Commercial Truck Financing With Charge-Offs
Reviewed by George Burgess · Updated August 19, 2026
A charge-off on a credit report is not listed as an automatic HMTL program disqualifier. HMTL has no minimum credit score and specializes in credit challenged commercial truck and trailer buyers. The specific truck purchase still has to fit the confirmed program and be reviewed.
Quick Financing Snapshot
- Minimum credit score
- None
- Credit specialty
- Credit challenged buyers welcome, with no minimum credit score
- Purchase price financed
- $21,000 to $145,000
- Down payment
- Typically 30% of the purchase price
- Startup down payment
- Typically 40% of the purchase price
- Seller
- Licensed dealer purchases only
- Credit history
- No bankruptcy or repossession within the last 5 years.
- Approvals
- Same day approvals may be available
Want to know whether your own situation is financeable? Get pre-approved or call (407) 250-8536.
What a Charge-Off Means
A charge-off generally means the original creditor has treated an unpaid account as a loss for accounting purposes.
A charge-off does not automatically mean the debt has been forgiven or erased.
The way a particular account is reported can vary.
For HMTL, the important point is that a charge-off is one part of the broader credit history rather than a published automatic approval or decline rule.
HMTL Does Not Publish a Charge-Off Formula
This site does not publish:
- a maximum charge-off balance
- a maximum number of charge-offs
- a required age for a charge-off
- a rule that every charge-off must be paid or settled before review
The actual credit profile and truck transaction still have to be reviewed.
A Charge-Off and a Collection Can Both Appear
The same underlying debt can sometimes appear in different ways on a credit report, including a charge-off from the original creditor and a collection entry from a third party.
Borrowers should review their own reports for accuracy.
HMTL does not publish a rule treating every combination of credit entries the same way.
The Firm Credit-History Restrictions Are Separate
There can be no bankruptcy within the last 5 years.
There can be no repossession within the last 5 years.
Those are firm HMTL restrictions.
A charge-off is not listed as an automatic HMTL disqualifier in the same way.
The Rest of the HMTL Program Still Applies
The purchase must come from a licensed dealer.
The purchase price must be $21,000 to $145,000.
An established business is typically 30% down.
A startup is typically 40% down and requires 2 years of industry experience.
Approximately 4 months of business bank statements is typical.
What May Help You Qualify
- No minimum credit score
- Typically 30% of the purchase price down for an established business
- Typically 40% of the purchase price down for a startup, plus 2 years of industry experience
- Licensed dealer purchases only
- Purchase prices from $21,000 to $145,000
- No bankruptcy or repossession within the last 5 years
- Approximately 4 months of business bank statements
Potential Problems & Reasons For Decline
- A truck being bought from a private seller rather than a licensed dealer
- A purchase price outside the $21,000 to $145,000 range
- A down payment that does not reach the typical percentage for the truck selected
- A bankruptcy or repossession inside the last 5 years
- A startup without 2 years of industry experience
- Business bank statements that are incomplete or unavailable
Frequently Asked Questions
Does a charge-off automatically disqualify me?
Do I have to pay a charge-off before applying?
Does the dollar amount of a charge-off create an automatic cutoff?
Can a charge-off and collection appear for the same debt?
Can a score around 500 still be considered with a charge-off?
Can a charge-off override the dealer requirement?
What credit-history events are firm program restrictions?
Does a charge-off guarantee a higher down payment?
Related Resources
- Bad Credit FinancingCommercial Truck Financing With CollectionsCollections can be part of a credit challenged profile without being a published automatic HMTL decline.
- Bad Credit FinancingCommercial Truck Financing With Late PaymentsLate payments can be part of a credit challenged profile without creating a published automatic HMTL cutoff.
- Bad Credit FinancingCan You Finance a Commercial Truck With Bad Credit?Bad credit alone does not decide a truck transaction. The seller, price, down payment, business status and firm program requirements still matter.
- Bad Credit FinancingCommercial Truck Financing Around a 500 Credit ScoreA score around 500 is not an automatic HMTL decline, but it is not an automatic approval either.
- Bad Credit FinancingWhat Do Truck Lenders Look at Besides Credit Score?Credit score is only one part of a truck financing transaction. Here are the HMTL program facts worth checking first.
- Bad Credit FinancingWhat Credit Problems Matter Most When Financing a Commercial Truck?Not every credit problem is treated the same. The 5-year bankruptcy and repossession rule is firm, while there is no minimum credit score.
Ready To Get Your Truck Funded?
Tell us about the truck, your business and your situation. We will review whether the transaction fits the HMTL program.