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Asset-backed securities (ABS) are a financial investment backed by a pool of assets, such as loans. Such loans offer benefits to investors, lenders, and borrowers alike. But they are still vulnerable to losses from loan delinquency. And in May 2025, 60-plus day delinquencies for ABS equipment loans spiked.

What is behind these recent ABS equipment loan delinquencies, and what are the implications? We examined the subject of ABS loan delinquencies, their most common root causes, and how to mitigate the risks.

The Current Landscape of Equipment Loan Delinquencies

Recent data from Kroll Bond Rating Agency’s (KBRA) Equipment Loan & Lease Index reveals that 60-plus-day delinquencies in equipment loan and lease ABS surged by 34 basis points (bps) month-over-month in May 2025.

Small to medium-ticket delinquencies jumped 22 bps month-over-month, while large-ticket delinquencies increased 41 bps. Year-over-year, there was an increase of 1,8% in these delinquencies in the current period. This indicates that stress has been building within equipment financing portfolios for some time.

According to Joanne DeSimone, managing director of commercial ABS at KBRA, the increase, specifically of large-ticket delinquencies, “has been driven over the past two years by the stress in transportation assets, the stress in trucking”.

Factors Driving the Increase in Delinquencies in Asset-Backed Securities

Let’s consider the factors driving these delinquencies.

A Symptom of a Larger Problem

Delinquency rates have been increasing across various types of loans for some time. Auto loan delinquency rates, especially, have been increasing across credit scores and income levels. Therefore, we can see that Americans have been struggling to keep up-to-date with loan payments across the board.

Inflation

Rising inflation is often a factor in loan delinquency. Inflation affects the cost of loan repayments. Even a modest rise increases the cost of goods. Even a modest rise increases the cost of goods. And that can make it more difficult to keep up with loan repayments as well.

Equipment loans are crucial for enabling trucking companies to remain operational. But if they’re paying more for essential goods and services, business owners may have to allocate more resources toward basic operations, compromising their ability to service debt obligations.

Low Business Confidence Due to Economic Uncertainty

When businesses feel confident about their future potential, they are more likely to do what it takes to grow their operations. That includes repaying loans, because they know that they will be able to afford it. However, business confidence, especially in smaller businesses, has been weakening.

And the main reason behind that is the economic turbulence that has been plaguing the US. Inflation, monetary policy, freight slowdown, and trade tariff uncertainty have all impacted the economy. This can make small fleet owners fearful of the future and less likely to prioritize loan repayments.

Industry-Specific Factors

Other factors influencing loan delinquency amongst trucking companies are more industry-specific.

The North American trucking industry in 2025 is grappling with various issues, including inflationary pressures from tariffs, trade policy shifts, and market realignments. Freight volumes also remain conservative.

Fuel costs, maintenance costs, labor expenses, supply chain disruptions, and trucking market volatility create a squeeze on cash flow, pushing loan payments to lower priority levels.

And the FMCSA’s proposed regulatory changes add further stress on smaller fleets.

Implications for Stakeholders in Equipment Finance

What are the implications of ABS equipment loan delinquencies for stakeholders?

Lenders

The spike in ABS equipment loan delinquencies creates ripple effects throughout the financing ecosystem. Lenders rethink their risk management strategies and underwriting criteria. Investors worry about returns and portfolio performance.

Investors

The rise in ABS equipment loan delinquencies and the uncertainty they cause can lead to reduced appetite for new ABS issuances. This can potentially constrain the flow of capital into loan and lease pools.

Borrowers

Trucking businesses and other equipment-dependent operations that rely exclusively on traditional bank financing or ABS loans may find themselves vulnerable. This signals the importance of diversifying financing sources and maintaining strong relationships with specialized lenders.

Equipment Manufacturers

The broader implications extend to the equipment manufacturers and dealers.

Equipment loan and lease pools have shown resilience despite economic challenges. However, as delinquencies rise and lenders become more selective, commercial truck manufacturers may need to explore alternative financing partnerships or develop solid internal financing capabilities.

Mitigation Strategies

Successful navigation of the current environment requires proactive approaches from manufacturers, lenders, investors, and borrowers.

