Horse Trailer Financing: How and Where to Secure Funding

A quality horse trailer makes it easy and safe to transport your equine friend from one location to another. But depending on the size and materials used, you could spend tens of thousands of dollars on your equipment. 

Horse trailer financing helps you spread out the cost with a loan or line of credit. Keep reading to learn different options for paying for a trailer, whether you’re a farmer or a hobbyist looking for an affordable way to care for your horses.  

Horse trailer financing options

Financing type	Best for
Personal loan	Fast funding
Horse trailer financing company	Specialized knowledge
Home equity loan	Homeowners looking for low interest rate
Home equity line of credit	Homeowners who may have ongoing expenses
Business equipment financing	Equestrian-related businesses

Personal loans and horse trailer financing companies are two of the easiest and fastest ways to finance your horse trailer. Lenders work with a variety of credit profiles, giving more people the opportunity to fund their horse equipment purchases. 

Homeowners with a large amount of equity can use a home equity loan or line of credit. But the approval timeline is longer, and your home is used to secure the loan.

Business equipment financing can be attractive because the trailer itself acts as collateral. However, your horses must be part of your business model to qualify for this type of financing. 

The best horse trailer personal loans 

Lender	Best for
Credible	Marketplace
SoFi	Good credit
LightStream	Excellent credit
Upgrade	Fair credit

You can use a personal loan for just about any purpose, including purchasing a horse trailer. We recommend four lenders for this type of financing because they offer low or no fees and cover a range of credit options. Their loan amounts can cover the cost of horse trailers for those who qualify.

One of the most important factors affecting the cost of your personal loan is your FICO credit score. This number ranges from 300 to 850, with 850 being the best score possible. Credit ratings are grouped into five different categories:

• Excellent: 800 to 850
• Very good: 740 to 799
• Good: 670 to 739
• Fair: 580 to 669
• Poor: 300 to 579

Lenders use your credit score to determine how likely you are to make your payments on time. They hedge their risk by charging a higher interest rate for borrowers with lower credit scores.

When a lender advertises a range of interest rates, the lowest rate is often reserved for applicants with high credit scores. The higher interest rate is for individuals with lower credit scores. If you have average credit, your rate may be somewhere in the middle.

Credible – Best marketplace

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LendEDU rating: 5.0 out of 5

• Broad selection of loan options.
• Instant loan estimates.
• High marks for customer satisfaction.

Credible stands out as a premier marketplace for various loan types, notably for its wide range of loan options. This diversity ensures that borrowers can find financial solutions matched to their unique needs. 

Its standout feature, the instant estimates, allows prospective borrowers to assess the affordability of horse trailer financing options, streamlining the decision-making process. High customer satisfaction underscores Credible’s commitment to providing a reliable and user-friendly platform, making it a top choice for securing financing.

SoFi – Best for good credit

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LendEDU rating: 5.0 out of 5

• Competitive rates for borrowers with strong credit histories.
• No required fees.
• Outstanding customer support.

SoFi distinguishes itself as an ideal lender for those with good credit thanks to its competitive rates. The absence of required fees enhances the appeal of SoFi’s loans, ensuring borrowers aren’t caught off guard by unexpected costs. 

Combined with SoFi’s exceptional customer service, this fosters a supportive financing journey for individuals looking to finance a horse trailer, making it an excellent option for those prioritizing affordability and support.

LightStream – Best for excellent credit

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LendEDU rating: 4.8 out of 5

• Attractive rates for applicants with excellent credit.
• No fees or penalties for early payment.
• Quick funding, potentially on the same day.

LightStream is the go-to lender for borrowers with excellent credit, offering super competitive rates. The application process is streamlined, leading to quick funding, sometimes on the same day, which is a significant advantage for those in urgent need of financing. 

The absence of fees and prepayment penalties makes LightStream an economical choice, allowing borrowers to manage or pay off their loans without incurring extra costs.

Upgrade – Best for fair credit

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LendEDU rating: 4.9 out of 5

• Welcomes borrowers with fair credit.
• Allows joint applications.
• Offers complimentary credit monitoring services.

Upgrade is an excellent lending platform for individuals with fair credit. It provides an inclusive environment that also supports joint applications to enhance approval odds. Its free credit monitoring tools set Upgrade apart, enabling borrowers to track and improve their credit scores over time. 

This focus on financial health and accessibility makes Upgrade a valuable resource for borrowers seeking to finance a horse trailer while also working on their credit standing.

Specialized horse trailer financing companies 

In addition to considering a personal loan, you can also work with a smaller lender that specializes in horse trailer financing. These lenders often partner with horse trailer suppliers to act as a financing middleman between the vendor and the customer. Or you can work with the supplier.

