What credit score is needed for a commercial vehicle loan?

There is no single cutoff, because the vehicle is collateral. Weaker credit generally means a larger down payment and a higher rate.

Is it better to lease or buy a work truck?

Buy if you will keep it for most of its life or put heavy miles on it. Lease if you replace vehicles every few years and want the lower payment.

What is the payment on a $100,000 vehicle loan?

At a representative 8%–30% APR, about $2,028–$3,235 a month over 60 months.

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Best business loans for commercial vehicles in 2026

The best financing for commercial vehicles is an equipment loan, since the vehicle secures the loan and the term can match its working life. A lease lowers the payment for fleets that replace vehicles on a cycle. Businesses adding several vehicles at once can use a line arranged for the fleet, and SBA loans fit a large fleet purchase.

By the WithFunded team · Published November 11, 2026 · Rates as of November 2026

The short list

Best overall: Equipment loan
Best for fleets on a replacement cycle: Equipment lease
Best for a large fleet purchase: SBA 7(a) loan
Best for raising cash from owned vehicles: Equipment sale-leaseback

The 4 best options, ranked

1. Equipment loan Best overall

Vans, box trucks, and work trucks hold value and are simple for a lender to appraise. You own the vehicle at the end, and the collateral keeps rates below unsecured borrowing.

Watch for: Older or highly specialized equipment gets shorter terms and higher rates. Equipment financing guide →
2. Equipment lease Best for fleets on a replacement cycle

A lease keeps payments low and vehicles under warranty. It suits high-mileage use where you would trade the vehicle in after a few years anyway.

Watch for: On a fair-market-value lease you do not own the equipment unless you pay the buyout. Equipment financing guide →
3. SBA 7(a) loan Best for a large fleet purchase

Financing many vehicles at once as part of an expansion can go on a 7(a) loan at a capped rate, with a term of up to 10 years for equipment.

Watch for: Heavy documentation, and the timeline rules it out for anything urgent. SBA loan guide →
4. Equipment sale-leaseback Best for raising cash from owned vehicles

A business that owns its fleet outright can sell the vehicles to a funder and lease them back to free up working capital.

Watch for: You turn an asset you own into a monthly payment, so the cash has to earn more than it costs. Equipment financing guide →

Side-by-side comparison

Option	Verdict	Cost basis	Funding speed	Qualifies on
Equipment loan	Best overall	Representative 8%–30% APR, with the term matched to the equipment's useful life	Days to weeks	The equipment is the collateral, which can offset a thinner credit profile
Equipment lease	Best for fleets on a replacement cycle	A monthly lease payment; total cost depends on the end-of-term buyout	Days to weeks	The equipment is the collateral; often less cash up front than a loan
SBA 7(a) loan	Best for a large fleet purchase	Capped at 10.00%–13.50% by loan size (prime plus the SBA maximum spread)	Weeks to months	Generally stronger credit and two or more years in business
Equipment sale-leaseback	Best for raising cash from owned vehicles	Lease-style pricing on equipment you already own	Days to weeks	The resale value of equipment you own free and clear

What it costs

Monthly payments on a standard fixed-payment loan at the representative 8%–30% APR band. The low end of each range is 8% APR and the high end is 30% APR.

Amount	36 mo	48 mo	60 mo
$40,000	$1,253–$1,698	$977–$1,440	$811–$1,294
$100,000	$3,134–$4,245	$2,441–$3,601	$2,028–$3,235
$250,000	$7,834–$10,613	$6,103–$9,001	$5,069–$8,088

Financing $100,000 over 48 months costs about $2,441–$3,601 a month, or $17,182 to $72,829 in total interest, depending on the rate you qualify for. WithFunded calculation, representative 8%–30% APR band. Not a quote.

What lenders look at

The vehicle: new or used, mileage, and upfit.
Down payment and the owner's credit.
How the vehicle produces revenue, such as a route or a signed contract.

Mistakes to avoid

A lease with mileage limits lower than you will drive.
A term longer than the vehicle's realistic working life under commercial use.

Frequently asked questions

What credit score is needed for a commercial vehicle loan?: There is no single cutoff, because the vehicle is collateral. Weaker credit generally means a larger down payment and a higher rate.
Is it better to lease or buy a work truck?: Buy if you will keep it for most of its life or put heavy miles on it. Lease if you replace vehicles every few years and want the lower payment.
What is the payment on a $100,000 vehicle loan?: At a representative 8%–30% APR, about $2,028–$3,235 a month over 60 months.

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How we ranked these options

This guide ranks types of financing, not individual lenders. Each option is ordered by how well it fits the need described on this page, judged on four things in this order: whether the structure matches how the money will be used and repaid, total cost, funding speed, and how hard it is to qualify. Cost figures are WithFunded calculations from published rate inputs as of November 2026: the bank prime loan rate from the Federal Reserve, the SBA maximum-rate schedule, and Federal Reserve survey data. The method follows our 2026 SMB Financing Cost Report, whose own figures use June 2026 rates.

WithFunded is a financing marketplace, not a lender. Our 2-minute form suggests a product type from the families we cover, and a funding partner reviews the request. Not every structure named in this guide is available through WithFunded: options such as SBA microloans, USDA farm loans, bank loans, and seller financing are ones you would pursue directly with the provider. They are listed because leaving out a good fit would make the ranking less useful.

Related guides

The top-ranked option on this page is equipment loan because it fits the most common version of this need. Your own best fit depends on your revenue, time in business, credit, and how fast you need the money.

Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.