For Manufacturers: Seek Industry-Leader Partnerships

Manufacturers of other trucking equipment can increase their sales figures by partnering with trusted lenders. But they should seek out financing partners that are dedicated to the industry, like Mission Financial Services.

For Lenders: Develop More Stringent Evaluation Methods

Current evaluation methods may not adequately capture emerging risks in the equipment financing space. Lenders should start implementing more stringent qualification requirements and potentially adjust pricing to reflect higher risk levels.

For Investors: Focus on Risk Assessment and Portfolio Diversification

Investment is always risky, even with traditionally resilient asset-backed securities. Portfolio diversification can reduce the risks associated with a truck-centric only portfolio.

The constant default rate (CDR) helps investors understand the potential for losses in ABS loans. Investors should pay more attention to risk management based on the CDR.

For Borrowers:

Trucking companies can strengthen their financing positions by maintaining detailed financial records and prioritizing financial management. They should explore specialized financing options designed for their industry’s unique characteristics, such as Mission Financial Services.

The Outlook

The outlook for equipment financing markets depends largely on broader economic challenges and policy responses.

When inflationary pressures moderate and interest rates stabilize, we may see improvement in delinquency rates. However, businesses should prepare for continued volatility and maintain conservative financial management practices.

Moving forward, we expect the equipment financing landscape to evolve as lenders adapt their strategies and borrowers adjust their approaches to capital management. Success will depend on flexibility, preparation, and correctly aligning financing with overall performance and long-term business objectives.

Conclusion

The spike in ABS equipment loan delinquencies during May 2025 demands attention from all equipment financing ecosystem stakeholders.

But most importantly, trucking businesses must practice stronger financial management and find lenders who understand industry-specific challenges. The current environment, while challenging, also creates opportunities for businesses that can demonstrate strong operational performance.

Trucking businesses taking proactive steps to address financing challenges will be better positioned to weather current market conditions. And Mission Financial Services is ready to meet their needs with favorable terms despite broader market constraints.

Contact us for more information on financing options designed to meet the needs of the trucking industry.

Running a successful trucking business requires careful financial planning, and understanding commercial truck registration costs plays a crucial role in your budgeting process.

We know that navigating the world of state fees, weight classifications, and regulatory requirements can feel overwhelming for small trucking businesses and owner-operators. So we created this guide that breaks down everything you need to know about cost factors for commercial truck license plates.

Factors Influencing Registration and Commercial Truck License Plate Cost

How much does it cost to register a semi-truck, and how much do commercial truck license plates cost in general? That question does not have a simple answer because commercial truck registration costs can vary significantly based on several key factors.

Understanding these variables helps you anticipate costs and budget accordingly for your trucking operations.

Vehicle Weight

Semi-truck registration is often much more expensive than regular motor vehicle registration. The main reason? Your truck’s weight classification is the primary factor determining the cost of your registration and commercial truck license plates in most states.

A semi-truck can weigh anywhere from 10,000 pounds without the trailer to 35,000 pounds with the trailer added. That’s why the various states typically use one of these weight measurements:

• Gross Combined Weight Rating (GCWR): The maximum loaded weight of a semi-tractor and trailer combined.
• Gross Vehicle Weight Rating (GVWR): The maximum loaded weight of any single vehicle, as specified by the manufacturer.
• Unladen weight: The weight of your empty tractor and trailer.

Many states structure their fees on a sliding scale, where heavier vehicles pay more than lighter ones.

Value/Type

Some states use a formula to calculate the cost of your semi-truck registration based on the truck’s value.

The type of commercial vehicle also influences costs. Tractors typically carry higher registration fees than trailers, and specialized vehicles like hazmat transporters may face additional charges. You’ll also need a DOT number if you plan to drive passengers, transport hazardous materials, or deliver interstate freight.

Location & State-Specific Registration Fees

Your business location determines which state’s fee structure applies to your primary registration. Each state develops its fee structure based on local transportation and revenue requirements. Some states favor flat-rate systems, while others implement tiered pricing.

Western states may be able to charge higher fees due to increased infrastructure demands from heavy freight traffic. Mountain states may add surcharges for vehicles operating in challenging terrain conditions, and agricultural states sometimes offer reduced rates for farm-related commercial vehicles.

Local/Interstate Operations

The cost of the license plate varies depending on whether it’s for local or interstate use.

