Small Fleet Financing: Why Buying Trucks Stops Making Sense

Small Fleet Financing: Why Buying Trucks Stops Making Sense

Mon, September 14, 2026 at 5:47 PM GMT+3 3 min read

Truck financing is shifting fast: small fleets are borrowing to keep trucks running, not to add new ones. Dave Gilbert of National Funding breaks down why repair costs, insurance, fuel and downtime are changing the math for owner-operators and small carriers.This conversation gets into the real issue for trucking businesses right now: cash flow. Even with freight demand holding up in spots, many fleets still can't justify new equipment when used truck prices, maintenance bills and uncertainty keep stacking up.#TruckFinancing #SmallFleets #FreightWavesToday

Small trucking fleets are pulling back from equipment purchases and turning instead to short-term repair financing, according to Dave Gilbert, founder and CEO of National Funding, which has financed trucking and transportation businesses for nearly 30 years. The shift reflects a compounding of cost pressures — rising used truck prices, fuel, insurance, and maintenance bills — that together make buying new or used equipment financially untenable for many small carriers right now.

"A lot of people aren't looking for new vehicles because of all the prices and the cost to purchase them doesn't outweigh the profit," Gilbert said. With used truck values elevated and new units carrying additional fees, the calculus for small fleets has tilted decisively toward maintaining existing equipment rather than expanding.

"If you know you're not gonna buy new vehicles for the foreseeable future, then take care of what you have, make sure you're working with reliable vendors, and downtime always kills you."

On the working capital side, National Funding is seeing demand concentrated in shorter durations — 60-, 90-, and 180-day bridge loans — rather than the multi-year equipment financing that characterized earlier expansion cycles. For vehicle financing, the company typically offers three- to five-year terms on used trucks and longer on new equipment, but Gilbert said demand for that product is contracting. Repair financing has become the dominant request. "Repair is probably the number one right now," he said.

The qualification process for both products starts with a one-page application and bank cash-flow data, Gilbert said. Working capital loans carry one-year maximum terms, while equipment financing runs three to five years for used vehicles. He emphasized that the working capital product requires more care because it draws directly on a carrier's operating cash, and some National Funding clients have taken on more than 40 loans over the course of their relationship with the company.

Small carriers facing growth decisions were cautioned against expanding for its own sake. The CEO described the primary risk as "greed" — adding trucks without confirmed margin. His advice for any carrier weighing new financing right now: scrutinize the contract, verify the margin, and confirm the freight opportunity before committing. He added that AI tools such as Claude are increasingly useful for smaller operators who want to stress-test their financial assumptions before approaching a lender.

Regionally, the CEO pointed to AI data center construction corridors as an area generating identifiable freight demand, while warning that weather extremes — particularly the approach of winter on the East Coast — create cash-flow volatility that small fleets must reserve for. Confidence, he argued, remains the most universal headwind: "Managing the company financially is probably the most important in terms of liquidity, having enough cash on hand."

• Gilbert says small carriers are shifting from truck purchases to short-term repair loans as used vehicle prices climb and buying economics no longer pencil out.

• Working capital loan durations are compressing to 60–180 days, with repair financing now the top request among small fleet customers.

• Carriers eyeing expansion are urged to lock in contracts with guaranteed margins before taking on new debt, with AI tools cited as a practical resource for financial due diligence.

This Summary is generated thanks to a transcription of the interview, for the full interview please enjoy the video above.

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