Owner-operators keep running into the same wall: "every SBA bank has pulled out of the trucking industry." Whether or not that's literally true, a bank denial is now common for carriers. The good news is that most trucking funding was never bank funding to begin with.
Why banks are saying no
- Rate swings. Freight rates move fast, so revenue looks unpredictable on paper.
- New authorities. Many carriers have under two years in business, a common bank cutoff.
- Depreciating collateral. Trucks lose value quickly, and banks discount them heavily.
- Slow-paying brokers. 30 to 60 day terms create gaps that look like weak cash flow.
Option 1: Freight factoring
Factoring pays you most of a load's value soon after delivery instead of waiting on the broker. Approval leans on the broker or shipper's credit, which is why new carriers can often qualify. Compare the fee, the advance, whether it's recourse, and any monthly minimums or long contracts.
Option 2: Truck and trailer financing
Financing secured by the truck itself. Lenders weigh the unit's age and value, your down payment, credit and time in business. It's often the route for adding a truck or replacing one that's costing you in repairs.
Option 3: Working capital for repairs
When a truck is down, every day costs loads. Short-term working capital can cover a major repair fast. It costs more than a bank loan, so it should be sized to the repair and paid back from the loads the truck earns.
What to be careful with
Stacking daily-payment advances on top of factoring is a common way small fleets get squeezed. Before you sign anything, run it through the Offer Decoder and read our honest MCA guide.
What to send to get real options
- MC/DOT number and how long your authority has been active
- Last 3–6 months of business bank statements
- Your main brokers or shippers, and any current factoring agreement
- Details of the truck or repair you need to fund