80% of owner operators buy used trucks. The key is knowing what year, what engine, and what mileage to target for the best combination of price, reliability, and financing terms.
How It Works
| Feature | Details |
|---|---|
| Loan amounts | $10,000 to $500,000+ |
| Terms | 12-84 months depending on program |
| Rates | 5.49%-24.99% APR based on credit and collateral |
| Speed | Same day to 4 weeks depending on lender type |
| Collateral | Equipment serves as primary collateral |
Who Qualifies
The requirements vary by lender, but here's the general landscape:
Minimum requirements for most programs:
- 1+ year in business (startup programs exist with higher down payments)
- $75,000+ annual revenue
- 580+ credit score (some programs go lower)
- Valid business entity and bank account
- Equipment quote or invoice
What gets you the best terms:
- 700+ credit score
- 3+ years in business with consistent revenue
- 20%+ down payment
- Strong bank statements showing positive cash flow
- Clean business and personal credit history
Rates by Credit Profile
| Credit Score | Typical APR | Down Payment | Term Options |
|---|---|---|---|
| 720+ | 5.49%-7.99% | 10-15% | 36-72 months |
| 680-719 | 7.99%-11.99% | 15-20% | 36-60 months |
| 640-679 | 11.99%-16.99% | 20-25% | 24-60 months |
| 600-639 | 16.99%-22.99% | 25-30% | 24-48 months |
| Below 600 | Case by case | 30%+ | 12-36 months |
Pros and Cons
Advantages:
- Equipment serves as collateral (easier approval than unsecured loans)
- Fixed monthly payments make budgeting predictable
- Tax benefits through Section 179 and depreciation
- Build business credit with on-time payments
- Keep cash available for operations
Disadvantages:
- You're committed to payments for the full term
- Equipment may depreciate faster than you pay it off
- Personal guarantee usually required for small businesses
- Early payoff penalties on some programs
- Monthly payment reduces your available cash flow
How Brobas Makes It Easier
Instead of applying to lenders one at a time (each application is a credit inquiry), Brobas submits your application to multiple lenders simultaneously with a single credit pull. You get competing offers and choose the best one.
Our team has reviewed over 39,000 credit reports and works with 91+ lenders. We know which lender says yes to which profile, saving you time and protecting your credit score.
Apply at brobascap.com or call (773) 691-3925
Brobas Capital Partners is a commercial equipment financing broker. Not a direct lender. All financing subject to credit approval.