If you operate your trucking business across national borders or in multiple states, you must apply for apportioned plates through the International Registration Plan (IRP). This distributes fees across participating jurisdictions based on your mileage.

If you operate locally, in your city, or across your state, you only need a local plate.

Additional Commercial Motor Vehicle Fees and Surcharges

Beyond base registration fees, you’ll encounter various additional charges that can significantly impact your total costs:

• Many states impose additional taxes to fund highway maintenance and construction.
• Annual or biennial safety inspections may be required, adding $50-150 to your costs.
• You could face processing charges for paperwork and documentation.
• Some states charge an extra county fee or additional fees for emissions testing or environmental compliance.
• Separate charges can apply for physical plates and title documentation.

State-Specific Commercial Vehicle Registration Cost Examples

Registration costs vary dramatically across the United States. You could pay anywhere from a few hundred dollars to over two thousand. The figures vary based on specific vehicle characteristics, local jurisdictions, and current fee schedules.

But here are some examples:

• If you’re based in Alabama, you may pay up to $890, depending on the type of truck or truck tractor and its gross weight. Gross vehicle weight also influences registration costs in Alaska, Arizona, Florida, Indiana, Louisiana, Michigan, Missouri, and Nevada.
• In Arkansas, you’ll pay $21.50, plus an additional charge per 1,000 pounds. Costs are scaled by vehicle weight in Georgia, Kentucky, New Jersey, and Vermont, too.
• In California, registration and licensing are not your only expenses to worry about. Environmental regulatory fees apply. The Golden State has a Clean Truck Check compliance fee of $30, which will be raised to $32.13 in January 2026.
• Situated in Delaware, Iowa, Maryland, Minnesota, Nebraska, or New York? Your registration costs are calculated based on your truck’s weight classification. The same goes for Oregon, South Dakota, and Washington.
• In Idaho, the costs depend on weight and vehicle type. But if you’re registering your truck in Illinois, the costs are determined by the vehicle’s weight and intended use.
• Meanwhile, in Colorado, what you pay is based on the year of manufacture of the vehicle and the original taxable value.

Staying Compliant with Registration Requirements

The owner, and not the driver, is responsible for registration and licensing costs unless you are a solo owner-operator and are therefore both the owner and driver. However, someone with permission to represent the owner may also submit registration documents and obtain license plates.

Maintaining proper registration compliance protects your business from costly penalties and operational disruptions. Registration periods and the required fees are provided on the registration form or renewal form. We recommend developing a systematic approach to managing your registration obligations.

Regular Renewal of Registrations and License Plates

Most states require an annual fee, though some offer multi-year options. Mark your calendar 60-90 days before expiration dates to ensure timely renewal and avoid late fees. Set up automatic reminders for each vehicle in your fleet so that you always pay on time and avoid penalties.

Many states offer online renewal systems that streamline the process, with digital copies on file. But keep physical copies of all registration documents in each vehicle, too.

Keeping Current with Regulatory Changes

State regulations and fee structures change, and often it’s with little advance notice. Subscribe to your state’s motor vehicle department newsletters and notifications to stay informed about upcoming changes.

Also, join trucking associations and industry groups that monitor regulatory developments. These organizations often provide early warnings about fee increases or new requirements that could affect your truck drivers and business operations.

Maintain relationships with compliance professionals who specialize in commercial vehicle regulations. Their expertise can help you navigate complex changes and ensure your business remains compliant.

Review your registration status quarterly to identify any discrepancies or missing documentation. Address issues promptly to avoid penalties.

Budgeting Tips for Your Commercial Motor Vehicle Registration Costs

Treat registration costs as a fixed operating expense in your annual budget. Calculate your total registration expenses for the year and set aside funds monthly to cover these costs.

Consider the following strategies to manage registration expenses:

• Budget 5-10% above current fees to account for potential rate hikes.
• Explore multi-year options: Some states offer discounts for multi-year registrations.
• Maintain accurate records, as proper documentation prevents costly re-registration fees.
• Consider fleet consolidation: By reducing vehicle count, you can significantly lower total registration costs.
• Stagger the renewal dates if you operate multiple vehicles. This distributes costs throughout the year, preventing large lump-sum payments that strain your cash flow.

