No Credit Check Semi Truck Financing: Your Options and Alternatives

Though no credit check semi truck financing doesn’t exist, you do have a couple of options for financing a semi truck with bad credit. You’ll almost certainly be working with an online lender, in this case, and the tradeoff for lower credit score thresholds on these small business loans is higher interest rates.

However, if you’re working with good business credit, solid annual revenue, or have a pre-existing relationship with a semi truck financing lender, you may be able to leverage these credentials for more affordable financing.

There are really two options when it comes to financing a semi truck with bad credit: semi truck leasing and equipment financing.

In general, business funding with no credit check is hard to come by. Lenders need to make sure they’re not taking on too much risk by lending to you. That’s why most will insist on a credit check—it will help them get an idea of how trustworthy you are as a borrower. 

Although some trustworthy revenue-based business lenders might forgo a credit check in favor of strong business bank statements, generally speaking, you should be cautious of loans that don’t require a credit check. Many lenders that promise no credit checks are out to stick desperate business owners with predatory loan rates simply because the borrowers have no other option.

If you’re determined to find semi truck financing with no credit check requirement, you’ll need to be very careful who you end up working with. If a semi truck financing provider promises no credit check funding, do your research on them and read your loan agreement thoroughly before taking on debt with them.

Since you’re not likely to find entirely no credit check semi truck financing, and if you do it it’s likely to be prohibitively expensive, you may need to come up with a Plan B. 

To decide where to go from here, we suggest you pinpoint why you began your search specifically for no credit check semi truck financing. Chances are, your reasoning falls into one of two categories: You have less-than-stellar personal credit, or you want to avoid dinging your credit score with a hard credit inquiry.

If you’re looking for no credit check semi truck financing because you’re worried your personal credit score might disqualify you, be sure to check each individual lender’s minimum personal credit score requirement—you may be surprised what your credit qualifies you for. 

Because semi truck financing is a form of self-secured debt, lenders tend to be more willing to work with less-qualified borrowers. Your low personal credit  score, then, may not be as debilitating as you think.

If you’re worried about taking a hit to your credit score because of a hard credit inquiry from a financing provider, your concern is valid. It’s important to note, however, that a single hard credit inquiry will typically drop your credit score by only a few points and for no longer than a year.

If you’re finding that your personal credit score is too low even to meet the lower minimum requirements of many equipment leasing and financing companies, then consider taking some of these steps first before resorting to a pricey no credit check loan that may trap you in a cycle of debt.

If your personal credit score disqualifies you from the financing you need, consider taking some time to build your credit. Putting a bit of thought and effort into building your credit will help you to qualify for more affordable financing in the future.

Here are some steps you can take to begin improving your credit score:

• Download and examine your credit report to understand what’s lowering your score.
• If you notice errors > follow the formal dispute process directly with the credit bureaus.
• If you tend to carry large credit card balances > work on keeping your balance at less than 30% of your total credit limit. You may find this more feasible by making more frequent payments throughout the month.
• If you’ve missed a bill payment > pay the bill immediately and take steps to ensure you don’t miss any payments going forward.
• If you’re working to recover from a prior credit score dip > consider taking out a secured credit card. This requires a cash deposit that serves as collateral as well as your credit limit. Making on-time payments will help build positive credit.

If you’re determined to pursue semi truck financing without a credit check, you may be able to increase your chances of approval if your business has other credentials to leverage. 

Here are a few other qualifications you could use to leverage your way into a loan without a credit check:

• Solid business credit history. If you’ve built up a positive business credit history by taking on and repaying business debt responsibly, then you could leverage your business credit score. Though you may want semi truck financing with no credit check at all, some lenders are willing to replace a personal credit check with a business credit check if your business credit history is robust enough.
• High annual revenue. If your business has extremely high revenue, then some financing providers may be willing to base your application solely on your cash flow and bank statements. And while most lenders will want a credit check and financial statements, some may be willing to forgo the credit check if your statements indicate a very high likelihood that you can afford the funding you’re applying for.
• Co-signer. If you can find a trusted person willing to co-sign on the loan, meaning that person is legally responsible for payments in the event you’re unable to make them, then a lender may be willing to consider your application.

While you may be eager to find funding without bringing your credit into the mix, no credit check financing is hard to find and incredibly expensive. Your best bet is to spend some time building up your credit score before applying for financing. 

If you’re ready to explore your options for semi truck financing, Fundera can help. We work with equipment financing companies and other online lenders. Just answer a few questions for us, and we can match you with financing you qualify for.