How to Get a Loan for a Used Trailer
A lot of trucking companies call us about trucks. But you'd be surprised how many deals we put together are actually for trailers.
Dry vans, reefers, flatbeds, step decks, lowboys. We finance all of them. And most of the time, the client is looking at used equipment because the numbers make more sense.
A used reefer at $35,000 can generate the same revenue as one that costs $70,000 new. And maybe you can ask why you wouldn't go used if the unit is solid, especially when you're in the beginning.
The problem is that most people don't know what the process looks like. They assume it's going to be some long, drawn-out bank situation. It's not. But there are real things that will make or break your approval.
What Lenders Look at Before They Say Yes
This is where people get it wrong, but I will help you understand. They think the trailer itself is what matters most. It's not. Lenders care about you and your company first, and the equipment second.
Your credit score is the first thing they pull. We do a soft pull only so it won't ding your credit, but the number still matters.
At 650, you've got options. Below 620, expect a bigger down payment and rates that creep into double digits. Sitting above 680 with clean financials, higher chances! Over 720? We're talking single-digit rates, sometimes starting around 8.5%.
But here's what kills deals that people don't see coming. Your bank statements.
Lenders want three months of statements from a business account. They're looking at deposits, average daily balance, and how money flows through.
If you can show that you have a couple months with $10,000 balances is a big positive factor. If you're running loads and depositing everything into a personal checking account mixed in with grocery runs and Venmo transfers, that's a problem.
Doesn't matter if you're making good money. If a lender can't see it clearly in a business account, they treat it like it doesn't exist, and it's not gonna benefit you at all.
They also check your P&L for overleveraging (that's when you buy many trucks at once, and if you're looking for brand new ones.. Say you financed two trucks in the last six months, and now you want a trailer on top of that.
A lender sees three new obligations in under a year and starts asking questions. How much are you actually keeping after expenses? Can you handle another payment?
Time in business plays a role, too. Two years with your own authority is solid ground, or at least as an owner-operator. Six months in, you're going to face tighter terms.
How to Get a Loan for a Used Trailer
Does It Matter That the Trailer Is Used?
Not as much as you'd think. The financing process is the same whether the trailer is new or ten years old. What changes is how closely lenders look at the equipment itself.
A 2020 dry van with maintenance records and a clean title? Easy. A 2009 reefer you found on Facebook Marketplace from a private seller with no paperwork? That's going to be a fight. Usually lenders want to see equipment under 10 years.
If you're buying a private sale, get your documentation together before you apply. Purchase invoice, clean title, and whatever maintenance history exists.
Dealerships handle most of this on their end. Private sales are where things fall apart because people show up with a handshake deal and nothing on paper.
And don't let the year on the VIN scare you. We've financed older flatbeds and step decks plenty of times. It comes down to the full picture, not just the age of the unit.
The Documents You Actually Need
For deals under $100,000, which covers the majority of used trailer purchases, you need three things. A one page application we send through DocuSign. The purchase invoice. And your last three months of bank statements.
Between $100K and $200K, add your last two years of tax returns. Over $200K you're into P&L, balance sheet, and debt schedule territory.
Most trailer deals? Three documents. Five minutes on DocuSign. No application fee.
How Long Until You're Funded?
Approval usually comes in 24 to 36 hours for anything under $100K. Funding takes about 5 to 7 business days after that. But here's what nobody tells you. The bottleneck is almost always insurance. The lender won't release funds until your insurance certificate is in hand.
Call your insurance agent the same day you apply. Don't wait for approval first. I've seen guys lose a full week sitting around because they didn't start the insurance process until after they got the green light.
Ready to Get Started?
Fill out an application at truckingfinanceloans.com. No fee, no hard credit pull, and our team will call you to walk through your options.
