Glossary Terms
Click any term for a full definition and how it applies to commercial vehicle financing.
| Term | Definition | Learn More |
|---|---|---|
| GVWR | Gross Vehicle Weight Rating—the maximum weight a vehicle can safely carry including its own weight, cargo, and passengers. Determines CDL requirements. | What is GVWR |
| CDL Class A | Commercial Driver's License for combination vehicles (tractor + trailer) over 26,000 lbs GCWR. Required for semi trucks, flatbeds, tankers. | What is CDL Class A |
| CDL Class B | Commercial Driver's License for single vehicles over 26,000 lbs GVWR. Required for dump trucks, bucket trucks, vac trucks, garbage trucks. | What is CDL Class B |
| Commercial Equipment Financing | Loans or leases used to purchase commercial equipment—trucks, vocational vehicles, machinery. The equipment typically secures the financing. | What is Commercial Equipment Financing |
| DOT Registration | USDOT number and FMCSA registration required for commercial motor carriers operating in interstate commerce or meeting state thresholds. | What is DOT Registration |
| Hot Shot Trucking | Expedited freight hauling using a pickup truck and gooseneck or bumper-pull trailer. Often time-sensitive loads, smaller than full truckload. | What is Hot Shot Trucking |
| Hydro Excavation | Non-destructive digging using pressurized water and vacuum to expose underground utilities. Safer than mechanical excavation near buried lines. | What is Hydro Excavation |
| GCWR | Gross Combination Weight Rating—maximum combined weight of tractor, trailer, and cargo. Used for CDL Class A. | What is GCWR |
| MC Number | Motor Carrier operating authority from FMCSA for for-hire carriers. Required to haul freight for others. | What is an MC Number |
| Hazmat Endorsement | CDL add-on (H) for hauling hazardous materials. Requires TSA check and knowledge test. | What is a Hazmat Endorsement |
| IFTA | International Fuel Tax Agreement—simplifies fuel tax reporting for interstate trucking. | What is IFTA |
| Vac Truck | Vacuum truck for septic pumping, industrial cleanup, and excavation support. | What is a Vac Truck |
| Reefer | Industry term for refrigerated truck or trailer. Temperature-controlled freight. | What is a Reefer |
| Vocational Truck | Work-specific truck for a particular job—dump, bucket, vac, tow, garbage, etc. | What is a Vocational Truck |
| Chattel Mortgage | Loan secured by movable equipment. The equipment is collateral until payoff. | What is a Chattel Mortgage |
| Lease-Purchase | Lease with option to buy at end. Common for municipal and fleet vehicles. | What is Lease-Purchase |
| Advance Rate | Percentage of equipment value a lender will finance. Determines down payment. | What is Advance Rate |
| Owner-Operator | Driver who owns their truck and operates as an independent business. | What is an Owner-Operator |
| Pre-Approval | Conditional financing approval before selecting specific equipment. | What is Pre-Approval |
Related Resources
Licensing:
CDL Class A vs Class B Commercial Truck License Requirements DOT Registration Requirements What Is Commercial Equipment FinancingVehicles:
Semi Truck Financing Dump Truck Financing Hydro Excavation Truck Financing Vac Truck FinancingCost:
How Much Does a Semi Truck Cost Average Cost of Commercial TrucksStartup guides:
How to Start a Hot Shot Trucking Business How to Start a Hydro Excavation Business How to Start a Trucking CompanyHubs & comparisons:
Truck Financing Guide Vac Truck vs Hydro Excavation Truck