Category Commercial Truck Financing

Many businesses today rely on commercial vehicles for various operations. According to Statista, unit sales of commercial vehicles are projected to reach 37.75 million in 2025, with a 1.58% increase by 2029. These vehicles make transportation and specialized projects quick and efficient, and directly impact the bottom line of companies that depend on them.

To meet the various industry demands, commercial vehicles come in different sizes, shapes and functions. Some are made to transport people, some for hauling heavy materials and certain specialized vehicles require professional expertise to operate. Read on as we explore everything you need to know about commercial vehicles, the types and how you can choose the right one for your business.

WHAT ARE COMMERCIAL VEHICLES?

Commercial vehicles are primarily used for transporting people and goods for business purposes. They support businesses across multiple industries, making them a valuable asset. To accommodate the diverse demands of these industries, commercial vehicles vary in size, weight, design, and function.

They are also classified into three major categories based on their Gross Vehicle Weight Rating (GVWR): 

1. Light-Duty Commercial Vehicles: GVWR up to 14,000 lbs

• Class 1: Up to 6,000 lbs
• Class 2: 6,001–10,000 lbs 
• Class 3: 10,001–14,000 lbs 

2. Medium-Duty Commercial Vehicles: GVWR: 14,001–26,000 lbs 

• Class 4: 14,001–16,000 lbs 
• Class 5: 16,001–19,500 lbs 
• Class 6: 19,501–26,000 lbs 

3. Heavy-Duty Commercial Vehicles: GVWR: 26,001 lbs and above

• Class 7: 26,001–33,000 lbs
• Class 8: Over 33,000 lbs

THE DIFFERENT TYPES OF COMMERCIAL VEHICLES

There are different types of commercial vehicles and the list of every type that exists is almost inexhaustible. These types cut across vehicles used for moving people, goods and the heavy-duty ones used for construction and specialized projects. In the list below, we will try to cover some of the common ones you will find around. 

SEMI-TRUCK

Semi-trucks are also called 18-wheelers, big rigs or tractor-trailers. These are vehicles with a tractor unit, or cab in the front, and a bed or trailer attached via a fifth-wheel connection. They are used for long-haul freight between distribution and fulfillment centers.

DUMP TRUCKS

Dump trucks are used in the mining and construction industries for transporting materials such as sand, gravel, debris and coal. Dump trucks are designed with a hydraulic mechanism that helps tilt the truck bed to unload its content.

BOX TRUCK

Box trucks are similar to semi-trucks, but instead of a fifth-wheel connector, their trailers are attached directly to tractors. They feature an enclosed box-like cargo area that is used to store goods for loading items such as furniture and appliances. They are frequently used by businesses for small-scale freight and moving services. 

GARBAGE TRUCK

Also called refuse trucks, these specialized vehicles are built for waste collection. They have a unique loading mechanism that is used to lift empty bins into a storage compartment. They also have a compacting system that makes room for hauling more trash on the go, thus efficiently managing waste disposal.

PICKUP TRUCK 

Pickup trucks are similar to box trucks, but without enclosed cargo. Instead, they have an open-top bed that can be used to house different cargoes such as construction materials, business tools and equipment.

TOW TRUCKS

Tow trucks cover different types of vehicles, including wrecker trucks that are used for vehicle recovery purposes. These can include damaged, stuck or vehicles that violate traffic laws. Tow trucks come in different shapes and types making them adaptable for any condition where they are needed. 

CARGO VANS

These are compact, enclosed vehicles used primarily for delivering goods within urban settings. Cargo vans are designed as a one-piece attached to the driver’s cab and have no rear seating. They offer a spacious interior that allows for secure and efficient transportation of cargo.

VACUUM TRUCKS

Equipped with a powerful suctioning system, vacuum trucks are used to load solids, fluids, sludge and other materials. They are common in sewage management, industrial management and hazardous waste management. They have an attached tank that collects the materials they vacuum until they are transported to the right sites for disposal. 

TRANSIT BUSES

These are big transport buses used to accommodate a large number of people. They are often used as a cities’ transport system or as school buses.

FLATBEDS 

Flatbeds have an open-air, flat platform that is used to convey oversized and irregularly shaped loads that do not require enclosure or external protection. 

