If you had been planning on getting a truck for a while now, then you must have stumbled upon one crucial factor: financing. As such, opting for a commercial vehicle loan can fulfill the lack of funds. After all, transport and logistics is a profitable sector, with annual revenue of $101.52 billion in Australia alone.

So, the problem arises when you get a truck loan with bad credit history. Sure, you must have thought the loan alone would solve the issue, and the price of the truck will not be a concern. Now that situation may seem reversed with your poor credit score and not much cash at hand.

There is a way to turn this situation around, though. You can still opt for truck financing with bad credit. And here’s how!

Consider Your Budget

Do not shop around for the truck before deciding about the financing. There is an unlimited option for truck prices, but your budget is limited. Besides, once you figure out the financing procedure, you will learn that your choice will become more limited. This is especially true when trying to get a truck loan with bad credit.

So, having a plan ahead of the process will make the entire thing easier for you. Who knows? You may even decide upon getting a used truck at a great value after the loan approval.

Prepare All Business Paperwork

For business purposes, this is a substantial part of the process. You would have to submit sufficient proof of business paperwork to get approval on your truck loan. Now, the type of proof you need to submit will depend on the kind of business you have. It could be a new or old sole proprietorship/partnership type business or an LLC or corporation.

Whatever it may be, you need to provide documents, like your commercial driver’s licence and other proofs, to the lender. And even if the lender does not ask specifically for these, it is better to keep the documents at hand for the time of need.

Select the Truck

Now, choosing the truck for which you want to seek finance is important. Lenders will not simply finance any truck you like, as they will look at various options, including used vehicles. It could very well be a dump truck or a semi, even.

Then they will also consider whether the loan is worth giving for the particular model. Apart from the budget, though, the truck’s size should be your priority. In addition, you should consider the mileage, fuel efficiency, and certain other features too.

Choose the Type of Truck Financing

Consider the Down Payment

It may not often be possible to pre-determine the amount for the down payment. However, a few factors do impact your expenses. This includes things like whether you are an owner, buying a used truck, or buying from a private party. There is also the factor of having a low credit score.

If you are a new business or have a low credit score, then you are considered a risk. However, depending on your age, income, and the amount you borrow, you can get approval. You would also need to calculate the monthly instalments and find a financing company.


Even though getting a truck loan with bad credit may be difficult, you can still achieve this. All you need to do is plan and prepare according to the tips mentioned above. And once you can convince a lender that you can fulfil their requirements despite your poor credit history, you should be able to get the loan. And the best part is that it can even improve your bad credit situation when you repay on time.

By Manali