Guide · Borrowing

How much can a trucking company borrow?

For most carriers, the truck secures the loan, but your earnings set the limit. And the type of loan matters as much as the lender: a five-year truck loan and a ten-year term loan with the same payment borrow very different amounts. Here's how to work out your number.

Checked November 9, 2026

Start with what trucks cost and earn

The American Transportation Research Institute (ATRI) puts the average cost to run a truck in 2025 at $2.336 a mile, up 3.4% on the year. It found operating margins in truckload and refrigerated still below 1%, with flatbed carriers at an average loss of 0.5%. Truck and trailer payments averaged $0.40 a mile, of which trucks were $0.28.

Thin margins are the reason lenders look hard at your numbers. One broker puts it simply: lenders like to see that the truck can support its own payment.

The main limit: debt service coverage

Debt service coverage is your yearly earnings divided by your yearly debt payments, principal and interest together. Lenders usually start from EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted for one-time items. Many banks look for 1.25x. A private summary of SBA's rules lists 1.15x for most 7(a) loans, but your lender can ask for more, so plan on 1.25x.

Equipment lenders often talk less about a ratio. Instead, they look at the price of the truck, your history and your ability to repay. Doing the coverage test yourself tells you whether that repayment really fits.

Here's an example. The carrier is made up: five trucks and $1.25 million of revenue. We've assumed adjusted EBITDA of $125,000 (10% of revenue) and $48,000 a year of payments on trucks it already financed. Use your own figures.

EBITDA $125,000 Divide by 1.25x $100,000 a year Existing payments −$48,000 a year Room for new payments $52,000 a year ($4,333 a month)

The how much can I borrow calculator runs this with your numbers.

Equipment loan vs term loan: same payment, different amount

The same $4,333 a month borrows very different sums, depending on the term. At an example 10% rate:

5-year equipment loan $203,950 10-year term loan $327,908

Truck loans are usually short. One lender gives 36 to 72 months for equipment financing. A referral site says most owner-operator truck loans run 60 to 72 months, with up to 84 for strong credit or new trucks. An SBA 7(a) loan can run longer: ten years or less, unless it finances equipment or real estate with a useful life over ten years, and SBA asks for the shortest appropriate term.

Which fits?

Equipment loan. Best for buying a specific truck or trailer. The truck is the collateral, which, one lender says, typically means lower rates than unsecured products. Faster, and it doesn't tie up your other assets.
Term loan, including SBA 7(a). Better for refinancing short, expensive debt, buying another carrier, or mixing trucks with working capital. Longer terms leave more room each month, but the paperwork is heavier and it usually takes longer.

Don't stretch a loan past the truck's working life. If you still owe on a truck you need to replace, you'll be paying for two.

Can one truck carry its own payment?

New sleepers cost a lot. A dealer reports new Class 8 sleepers past $170,000 in 2026. Say the example carrier buys one at $170,000, puts 15% down and finances the rest at an example 9% over five years. We've also assumed 100,000 miles a year:

Price $170,000 Down payment (15%) −$25,500 Loan $144,500 Payment $3,000 a month $35,995 a year Per mile (100,000 miles) $0.36

That fits inside the example's $4,333 a month of room. For comparison, ATRI's 2025 industry average for truck payments was $0.28 a mile. Run the payment on your own rates per mile and your own miles before you sign. The loan payment calculator does the first step.

Down payments and what lenders check

Down payment. One broker says most semi truck deals fall between 0% and 20% down, with 15% to 20% or more for newer businesses, weaker credit and older trucks. A referral site says new authorities often put 20% to 30% down.
Time in business. The same site says most lenders want two years as an active authority, and new authorities pay a premium. Banks often want longer.
Truck age and miles. It also reports an extra 1 to 3 points of rate for trucks older than seven years or past 500,000 miles. A lender says some won't finance trucks over 10 to 15 years old or past 750,000 to 1,000,000 miles.
Paperwork. Expect business tax returns, monthly profit and loss statements and bank statements.

What the trucks are worth

Used truck prices set how much a lender can recover, and how much equity your fleet holds. ACT Research reports the average used Class 8 retail price at $64,007 in September 2026, up 12% on a year earlier. In June, the average truck sold had about 410,000 miles.

That gap matters. A $170,000 new truck and a $64,000 average used truck are different loans with different risks. If you own trucks outright, their value can back a loan too, but prices move, so get a current appraisal.

Who lends to trucking companies

Banks and credit unions. Usually the cheapest. A referral site says banks are often 5% to 9% APR but want 4+ years in business, and credit unions 2+.
Equipment lenders. One lender lists 5% to 12% APR on new equipment for good credit, and 7% to 18% on used.
SBA 7(a) lenders. Up to $5 million. For variable-rate loans over $350,000, the maximum is the base rate plus 3%; smaller loans allow up to plus 6.5%. With prime at 7.00% on October 27, 2026, that's 10% to 13.5%.
SBA 504, through a development company. Built for buildings and machinery and equipment with at least 10 years of useful life left, such as a terminal or shop. Not for working capital.
Leases and lease-purchase. Lower money down, but read the whole contract, including who owns the truck at the end.

Factoring: fast cash, at a price

Brokers and shippers often take 30 to 45 days to pay, and some 60 to 90. Factoring sells those invoices for cash now. A trucking news site reports fees of 1% to 5% of the invoice, with most carriers at 1.5% to 4%, and advances of 85% to 95% for most established carriers. Watch for extra fees: application, processing, aging, minimums, early termination, and wire or ACH.

A fee that looks small adds up. Here's an example with a 3% fee, a 90% advance and a broker who pays in 35 days:

Invoices factored $40,000 a month Fee at 3% $1,200 a month $14,400 a year Yearly cost of the cash: 3% ÷ 90% advance × 365 ÷ 35 days ≈ 35%

That's useful for a new carrier, or to bridge a slow-paying broker. But if you factor every load, compare it with a bank line of credit secured by your receivables. Factoring also doesn't count as a loan payment, but its fees come out of your earnings, which lowers the coverage you can show a lender.

How to borrow more

Know your cost per mile. Lenders want to see the truck pay for itself. Track revenue, fuel and payments per mile, by truck.
Pay off short, expensive debt. Refinancing into a longer term frees up coverage, if your lender allows it.
Save for the down payment. A larger down payment can lower the rate and the payment.
Clean up your books. Separate personal spending and one-time costs, so your adjusted earnings hold up.
Plan the slow weeks. Freight rates and broker payments swing. The 13-week cash flow template shows whether a new payment still fits in a bad month.

This guide is general information, not financial or legal advice. Rates and lender rules change, so confirm them with your lender.

See your real number, from your books.

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Sources

All checked November 9, 2026. Several are lender, broker or referral pages, so treat their figures as a guide.