Business funding for towing companies
A tow truck is expensive, it breaks down at the worst time, and a lot of towing revenue comes from municipal or insurance contracts that pay on their own schedule while fuel and driver wages go out every week. Towing funding usually splits between financing the trucks and covering the gap while contract payments catch up.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Buying or replacing a tow truck or flatbed
- Covering fuel, insurance and driver wages between contract payments
- Repairing a truck so it gets back on the road
- Adding a truck to take on a new contract
What usually fits
Products that usually fit
- Equipment financing for tow trucks and flatbeds; the truck secures the loan.
- Line of credit for fuel and payroll when contract payments are uneven.
- Invoice factoring for municipal or insurance contracts that pay on 30 to 60 day terms.
- Working capital for an urgent repair.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
A towing company finances $65,000 for a replacement flatbed over 5 years at an illustrative 8-16% a year. Payments come to about $1,318–$1,581 a month, or $79,078–$94,840 total.
Separately, if a municipal contract pays in 45 days, factoring an illustrative $20,000 of invoices at a 90% advance puts about $18,000 in the account within days, with the balance paid out minus the fee once the contract settles.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Contracts with municipalities, insurers or auto clubs and their payment terms
- Monthly bank deposits and how steady dispatch volume is
- Age, mileage and value of the trucks
- Driver licensing and any towing-specific permits
- Owner credit and time in business
Honestly
Who this is not for
- A brand-new operation with no contracts or dispatch history yet
- Financing a truck whose payment the call volume cannot support
- Factoring invoices from payers who dispute frequently or pay very late
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Towing funding questions
Can an owner-operator tow truck get financed?
Often, yes. Lenders look at the truck's age and value, your experience and credit, and usually ask for a down payment on older units.
Is factoring worth it for municipal contracts?
It can be, since those contracts often pay slowly but reliably. The fee depends on how long the invoice sits before payment.
Do you finance used tow trucks?
Some lenders in our network do, often with limits on age or mileage. Tell us the year, make and mileage.
What if I only have a few months of contract history?
Some lenders will still consider it, especially with a down payment on equipment. We will tell you honestly what is realistic.
Guides
Guides for towing
Related
Similar businesses
Trucking · Auto repair · Car dealerships · Auto body · Limo & transport services
Where we work: all US states · all Canadian provinces
See your options
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