STEP VANS

These are commercial vans that have a spacious area that makes it easy for the driver to access the cargo from the cab without having to leave the vehicle. Step vans are popular in the parcel delivery services. They can serve as food trucks and mobile workshops. 

PASSENGER VANS

These vans are designed to carry between 9-15 people. They are often used to transport individuals for shuttle services such as tour operations or group transporting. 

CRANE TRUCKS

Crane trucks are built with a mounted crane that allows for the efficient loading, lifting and unloading of heavy items like equipment or machinery. They are used in construction, logistics and utilities industries because of how they facilitate the movement of heavy equipment needed for work. 

UTILITY AND SERVICE TRUCKS

Includes different types of trucks such as fire trucks, ambulances and maintenance trucks that are equipped with different specialized tools and parts to complete the tasks they are designed for. 

CONSTRUCTION AND HEAVY EQUIPMENT TRUCKS

Common types in this category include concrete or cement mixer trucks, drilling rigs, and logging trucks built for specific purposes. They are not built for public roads and are commonly found on the sites where they are utilized. 

CHOOSING THE RIGHT COMMERCIAL VEHICLE FOR YOUR BUSINESS WITH INSPIRED FUNDING

Commercial trucks serve different purposes and choosing the right one can impact your business’ profitability and efficiency. From cargo vans, dump trucks, vacuum and tow trucks, there are a lot of options to choose from particularly if you are just considering joining the truck industry. Therefore, this decision should be made meticulously by weighing several factors such as your business needs, the demands of the truck in your region and your interest. 

More significant to consider is the financial investment acquiring a commercial vehicle comes with. Commercial truck financing requires many processes and without the right guide, truck owners can make decisions that will put a strain on their finances and business in the long run. That is where Inspired Funding comes in with flexible and tailored financing solutions for different business situations. Also expect a streamlined approval process that makes getting the right truck quick and seamless.

ABOUT INSPIRED FUNDING

If you’re looking for the best financing for your truck business, Inspired Funding is here for you. With tailored financing plans and a range of flexible options, we make it easy for you to get the truck you need and make paying for it a breeze.

Inspired Funding has been helping businesses finance various commercial vehicles, including semi-trucks, cargo vans, dump trucks, and other essential heavy equipment to keep your business moving. We offer competitive interest rates and affordable down payments to fit your budget.

Worried about credit? No problem! We can help you navigate credit score challenges by providing financing solutions designed to get you on the road faster.

Ready to finance a bulldog or a dragon wagon? Give us a call today to get started!

Every industry today relies on commercial vehicles. Sectors like telecommunications, construction, food, and agriculture, to name a few, depend on these trucks to carry out daily operations. They aid in hauling, logistics, and transportation, making their operation efficient and fast.

These trucks are built differently to help accommodate these various needs. From dump trucks and tow trucks to semi-trucks, commercial vehicles come in different sizes and capabilities and are categorized into classes.

The Federal Highway Administration classifies all commercial vehicles into eight, ranging from light-duty, medium-duty, and heavy-duty. In this article, we break down these classifications, providing examples and models to give you a clear understanding of what each category entails.

WHAT IS A COMMERCIAL VEHICLE?

The Federal Motor Carrier Safety Administration defines commercial vehicles as self-propelled vehicles that operate on the highway, and are used to transport people and goods across states. Ideally, commercial trucks have a rating gross vehicle weight rating and are categorized based on various criteria to ensure appropriate usage, compliance with regulations, and safety standards. 

WHAT IS GROSS VEHICLE WEIGHT RATING (GVWR)?

Trucks in the United States are categorized by their Gross Vehicle Weight Rating (GVWR), often found inside the driver’s side door. The GVWR is the metric used to categorize vehicles based on their maximum loaded weight. 

In simple terms, it determines the total weight a truck can operate at. It is specified by calculating the vehicle’s weight at its fullest capacity, including fuel, cargo, complete passengers, and drivers.

CLASSIFICATION OF COMMERCIAL VEHICLES BY WEIGHT

Commercial vehicles are classified by weight, ranging from class 1-8. These are then sub-divided into three: light, medium, and heavy-duty. In this section, we will consider each category and their sub-divisions.

