Breaking

Bank Exodus Tightens Truck Financing for Mid-Size Carriers

A prolonged freight downturn has decimated the truck financing market. Lenders are exiting the sector, leaving mid-size fleets struggling to access capital for equipment replacement.

Three and a half years of industry contraction simultaneously damaged carrier credit profiles and pushed major lenders from the sector. Competition now consists primarily of original equipment manufacturer captive finance arms, a handful of large independents and select bank-led groups.

The attrition hit newest carriers hardest. Approximately 85% of motor carriers operating fewer than two years failed during the downturn, according to Mitsubishi HC Capital America executives.

The financing crisis stems partly from an asset bubble that peaked in early 2022. Used Freightliner Cascadia sleeper tractors with fewer than 500,000 miles reached nearly $118,000—a 136% jump above pre-pandemic highs. Prices have since moderated to $60,986 as of September, according to ACT Research data.