Here are a few examples of lenders and suppliers that offer horse trailer financing:

• Southeast Financial: Offers financing for new and used horse trailers. You can apply online for a fixed-rate loan spread out for up to 20 years. 
• Acorn Financial: Choose from several offers from lenders offering horse trailer financing. Then apply with the lender you pick, and get loan funds in one to two business days. 
• My Financing USA: Available in the 48 contiguous states, My Financing works with multiple lender partners to find horse trailer financing for your credit profile. The application takes just five minutes, and you can get funded in just a couple of days. 

It’s smart to compare several financing options, including personal loan lenders and smaller lenders or suppliers that specialize in horse trailer financing, before making your decision.

Other ways to finance a horse trailer 

Although personal loans, horse trailer loans, and vendor financing are the most popular ways to finance a horse trailer, they aren’t the only options. You may be able to leverage your home equity instead. 

People often use home equity loans and lines of credit to finance home improvements, but you can use the funds to finance other purchases.  

Home equity loans

Home equity loans allow you to tap into your home’s equity to access funding and, in this case, pay for a horse trailer.   

Pros

• May have lower rates than unsecured personal loans.

• More accessible for borrowers with bad credit because your home secures the loan.

Cons

• You’ll need enough equity (typically 15%) in your home.

• Your home is on the line if you can’t repay the loan.

• It may take more time to get funds than other financing options.

• The application may take longer than for a personal loan.

Home equity line of credit (HELOC)

Like home equity loans, a home equity line of credit allows you to leverage your home’s equity to finance a variety of expenses, including a horse trailer. The difference is that instead of a lump sum of cash, your line of credit is revolving, so you can tap into it as needed. 

If you’re just getting started in the equestrian business and expect you’ll need assistance with cash flow, a HELOC can be useful. It will allow you to borrow only what you need and pay it off on a rolling basis, like a credit card.

Pros

• May come with lower rates than personal loans.

• Flexible financing allows you to borrow what you need over an extended period.

Cons

• Your home is on the line.

• HELOC rates can be higher than home equity loan rates.

• May be charged an annual fee.

Business equipment financing

If your horses are part of your business, such as a farm, boarding facility, or riding school, you may qualify for equipment financing through a small business lender. The horse trailer is used as collateral, which can keep interest rates lower. 

Pros

• No personal assets used for collateral.

• May roll in soft costs, such as taxes and delivery.

Cons

• Horse trailers must be used for business purposes.

• May need to submit business financials with application.

• Approval and funding times may be slower.

Explore all your horse trailer financing options based on the purpose of the equipment and the choices available to you depending on your circumstances. 

How to apply for horse financing 

Getting a personal loan for horse trailer financing requires a few steps during the application process. Before you apply, consider getting prequalified to review an estimate of your loan offer. 

You can compare multiple lenders in the prequalification stage. You’ll see an estimate of how much you can borrow, what rate you qualify for, and what monthly payments look like. Lenders provide these details with just a soft pull on your credit score.

When you find a lender and loan offer with terms you’re comfortable with, you can submit a full application. At this point, the lender performs a hard credit check You’ll often need to include:

• Social Security number.
• Income information.
• Bank account information.
• Basic contact information.
• Your driver’s license or identification card. 

Once your application is reviewed and approved, read the finalized terms of your loan offer. If everything looks good, you can sign and return the agreement. Funding time varies by lender, but could be as fast as a day or two.

Then you’re ready to purchase your new horse trailer and get on the road!

FAQ 

Can you get horse trailer loans for bad credit?

Yes, securing a horse trailer loan with a low credit score is possible, but it may be more challenging. Some lenders specialize in helping individuals with bad credit. Interest rates might be higher, and additional terms may apply. To enhance your chances of approval, consider adding a cosigner or putting up collateral.

Can you get used horse trailer loans?

Yes, you can obtain loans for used horse trailers. These loans are similar to new trailer loans, but they depend on the value and condition of the used trailer. Lenders might have different requirements for the age or state of the used trailer, so check these prior to applying.

What are typical horse trailer loan rates?

Horse trailer loan rates vary depending on several factors, including the loan type, your credit score, the loan amount, the term of the loan, and the trailer’s value. In general, you can expect rates to range from as low as 7% to as high as 36%. This underlines the importance of shopping around for the best rate.

How long can you finance a horse trailer?

The financing term for a personal loan to buy a horse trailer could fall between two and 12 years. Your monthly payments will be smaller with a longer loan term, but you’ll pay more in interest over time. A shorter-term loan will have higher monthly payments, but you’ll pay less in total interest.

Recap: Best horse trailer personal loans

Lender

Credible

SoFi

LightStream

Upgrade