Line of Credit
What is line of credit? A line of credit is a revolving working-capital facility where the borrower draws what they need, pays interest only on the outstanding balance, and re-borrows as it pays down.
Full definition
Trucking lines of credit usually run $25K-$250K with 6-24 month draw periods and rates from 8-30% APR depending on credit and revenue. Interest accrues only on drawn balance, making the line cheaper than a fixed-amount term loan when the carrier doesn't need the full sum continuously.
Lines are the right tool for recurring or unpredictable working-capital gaps — fuel surges, slow-pay seasons, peak-season hiring. They are not the right tool for a single capital expense, where a term loan is usually cheaper.
Qualification typically requires 1+ years in business, $10K+ monthly revenue, and 600+ FICO, though revenue-based underwriters take lower-credit applicants at higher rates.