull to start. · Takes about 2 minutes.

The short answer

What equipment financing covers.

Equipment financing is a secured commercial loan — a classic equipment loan structure where the lender holds a lien on the equipment until the loan is paid off, in exchange for a longer payback term and a lower APR than an unsecured working-capital line of the same amount. On our panel, equipment financing covers tractors, dry vans, flatbeds, reefer units, lift gates, ELDs, telematics, and most other revenue-generating trucking equipment.

The structural trade-off is the lien. While the loan is outstanding, the lender has a security interest in the equipment; selling or replacing the equipment requires coordinating with the lender. In exchange, the equipment-loan APR band on our panel runs 9% – 18% versus the 14% – 34% band on working-capital lines (see methodology). Most structures are fixed-payment term loans; a smaller subset offers a balloon payment at maturity to keep monthly cost lower.

Tax treatment is part of the appeal too. Equipment is depreciable property under MACRS depreciation, and most new and used trucking equipment also qualifies for Section 179expensing in the year placed in service — which can offset a meaningful chunk of the first year’s tax bill.

Who qualifies

Eligibility floors.

1+ year of operating history. Equipment financing is the panel product with the strongest tenure requirement; most lenders want at least 12 months of business operation under your authority. New-authority operators route to /new-authority-truck-financing.
500+ FICO panel floor.Below 580, expect rates on the higher end of the 9%–18% range, a tighter maximum loan amount, and a higher down payment requirement. 680+ unlocks the panel’s best equipment-loan pricing.
Active DOT number.The borrower’s authority needs to be in good standing with FMCSA. Recently revoked or out-of-service authorities go to a smaller subset of lenders.
Equipment with a clean title. Used equipment is fundable on most lenders; salvage-title or rebuilt-title trucks may not have a panel match. Equipment more than 10 years old or with very high mileage routes to a smaller subset.
Bill of sale or purchase quote. Required at the application step — equipment loans need to be anchored to a specific piece of equipment with a documented price.
Telematics on the financed asset (preferred, not required). Lenders increasingly factor vehicle telematics and centralized fleet management platform data into pricing, because real route and uptime data lowers the perceived risk on the collateral.

Composite scenario

What an equipment-financed request looks like.

Composite illustrative scenario — not a specific borrower. See methodology.

OperatorSmall fleet, 4 tractors + 6 trailers, 5 years operating, primarily Midwest van freight, fleet owner FICO 685.

SituationAdding a fifth tractor — used 2021 Cascadia, $85K purchase from a regional dealer. 15% down available from operating cash.

Estimator outputBest fit: Equipment financing. Direct-to- dealer wire after title work coordinates. 48-month term, lien held until paid off.

APR band9% – 12% APR (observed panel range for this credit tier with stable revenue and clean equipment; final APR set by the chosen lender)

How the money moves

From application to title.

Application. Two minutes inside /apply. Revenue, time in business, the equipment, the seller. Soft-pull only.
Soft-pull match. Redacted profile to the panel subset that funds the equipment type and your credit band.
Offers. APR, term, total cost, down payment requirement on each term sheet, side by side, before any hard pull.
One hard pull. Only after you pick a specific lender and move forward.
Title work + wire. Lender coordinates the title and lien filing with the seller and the state. Wire goes out to the dealer (or escrow for private-party deals) once title clears.

FAQ

Questions about equipment financing.

What can I finance with a trucking equipment loan?: Any titled commercial vehicle or attached equipment used in the operation. Tractors, day cabs, sleepers, dry vans, reefers, flatbeds, dump trailers, lowboys, lift gates, APUs, and on-board reefer units all qualify. The lender takes a first-position lien on the financed asset, and the asset's market value supports a longer term and a lower APR than working capital.
What APR should I expect on a trucking equipment loan?: The observed panel range is 9% to 18% APR for equipment loans secured by the financed asset. APR depends on credit band, age and mileage of the equipment, term length, and down payment. New equipment with a higher down payment and a 600+ FICO quotes toward the low end; older equipment, no down payment, or sub-580 FICO quotes toward the high end.
How much down payment do I need on an equipment loan?: Most equipment loans on the Dispatched panel fund with 10% to 20% down. Programs exist for zero-down and first-payment-deferred structures depending on the asset, the operator's revenue history, and the lender. Higher down payments lower the APR and shorten the term needed to keep the monthly payment manageable.
Can I get equipment financing with bad credit?: Yes. Programs route from a 500 FICO. Equipment loans are easier to underwrite at lower credit bands than working capital because the lender holds collateral on the asset. Sub-580 borrowers should expect a higher APR, a larger down payment requirement, and a shorter maximum term, but approval rates are higher than on unsecured products.
How long are typical trucking equipment loan terms?: Terms run 24 to 72 months for tractors and 24 to 60 months for trailers. Newer equipment supports the longer end; equipment over five years old typically caps at 48 months. The lender sets the maximum term based on the asset's expected residual value at payoff — a 2018 tractor financed in 2026 will not stretch to 72 months.
Can I finance used equipment from a private seller?: Yes, with conditions. The lender requires a clean title, a current inspection (DOT or independent), and a bill of sale that matches the appraised value. Private-party sales close more slowly than dealer sales because the lender needs the title pulled and the lien recorded before funds release. Plan for an extra 3 to 5 banking days versus a dealer transaction.
Will applying for equipment financing hurt my credit?: Not at the start. The Dispatched application is a soft-pull match — soft inquiries are not visible to other lenders and do not affect your score. A hard pull only happens after you pick a specific lender and move forward on their term sheet.

Buy the equipment, finance the lien, run the work.

Soft-pull match first. One hard pull only with the lender you choose.

See my funding options →Or check my fit first →