Answer
Can I get a business loan to buy a truck?
Yes, and equipment financing is usually the better route than a general business loan. What it costs and what lenders check.
Yes. For a single vehicle, equipment financing is normally the better route: the truck secures the loan, approval leans on the asset rather than purely on you, and funding takes days. An SBA 7(a) works for larger fleet purchases and costs less, but takes weeks.
Three routes, and when each wins
| Route | Best for | Typical cost | Speed |
|---|---|---|---|
| Equipment financing | One to a few vehicles | 7.0% - 30.0% APR | 1 to 10 days |
| SBA 7(a) | Fleet purchases, or vehicles plus working capital | 10.0% - 14.0% APR | 30 to 90 days |
| Dealer or captive financing | Convenience at the point of sale | Varies widely | Same day |
| Line of credit | You buy, then repay flexibly | 9.0% - 60.0% APR | Days to weeks |
What lenders check on a vehicle loan
- The vehicle itself — year, mileage or hours, and whether there is a deep resale market. A three-year-old day cab is easy; a specialised rig is not.
- New versus used. New typically finances at 0% to 10% down over 4 to 6 years; used wants 10% to 25% down over 3 to 5.
- Your personal credit, which matters but less than for unsecured lending because the asset secures the loan.
- Time in business. A brand new authority is the hardest moment in trucking to finance — see trucking financing.
- Title and lien perfection. The lender files a lien on the title; private-party purchases take longer because the title path has to be clean.
What the SBA data shows
For context on how this sector borrows: long-distance trucking takes a median SBA 7(a) loan of roughly $75,000 and local freight around $69,000 — among the smallest medians of any sector, because most of it is rolling stock rather than real estate. Courier and delivery businesses run higher at $260,000. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
Buying a vehicle versus leasing it
| Finance (buy) | Lease | |
|---|---|---|
| You own it | Yes, from day one | Only if you buy out at the end |
| Monthly payment | Higher | Lower |
| Down payment | 0% to 25% | Often first and last payment |
| Mileage limits | None | Common, with overage charges |
| Best when | You will run it for most of its life | You cycle vehicles every few years |
Section 179 and bonus depreciation can change this comparison materially after tax, and the rules shift with tax legislation. Run it past your accountant with the current-year limits before signing, not after.
Questions people actually ask
Can I get a truck loan with bad credit?
Often yes. The truck secures the loan and there is a deep resale market, so lenders work meaningfully below 600 with a larger down payment -- commonly 15% to 25% down and a rate at the top of the range.
Can I use an SBA loan to buy a vehicle?
Yes, vehicles are eligible equipment under the 7(a). It is usually only worth the paperwork if you are buying several at once, or combining the purchase with working capital, because dedicated equipment financing funds in days rather than weeks.
Should the loan be in my business name?
If the vehicle is genuinely for business use, yes -- it keeps the debt on the business, builds business credit where the lender reports commercially, and keeps the expense treatment clean. You will almost certainly still sign a personal guarantee.