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Tow Truck

Also referred to as a "breakdown truck," tow trucks are used to move improperly parked, disabled, or impounded vehicles. In addition to providing roadside assistance, these trucks are also used to transport luxury vehicles, assist with interstate moves and transfers, and move forklifts or other heavy-duty machinery. 

Due to their versatility, tow trucks are valuable to any transportation or delivery business. However, with their hefty price tag, business owners may not always be able to arrange the funding from their resources. Searching for reliable tow truck financing options is crucial because nearly all large-scale business equipment needs external financing. 

Whether you are looking to invest in a tow truck for the first time, wish to add more trucks to your existing fleet, or simply want to finance your truck’s costly engine repairs, you need tow truck finance. New tow trucks can cost between $55,000 to $130,000, depending on their model, age, performance, and condition (old or new). 

Light-duty tow trucks typically range between $58,000 and $72,000, while medium-duty trucks can go as high as $80,000 to $103,000. Heavy-duty trucks cost $250,000 to $650,000, while ultra-heavy-duty trucks can go as high as $500,000 to over $750,000. Remember that the exact price of the truck will vary based on the dealer and the location. 

Few businesses have the funds to buy one or more tow trucks upfront, and that’s where tow truck financing companies enable them to meet their investment needs. You can kick start or upgrade your business without breaking the bank by taking out a tow truck loan. For this reason, it is vital to research and go with a trustworthy direct lender to help you through this process.

Types of Tow Truck Financing

Not all tow truck financing options are the same, and based on your business structure and requirements, one option might be better. Here are some of the main types of tow truck loans that you can choose from.

Tow Truck Loans 

There is an array of small business loans that you may be eligible for to finance your tow truck. These microloans are perfect for potential tow truck owners looking to invest in a light-duty vehicle or upgrade their current fleet.

The loan offers about $50,000 to small businesses or startups to finance numerous costs, including equipment purchases, working capital, and more. Interest rates are also cheaper, making it an attractive option. 

Tow Truck Line of Credit  

Instead of a fixed and lump sum loan, you will be approved for up to a specific amount of working capital with a line of credit. You can borrow how much you need for your truck’s purchase and make your payment only on that. 

This financing works a little like business or personal credit cards. If you require more money in the future, you will have the remaining line of credit available, along with whatever you have paid back. 

Equipment Loans

Equipment loans are designed to decrease the burden of purchasing a truck upfront. These loans typically include payment terms in line with the equipment’s lifetime. Depending on your financial standing, you can expect to pay a down payment of anywhere from 20% to 40% of the total cost.

Collateral Loans 

Some lenders will not require you to use cash as collateral if you are financing a tow truck since the vehicle itself acts as your collateral. If you are unable to pay the debt, the truck will be seized to cover the amount owed.

Why Finance a Tow Truck?

Even though making upfront cash purchases may seem like a good idea, it might not be the wisest financial decision. Saving your working capital for an unexpected crisis and making monthly payments on your truck’s purchase ensures you never run into trouble. 

If most of your liquid cash flow is tied up in your tow truck, you will have to make other financial arrangements in case of an emergency expense. In addition to that, tow truck financing offers the following advantages:

  • Competitive Interest Rates: Lenders normally provide competitive interest rates on tow truck loans because the loans are secured. This is especially true for collateral loans where the purchased truck is collateral until you pay the debt in full. This secured nature allows you to take advantage of a cheaper interest rate.

  • Quick disbursals: Direct lending companies typically disburse the loan money directly to the tow truck supplier, allowing you to register and purchase your vehicle without delays. 

  • Flexible Repayment Terms: A tow truck loan can be repaid anywhere between 1 to 6 years, depending on the financing option you pick and the lender you are dealing with. This allows you to arrange your finances and pay the debt stress-free.

How to Qualify for Tow Truck Financing

Qualifying for tow truck financing will largely depend on the lender. Traditional banks, in general, require a high credit score and ample years in the industry. On the other hand, online lending companies have more lenient requirements and usually allow you to get tow truck financing with bad credit. 

Listed below are some of the main things you need to get in order before applying for tow truck financing that will play a huge role in your qualification.


Collateral refers to any valuable asset, preferably a commercial asset such as a truck or trailer, that can help you become eligible for and secure a loan. The goal is to minimize your borrowing risk for the lender by ensuring they receive compensation for some or the full loan amount. 

Industry Experience 

As a business owner, if you have been in business for a long time and have strong industry experience, your chances of qualifying will improve drastically. Startups and young companies are frequently regarded as high-risk, whereas established companies are thought to be more resilient to financial setbacks.

Credit Score 

A credit score is a crucial factor that tow truck finance companies consider. A minimum of 650 credit score or higher is required to qualify for tow truck financing. The exact threshold will differ based on the lender you choose. However there are some providers like National Truck Loans that will approve your loan with a score as low as the 500’s.

Can You Finance a Tow Truck with Bad Credit?

Yes, you can finance a tow truck even if you don’t have a strong credit score with National Truck Loans. We believe that this figure alone shouldn’t come between you and your dreams, which is why a credit score is not the only criterion we look at – other factors, including your general profile, payment history, and collateral, are just as important. 

