Used truck dealers say sales increased by 29% in 2025. One of the driving factors behind the increase in used equipment sales was the tightening of credit standards. That’s making it harder for trucking company owners to buy new trucks. Higher interest rates aren’t appealing in an already turbulent industry.
Because traditional bank loans are harder to obtain and often more expensive, private credit is becoming an attractive alternative. It’s not necessarily the best choice, however.
The price of a new commercial truck neared $120,000 in January 2025. A similar used truck averaged about $82,000, but there’s a risk of more frequent repairs when you buy used. When you weigh higher interest rates with high truck prices, tougher lending rules, private credit growth, and potentially higher interest rates, you need a plan.
Private Credit Growth: Explained
Private credit is an alternative to traditional bank loans. Investors usually handle them through private funds. Typically, private credit fund investors include:
- Family offices and wealth management
- Foundations and endowments
- Fund managers
- Insurance companies
- Private and public pension funds
The private credit market has more than doubled over five years, from $410 billion in 2020 to $630 billion in 2025. BlackRock estimates that private credit will top $3.5 trillion by 2028.
Because banks must comply with regulatory guidelines, they scrutinize loan applications. Private credit funds are faster, more flexible, and often more affordable. Private credit managers raise funds from investors and lend them to borrowers, usually medium- to large-sized corporations. Smaller businesses may not qualify.
Private credit often uses asset-backed finance (ABF), in which the value of the assets is a major consideration. Underwriters make financial decisions based on the value of the trucks and equipment you own. You could have weak savings, but the value of your assets is high, and that’s used to determine how much you qualify for.
Another benefit of private credit is that balloon payments are possible during the slow season. If you know your clients’ sales slow from January to March, you might qualify for lower or paused payments during those months and then catch up when gardening or agricultural shipments pick back up in the early spring.
Changes in Banking Traditions
Several changes are taking place in 2026 that impact business loans. To start, Small Business Administration (SBA) loans require you to be a U.S. citizen or national. Legal permanent residents holding a green card will no longer be eligible for SBA loans starting March 1st.
An Arkansas representative is looking into legislation to expand this new rule, requiring any bank account holder to provide proof of citizenship before accessing the banking system. If this passes, U.S. business loan products could be very difficult for non-citizens to access.
Given that one in five truck drivers is foreign-born, many trucking company owners are immigrants as well. In 2022, 7% of the transportation industry was self-employed. If these owner-operator trucking companies are owned by foreign-born workers, business loan products could become harder to access.
With a shift away from SBA or traditional loans, some companies will struggle to qualify for financing when they need new equipment. You might think you’re set because your trucks are only a few years old and in good shape, but it’s hard to predict exactly when you’ll need a new truck or trailer.
Your driver could slide on icy roads, necessitating the purchase of a new truck. Insurance doesn’t always cover the full replacement cost.
Another concern involves newer engines and emissions standards. There’s some relief on that front, but it’s impossible to say how long the Clean Trucks Plan will be tabled.
2027’s NOx Emission Standards
Starting in 2027, the Clean Trucks Plan was intended to take effect. On January 1, 2027, tailpipe nitrous oxide (NOx) emissions were to meet new standards of at least 80%. Particulate matter reductions were to be 50%. OEMs’ extended warranties were to increase from 100,000 miles to 450,000 miles, and useful life limits were to increase from 435,000 miles to 650,000 miles.
The current administration rescinded the Clean Trucks Plan due to concerns about cost increases for manufacturers and trucking company owners. This doesn’t mean the rule is eliminated. Some states, including California, have filed legal challenges. As of 2025, 11 states had adopted Advanced Clean Trucks (ACT) rules, and 10 had adopted Heavy-Duty Omnibus (HDO) rules.
Trucking company owners operating in a state that is fighting to keep the rules in place need to be aware of the deadlines and their implications for new or used truck purchases.
The New Credit Playbook for Truckers
Whether you’re an independent driver-operator or have several trucks in your fleet, choosing the right financial products is key to success. Freight factoring partners you with a financial expert who helps you get paid quickly for much less than the cost of credit card or loan interest.
Freight factoring is also beneficial because it includes additional services that help you save money and grow your business. Imagine saving money every time you fuel up your trucks. You can access business credit reports to verify that the broker or shipper you’re considering working with is financially responsible.
This table shows the differences between bank loans, private credit, and freight factoring arrangements.
| Bank Loan | Private Credit | Freight Factoring | |
| Credit Score | Ideally, 680 or higher | 600 or higher | Doesn’t matter |
| Impact on Credit | Can lower your score | Can lower your score | No impact |
| Interest Rates/Fees | Higher | Lower | Much Lower |
| Terms | Often standardized | Usually flexible | Flexible |
| Timeframe for Approval | 60 to 90 days | Days to weeks | Days |
Freight factoring offers an alternative that you may not realize exists. Instead of taking out a loan, start getting paid quickly and use the money you save on late payment fees, increased accrued interest, and dings on your credit score.
Invest the money you save and use it to pay cash for your trucks, trailers, and other equipment. You may need to make purchases one at a time rather than all at once, but the long-term savings are worthwhile.
Imagine a world where you’re not worrying about how you’ll make a loan payment when times are tough. Imagine how great you’ll feel knowing that you don’t have to hound your client to pay an invoice. With freight factoring, it’s possible. Learn more about the benefits of freight factoring by contacting Saint John Capital.