Conclusion

Understanding registration and commercial truck license plate costs will help you budget effectively and maximize profitability. State licensing and registration fees vary widely based on vehicle type and weight, location, and business operations.

Research state-specific requirements for your situation.

Need help keeping to the budget for your new commercial truck purchase, too? It starts with affordable, flexible financing through Mission Financial Services. We offer a range of truck loans that cover purchasing new or used trucks as well as paying for repairs.

Contact us for budget-friendly, user-friendly loans, tailored to the needs of the trucking industry.

The US trucking industry serves as the backbone of American commerce, moving billions of tons of freight annually across the nation. For small trucking businesses and owner-operators, understanding key US trucking industry statistics helps inform business decisions and navigate market challenges effectively.

By leveraging US trucking industry data for strategic planning and making informed decisions about equipment, personnel, and operations, small trucking businesses can position themselves for success.

We’ve compiled 6 essential US trucking industry statistics that paint a comprehensive picture of today’s trucking landscape. These numbers reveal opportunities, challenges, and trends that directly impact small trucking businesses in the US.

6 US Trucking Industry Statistics

The US trucking market is a major player in the global trucking market. But it is subject to factors unique to the US, such as American demographics, regulations, trade policies, and tariffs. Let’s dive in and discover the most important US trucking industry statistics.

1. Freight Volume and Trucking Revenues Statistics and Projections

• The American Trucking Associations (ATA) is a great source of US trucking industry statistics. It reports that trucks transported 11.18 billion tons of freight in 2023, representing a decline from the previous year’s 11.46 billion tons.
• The ATA Freight Transportation Forecast to 2035 indicates that total truck tonnage will rise from an estimated 11.27 billion tons in 2024 to 13.99 billion tons in 2035.
• Long-term projections indicate trucking industry revenues will grow from an estimated $906 billion to $1.46 trillion. This will represent 76.8% of the freight market by the end of the forecast period.

It’s a fact that freight volume has experienced a decline. However, it’s difficult to get a clear picture from recent numbers, due to manufacturers overstocking ahead of proposed tariff changes and then destocking those pre-tariff inventory buildups.

As the economic uncertainty subsides and businesses embrace the new norms, freight volume will likely recover. So, is the trucking industry growing or slowing? There are still opportunities for trucking businesses, but they must be willing to adapt to changing market demands.

The freight volume decrease is not due to fewer trucks or even a shortage of tractor-trailer truck drivers, although the latter does play its part. (We’ll get to that later). The decline in freight volume reflects broader economic conditions. However, tonnage still demonstrates the trucking industry’s massive scale and importance to the US economy.

The revenue increase projections show that while freight volumes may fluctuate, the industry’s financial position remains strong. The trucking sector has a dominant position in logistics, playing a critical role in supply chain operations and its influence on overall transportation economics.

2. Employment and Workforce

• In 2021, American Trucking Associations’ Chief Economist Bob Costello said the truck driver shortage had risen to 80,000.
  Industry experts fear that the shortage could surpass 160,000 by 2030.
• According to the US Bureau of Labor Statistics, about 240,300 openings for heavy and tractor-trailer truck drivers are projected each year, on average, from 2023 to 2033.
• The average truck driver’s age is 47 years. This aging demographic contributes to the driver shortage as older drivers retire without sufficient younger replacements entering the field.
• According to US trucking market statistics, only 9% of truck drivers are below age 25, and only 8% are women.

The truck driver shortage presents recruitment challenges for fleet operators, although the demand for truck drivers is not equal across the states. This long-term challenge will likely drive continued wage increases and operational changes throughout the industry. According to Zippia, truck drivers are most in demand in Atlanta, GA.

However, it creates opportunities for existing truck drivers to command higher wages and benefits. It is also clear from the statistics that the industry is struggling to attract younger workers and women. These demographic imbalances threaten workforce sustainability and diversity and emphasize the need for targeted recruitment.

3. Safety

According to NHTSA’s final 2023 traffic crash data, fatalities in crashes involving large trucks decreased by 8.3% compared to 2022, with 497 fewer fatalities, demonstrating ongoing improvements in commercial trucking safety.

