Guide · Truck financing

How to get semi truck financing: the documents lenders ask for

By Jordan Sanders, leased owner-operator · About

Short answer: To finance a semi truck, lenders commonly ask for your CDL and ID, three to twelve months of business bank statements, one to two years of tax returns, a profit and loss statement and balance sheet, your business papers, the truck's purchase details and proof of insurance. Having those ready, and having books that match them, is most of the work.

The documents, in the order lenders usually ask

1. Driver's license and CDL. A Class A CDL for almost any semi.
2. Business bank statements. Ranges vary by lender, commonly three to twelve months. Download PDFs from your bank; many lenders won't accept screenshots.
3. Tax returns. Often the last one to two years, business and personal. Some smaller programs skip them.
4. Profit and loss and balance sheet. Year to date, and sometimes the prior year. This is where messy books show.
5. Business documents. EIN letter, LLC or business registration, and, if you run under your own authority, your USDOT and MC numbers.
6. The truck. Purchase agreement, dealer invoice or spec sheet with year, make, model, VIN and price.
7. Insurance. Proof of coverage, or a quote naming the lender as lienholder, before closing.
8. A list of your debts. Lenders want every loan and card: who, balance, payment, rate, and when it ends.

Some lenders also want a voided business check, proof of your down payment, references, or a short letter explaining a past credit event. Every lender sets its own list, so ask yours for theirs.

What lenders look for in your numbers

Beyond credit score and time in business, lenders look at whether your income covers your debt payments with room to spare. A common way to measure that is the debt service coverage ratio: the cash your business has available for debt payments, divided by what those payments cost in a year. Many banks look for about 1.25, meaning $1.25 available for every $1.00 of payments, but each lender sets and calculates its own requirement.

Why leased owner-operators get extra questions

• One customer. Your carrier is your only source of income. That's how leasing works; a short note and a copy of your lease agreement usually answer it.
• Gross versus net. Your 1099 shows gross pay; your bank shows deposits after the carrier's deductions. If your books only record deposits, your income looks lower than your tax return says.
• Weekend dips. If your bank posts a Friday settlement deposit on Monday, your printed daily balance can dip below zero over the weekend. Lenders reading statements see it. If a balance or deposit date needs explaining, write down what the bank and carrier records actually show; the lender decides whether it needs more.
• Escrow. Money your carrier holds in escrow is an asset. If it's buried in your expenses, your balance sheet understates what you own.

Get your books ready before you apply

The order that works: reconcile every account to its statements, record settlements at gross and compare the year with the 1099, list every debt with its real balance, then print the reports. That's what our Catch-Up Cleanup does. If you'd rather do it yourself, start with how to read your settlement sheet and the weekly and monthly bookkeeping checklist.