Trucking & Transportation Business Loans
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Financing for Trucking Companies
Transportation and trucking business financing companies are the backbones of America. The $700 billion-dollar industry is responsible for most of the overland freight in the United States. Even with the 900,000 truck drivers in the US, there is still a constant demand and shortage of drivers. Trucking companies drive the US economy, but not without a cost.
Trucking companies have high expenses to operate the business. Many use transportation and trucking business financing loans. Trucking business loan programs are a great way to maintain operating cash flow to keep up with the constant capital demand. Trucking companies can use truck loans for businesses to finance new vehicles, pay for fuel expenses, maintain payroll, and for routine maintenance on trucks and trailers.
Trucking and transportation business loans programs vary based on what money is being used for. The most important thing is to make sure that you are using the right transportation loan program. For example, the best truck loan for business programs to use when purchasing a new trucking equipment financing for the transportation industry. If you are looking for capital for day-to-day operating expenses like fuel and payroll, you should be using freight factoring programs to get paid quicker on invoices.
Is it hard to get approved for a transportation business loan?
a) Fill out our online application form and enter your business information, contact details, and other necessary information.
b) After submitting your application and meeting the minimum requirements, you’ll receive several loan options. Our lending expert will walk you through this process and help you decide which loan works best for your business.
c) Choose a loan and receive the funds within 24 to 48 hours.
How much should your credit score be to get a business loan?
How can you grow your transportation business?
Don’t hesitate to speak with one of our financial experts for additional information. They’re more than happy to fill you in with the details regarding business growth and financing.
How much money can you get from a transportation business loan?
Most of the loans we offer are unsecured, so you don’t need to pledge any of your assets. Repayment terms are flexible, and they usually range between 3 to 36 months.
How long do you have to wait before the money reaches your account?
How can you use the funds from a transportation loan?
You can use trucking business funding from a transportation loan for almost any business purpose. Trucking business funding flexibility allows you to:
- Add more trucks/vehicles
- Make payroll
- Improve logistics
- Update technology
- Hire more drivers
- Pay for marketing and advertising efforts
- Invest in equipment
- Repair vehicles
- Extra cash on hand
Loan Options for Trucking Companies
Transportation Factoring and Freight Bill Factoring
The most common form of financing in the transportation industry is freight factoring. From owner operators to large fleets, business owners are accustomed to working with large corporations and clients that dictate payment terms. Net 30 to Net 45-day payment terms leave transportation businesses strapped for cash. Weekly expenses such as fuel, payroll, and routine maintenance add up while waiting to get paid on each invoice. By utilizing invoice financing programs such as transportation factoring and freight factoring, companies can get paid sooner and not worry about operating capital. Get paid now instead of waiting 30 to 45 days!
Benefits of Invoice Factoring
- Weekly payroll
- Truck maintenance
- Fuel expenses
- Extra cashflow
- Growth capital
- Hiring new employees
Invoice Factoring Client Case Study
Asset-Based Loans for Freight Companies
Benefits of an Asset Based Loan
The main benefit of an asset-based loan is that your lending relationship is with one company, rather than having multiple lenders for equipment and receivables. Consolidating monthly payments to one lender helps companies manage cashflow and have one direct point of contact. The second benefit is that the programs act more like a traditional line of credit with an interest rate, instead of a purchase commission. Interest rates are charged on outstanding money borrowed, versus the face value of each invoice. This results in lower interest expense and more flexibility. Some of the ways to use an asset-based loan are below.
- Refinance trucks
- Get paid sooner on invoices
- Increase operating cashflow
- Hire new employees
- Secure new customers
- Purchase new vehicles
Asset Based Loan Client Case Study
SBA Loans for Transportation Businesses
A loans for truck drivers is the best way to get low-cost and long-term financing. SBA transportation loan programs allow companies to borrow money over a 10-year term. This results in better operating cash flow and low monthly payments for trucking companies. Sba truck loans for transportation businesses need to get loans for refinancing existing truck loans and leases. Sba truck loans and truck equipment leases are usually over 36 to 72 months. You can refinance existing trucks and purchase new ones over a 10-year term by using an SBA loan.
Benefits of an SBA Loan
There are many benefits to utilizing SBA loan programs. The first and biggest benefit is the length of term. Traditional truck financing programs provide terms for six years, where SBA loans for trucking company financing out to 10 years. The length in term results in lower monthly payments than traditional financing options. In addition to the term length, SBA loans can also provide permanent working capital for the business. Another significant benefit is refinancing existing loans for truck drivers and leases. There are limited ways to refinance older vehicles which is a unique benefit of an SBA loan for a trucking company. Additional ways to use an SBA transportation loan are below.
- Purchase new vehicles
- Refinance existing debt
- Hire new employees
- Improve operating cashflow
- Buy out truck leases
- Reduce monthly loan payments
Client Case Study
Bridge Loans for Trucking Companies
Short-term and bridge loans are excellent solutions for small business loans for start-up trucking companies. Businesses frequently come across opportunities that require them to act fast, which requires fast access to capital. Bridge loan programs have an easy application process and can be turned around in as quick as 24 hours. The most important thing for small business loans for start-up trucking companies to consider is the short repayment period. Bridge loans are meant to be a short-term solution for companies to fill cash flow gaps or take advantage of opportunities. The short-term nature of bridge loans has a quick repayment period so it’s important that the monthly payments are sustainable.
Bridge Loan Benefits
- Slow paying customers
- Working capital
- Emergency maintenance
- Hiring new employees
- Equipment down payments
- Purchasing truck parts
Client Case Study
Business Line of Credit for Transportation Companies
Benefits of a Business Line of Credit
Here are other ways to utilize a trucking line of credit.
- Emergency repairs
- New equipment purchases
- Operating cashflow
- Standby capital
- Hiring new employees
- Advertising and marketing
- Equipment down payments
- Purchasing new parts
- Fuel expense
- Payroll
Business Line of Credit Case Study
Equipment Loans for Trucks and Trailers
Benefits of Equipment Financing
The most important thing when operating a truck finance for new business is having cash on hand for opportunities or emergencies.A significant benefit of truck finance for new businesses versus paying cash is the low monthly payments and the ability to keep cash reserves in your industry. Another benefit for truck finance for new businesses is the low rates associated with equipment financing. Trucks and trailers are great assets and lenders offer low rates, long terms, and large amounts for both leases and loans.
Some of the ways to use equipment loans for trucking companies are below.
- Purchase new trucks
- Refinancing truck loans
- Upgrading outdated equipment
- Buy used equipment
- Update equipment software
- Buy used equipment
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