LIGHT DUTY VEHICLES

Light duty vehicles fall within the GVWR of 0-14,000 pounds. These are small trucks used for daily operations. They include vans and pickup trucks used for transporting light goods. They are broken down into three and expatiated below:

CLASS ONE (GVWR: 0 to 6,000 LBS)

These include small pickup trucks, SUVs, and minivans weighing up to 6,000 pounds (2,722kg). Class one trucks are more often utilized for personal uses to transport lightweight items, or for small-scale deliveries. Examples include the Ford Ranger and the Chevrolet Colorado.

CLASS TWO (GVWR: 6,001 to 10,000 LBS)

Class two vehicles include standard full-size and heavy-duty pickup trucks, larger SUVs, and some cargo vans. They are subdivided into 2A (6,001 – 8,500 pounds) and 2B (8,501 – 10,000). These trucks are used for moving heavier items and are used by different industries like construction and emergency services for ambulances. Popular examples include Ford F-150, and GMC Sierra 1500.

CLASS THREE (GVWR: 10,001 to 14,000 LBS.)

Vehicles like larger pickups, cargo vans, utility trucks, small box trucks, and school and city buses fall here. These trucks are often utilized by delivery services moving companies, construction, and maintenance. The Ford-350, RAM 250,0, and GMC Savana belong to this category. 

MEDIUM-DUTY VEHICLES

Medium-duty vehicles comprise classes three to six. They are built for more tedious tasks compared to the light-duty category. 

CLASS FOUR (GVWR: 14,001 – 16,000 LBS)

Class four trucks  have a GVWR within 14,001 to 16,000 lbs. They are used by various industries for transporting items like furniture, appliances and construction equipment. Examples include flatbed trucks, delivery trucks, and larger box trucks. The Ford-450, Chevrolet Silverado 4500HD, and Isuzu NPR-HD are popular models in this class. 

CLASS FIVE (GVWR:16,001 – 19,500 LBS)

In this category, you will find small-sized dump trucks, some school buses, large delivery trucks, and bucket trucks. They are popular in industries like waste management, and construction, among others. Examples of models in this include the Ford F-550, Chevrolet Silverado 5500HD, Freightliner M2 106, and the RAM 5500. 

CLASS SIX (GVWR: 19,501 – 26,000)

Vehicles in this division are built for transporting various items like food, beverages and some heavy construction or industry equipment. They include single-axle trucks, some school buses, and beverage trucks. Ford F-650, International MV607 and Peterbilt 220 fall into this category. 

HEAVY-DUTY VEHICLES

Heavy-duty vehicles are designed to handle heavy loads and perform tougher tasks. They are essential machinery commonly found in the logistics and transportation industry and comprise of Class 7 and 8 vehicles. Their GVWR ranges from 26,001 to above 33,000 pounds. 

CLASS SEVEN (GVWR: 26,001 and 33,000 LBS.)

Refuse trucks, cement mixers, and city transit buses are class seven vehicles. Not only can they handle some tough jobs, they are also rugged and can be relied on in situations that require high maneuverability and versatility. 

Examples of models you will find in this category include the Peterbilt 348, Mack Granite MHD, and the International HX. 

CLASS EIGHT (GVWR over 33,000 LBS.)

If you think class seven vehicles are tough wait till you discover the heaviest trucks in the eighth category. These trucks  are typically used for heavy hauling, mining, and large-scale construction projects. Think of cement trucks, dump trucks, and tractor-trailers. Examples include the Peterbilt 579,  Freightliner Cascadia, and the Kenworth T680. 

CONCLUSION

If you work in the trucking industry or aspiring to, then understanding the different classes of commercial vehicles is vital. It helps you navigate selecting the appropriate truck for the job. For example, while light-duty trucks are more suitable for local deliveries, they are not designed for long-haul freight and heavier cargo. Heavy-duty trucks are also not ideal if you’re transporting lighter loads as they consume more fuel and cost high to maintain. 

Ultimately, understanding vehicle classifications aids in budget considerations. The heavier the truck, the higher the expenses. By properly aligning your class of vehicle with your business needs, you can conveniently plan for financing and save costs. The good thing is that Inspired Funding helps truckers to get the best commercial truck financing. With just one contact, you can get the financial support you need to purchase the right truck for your business.

