Images by Getty Images. Illustrations by Issia Davis/Bankrate
If you are growing your business, finding the funds to buy a semi-truck can be difficult. In many cases, new semi-truck costs range from $70,000 to $200,000, so you may need a semi-truck loan to cover the costs.
However, the timeline for obtaining a truck loan can affect the time it takes to get your truck available. How long it takes to get semi-truck funding depends primarily on the lender, the type of loan, and the application. For example, online lenders can fund semi-truck loans within 24 hours, while bank lenders can take up to a month.
Based on these factors, you will learn how long you can wait for semi-truck funding.
How long does it take to get funding for a semi-truck?
The time it takes to receive semi-truck funding depends on the lender and the type of loan you are using. The best semi-truck finance offers high-speed funding timelines, low interest rates and long-term conditions. Before applying, consider how long it will take for each lender to approve a semi-truck loan.
Banks and Credit Unions
- Period loan: A few days to month
- Equipment Credit Line: It’s faster than a term loan, but the timeline varies by lender
Banks and credit unions may have longer timelines for fundraising than online or direct lenders. Most banks will fund semi-truck loans within a week, but it may take up to a month to approve funding. For example, PNC banks promise to fund a particular loan within 1-5 days.
SBA lender
SBA Loan: 30-90 days
SBA loans have the longest funding timeline. The SBA loan application and financing process is well known for its long period of time, as lenders must receive SBA approval before granting the loan. Despite the long process, SBA loans offer low interest rates and long repayment terms and features desirable for small and medium-sized businesses. If an SBA loan makes the most sense for your business and you can wait for the funds, it’s a great option. Otherwise, ask other lenders for a faster funding timeline.
Online lender
Period loan: 24-48 hours
If you need funding right away, consider an online lender. Online lenders tend to use technology and automated processes to undertake loans, making the application process more efficient. Timelines vary, but the fastest lenders will fund within 24 to 48 hours. Examples of online lenders with a high-speed funding timeline:
| Lender | Types of loans | Approval Timeline |
| ondeck | Period loans, credit lines | If you apply early in the day, the same day |
| Reliable | Working capital loans, credit lines, merchant cash advances, long-term loans | Same day funding |
| Triton Capital | Working capital loans, equipment loans, SBA loans | 1 business day |
| SMB Compass | Asset-based lending, business line credit, equipment financing, SBA loans, term loans | 24-48 hours on most loans |
| Outside | Term loans, revenue advancement, business line | 1 business day |
| Funding | Term loans, credit business lines, equipment financing, invoice factoring | Same day |
Direct lender
Term Loan: From a few hours to 48 hours
A direct lender is a lender who approves and funds the loan within his or her organization, rather than providing funds through third parties. As the entire process is handled internally, there tends to be a rapid application process that provides funding in hours or days. They may also offer more specialized options for semi-truck funding. Commercial Fleet, direct lenders of semi-truck loans, will provide funding within 24 hours.
Types of semi-truck fundraising
There are multiple ways to get a semi-truck loan. It will help you to look into each type of semi-truck loan and decide where to begin searching for the loan you need. It will help you to consider the interest rates, loan terms and eligibility factors for each loan to help you choose the right loan.
| Types of loans | explanation | Lender |
| Equipment Loan | Use trucks as collateral for your loan and provide lump sum payments to buy semi-trucks | Banks, online lenders, direct lenders |
| Equipment Credit Line | Provides funding that can be repeatedly withdrawn for purchase or repair of equipment | Banks, online lenders |
| SBA Loan | Partially guaranteed by US SME administrators and designed to help small businesses that are unable to obtain traditional loans | Banks that manage SBA loans, credit unions that manage SBA loans, direct lenders that manage SBA loans |
How to get semi-truck fundraising
Like other funding options, semi-truck finance has its advantages and disadvantages. Once you determine that you are ready for a semi-truck loan, take these steps to get a semi-truck loan.
- Check your credit score: The lender will inquire about your credit, so you will want to check your credit score to find out which loan you qualify for.
- Save cash for a down payment on your loan: While some lenders provide 100% funding, most people need to lower the purchase price by 10% to 20%.
- Know if you can afford to spend on the truck: Use a business loan calculator to estimate your loan repayments. This will tell you whether your repayments will be within your budget.
- Make sure you fit Lender requirements: Many lenders list requirements that require time in the business, minimum credit score, and minimum income qualification.
- Compare loan options. Consider different types of loans that you can buy semi-trucks, such as equipment loans and SBA loans. Choose the loan that has the best features for your needs.
- Shop with a lender: Compare multiple lenders to see which offers the best interest rates, repayment terms and other loan features.
- If possible, get pre-approval for the loan. Many lenders offer pre-qualifications and show that they are eligible without performing a hard credit check. In this way you know if you can be approved by this lender and how much you are approved.
- Find the vehicle: This will allow you to do due diligence when researching the right semi-truck to buy.
- Enter it and submit your application. Finally, we collect all business financial statements, licenses and formation documents. Next, submit your loan application. The lender will reach out to you and tell you if you are approved or not.
Conclusion
Semi-truck funding timelines vary widely from days to months. The lender and the type of loan will affect how quickly you can get your funds. Lenders like banks and credit unions may take a week or up to a month to approve and pay the funds. However, within 24-48 hours, you can go with an online lender for faster funding.
For semi-truck loans, we focus on what you can control to help shorten your application and funding process. Before applying for a specific loan, make sure you meet all eligibility requirements. It also collects all the documents you need before you sit down to fill out the application.