Tow truck financing for bad credit has never been more accessible than with us since we assist new and small business owners with lower credit scores (C or D) to qualify for loans.

Choosing the Right Tow Truck Financing for You

The right tow truck financing option for your business fits your needs appropriately and whose terms you are most comfortable with. Ideally, the right option should offer a competitive interest rate, a high financing amount, and longer repayment terms. 


It should also allow you to make prepayments without imposing penalties and not ask for upfront cash payments before the finalization of the approval. 

That said, you may not always be able to benefit from these qualities depending on your credit score, finances, business history, and other factors. For example, you may have to settle for a high interest rate if your credit score is below 650.

Why should you choose National Truck Loans for Tow Truck Financing?

With more than 15 years of experience dealing in different commercial vehicle loans, National Truck Loans is a one-stop platform for all your financing needs. Our boutique private lending company specializes in tow truck loans between $15,000 and $250,000. 

We are direct lenders with no third-party intermediaries involved, thereby saving you the added hassle that comes with overly complicated document processing or other unnecessary bureaucracy. Our financing options for all commercial trucks are quick, easy to understand, and crystal clear compared to traditional banks or third-party brokers. 

We value customer satisfaction over everything else. Therefore, we do our best to provide you with a personalized service closely aligned with your needs. We also encourage two-way communication, meaning our experts will constantly be in contact with you to guide the process. 

By bringing cutting-edge financing solutions, fostering communication, and building a relationship based on trust, we have succeeded in establishing a reliable brand name in the market. We realize that financing large-scale vehicles can be overwhelming, but our main focus is on offering hassle-free support for your future capital needs.

Tow Truck Financing Offers:

To help you finance a tow truck, National Truck Loans offers a financing amount between $15,000 and $250,000 with repayment from 1 to 5 years. Whether you are looking to buy a new tow truck or get repairs done, we’ve got your back. 

Moreover, we also provide bad credit loans in case your credit score is not strong enough for traditional banks and other lending companies. Whether you have bad credit or no credit, you can count on us to provide a solution well-suited to your financing needs. 

Tow Truck Financing For Startups


Tow truck financing provides you with the much-needed startup capital to launch your business operations. Moreover, it acts as a cushion to help you tackle any potential issues you may face. New businesses generally have a hard time securing loans from financial institutions since they are seen as high-risk. SBA loans are typically best for startups since the loan minimizes the risk for both lenders and borrowers. 

If you want to finance a startup, you should prepare a detailed business plan that states your business’s core vision, aims, and features. You should have an insurance policy that covers your tow truck driver’s compensation to ensure their safety. 


Moreover, you will be expected to show your tax returns document for the past 12 months, which will give the lender an idea regarding your expenses, revenue, and how you will finance your future payments. Lastly, you will need to show a commercial driver’s license before applying for tow truck financing. A CDL will indicate whether your business will be operational in the state, outside the state, or in foreign commerce.

While startups can qualify for tow truck financing, they usually have to pay a higher monthly payment compared to an established business. If you are a startup business owner with a bad credit score, your best option is to apply for a collateral loan. 


Tow Truck Financing Rates


Tow truck financing rates primarily depend on the lender and factors such as your credit score, credit history, time in business, and installment history. If you are an established business with a strong financial portfolio and industry experience, you will be entitled to a more competitive interest rate and expected to pay a lower down payment and monthly installments.

On the other hand, if you are a startup business with a poor financial history, you will be subjected to a higher interest rate or expected to make a larger down payment that covers a major portion of the loan.


Final Word: Tow Truck Financing

Knowing your tow truck financing options and applying for the right one is not easy. Choosing a loan that offers attractive terms and a competitive interest rate is important. 

Schedule a 30-minute appointment with our experts today and take advantage of our personalized support. You can also have a private and detailed discussion with our team and see which tow truck financing solution is best for you and what the process will include.

Are There any Other Types Of Truck Loans That National Truck Loans Offers?

National Truck Loans is proud to bring you a diverse variety of truck loans, including commercial truck financing, food truck financing, dump truck financing, truck repair financing, engine overhaul financing, box truck financing, and bad credit truck loans. 

Our extensive experience in these varying fields spans over 15 years, thus establishing us as an industry leader. Schedule a 30-minute appointment with our team today and see the quality of our personalized support. 

Contact National Truck Loans today to get started!

Providing Tow Truck Financing For Bad Credit, Great Credit, and Everything In-Between

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We will handle your paperwork once we have the signed contract back. Most trades are settled in as little as three days. We can quickly get the truck you need back on the road.


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Chris Cadahia

Great lender without the bureaucracy and gotcha’s from your typical truck finance broker. Really makes a difference when you work with a lender like National Truck Loans that uses their own money to fund loans and know the industry. They’ve been a great financial partner and appreciate the support!

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SFL Supply Inc.

National truck loans helped me grow my fleet by several trucks. Very simple, professional and helpful on every step of the way until the end. Recommend to any carrier. Thank you

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Juan Insegna

I had a very good experience. Micheal and Junior helped me a lot, they always answered all my questions and they work very fast. I recommend it.



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