There’s a need for truck safety in the US. There are two ways to achieve this and make statistics like these a thing of the past. One is with advanced truck driver training. And another is with tech.
Advanced safety technologies, including dash cameras, driver monitoring systems, collision avoidance, and lane departure warnings, are becoming standard equipment. These technologies help reduce accident rates and improve overall fleet safety performance.

Electronic Logging Devices (ELDs) have become mandatory for most commercial trucking operations, ensuring hours-of-service compliance. This technology helps prevent driver fatigue while maintaining accurate records for regulatory purposes.

4. Trucking Industry Operational Costs

The American Transportation Research Institute reports that average operating expenditures decreased by 0.4% to $2.26 per mile in 2024, though non-fuel operating costs rose 3.6% to a record high of $1.779 per mile. This figure includes all operational expenses, providing a benchmark for fleet cost management.

High operational costs are often fuel-related, but we have found that fuel is not always the main cost driver in trucking. Rising costs for commercial truck insurance, maintenance, equipment, and driver compensation all contribute to higher operational costs.

5. Technological Advancements

The electric truck industry is projected to reach $40 billion by 2035. This growth represents a significant shift toward sustainable transportation solutions.
This shift represents both opportunities and challenges for traditional trucking operations. But it’s something many businesses are willing to consider, as electric vehicles are typically eligible for tax credits.

6. Cross-Border Trade

Cross-border trucking is still a lucrative business model. According to the US Bureau of Transportation Statistics, America’s land borders with Canada and Mexico see nearly $3.5 billion in daily cross-border freight shipments.

This international freight movement provides significant opportunities for qualified carriers. Just be aware that to operate across borders, your trucks will need apportioned license plates, issued under the International Registration Plan (IRP).

Find out more about the requirements for both intrastate and interstate semi-truck registration and licensing: Commercial Truck Registration & License Plates Costs.

Trucking Market Dynamics and Trends

How do these US trucking industry statistics tie in with other trucking market dynamics and emerging trends?

Freight Conditions Remain Challenging

Load-to-truck ratios and freight conditions remain subdued, with continued softness across industrial and retail sectors. These conditions create competitive pressures while highlighting the importance of operational efficiency. However, in time, the freight shipping industry is sure to find its equilibrium.

E-commerce Growth Drives Demand

E-commerce is estimated to reach $36 trillion by 2026. So, what does this have to do with trucking? This explosive growth has led to one of the most promising US trucking industry trends. It creates new opportunities for trucking companies serving last-mile delivery and distribution networks.

Private Fleets Capture Larger Market Share

Private fleets continue to capture a larger share of freight volume, affecting traditional for-hire carriers. This trend reflects shippers’ desire for greater control over their supply chains and transportation costs.

Fleet Technology Adoption

Fleets are increasingly adopting advanced technologies for route optimization, fleet management, and driver communication. These tools help improve efficiency, reduce costs, and enhance customer service capabilities.

Trucking Industry Outlook and Projections

Looking at these US trucking industry statistics, what does the future of trucking hold for small trucking businesses? This is our trucking industry forecast based on current economic and technical developments and industry expertise.

Freight Market Recovery Expected

Industry experts project freight market recovery in 2025, with improved demand and stabilizing rates. This recovery will likely benefit well-positioned carriers who have maintained operations through challenging periods. Keep an eye on US transportation industry statistics and key economic indicators that will signal the pace of this recovery, particularly freight demand patterns and capacity utilization rates.

Technology Investment Increases

Fleet operators are increasing investments in technology solutions to improve efficiency, safety, and profitability. These investments include telematics and route optimization software, which complement advanced and defensive driver training programs.

Autonomous Vehicle Development

Self-driving semis might be the future of trucking. While fully autonomous trucks remain in development, driver-assistance technologies are becoming more sophisticated. These systems help reduce driver fatigue, improve safety, and optimize fuel efficiency.

Strategic Implications for Small Trucking Businesses

After years of working closely with truckers and trucking companies, we’ve gained valuable industry insights. When combined with these US trucking industry statistics, it identifies the best strategies moving forward for small trucking businesses.

Market Positioning Opportunities

The driver shortage and growing freight demand create opportunities for small trucking businesses to expand operations and increase market share. Trucking companies that can attract and retain qualified CDL drivers will benefit from these market conditions.

Technology Adoption Benefits

Small fleet operators who invest in appropriate technologies can compete more effectively with larger carriers. Route optimization, fleet management systems, and safety technologies provide competitive advantages.

