Refrigerated Truck Financing
Best Guide to Refrigerated Truck Financing
Best Guide to Refrigerated Truck & Trailer Financing
Used reefers financed—even beyond 5 years (condition-based) with monthly terms up to 60 months. Dealer or private seller, low upfront cash, and cash-flow friendly structures.
Why Long-Term Lease Makes Sense
Reefer units depreciate. Leasing/financing preserves working capital, hedges inflation with fixed payments, and lets the truck/trailer pay for itself. Many reefers have useful life beyond amortization; Section 179 may apply on capital structures (consult your CPA).
Borrower Perspective — Benefits & Trade-Offs
| Leasing / EFA | Paying Cash | |
|---|---|---|
| Working Capital | Preserved for fuel, drivers, lanes | Depleted day one |
| Inflation Hedge | Fixed payment as prices rise | None; opportunity cost grows |
| Upgrade Flexibility | FMV return/upgrade or $1 buyout | Replace requires new cash |
| Tax Treatment | Potential Section 179 / FMV deductibility* | Depreciation only |
| Revenue Fit | Match term to contract length & lanes | Cash outlay misaligned |
*Tax outcomes depend on structure and eligibility — confirm with your CPA.
Lender/Underwriter Perspective — What Drives Terms
- Asset Risk: Age, hours, compressor history, insulation, make/model, resale liquidity.
- Cash-Flow Fit: Bank balances, seasonality, DSCR, route stability, cold-chain contracts.
- Documentation: Clean invoice/quote, matching entity names, insurance, valid IDs, UCC/title.
- Vendor Controls: Dealer/private-party verification; condition report; pre-funding options.
Reefer Truck Financing vs Business Loan vs Leasing
| Features | Business Term Loans | Equipment Leasing | Equipment Financing (EFA) |
|---|---|---|---|
| Ownership Requirements | 50% | 100% | 100% |
| Initial Costs | $0 (orig. fees) | Low–Moderate | Varies |
| Monthly Payments | Monthly / Daily / Weekly | Monthly | Monthly |
| Credit Minimum | ~550 | ~600 | ~650 |
| Fund Disbursements | Client | Vendor | Vendor |
| New/Used Eligible | n/a | Yes | Yes |
| Maximum Term | 24 months | 60 months | 60 months |
| Time in Business | 3+ years | Startup OK | Startup OK |
| Interest Rates | Moderate | Low | Low |
| Application-Only Max | $150K | $250K | ~$250K |
| Funding Time | Same-Day | 1–3 Days | 1–5 Days |
Actual terms depend on credit, asset age/condition, revenue trends, and vendor eligibility.
Why 60-Month Terms Fit Reefers
- Reefers often have lower annual mileage and long service life
- Aligns payment with revenue from distribution contracts
- Keeps monthly payment affordable vs. short amortization
- Lets the asset generate cash beyond its amortized cost
Finance vs Lease vs Cash — Quick Pros/Cons
- Finance (EFA): 👍 Ownership day one; predictable amortization. ⚠️ Higher upfront vs FMV in some cases.
- Lease (FMV/$1): 👍 Lower payment, upgrade flexibility; potential tax treatment. ⚠️ Residual/buyout at end.
- Cash: 👍 No debt service. ⚠️ Drains liquidity; poor inflation hedge; slows growth.
Advantages of Choosing Liberty Capital
- Rates by Credit Tier (A/B/C) — prior blemishes considered
- Up to 120% of Equipment Cost — include delivery, taxes, install (file-dependent)
- Flexible Amounts: $5K one-page app to ~$250K app-only (larger with financials)
- New & Used units; private seller considered (prove ownership)
- Corp-Only available for established multi-owner corps (limits apply)
- Approved Vendors nationwide
About “No Pre-Payment Penalties”
Equipment Financing Specials for Reefers
- $0 Down or 1st Payment Only (qualified applicants)
- No Security Deposit (qualified businesses)
- $99 for the First 6 Months
- 90-Day Deferred Payments
- Apply online — app-only up to ~$250K
Down payment and pricing are risk-based. Most lenders don’t publish fixed “rates” because final pricing is disclosed at docs/funding after full approval.
Sale-Leaseback (Unlock Trapped Equity)
Own a reefer free and clear? Convert equity into working capital: we buy and lease it back to you with a payment that fits your cash flow. Useful for upgrades, expansion, or smoothing seasonality.