ABOUT INSPIRED FUNDING

If you’re looking for the best financing for your truck business, Inspired Funding is here for you. With tailored financing plans and a range of flexible options, we make it easy for you to get the truck you need and make paying for it a breeze.

Inspired Funding has been helping businesses finance various commercial vehicles, including semi-trucks, cargo vans, dump trucks, and other essential heavy equipment to keep your business moving. We offer competitive interest rates and affordable down payments to fit your budget.

Worried about credit? No problem! We can help you navigate credit score challenges by providing financing solutions designed to get you on the road faster.

Ready to finance a bulldog or a dragon wagon? Give us a call today to get started!

According to industry reports, truck leasing has witnessed exponential growth over the years. In 2022 alone, there were over 1.8 million truck leases, which shows that more businesses are buying into this financing option. The benefits are proof of this preference. 

Commercial truck leasing is a viable alternative to purchasing as it offers reduced upfront costs and effective cost management in comparison.

But there’s much more to understand about this option. In this article, we’ll unpack the essentials to help you make informed decisions for your business.

WHAT IS COMMERCIAL TRUCK LEASING?

New and experienced truckers have one thing in common: the need for vehicles to run their daily operations.  There are cases when purchasing does not seem feasible due to the financial commitment. This is where leasing shines as a practical alternative option to provide truckers access to the vehicles they need to keep business moving. 

Commercial truck leasing is a contract arrangement with a dealer to use a truck for a period while making regular installment payments. It can be an ideal option if you seeking the flexibility to upgrade your fleet without making the huge capital investment that comes with purchasing. Apart from low financial commitment, there are other benefits such as predictable monthly payments, and the ability to upgrade vehicles to newer models. However, it also comes with considerations like mileage limitations and the absence of equity in the vehicle. 

BENEFITS OF LEASING A COMMERCIAL TRUCK

FLEXIBLE CREDIT REQUIREMENTS

Compared to purchasing, the credit score requirement for leasing is more lenient. Lenders are more likely to consider other factors such as time in business and stream of income. Other lenders like Inspired Funding offer solutions without minimum credit score requirements. So if you have a less-than-perfect credit score, this is an option you want to explore. 

LOWER UPFRONT COST

The initial investment needed for minimal, as you will not be making a large down payment. This can take the financial strain off your business allowing you easy access to a truck without impacting your pocket. 

IMPROVED CASH FLOW

Monthly payments are often predictable and fixed, making it easy for you to plan and budget your revenue with ease. Together with the lower upfront cost, you can have better cash flow management that can be wired to other business expenses like fleet expansion, and operation costs among others. 

ACCESS TO NEWER TRUCK MODELS

Truck brands tend to release newer models with the latest technology and safety features. For a purchased vehicle, switching to a new model with require you to either buy a new truck or dispose of the current one. On the other hand, you can exchange your leased vehicle for a better model at the end of the term. 

AVOIDANCE OF DEPRECIATION RISK

You’re not financially responsible for the value depreciation of your vehicle since you’re not taking full ownership. The lessor bears the risk of any decline in the market value.

LEASE-TO-OWN

Exploring the lease-to-own program guarantees the option to purchase the truck at the end of the lease term, facilitating ownership. This arrangement can enable you to manage cash flow effectively without the need for a substantial upfront investment. 

DRAWBACKS OF COMMERCIAL TRUCK LEASING

Just as leasing holds many benefits that may align with your interest, it is also important to consider its potential drawbacks.

LACK OF OWNERSHIP AND EQUITY

While you get to use the vehicle for an extended period, this does not translate to full ownership after the payment period. Because of this, your monthly financial commitment will not build equity.

MILEAGE AND USAGE RESTRICTIONS 

Trucks can come with some restrictions such as mileage and the overall usage of the vehicle. When considered, these restrictions can have a negative impact on your business operations. Plus, exceeding this restriction can result in penalties fees, and additional costs.

MAINTENANCE RESPONSIBILITIES 

Depending on the terms, you may still be responsible for maintenance and repairs, which can add to your expenses. 

INSURANCE C OSTS

Leasing companies may require higher insurance coverage levels, leading to increased insurance premiums. 

