Financial Options in Truck Industry

In the fast-paced world of Canadian trucking, access to capital can make or break your ability to scale. Whether you're an owner-operator expanding your fleet or launching your own trucking business, choosing the right truck financing solution is critical.

From lorry loans to lease-to-own options, understanding your funding path allows you to invest in the right vehicle at the right time — without draining your cash flow. In this guide, we break down the types of truck financing, explain how to get approved, and help you avoid common pitfalls.

Mehmi Financial Group helps Canadian trucking businesses get up to $5 million in financing with fast approvals and minimal paperwork. With 30+ lenders and a specialization in truck and trailer loans, we make funding simple and stress-free.

What Is a Lorry Loan?

A lorry loan (also called a truck loan in Canada) is a specific type of commercial vehicle financing designed to help you purchase heavy-duty, medium-duty, or vocational trucks. These loans are tailored for:

• Class 8 highway tractors
• Dump trucks, flatbeds, and day cabs
• Delivery trucks and refrigerated units
• Owner-operator rigs and trailers

Once approved, you receive a lump sum to buy your truck. You repay it in monthly installments — typically over 24 to 72 months — with interest.

Benefits of a Truck Loan

Truck loans are ideal for business owners who want full vehicle ownership and asset control. Here’s why:

• Flexible Terms: Choose loan durations that match your budget — longer terms mean lower monthly payments
• Asset Ownership: Build equity in the vehicle with each payment
• Tax Deductions: In many cases, loan interest and depreciation may be tax deductible in Canada (consult your accountant)

Key Considerations When Choosing a Truck Loan

Before signing any agreement, ask:

• What’s the interest rate? A 1–2% difference can add up to thousands over the loan term
• What is the loan term? Shorter terms save on interest but cost more monthly
• How much is the down payment? Larger down payments reduce your loan principal and may lower your rate
• Is it a secured loan? Truck loans typically use the vehicle as collateral, reducing risk for the lender

Also read: Understanding the Basics of Truck Loans

Truck Financing Options Available in Canada

Not all truck financing is created equal. Let’s explore the top solutions available to businesses across the country.

1. Truck Loans (Lorry Loans)

• Full ownership at the end of the term
• Monthly payments based on principal and interest
• Suitable for owner-operators and small fleets

2. Leasing (Operating or Capital Lease)

• Lower monthly payments
• Return or upgrade the truck at lease-end (in operating leases)
• Capital leases offer a path to ownership

Explore more: Financing & Leasing Options

3. Hire Purchase

• Pay an upfront deposit
• Make regular fixed payments
• Own the truck after the final payment

Similar to a lease-to-own model, this works well if you plan to keep the truck long-term.

4. Refinancing & Sales-Leaseback

• Refinance a truck you already own for better rates
• Free up capital through sales-leaseback: sell your truck, lease it back, and retain use

Learn more:

• Refinancing Your Commercial Truck in Ontario
• Refinancing Services

How to Get Approved for Truck Financing

Truck lenders in Canada will assess your creditworthiness, vehicle value, and business financials. Here’s how to position yourself for approval:

1. Check Your Credit Score

Most lenders require a minimum personal credit score of 600–650. Strong business revenue can sometimes offset a lower score.

2. Prepare Key Documents

Be ready to provide:

• Valid driver’s license and business incorporation docs
• Proof of income (T2s, NOAs, or business financials)
• Vehicle details (VIN, mileage, invoice or quote)
• Down payment source

3. Choose the Right Truck

Pick a vehicle that suits your route, load type, and fuel efficiency needs. Newer trucks may qualify for better terms, but used trucks are often more affordable upfront.

Also read: Truck Loan Approval in Ontario: Documents You’ll Need

Common Mistakes to Avoid

• Ignoring your credit score: Your rate depends heavily on credit. Review and correct errors before applying
• Not comparing offers: Get quotes from multiple lenders to ensure the best terms
• Overextending your finances: Make sure payments are sustainable with your cash flow
• Not planning for insurance and maintenance: These ongoing costs are crucial to keep the truck on the road and protect your investment

Why Work with a Specialized Truck Financier?

While banks can be slow and strict, a truck financing specialist like Mehmi Financial Group offers:

• Fast approvals in as little as 48 hours
• Minimal paperwork
• Access to 30+ lenders for competitive rates
• Custom terms for trucking, transportation, and logistics businesses

We’ve helped hundreds of Canadian drivers and logistics businesses get funding for their first truck, expand their fleet, or refinance to save money.

Frequently Asked Questions (FAQs)

How much can I borrow to finance a truck?
Most lenders offer $10,000 to $500,000 or more per truck, depending on credit and the vehicle type.

Can I finance a used truck?
Yes. Used truck financing is common, especially for Class 8 trucks under 8–10 years old.

Do I need a business to apply?
Not necessarily. Owner-operators with a sole proprietorship or new corporation can still qualify.

What if I have bad credit?
You may still qualify through subprime lenders or with a larger down payment.

Also see: 0 Down Truck Loan

Conclusion

Truck financing doesn’t need to be complicated. Whether you’re just getting started or looking to scale your fleet, the right financial solution can put you in the driver’s seat.

At Mehmi Financial Group, we’re here to guide you every step of the way. From lorry loans to leasing to refinancing, our experts will match you with a truck loan that fits your budget and business goals.

Ready to Finance Your Truck?

Speak to a truck financing advisor or calculate your monthly payments today.