Live market data
Pulled from official U.S. government APIs. Click a card to view the source.
TL;DR
Trucking companies need a stack: equipment financing for tractors and trailers (up to 100% LTV, 5–7 year terms), invoice factoring to bridge net-30 to net-60 broker payments (80–95% advance), and a working capital line for fuel and payroll gaps. Most carriers qualify with $35K+ monthly deposits, an MC number, and 6+ months operating.
The trucking cash flow problem
Trucking companies pay drivers, fuel, and insurance weekly — but customers (brokers, shippers) pay on net-30 to net-60 terms. That gap kills small carriers who can't bridge it. The solution isn't one product; it's a stack.
The trucking financing stack
- •Equipment financing — for tractors, trailers, reefers, and yard equipment. Up to 100% LTV, terms to 7 years.
- •Invoice factoring — sell broker invoices for 80–95% upfront the same day they're issued. Recourse and non-recourse options.
- •Working capital — for fuel, payroll, repairs. $5K–$1M with 24-hour funding.
- •Line of credit — for repeat draws as freight volume grows.
Pros and cons of factoring
- •Pros: same-day cash on broker invoices, approved on broker's credit not yours, no fixed payment.
- •Cons: factor fees (1–3% per 30 days) compound over time, recourse factoring leaves you liable for unpaid invoices.
Pros and cons of equipment financing
- •Pros: Section 179 deduction up to $1.16M, 100% LTV available, fixed payment.
- •Cons: tied to specific asset, default = repossession.
Common mistakes trucking owners make
- •Skipping factoring and bleeding cash waiting for net-30 broker pays
- •Buying tractors with working capital instead of equipment financing (loses Section 179)
- •Stacking MCAs in winter when freight volume drops — refinance into a term loan instead
- •Not separating owner-operator income from company books
Run the numbers
MCA / Factor Rate Calculator
Convert a factor rate offer to total cost, daily remit, and approximate APR. Useful for comparing MCA offers against term loan APRs.
Methodology
Total payback = principal × factor. APR-equivalent ≈ (factor − 1) × (365 / term days). This is an approximation — true APR is slightly higher because daily remittances reduce balance over time. APR is defined per the federal Truth in Lending Act (12 CFR § 1026, Regulation Z). MCAs are typically structured as a purchase of receivables and not subject to TILA APR disclosure, but several states (CA SB 1235, NY S5470) require commercial financing disclosures with an APR-equivalent.
Business Term Loan Calculator
Standard amortization: fixed APR, fixed weekly payment. Same formula banks and SBA lenders use.
Methodology
Standard amortization formula: P × r / (1 − (1 + r)−n), where r is the monthly rate (APR / 12) and n is the term in months. APR is the annual percentage rate as defined in the federal Truth in Lending Act (12 CFR § 1026.22). Actual lender quotes may include origination fees that increase APR.
Related questions
Related guides
Best Business Loans for Construction Contractors in 1970
Equipment financing, lines of credit, and working capital for construction companies bridging progress draws and seasonal cash flow.
MCA vs Term Loan: Which is Right for Your Business in 1970?
Side-by-side comparison of merchant cash advances and business term loans — speed, true cost, qualification, repayment structure, and which fits your situation.
Documents Needed for a Business Loan (1970 Complete List)
The exact paperwork lenders ask for — and what you can skip — by product type.
Sources & references
- Current Employment Statistics (CES)— U.S. Bureau of Labor Statistics
- County Business Patterns— U.S. Census Bureau
- SBA 7(a) and 504 Loan Program data— U.S. Small Business Administration
- Bank Prime Loan Rate (DPRIME)— FRED · Federal Reserve Bank of St. Louis