HIDDEN COSTS

It is not uncommon to have a deal with lessors with ambiguous and unclear terms of contracts. In situations like this, contracts can be laced with hidden fees such as administrative fees and unfair termination of the agreements. To avoid this, ensure you do your research and deal with only trusted lessors. Also, review agreements before you sign. 

LEASING VS. PURCHASING

In the world of commercial truck financing, leasing, and purchasing are usually two options businesses consider. Both fulfill different purposes and the decision on the one to choose is based on various factors and considerations. We have broken down the common differences between these two options in the table below to help understand better. 

FACTORS	PURCHASING	LEASING
Ownership	Full ownership upon completion of payment.	No ownership. The company retains ownership after the agreed-upon period.
Upfronts costs	Requires initial down payment.	Lower upfront cost, usually the first month’s payment.
Maintenance	Owner is responsible for all maintenance and repair costs.	Agreements often include maintenance services.
Flexibility	Less flexibility, as changing the vehicle requires first disposing of the initial one	Higher flexibility to upgrade to new models at the expiration payment term.
Tax benefits	Interest expenses may be tax-deductible.	Payments are deducted as business expenses.
Mileage restrictions	No mileage restrictions.	Includes mileage limits.
Customization	Full freedom to modify or customize the vehicle as needed.	Limited or no ability to customize.

STEPS TO LEASE A COMMERCIAL TRUCK

If you think this is a good deal for you, then it is essential that you understand the process that guarantees the best deals. We have narrowed them into the following for you:

RESEARCH LEASING OPTIONS AND COMPANIES

Start by researching available options such. Then proceed to source reputable companies that offer commercial trucks suitable for your business needs. Ensure you do a comprehensive review–ask around, and check reviews online. 

COMPARE TERMS

Different companies will have different terms and conditions. Scrutinize these details and check terms on mileage restriction, maintenance liabilities, credit requirements, and duration. 

Also, ask about hidden fees and potential penalties. Doing this will help you assess the one that is more aligned with your business goals and help you make more informed decisions. 

PREPARE NECESSARY DOCUMENTATION

Just like other types of commercial truck financing, you will need to tender necessary documentation like your personal information, business record, credit history, bank statements, tax returns, and proof of insurance. 

FINALIZE THE AGREEMENT

After your documents and application have been reviewed and approved, it’s time to finalize the agreement. Have a legal professional review the agreement to ensure clarity. Once satisfied with the terms, proceed to sign.

TAKE DELIVERY OF THE VEHICLE

The final stage is to have your vehicle delivered to you. Upon delivery, conduct a thorough inspection to confirm that it meets the specifications and is in good condition. 

GET THE BEST COMMERCIAL TRUCK LEASING DEALS WITH INSPIRED FUNDING

Whether you choose to lease a commercial truck or purchase it, there are a couple of factors that you must consider. One of these is your financing partner. You want to work with a transparent partner who gives you the support you need and sticks with you from the beginning of the process to the end. Additionally, take the time to carefully review the terms and conditions to ensure they align with your specific needs and circumstances.

Inspired Funding has helped many businesses to finance their trucks. we also guarantee that you enjoy some benefits when you opt for commercial truck leasing such as no credit score requirement, no hidden charges, and access to constant support. Start your journey today and take the first step to hassle-free commercial truck leasing. 

Commercial drivers are bringing home bigger paychecks than they have in years. The figures don’t lie. In 2024, the average truck driver salary per annum is $92,255 in the U.S. So, if you are considering breaking into the transport business, commercial truck business is an attractive option.

However, starting out doesn’t seem easy. And unless you have a lot of money stashed away already, you will need commercial truck financing. Getting this loan comes with a few requirements like a good credit score and high down payment when being accepted. But with the right guide, getting through the process becomes much simpler.

In this article, we will cover everything you need to know about commercial truck financing.

WHAT IS COMMERCIAL TRUCK FINANCING?

Commercial truck financing is the type of loan you get when you want to purchase a truck or any heavy vehicle for commercial purposes. It is unlike standard auto loans that cater to personal vehicles. It is designed for larger and more expensive trucks, from semi-trucks and dump trucks to other types used for business.  Comparatively, the loan structure of commercial trucks is different from conventional auto loans. 