More Than Just Equipment Loans
- Business Term Loans
- Business Cash Advance
- Revenue-Based Working Capital
- Business Lines of Credit
- Small Business Loans
- Commercial Loans
- Equipment Loans for Reefer Trailers
- Sale-Leaseback Options
- Vendor Programs
Well-managed loans can strengthen business credit and unlock better future terms; missed payments harm access and pricing.
How to Apply for Reefer Financing
- Online Application: Submit app, upload docs, authorize processing. Soft-inquiry to start; hard pull at final EFA/lease approval. Working capital = soft inquiry.
- Bank Statements (3–4 months): Verify income, banking, and ACH setup.
- Equipment Invoice/Quote (if financing equipment): Multiple vendors accepted; we can bundle into one monthly payment up to 60 months. Equipment and vendor subject to final approval.
After approval, we coordinate with your vendor. We can pre-fund approved vendors and finance used equipment (age/condition dependent).
Unlock Your Financial Potential Today
Start, expand, or refresh your cold-chain fleet with structures that protect cash and revenue. Liberty Capital has supported small businesses for 20+ years.
Lease vs $1 Buyout vs EFA? We’ll model cash-flow, taxes, and upgrade paths side-by-side.
Why Long-Term Lease for Refrigerated Truck has Long-Term Benefits
Leasing equipment that depreciates in value can also preserve working capital and hedge against inflation. By avoiding large upfront expenditures, businesses can allocate funds towards hiring skilled personnel, marketing efforts, and other operational needs rather than using working capital to pay outright. Inflation buster when dollar is less and less everyday making monthly payment just make sense.
Most refrigerated trucks or trailers have long-life value beyond the amortized loan term. Depreciated assets can be an asset in the balance sheet. It can have terminal value. Most reefer trucks can be financed and amortized for up to 5 years. Or, you can take the full Section 179 if you do capital lease.
With that said, affordability becomes paramount when investing in refrigerated trucks. Financing offers the advantage of spreading the cost over an extended period, with loan terms of up to 5 or 6 years. This results in reduced fixed monthly payments, making these high-ticket items more manageable in the cashflow. It’s also an inflation buster from a financial and cashflow standpoint with a fixed monthly payment. While inflation goes up over time you payment remains that’s the beauty of financing just about any fixed business essential assets by way all business owners should take advantage of.
Advantages of Choosing Liberty Capital for your Refrigerated Truck Financing
A, B and C Credit will determine the Rates:
Enjoy competitive rates for qualified borrowers, reducing the overall cost of financing. Our goal is to provide an approval. Your job is to accept or not accept the offer. No harm done. Prior blemishes ok.
Up to 120% Equipment Cost:
Our financing options can cover not only the equipment cost but also associated soft costs like delivery, taxes, install etc..Not all will qualify.
Flexible Funding Amounts:
Access financing ranging from $5,000 with a simple one-page application to $250,000 without full financial package. Structured approval will require financials.
New and Used Equipment Financing:
Whether you’re purchasing new or pre-owned equipment, we’ve got you covered. Sometimes we can do private seller purchase financing as well. Seller must prove ownership.
Corp-Only Availability:
For this it caters exclusively to corporations with strong history and multi-owners. Companies with sole owner or start-ups, Corp-only might apply for financing but will be limited on the amount with very little option in the business lending marketplace.
Approved Equipment Vendors:
We work vendors nationwide, equipment dealers, new or used vendor reseller. Some equipment doesn’t qualify for private seller.
No Pre-Payment Penalties:
Enjoy the flexibility of paying off your loan early without incurring penalties what most sites would say. Well not for equipment leasing, EFA or Equipment Financing. See, these types of funding technically aren’t retail so the agreement is non-cancellable. You’re liable for the full term of the lease term of the agreement whether it’s a Dollar Buyout , EFA or FMV. No one penalizes you for paying but you must pay the remaining term.
More than Just Equipment Loans for Your Business
Borrow with confidence.
Business loans provide businesses with the flexibility to use the funds for various purposes related to their operations and growth. Common uses include purchasing inventory, expanding facilities, hiring staff, marketing initiatives, and refinancing existing debt.
Successfully managing a business loan and making timely payments can positively impact a business’s credit profile, potentially improving access to future financing at more favorable terms. Conversely, can be said when you missed payments and defaults can negatively affect future borrowings.
Qualify for a working capital loan today.