Financial Planning Considerations

Rising operating costs require careful financial planning and cost management. Understanding US trucking industry statistics and industry benchmarks helps small operators identify areas for improvement and optimize profitability.

US Trucking Industry FAQ

How Many Truck Drivers Are in the US?

The trucking industry employs 3.55 million drivers nationwide, representing a significant portion of the American workforce. This number includes both company drivers and owner-operators across various trucking segments, from light-duty to heavy trucks.

For more information on this topic: How Many Semi-Truck Drivers in the US?

How Much Do Truck Drivers Earn in the US?

The average base salary for a driver in the US is $4,624 per month. However, the figure can be much higher for an owner-operator trucker. External factors, such as driving experience, can also influence truck driver wages.

If you’d like to know more: How Much Do Commercial Truck Drivers Make?

How Important is Sustainability for My Trucking Business?

It’s very important! In fact, trucking-related sustainability initiatives are growing. Environmental concerns are driving increased focus on sustainability, including alternative fuels, route optimization, and equipment upgrades. These programs help reduce operating costs while meeting environmental requirements.

Conclusion

These US trucking industry statistics reveal a sector in transition.

While challenges like driver shortages and rising costs persist, opportunities abound for well-positioned businesses. Our US trucking market analysis shows that the projected growth in freight tonnage, revenue increases, and technological advancements create a favorable environment for strategic expansion.

That means it’s more important than ever to be smart about your finances. Need help with financing your growth plans while managing cash flow challenges? Mission Financial Services provides tailored solutions designed specifically for the trucking industry’s unique needs.

Contact us for information about our range of loans. We also help first-time buyers and those with bad credit.

Getting into the trucking business or expanding the fleet at your existing business? For many owner-operators and small trucking business owners, getting access to financing is the crucial next step. But what if your credit is less than perfect?

The truth is, bad credit doesn’t have to get in the way of your plans. You can buy a semi-truck with bad credit! That’s where semi-truck financing bad credit programs come into play. These specialized options help drivers and business owners get on the road, even when credit scores have been holding them back.

This guide explores bad credit semi-truck financing and flexible loan options for owner-operators.

Understanding Bad Credit Semi-Truck Financing

When a trucking business wants to buy a semi-truck with bad credit, most traditional lenders will say no. But when it comes to semi-truck financing, bad credit isn’t the end of the road.

There are finance options specifically designed for individuals with bad credit. They often come with higher interest rates or stricter terms and conditions. However, they help get you the truck you need to operate and grow your business.

Lenders who offer commercial truck financing bad credit solutions understand that your credit score doesn’t tell the full story. That’s why they also look at your business strategy and experience, as well as your income potential. This broader approach gives more people a chance to qualify, even with poor credit.

How to Determine and Improve Your Credit Score

To understand bad credit semi-truck financing, you need to understand your credit profile. Before finance companies agree to finance loans, they ask for your credit report from the major credit bureaus. They’re checking if you have a good credit history and meet their criteria for a minimum credit score.

Take note: you may have good personal credit but bad business credit, or vice versa.

Credit Score

Credit scores range from 300 to 850. A score below 580 is usually considered a “poor” credit score. When financial institutions decline you because of bad credit, it’s generally because of a low credit score. This can result from financial mismanagement in the past, such as missed or late payments.

Lenders offering bad credit semi-truck loans may still work with you, but they’ll be looking at other factors to balance the loan risks.

Credit History

Before applying for semi-truck financing with bad credit, it’s important to understand what you can do to improve your credit history. Bad credit can mean that you simply don’t have enough of a credit history for lenders to look at and assess the risk.

Your credit history is a record of your use of and behavior towards credit:

• Payment history (on-time or late?)
• Credit utilization (how much of your available credit are you using?)
• Length of credit history
• Types of credit (credit cards, loans, etc.)
• How many new credit inquiries?

Paying bills on time and lowering your credit utilization will improve your loan approval chances.

Qualifying for Bad Credit Truck Loans

Lenders that offer semi-truck financing for bad credit applicants want to see that you’re financially stable and committed to your business. Qualification factors include your CDL experience, business bank statements, proof of income or contracts, and the type and age of the truck you’re purchasing.

