Can I get a loan to buy a hotshot trucking business?

Financing a hotshot business is different from financing a fleet. When the truck and trailer make up most of what is sold, a lender is often looking at the equipment first and the business second. Each lender sets its own terms, and none of them can be known in advance, so speak to more than one before you commit to a price or an offer.

Equipment financing and acquisition loans

Equipment financing is secured by the truck and trailer. An acquisition loan is for buying the business as a whole, including customers and goodwill that a lender cannot repossess. Ask each lender which it offers for a deal like yours, what it will take as security and whether it will split the purchase into both kinds of loan. Your accountant can help you compare them.

What a lender may ask about you

Expect questions about your driving history, your experience hauling this type of freight and how you will keep the loads coming. A lender may want to see the seller’s load records and your plan for the first few months. If you have not run a trucking business before, say so plainly and bring a plan for how you will learn the parts you do not know.

Seller financing and the lender’s view

Some sellers will carry part of the price, which can ease the lender’s concerns and keep the seller invested in a smooth handover. Terms are negotiated, and a lawyer should review them. For a larger operation, the dump truck financing guide shows how lenders look at a bigger purchase.