Before you getting  a loan, here are a couple of facts you should know about commercial truck financing: 

• lenders look at your creditworthiness and revenue. Financiers would prefer a credit score of about 600 or more
• the truck serves as collateral 
• there are multiple financing options ranging from banks, truck dealer financing along others

In a nutshell, you need strong financials and a higher credit score to get favorable loan terms.

FINANCING VS. LEASING

You can either choose to finance a commercial truck or go for leasing. The one you go for primarily depends on your business needs. If you are looking at upgrading your trucks to new models later, then you should consider getting a lease on your truck. However, note that leasing comes with usage limits and you will not be able to customize the truck as you would if you were financing it. 

With financing, you get full ownership once you pay off your loans. This is a great option if you plan to use the truck long-term.

CHALLENGES IN SECURING COMMERCIAL TRUCK FINANCING

A couple of factors can also pose barriers when securing your commercial truck financing. These factors can slow down the loan approval process, or result in a loan structure that does not favor the borrower. Some of these include:

POOR CREDIT HISTORY

Limited credit history can make securing financing tough. The outcomes are either higher interest rates or even outright denial because it sends a risk signal to the lender. 

Solution? Try raising your credit score before applying. Pay off old debts and avoid getting new ones. Another option is to consider bad credit truck financing although the terms might be stricter.

HIGH DOWN PAYMENT

To reduce their risks, lenders often ask for a large upfront payment. This can help lower the overall loan and increase the chances of approval. It may be overwhelming for small businesses or startups. The best strategy? Look for low down payment truck financing options to ease the initial financial burden.

STRICT LOAN TERMS FOR NEW BUSINESSES

Lenders tend to propose stricter loan terms for borrowers that are just starting the business with no financial history or proven revenue. You can make this less of a hurdle by having additional sources of income.

UNDERSTANDING THE DIFFERENCES BETWEEN LOAN OPTIONS

A general piece of advice for those just starting is to familiarize yourself with the range of loan types available. Choose the best loan type by doing your research or consulting a financial advisor.

HOW TO GET THE BEST COMMERCIAL TRUCK LOAN

Getting a favorable commercial truck loan is easy when you follow the right step. The following can help you improve your chances of finding financing that meets your business needs:

ASSESS YOUR BUSINESS FINANCES

Start by reviewing your finances before seeking financing. This will help you identify the best loan option. It also gives you an opportunity to make necessary adjustments before approaching your lender.

RESEARCH LOAN OPTIONS

Once you have a grasp of your financial health, start researching various loan options. Research commercial truck financing companies, banks, and truck dealer financing. Ensure you keep an eye out for the best commercial truck loans that offer competitive rates and favorable conditions.

PREPARE REQUIRED DOCUMENTATION

Common documents include business plans, tax returns, and profit and loss statements. Having these documents ready can streamline the application process and boost your chances of approval.

EXPLORE FLEXIBLE FINANCING OPTIONS

There are different financing structures out there, so take the time to explore which one best aligns with your business needs Common options include leasing versus buying, bad credit financing, and low down payment alternatives. 

NEGOTIATE TERMS

What’s a good loan agreement without proper negotiation? Rely on knowledge from earlier points to secure a loan that works in your favor. When you negotiate, focus on key areas like down payment, interest rates, and loan duration.

CONCLUSION

Commercial truck financing is vital if you are looking to scale your operations and remain competitive. With financing, you can expand your fleet by adding more trucks without going bankrupt.

As we have covered in this article, ensure you explore alternatives that align with your business needs and avoid jumping at every available offer. 

Scaling your business is important, and so is getting the right financing that allows you run commercial truck businesses without the worry of unfavorable loan conditions or accumulating bad debts.

WHY CHOOSE INSPIRED FUNDING FOR YOUR COMMERCIAL TRUCK FINANCING NEEDS

Inspired Funding offers customized commercial truck financing solutions to businesses of any size, from first-time buyers seeking one unit, to fleet upgrades for growing enterprises. Inspired Funding makes the financing process an easy one for business owners; we offer flexible terms, quick approvals and have programs designed around credit issues.

Schedule a call today to explore your financing options with a truck financing expert at Inspired Funding!