Down Payment

A substantial down payment can also help offset the risk lenders take when working with credit-challenged borrowers.

Many bad credit commercial truck loans require a higher down payment (anywhere from 10–30% of the truck’s purchase price). A larger down payment can help you get approved faster, secure better loan terms, and reduce your monthly payments.

The Challenges of Affording Subprime Financing

“Subprime” is a term used to describe loans offered to borrowers with low credit scores. While these financing options provide access when traditional loans are out of reach, they come with some challenges:

• Higher interest rates
• Shorter repayment periods
• Larger monthly payments
• More restrictive contract terms

You may be required to submit additional documentation such as tax returns, bank statements, or trucking contracts. In some cases, lenders may also require GPS tracking on the truck until the loan is paid off.

Exploring No Credit Check Semi-Truck Financing

For some owner-operators, no-credit-check truck financing may be the best option. While this path avoids the credit check, it usually requires a larger down payment, very strict terms, and higher monthly payments. But for some truckers,  this may offer the only viable way to buy a semi-truck with bad credit.

What is No Credit Check Commercial Truck Leasing?

No-credit-check leases are usually structured as a lease-to-own agreement. Rather than checking your credit, the lender or dealer looks at your time in the industry, driving record, current income, and the truck’s value/condition. You’ll make regular lease payments for a set term. At the end, you can purchase the truck for a final payment.

Flexible Financing Options for Owner-Operators with Bad Credit

Some lenders specialize in helping owner-operators build their fleet despite credit challenges. The key is to find flexible financing that works with your situation.

Equipment Financing for Bad Credit

Equipment financing is an alternative form of bad credit commercial truck financing where the truck serves as collateral. This makes it easier for people with poor credit to qualify because the lender has less risk. Unlike some other forms of semi-truck financing for bad credit, equipment financing may offer potential tax deductions (check with a tax pro).

Lease Purchase Buy-Outs and Loan Refinancing

Do you already have a lease agreement? You may be eligible for a lease purchase buy-out, which allows you to take ownership of the truck early. This is common in lease-to-own arrangements where drivers have improved their credit.

Loan refinancing is another strategy. If you took out a high-interest loan with bad credit, try refinancing the loan after making on-time payments for 12 months or more. It could help you reduce your monthly payments, pay off the truck faster, and lower your interest rate.

A Larger Down Payment

The bigger your down payment, the better your odds of approval, even with semi-truck financing for bad credit. More cash upfront reduces the lender’s risk and proves that you’re financially serious.

Unsure where to get it? In the months before applying, set aside a percentage of trucking profits and cut non-essential expenses. Take on some additional hauls or sell unused equipment. An extra $3,000–$5,000 could make all the difference between approval and denial.

Building a Strong Business Plan to Secure Financing

Demonstrating financial planning and industry knowledge increases your chances of approval, even if your credit score is low. When applying for bad credit semi-truck loans, a strong business plan can go a long way.

This should include:

• Your trucking experience
• A summary of your hauling niche (e.g., reefer, flatbed, dry van)
• Expected income and expenses
• Maintenance plans and insurance coverage
• Growth strategy and future goals

Seeking Guidance from Industry Professionals

Navigating semi-truck financing with bad credit for the first time?  Some professionals specialize in helping truckers with low credit find solutions. These include commercial truck loan brokers, dealership finance managers, small business development centers, and financial consultants with experience in the trucking industry.

Mission Financial Can Help Any Trucking Business Finance a Semi-Truck

Looking for simple semi-truck financing, but you don’t have a good credit score? Mission Financial Services has you covered!

We provide commercial vehicle and semi-truck financing for first-time owner-operator buyers, small fleets, and even those with less impressive credit scores. We offer commercial vehicle title loans and loans for buying both new and used semi-trucks.

Conclusion

There are various options for semi-truck financing with bad credit, including equipment loans, lease-purchase agreements, and even no-credit-check deals. Improve your credit score where possible, save for a larger down payment, and you’ll have greater odds of getting that loan.

Or turn to the professionals who understand the needs of the trucking industry at Mission Financial Services. From delivery vans to dump truck financing, we can help. We also offer loans to semi-truck owners who need the funds for urgent truck repairs.  Don’t let credit challenges keep you parked. Contact us today.