Glossary · Trucking Finance
Line of Credit.
Revolving credit facility allowing the carrier to draw funds as needed up to an approved limit; pays interest only on drawn balance.
What it is
A line of credit is a revolving credit facility — the carrier can draw, repay, and redraw repeatedly up to an approved limit (e.g. $50K, $250K). Interest is charged only on the drawn balance, not the full limit. Rates typically run Prime + 4–10% depending on whether the line is secured (lower rate) or unsecured (higher rate). Business lines of credit are common in the $25K–$500K range for trucking carriers.
Providers split between traditional banks (Bank of America, regional banks) and online lenders (Bluevine, Fundbox, OnDeck). Bank-issued lines are cheaper but slower to underwrite and harder to qualify for. Online lines are faster (often 24–72 hours) but priced higher. Typical underwriting requirements: 6–24 months in business, $100K+ annual revenue, 600+ FICO. Some lines auto-renew annually with a soft credit pull; others require a full re-underwrite.
Why it matters for trucking finance
A pre-approved line of credit is the trucking carrier's strongest cash-flow buffer. Having $50K of available capital that you only pay for when you use it beats paying ongoing interest on a $50K term loan you only needed for two weeks. Lines of credit are harder to qualify for than working-capital term loans (longer track record required) but materially cheaper over time for carriers with intermittent cash needs. Combining factoring + line of credit is a common owner-operator cash-flow architecture.
Related terms
- Working Capital — Short-term unsecured business funding used to bridge cash-flow gaps, cover operating expenses, or capitalize on opportunities; APR typically 14–34%.
- Term Loan — Lump-sum business loan repaid over a fixed schedule with interest; the standard structure for equipment purchases and major capital expenditures.
- Asset-Based Lending (ABL) — Revolving credit facility secured by accounts receivable, equipment, or inventory; typical for fleets with $5M+ annual revenue.
Related Dispatched products
Ready to qualify?
The vocabulary above is the upper-funnel layer. If you are ready to move on financing, factoring, or insurance, start the matching flow — soft pull, no credit impact to begin.